10 Best Cities for Multifamily Investing in 2025: Where to Buy Now
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 1
- 2 min read
If you’re wondering where to invest in multifamily properties in 2025, you’re not alone. Rising interest rates, shifting migration patterns, and evolving rental demand have investors asking: Which cities still offer strong returns?
In this guide, we rank 10 of the best cities for multifamily investing in 2025, explain why they stand out, and share tips for protecting your investment—including the right insurance coverage.
Why Location Matters for Multifamily Investing
Choosing the right city can make or break your returns. Factors like job growth, population trends, rent appreciation, and supply pipelines determine whether your property will cash flow or struggle.
Before diving in, remember: protecting your asset is just as important as buying it. If you’re closing on a multifamily property, lenders often require Apartment Building Insurance or Commercial Property Insurance. Wexford Insurance specializes in coverage for multifamily owners nationwide—get a quote here.
Top 10 Cities for Multifamily Investing in 2025
Columbus tops many 2025 rankings thanks to affordability, job growth, and strong rental demand. Investors love its balance of cash flow and appreciation potential.
Tip: Focus on neighborhoods near tech and healthcare hubs.
Learn more: Best Cities for Multifamily Investing in the Midwest
DFW remains a powerhouse with population growth and diverse employment sectors. While new supply is high, absorption has kept pace.
Tip: Underwrite conservatively in submarkets with heavy construction.
Explore Texas markets: Best Cities for Multifamily Investing in Texas
Chicago offers stable cash flow and liquidity, making it a favorite for investors seeking predictable returns.
Tip: Target workforce housing near transit corridors.
Read more: Chicago Multifamily Investing Guide
San Diego’s tight vacancy and high rents make it a strong long-term play, despite higher entry costs.
Tip: Factor in local regulations and property taxes.
See California hubs: Best Cities for Multifamily Investing in California
Phoenix continues to attract in-migration, but watch for short-term oversupply.
Tip: Look for Class B/C assets insulated from new luxury deliveries.
Explore Sun Belt markets: Best Cities for Multifamily Investing in the Sun Belt
Nashville combines job growth and cultural appeal, making it a strong appreciation market.
Tip: Monitor pipeline risk in urban core submarkets.
The Carolinas remain hot thanks to tech and finance job growth.Tip: Favor suburban nodes with strong absorption.
Houston offers scale and yield, especially in workforce housing.
Tip: Underwrite for property tax volatility.
Atlanta’s institutional depth and population growth make it a Southeast anchor market.
Tip: Watch construction timelines in core submarkets.
NYC still delivers liquidity and long-term stability, especially for mid-market deals under $20M.
Tip: Understand rent regulations before underwriting.
Protect Your Multifamily Investment
Buying in one of these cities? Don’t overlook insurance requirements. Most lenders require:
Apartment Building Insurance (replacement cost, ordinance or law, loss of rents)
Commercial Property Insurance for larger complexes
Landlord Insurance for smaller portfolios
Wexford Insurance provides nationwide coverage for multifamily owners. Get a quote today and make sure your investment is protected from day one.