Top 10 Cities for Apartment Building Investments in 2025
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 13
- 3 min read
Multifamily real estate continues to be a top-performing asset class in 2025. With rental demand surging and housing affordability tightening, apartment buildings offer investors a reliable source of cash flow and long-term appreciation. In this blog, Wexford Insurance highlights the top 10 U.S. cities for apartment building investments based on rental demand, job growth, affordability, and market fundamentals.
1. Chicago, IL
Chicago remains a powerhouse for multifamily investors. With a population of nearly 2.7 million, strong job sectors (healthcare, finance, education), and a median rent of $1,900 for a one-bedroom, the city offers a stable tenant base and competitive pricing. Cap rates hover around 7.1%, making it attractive for cash flow-focused investors.
2. San Diego, CA
San Diego’s limited housing supply and high rental demand make it a top-tier market. With a median rent of $2,550 and a cap rate of 4.5%, investors benefit from long-term appreciation and low vacancy rates. The city’s economy is driven by defense, tourism, and tech.
3. Columbus, OH
Columbus offers affordability and growth. With a median rent of $1,250 and a cap rate of 6.0%, it’s ideal for investors seeking strong returns. The city’s diverse economy and proximity to Ohio State University ensure a steady stream of renters.
4. Nashville, TN
Nashville’s booming job market and cultural appeal make it a magnet for young professionals. With a median rent of $1,800 and a cap rate of 5.2%, the city offers both cash flow and appreciation potential.
5. Raleigh, NC
Part of the Research Triangle, Raleigh boasts a tech-driven economy and low unemployment. With a median rent of $1,570 and a cap rate of 5.4%, it’s a solid choice for long-term investors.
6. Boston, MA
Boston’s strong rental market and economic diversity make it a resilient investment. With a cap rate of 6.0% and high occupancy rates, it’s ideal for investors seeking stability in a major metro.
7. Dallas, TX
Dallas continues to attract investors with its population growth and business-friendly climate. With a cap rate of 5.4% and a diverse economy, it’s a top pick for multifamily investments.
8. San Jose, CA
Located in Silicon Valley, San Jose offers low vacancy rates and high rental demand. With a cap rate of 5.0%, it’s ideal for investors targeting tech-driven markets.
9. Philadelphia, PA
Philadelphia’s affordability and strong tenant base make it a smart investment. With a cap rate of 7.4% and a growing tech and healthcare sector, it offers both cash flow and growth.
10. Minneapolis–St. Paul, MN
The Twin Cities offer stable rental yields and moderate vacancy rates. With cap rates around 6.5%–7.5%, they’re ideal for investors seeking steady returns in a resilient market.
Protect Your Investment with Wexford Insurance
No matter where you invest, protecting your apartment building is essential. At Wexford Insurance, we specialize in commercial property insurance for multifamily buildings. Our tailored policies cover:
Loss of rental income
Equipment breakdown
Flood and windstorm coverage
Final thoughts
Investing in apartment buildings can be a smart move—especially in cities with strong rental demand, job growth, and long-term appreciation potential. Whether you're a seasoned investor or just getting started, the right insurance coverage is essential to protect your assets and income.
Contact Wexford Insurance today to get a customized quote and safeguard your apartment building investment.