Multifamily Investing in the US Southeast Real Estate Market

Investing in Southeast U.S. multifamily real estate offers strong income potential and growth, driven by population and economic expansion.

Multifamily real estate investment in the Southeast U.S. has become increasingly attractive to investors seeking passive income and long-term growth.

The region’s rapid population growth, economic development, and relatively affordable property prices make it a promising area for multifamily investments.

Here are the key MSAs in the region.

Bar graph showing population sizes of major Southeast U.S. MSAs, with Atlanta leading. Key cities include Miami and Charlotte - Matheson Capital

Introduction to Multifamily Investing

Multifamily real estate, which includes residential properties with multiple separate housing units, typically 20 or more, offers a stable income stream and risk-adjusted returns.

These properties are favored for their economies of scale, reducing overall management costs and increasing profitability.

Benefits of Multifamily Properties

  • Stable income through rental payments.
  • Lower management costs due to economies of scale.
  • Diversification of tenant risk compared to single-family properties.

Southeast U.S. Market Overview

The Southeast U.S. market comprises the states of Alabama (AL), Arkansas (AR), Florida (FL), Georgia (GA), Kentucky (KY), Louisiana (LA), Mississippi (MS), North Carolina (NC), Oklahoma (OK), South Carolina (SC), Tennessee (TN), Texas (TX), and Virginia (VA).

Map of the Southeast U.S. featuring states like Florida, Georgia, and Texas, highlighting the region’s significance for real estate investments - Matheson Capital

The region is experiencing significant population and job growth, leading to high rental demand.

Property prices in this region are generally lower than other parts of the country, offering investors greater diversification at the same price point.

Key Growth Areas 

  • Atlanta, GA: Known for its economic diversity and job opportunities.
  • Charlotte, NC: A financial hub with strong job growth.
  • Raleigh, NC: A tech center with a growing population.

Unique Advantages of The Southeast Market

The Southeast market offers several advantages that make it particularly attractive for multifamily investments.

  1. Economic Growth: Strong performance driven by diverse industries like technology, finance, and healthcare.
  2. Population Influx: States like Florida, Georgia, and North Carolina continue to attract residents due to lower cost of living and greater job opportunities.
  3. Affordability: Property prices are generally lower than in major metropolitan areas, providing better investment opportunities.
  4. Favorable Climate: The warm climate and attractive lifestyle options contribute to sustained demand for rental properties.

Matheson Capital's Role in Multifamily Investing

Matheson Capital is a real estate private equity firm based in Charleston, South Carolina, specializing in value-add strategies to deliver above-market returns.

Since 2018, they have completed 16 multifamily acquisitions, achieving a weighted average LP IRR of 40%.

Map showing Matheson Capital’s investment sites in high-growth areas of the Southeast U.S., including Georgia and the Carolinas - Matheson Capital

Matheson Capital focuses on property renovations and operational improvements to enhance property value and increase rental income. These strategies, combined with strong regional growth trends, deliver returns to investors.

Conclusion

Investing in the Southeast U.S. multifamily market offers significant opportunities due to the region’s strong economic fundamentals, population growth, and affordable property prices.

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