Marcus & Millichap’s 2017 U.S. Multifamily Investment Forecast reports a high changeover in the makeup of the top-ranked multifamily markets between 2016 and 2017, based on current job growth, vacancies, construction, and housing affordability. The findings reflect the latest numbers in the real estate investment services firm's National Multifamily Index (NMI).
Los Angeles advanced 11 places from its 2016 ranking to take the top spot this year, owing to its forecasted decrease in vacancy rates and minimal supply growth. The Seattle–Tacoma and Boston markets advanced by seven places each to take the No. 2 and No. 3 spots, respectively. Meanwhile, last year’s leading NMI markets fell as others rose: San Francisco dropped from No. 1 to No. 7, San Jose from No. 2 to No. 8, and New York City from No. 3 to No. 10.