Empira Group: Strategic advantages of US housing market for European investors

September 19, 2024

Real Estate United States

Empira Group, a leading investment manager for institutional property investments in the DACH region and the USA, latest research study reveals:

The US Sunbelt offers above-average rental yields driven by strong demand for housing and limited supply
Insufficient construction activity in the multifamily segment despite increasing attractiveness of rental apartments
Recording rental growth rates of up to 63% Sun Belt metropolises outperform the national average in the USA
Owner-occupied homes are becoming less affordable for US buyers, thereby boosting demand on the regional rental housing market

The new research examines property prices, rental yields and regional investment opportunities for residential property in the United States. As the largest property market in the world, the USA holds an exceptionally high level of market liquidity and transparency compared to the DACH region.

The housing market in the United States is generally characterised by rising purchase prices and growing demand. Due to its central role in the national economy and its attractiveness for individuals and companies, the Sun Belt region in particular is the target of internal influx and population growth from abroad.

An analysis of construction activity in the ten largest metropolitan regions of the Sun Belt in the period from 2013 to 2023 shows that more households have moved in than apartments have been completed. With purchase price rises for apartments in multifamily properties of up to 140%in parts of the Sun Belt, the affordability of residential property is also falling considerably. Overall, this is ensuring robust and rising demand for rental apartments, particularly in the multifamily segment.