Rental housing economist Jay Parsons makes the case for tertiary markets — smaller metro areas outside the top 50 in size. Jay shares data on how (and why) smaller markets have outperformed on rent growth in recent years, and reveals which tertiary markets might continue to see strong demand for apartments and single-family rentals into the next cycle. Jay also shows data highlighting how investors have increasingly shown interest in smaller markets, which now comprise around 20% of all U.S. apartment sales — up substantially over the last 15 years. Later in the program, Jay brings into the discussion Jasin Alfaro, CEO of Metonic, to dive deeper into tertiary market strategies. Metonic is the Omaha-based owner of 10,000+ apartment units across the Midwest, Texas and California. Jasin reveals why Metonic believes in tertiary markets, what he looks for when selecting a smaller market, and how to sell investors on markets they may not know well. Additionally, Jay brings back recurring segments like "In the News," "New Digs" and "Rental Housing Trivia."
TIMESTAMPS:
0:00 - Intro
3:15 - Here’s A Chart
21:23 - Rental Housing Trivia
22:16 - In the News
24:30 - New Digs
26:39 - Rental Housing Trivia Answer
28:35 - The Interview
29:07 - How ‘Metonic’ Was Born
31:25 - Tertiary Markets As a Category
34:02 - Yield in Tertiary Markets
36:14 - How Jasin Chooses a Tertiary Market
43:20 - Finding Non-Hostile Enviroments
44:57 - Comfortable Inverstors
47:21 - Jump Into BTR
50:39 - How Metonic Will Be Expanding
52:37 - Appealing Markets
59:14 - Outro