11 of the top 15 markets nationally for percent of conventional properties renovated in the last five years are in Texas, including the top seven markets overall. Smaller areas with less new supply tend to have higher rates of renovation, and this has mostly held true in recent years, with one major exception.
Let’s take a closer look at some regions that have experienced a high rate of renovation activity since the start of 2015. Conventional properties of at least 50 units will be considered. It should also be noted that any renovation activity will be considered a renovation, regardless of on-site scope.
Top 10 Markets
- TX – Victoria, 20%
- TX – Dallas/Ft. Worth, 19%
- TX – Lufkin, 19%
- TX – Abilene, 18%
- TX – Texarkana, 16%
- TX – College Station, 16%
- TX – Midland-Odessa, 16%
- GA – Augusta, 14%
- GA – Savannah, 14%
- TX – Corpus Christi, 14%
What immediately jumps out from the list above is the Dallas – Fort Worth market. ALN separates markets into tiers based on the level of multifamily presence in each market. The largest markets 33 markets are categorized as Tier One markets. Of these, the average value for properties renovated in the last five years is 9%. The DFW area has doubled that in same period while also leading the nation in new supply.
On the other end of the spectrum, the only two Tier One markets to renovate less than 5% of existing conventional properties in the last five years are Los Angeles and New York City, at 4% and 3% respectively.
Check back with us at the ALN blog next week for a closer look at how renovated properties have performed compared to their overall markets.
For more information about specific markets, please refer to ALN’s complimentary Market Review reports here.