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Private equity real estate fund manager Origin Investments has named five multifamily markets to watch for the coming year, and, not surprising, they are all in the Sun Belt. Using its proprietary suite of machine-learning models, Origin Multilytics, and insights from its regional deal acquisition officers, the Chicago-based firm finds that Austin, Texas; Las Vegas; Nashville, Tennessee; and Phoenix and Tucson, Arizona, have high potential for rent growth, investment, and development.

According to Origin Investments, Multilytics evaluated 150 markets to identify those with the most promising fundamentals for rent growth by analyzing billions of data points, including historical rates, recent migration changes, housing affordability, as well as job, population, and income growth.

“While each market is unique and has its own nuances, there are common themes across our Multifamily Markets to Watch 2022 report,” said David Welk, executive managing director of acquisitions. “There is a job creation spigot that isn’t likely to be turned off anytime soon. We are seeing, and in many cases participating in, tremendous investment and development opportunities in several of these markets.”

The five metros all feature business-friendly environments, four-season lifestyles, and diverse and robust job markets. According to the report, the midsized cities all have room to grow, with suburban areas that enhance expansion potential.

Some of the highlights Origin Investments cites for each metro include:

Phoenix: This Arizona metro is providing a California lifestyle for a more affordable cost, with that affordability for businesses and households driving diverse demographic and economic growth. Semiconductor chip manufactures have billions of dollars of investments underway, while electric-vehicle startups also are establishing a presence.

Tucson: This up-and-coming market is becoming an affordable alternative to Phoenix, capitalizing on its proximity but keeping its own identify. Expected growth sectors, including logistics and information technology, are those that support the city’s largest private employer, Raytheon Missile Defense. In addition, Leonardo Electronics is expanding in the city with a semiconductor laser manufacturing facility.

Las Vegas: Sin City is becoming established as an affordable, business-friendly alternative. Toolmaker Haas Automation is building a manufacturing facility in Henderson, the U.S. Department of the Interior is creating the nation’s largest solar farm, and hotel and casino projects totaling $4.7 billion will be completed within two years.

Austin: The Texas capital continues to be comparatively affordable and has seen a surge of tech giants moving in and making significant investments. Oracle, Samsung, Apple, Facebook, and Tesla are just a few of the companies creating well-paying jobs.

Nashville: The pro-business Music City combines lifestyle-friendly and big-city vibes. The Multilytics analysis cites that the market is experiencing tight housing supply and is expected to see continued steady job and income growth.

Origin Investments has been committed to using machine learning and artificial intelligence to help guide its investment, management, and disposition decision-making.

“There is no single metric that any prudent real estate investor or fund manager should rely on when investing tens of millions of dollars in a project,” said co-CEO David Scherer. “Instead, it’s the compilation of data and intense boots-on-the-ground intelligence that guide which markets to investigate more thoroughly before making any commitments.”