The definition of “core” real estate markets is shifting. While gateway cities still attract capital, more sponsors are targeting secondary metros for their growth potential, affordability, and migration trends. For advisors, understanding why these markets are gaining traction can inform both risk assessments and return expectations.

Migration and Job Growth Are Redrawing the Map

In recent years, markets like Raleigh, Tucson, Charleston, Savannah—and notably, Phoenix—have seen sustained population growth and employer migration. Phoenix, in particular, has emerged as a hub for logistics, manufacturing, and tech-adjacent industries, supported by investment in infrastructure and workforce development.

Affordability Creates Room for Resilience

Compared to major cities, many secondary markets offer more favorable rent-to-income ratios. This can provide a buffer during periods of economic volatility and may contribute to longer tenant retention or more consistent absorption in lease-up phases.

Rincon’s underwriting framework, as implemented in the Fund, considers affordability metrics as a core input—both to help assess rent growth potential and to calibrate renovation scopes in line with local demand and income levels.

Scale and Efficiency in the Fund’s Execution Model

Key Takeaway for Advisors

Advisors have an opportunity to lead client conversations as real estate market dynamics evolve. Rincon Multifamily Fund II provides access to a portfolio of assets in secondary metros where structural tailwinds may support long-term income and value. Understanding why the Fund is positioned in these markets can help advisors deliver a more informed perspective when discussing real estate allocations with clients.

Learn more about Rincon Multifamily Fund II and how our approach to market selection supports a resilient, income-focused portfolio. Schedule a no-obligation call with us here.