Produced by The Belgian Dentist for The Income Strategist
Real estate prices have soared in 24-hour cities in gateway markets in recent years resulting in cap rate compression. As a result, better opportunities can be found in so-called 18-hour cities in secondary markets where there are still good supply-demand dynamics, high occupancy, and rent growth, despite lower cap rate compression. That means higher yields for investors seeking cash flow in real estate opportunities in 18-hour cities, and most of those cities are in the Sun Belt.
The rise of the 18-hour city
The prototype large