In the era of the pandemic, virtual and hybrid work is the new normal. We are seeing record numbers of people quit their jobs, tightening labor supplies, and mobile workforces. In order to keep employees happy and to attract new talent, employers are offering higher salaries and more flexible work arrangements. This trend continues to accelerate migration to lower-cost cities on the edges the urban center, spurring population growth in cities like Lexington, KY; Ft. Worth, TX; and Rio Rancho, NM.

While Tier I markets slow, it is the smaller, more affordable Tier II and Tier III markets that present select opportunities for cash flow and continued price appreciation. As an example, there are still niche cities that are poised to benefit from population inflows and job creation. These select markets are areas BENA Capital will continue to pursue.

Expect prices to continue to slow or fall slightly in Tier I, Class A markets. Tier II and Tier III markets, especially warmer, lower-cost cities on the fringe of urban centers will continue to expand.