Sunbelt Boom: Why the Multifamily Market in Southern States Continues to Thrive in 2025

2024 was another year of change in the multifamily sector, but for those investing in the Sunbelt region—states like Florida, Alabama, Georgia, and Texas—the fundamentals remain strong.

While the Sunbelt has not been immune to oversupply and rising interest rates, population growth, business expansion, and continued demand for rental housing position the region for long-term growth.

The Sunbelt continues to attract new residents, companies, and capital. Investors who recognize these trends are positioning themselves to benefit from long-term appreciation and stable cash flow.

What’s Driving Growth in the Sunbelt?

‍Population Surge Continues

‍The Sunbelt remains a major destination for migration. Texas alone added over 560,000 residents in 2024, pushing its population to over 31 million. Florida was second in the nation for net migration, with thousands relocating due to job opportunities, favorable taxes, and quality of life. As demand for homeownership remains out of reach for many, these new residents are fueling strong demand for rental housing.

‍Job Growth Fuels Demand

‍The Sunbelt is home to some of the fastest-growing job markets in the U.S. Austin continues to see explosive growth in tech jobs, adding over 25,000 in 2023. In Atlanta, corporate relocations and the expansion of logistics, healthcare, and fintech industries have strengthened the multifamily market. As employment opportunities increase, so does demand for quality rental housing.

‍Business-Friendly Climate & Affordability

‍Affordability remains a key driver of migration. Compared to high-cost markets on the coasts, Sunbelt cities offer a lower cost of living and no state income tax (Florida & Texas), making them attractive to businesses and residents alike. As a result, rental demand in cities like Dallas, Orlando, and Nashville remains elevated even as national trends fluctuate.

‍Multifamily Performance Set to Rebound

‍While some areas continue to struggle with oversupply, national vacancy rates are expected to end 2025 at 4.9%, and rent growth is projected to average 2.6% annually. This resilience is largely due to sustained demand and economic momentum in the region.

Conclusion

New residents, job growth, and a business-friendly climate continue to make the Sunbelt a stronghold for multifamily investment. While some areas of the Southeast still struggle with oversupply, our focus on high-growth markets in and good locations positions us well for long-term stability and appreciation.

‍For those looking to deploy capital in 2025, the Sunbelt remains an attractive option for cash flow and long-term appreciation.

At Carbon Real Estate, we remain focused on acquiring and managing high-quality multifamily properties in these thriving markets. If you’re looking to invest in stable, cash-flowing real estate assets, the Sunbelt remains one of the best places to be in 2025.