Second-Tier Cities Are Becoming the Key Real Estate MarketsSecond-Tier Cities Are Becoming the Key Real Estate Markets
Demographic changes in smaller U.S. cities provide real estate investors with significant new opportunities.
Many secondary and tertiary cities are seeing population growth and becoming revitalized. Meanwhile, larger cities are growing slower. Over the next 5 years, PWC projects that “the populations of New York City, Chicago, and Los Angeles will grow at a rate of just 0.2%; while Phoenix, Charleston, and Boise will increase at the significantly faster rate of 1.6%. Much of the migration is from the coasts to the middle of the country, where job and population growth are booming, and a lower cost of living means that residents’ and investors’ dollars go significantly farther.”
Younger generations are fueling this migration trend. Approximately 35 percent of homes sold in the U.S are being purchased by young adults. Many are returning to their hometown to pursue a lower cost of living.
With this wave of millennial homebuyers, Castle Placement is raising capital for several real estate companies developing projects for sale or lease in secondary and tertiary cities.
About Castle Placement: Founded in 2009, Castle Placement raises equity and debt capital for private middle market companies across a broad spectrum of industries. Highly experienced investment bankers and a robust, data-driven, innovative technology platform – including artificial intelligence/machine learning – match great companies with global institutional investors. Castle Placement’s proprietary app, CPGO, connects companies with investors in real time. It has over 64,500 private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds and lenders.