The Phoenix metro area ranks among the best cities in the country for multifamily investment in 2023, according to real estate investment company CONTI Capital.

CONTI’s report suggests that Phoenix’s growth in the past few years is not due solely to pandemic-induced relocation trends. The city’s population has grown by 277,000 over the past five years, with many homebuyers fleeing more expensive states like California for more affordable housing in Phoenix.

“Phoenix is another market that we believe has been unfairly tarnished in recent reporting related to the local housing market,” the report states. “As we have consistently made clear, market-level trends can often obscure submarket and micro-market trends that are far more relevant to specific investment opportunities.”

In addition to affordability, factors like high employment and a pleasant climate also make Phoenix an ideal relocation spot and therefore an ideal multifamily investment locale.

Overall, Phoenix ranked at No. 10 on CONTI’s list of the hottest cities for multifamily investment. Also on the list were Dallas-Fort Worth, Texas; Atlanta, Georgia; Austin, Texas; Charlotte, North Carolina; Orlando, Florida; Tampa, Florida; Houston, Texas; Nashville, Tennessee; and Raleigh-Durham, North Carolina.