{"id":29887,"date":"2021-08-24T04:52:00","date_gmt":"2021-08-24T11:52:00","guid":{"rendered":"https:\/\/www.yardi.com\/blog\/?p=29887"},"modified":"2026-02-22T15:27:46","modified_gmt":"2026-02-22T23:27:46","slug":"suburban-demand","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/suburban-demand\/","title":{"rendered":"Suburban Demand"},"content":{"rendered":"\n

Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one foot planted in major metros, many are following their trusted relationships to less familiar terrain outside of city limits.<\/p>\n\n\n\n

Sleepy secondary markets are waking up<\/strong><\/p>\n\n\n\n

The shift began as a trend prompted by the pandemic but has continued at a steady clip through the highs and lows of COVID-19. This is particularly true in cities where major employers have transitioned to remote and hybrid models.<\/p>\n\n\n\n

Many white collar industries such as technology, consulting and legal have adapted more flexible work conditions. With zero or fewer days required for office attendance, employees have been exploring their housing options.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Blake Hering, principal with Gantry Inc explains, \u201cAs these remote operating models adopted by many office users have taken root and grown following last year\u2019s social distancing mandates, a generational shift valuing the lower cost of living, higher quality of life, and larger footprint domiciles available in secondary markets has clearly fueled the beginning of a new, robust cycle for regional markets outside the MSA domain.\u201d<\/p>\n\n\n\n

Employees are venturing further from their workplace hubs to secondary and tertiary markets where their money likely goes farther: lesser-known markets may offer more square footage for their money and more outdoor space, housing trends that were revitalized during the pandemic.<\/p>\n\n\n\n

Lending follows the leader<\/strong><\/p>\n\n\n\n

The migration is particularly evident in MSA markets such as Seattle, Wash., and Portland, Ore.  in the Pacific Northwest. Investors are following demand to smaller markets such as Bend, Salem and Tacoma.<\/p>\n\n\n\n

\u201cThis shift is now rewarding experienced sponsors in what have become prioritized markets by offering access to a host of new lending sources that once only reserved their allocations for operators in what were considered the safer major MSA markets,\u201d says Hering.<\/p>\n\n\n\n

With the shift comes higher leverage, proposes Hering. \u201cFor those seeking higher leverage, agency lenders are also becoming active in these secondary markets at similarly appealing rates and terms up to 75 percent LTV,\u201d he says.<\/p>\n\n\n\n

Existing multifamily investors in secondary markets are making moves to refinance. Newcomers to the lesser-known markets are towing their preferred banks across less familiar terrain with minimal struggle.<\/p>\n\n\n\n

Read the complete article, Why Lenders Are Following Sponsors to Once-Sleepy Markets<\/a> on MultihousingNews.com.<\/p>\n\n\n\n

Suburban migration isn\u2019t exactly a trend<\/strong><\/p>\n\n\n\n

If altering investment strategies after a one-year trend seems unlikely for major lenders, you\u2019re right. But suburban flight is far from a flash in the pandemic pan.<\/p>\n\n\n\n

Between 2008-2012, populations migrated closer to major metros. The cities posed as a beacon of hope for those seeking employment. A renters\u2019 market made major markets more affordable than they had been in decades since.<\/p>\n\n\n\n

As the economy recovered and rents increased, urban dwellers began to reconsider their options. The Brookings Institute has closely analyzed the modern urban exodus since 2016<\/a>.  Populations have steadily trickled out of urban cores to low-density suburban counties for years. The current migration was simply expedited by the pandemic.<\/p>\n\n\n\n

What\u2019s different this time around is that many professionals may never need to return to the cities for work. Upwards of 20% of the population may no longer have to commute to offices<\/a>. That\u2019s roughly 28 million people.<\/p>\n\n\n\n

In a report<\/a> to the National Association of Realtors, Professor Joel Kotkin stated that during the past half-century, most people over the age of 30 prefer living in a single-family house. Only about 15% prefer higher density areas like cities.<\/p>\n\n\n\n

Kotkin adds, \u201cBut if people have the choice, most millennials would move to where it\u2019s more affordable, where they are closer to the things they like to do and, if they have kids, bigger yards, good schools and safe neighborhoods.\u201d<\/p>\n\n\n\n

The exodus may also be more permanent because secondary markets are offering urban-style amenities. Kotkin elaborates, \u201cThey have developed nice downtowns with good restaurants, coffee shops, walkable neighborhoods, art museums and other cultural attractions,\u201d he said.<\/p>\n\n\n\n

He continues, \u201cAs millennials get into their 30s and 40s, especially if they have kids, a lot of them want what their parents had, but with the things they enjoyed in urban areas, too.\u201d<\/p>\n\n\n\n

If lenders are comfortable placing their dollars in secondary and tertiary markets, we can expect the trend to be around for a while.<\/p>\n\n\n\n

Discover more market trends and analysis in the latest Yardi Matrix Multifamily report.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one foot planted in major metros, many are following their trusted relationships to less familiar terrain outside of city limits. Sleepy secondary markets are waking up The shift began as a trend […]<\/p>\n","protected":false},"author":440,"featured_media":29888,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2791,4],"tags":[2808,426,736,1169],"class_list":["post-29887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-matrix","category-news","tag-covid-19","tag-housing","tag-suburbs","tag-yardi-matrix"],"acf":[],"yoast_head":"\nYardi Blog<\/title>\n<meta name=\"description\" content=\"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yardi.com\/blog\/suburban-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Suburban Demand\" \/>\n<meta property=\"og:description\" content=\"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardi.com\/blog\/suburban-demand\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-24T11:52:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-22T23:27:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1061\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Erica Rasc\u00f3n\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Erica Rasc\u00f3n\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/\",\"name\":\"Suburban Demand - Yardi Corporate Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg\",\"datePublished\":\"2021-08-24T11:52:00+00:00\",\"dateModified\":\"2026-02-22T23:27:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac\"},\"description\":\"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one\",\"breadcrumb\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.yardi.com\/blog\/suburban-demand\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg\",\"width\":1920,\"height\":1061,\"caption\":\"Modern real estate apartment buildings - elevated view with clear blue sky in background\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.yardi.com\/blog\/suburban-demand\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.yardi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Suburban Demand\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\",\"url\":\"https:\/\/www.yardi.com\/blog\/\",\"name\":\"Yardi Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.yardi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac\",\"name\":\"Erica Rasc\u00f3n\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g\",\"caption\":\"Erica Rasc\u00f3n\"},\"description\":\"Erica Rasc\u00f3n specializes in online content creation and social media. She joined Yardi in 2011 after receiving her bachelor's degree from Kennesaw State University and serving in the Peace Corps. Erica's interests include sustainability, philanthropy, and the arts.\",\"url\":\"https:\/\/www.yardi.com\/blog\/author\/ericajarrell\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Yardi Blog","description":"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.yardi.com\/blog\/suburban-demand\/","og_locale":"en_US","og_type":"article","og_title":"Suburban Demand","og_description":"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one","og_url":"https:\/\/www.yardi.com\/blog\/suburban-demand\/","og_site_name":"Yardi Blog","article_published_time":"2021-08-24T11:52:00+00:00","article_modified_time":"2026-02-22T23:27:46+00:00","og_image":[{"width":1920,"height":1061,"url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg","type":"image\/jpeg"}],"author":"Erica Rasc\u00f3n","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Erica Rasc\u00f3n","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/","url":"https:\/\/www.yardi.com\/blog\/suburban-demand\/","name":"Suburban Demand - Yardi Corporate Blog","isPartOf":{"@id":"https:\/\/www.yardi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage"},"image":{"@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage"},"thumbnailUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg","datePublished":"2021-08-24T11:52:00+00:00","dateModified":"2026-02-22T23:27:46+00:00","author":{"@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac"},"description":"Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one","breadcrumb":{"@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.yardi.com\/blog\/suburban-demand\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/#primaryimage","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg","width":1920,"height":1061,"caption":"Modern real estate apartment buildings - elevated view with clear blue sky in background"},{"@type":"BreadcrumbList","@id":"https:\/\/www.yardi.com\/blog\/suburban-demand\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.yardi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Suburban Demand"}]},{"@type":"WebSite","@id":"https:\/\/www.yardi.com\/blog\/#website","url":"https:\/\/www.yardi.com\/blog\/","name":"Yardi Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.yardi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac","name":"Erica Rasc\u00f3n","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g","caption":"Erica Rasc\u00f3n"},"description":"Erica Rasc\u00f3n specializes in online content creation and social media. She joined Yardi in 2011 after receiving her bachelor's degree from Kennesaw State University and serving in the Peace Corps. Erica's interests include sustainability, philanthropy, and the arts.","url":"https:\/\/www.yardi.com\/blog\/author\/ericajarrell\/"}]}},"jetpack_featured_media_url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2021\/08\/YB-RH14866-Lending-trends.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/29887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/users\/440"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/comments?post=29887"}],"version-history":[{"count":4,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/29887\/revisions"}],"predecessor-version":[{"id":30024,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/29887\/revisions\/30024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media\/29888"}],"wp:attachment":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media?parent=29887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/categories?post=29887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/tags?post=29887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}