FOMO vs. Fundamentals: Choosing the Right Market
By Mark Kenney | Think Multifamily
When it comes to multifamily investing, picking the right market can make or break your deal.
But chasing hype? That’s how smart investors lose real money.
At Think Multifamily, we’ve watched too many operators jump into “hot” markets because they read about them in a headline…
Only to realize later that the growth was already baked in — and the fundamentals weren’t there to support long-term success.
Real Story
In 2021, certain sunbelt markets were exploding. Everyone wanted in.
Prices skyrocketed.
Cap rates compressed.
Competition was fierce.
But by 2023, some of those same markets had cooled dramatically.
Rent growth stalled.
Operating costs jumped.
Supply outpaced demand.
Those who bought based on momentum — instead of long-term fundamentals — found themselves underwater, fast.
Key Lesson
You don’t chase markets. You choose them — based on real, sustainable data.
Smart operators:
Look at job growth, population trends, and wage expansion.
Watch supply pipelines, not just demand.
Consider landlord laws, tax impact, and employer diversification.
Hype fades. Fundamentals don’t.
Practical Guidance
✅ Focus on markets with real, sustained economic drivers — not just flashy stats.
✅ Study historical performance through multiple cycles.
✅ Evaluate competition: new supply, absorption rates, rent concessions.
✅ Be willing to pass on “popular” markets if the numbers don’t work.
Bottom Line
Your market is your foundation.
If it’s not built on real fundamentals, everything you stack on top of it is at risk.
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