【CBRE】A Tale of Two Types of Cities

Gateway markets are characterized by a deep pool of multifamily demand and limited inventory growth, which helps them to perform relatively well when more dynamic markets like those in the Sun Belt are hitting a soft patch.

Gateway markets currently have a stronger near-term outlook because they were not subject to a supply deluge that hit the Sun Belt in recent years. This has helped Gateway market fundamentals amid a labor market slowdown in recent quarters. But while big Gateway markets are riding high today, history shows us the wheel will turn again for Sun Belt cities, and that is reflected in our forecasts.

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