Pathfinder Multifamily Assets
Pathfinder has acquired over 5,500 units in six cities in the Western U.S.
Click on each city to view a snapshot about that market, why we think it is resilient and our active and sold units in that market.
978
Units Acquired
San Diego/Southern California
Backdrop
San Diego is one of the nation's most desirable and supply-constrained markets. The city features strong growth and major supply constraints with a 2022 employment-to-permit ratio of 4.6 vs. an equilibrium of 1.1 to 1.5. New apartment construction severely trails pent-up demand in the area where rising homeownership costs force more to rent (it costs 89% more to own than rent).
Why is it Resilient?
Strong job growth in scientific research, health care, and defense drives the San Diego metropolitan area. The combination of strong sectors and high desirability continue to drive population growth. San Diego ranks 19 out of 50 on the Pathfinder Economic Resiliency Index.
How it Impacts Multifamily
- Occupancy remains high at 94%
- Rents projected to increase 2.9% annually through 2027.
725
Units Acquired
Seattle
Backdrop
The Seattle area has benefited from a significant population, employment, and income growth since 2011. Escalating rents combined with high occupancies make it an economically resilient market.
Why is it Resilient?
Seattle hosts a large aerospace manufacturing and software technology workforce, with Boeing, Amazon, and Microsoft having Seattle headquarters. The market also features a steady workforce in engineering and government. Seattle’s 2.0% annual employment growth over the last 10 years is a testament to its economic resiliency. Seattle ranks 21 out of 50 on the Pathfinder Economic Resiliency Index.
How it Impacts Multifamily
- Housing demand continues to outpace supply. Employment and permit ratio expected to stay elevated at 2.8% in 2022 and 1.4% in 2023.
- Annual rent growth has averaged 3.5% over the past 10 years. Highest rent growth was achieved in 2021 at 10.3%. Rents expected to continue to increase at an average annual rate of 3.8% per year through 2024.
868
Units Acquired
Portland
Backdrop
The Portland area is characterized by limited supply and a challenging entitlement process for new projects. Strong population and job growth propelling large increases in household income. Median new home prices decreased 1.8% in 2023 and its forecasted to decrease 7.4% in 2024.
Why is it Resilient?
Portland continues to grow in manufacturing and technology while expanding in other resilient industries such as medical and engineering.
How it Impacts Multifamily
- Since 2014, apartment rents increased (3.6% per year)
- Rents projected annual increases averaging 3.1% through 2027.
388
Units Acquired
Sacramento
Backdrop
Sacramento's population rose 0.9% over the last five years, the fastest growth rate among large California cities. With relatively affordable housing compared to San Francisco, the median home price was around 65% below SF in March 2024.
Why is it Resilient?
Sacramento leads Pathfinder markets with the highest number of state and local government jobs. The market also experiences strong growth in technology and finance as more companies migrate from the Bay Area, averaging 1.46% employment growth over the last 20 years. Sacramento ranks five out of 50 on the Pathfinder Economic Resiliency Index.
How it Impacts Multifamily
- Annual rent growth rate (2023): 1.1%
- Current occupancy is 94%
- Multifamily permits well below 30-year average for a decade, creating shortage of rental housing
- In-migration from S.F. driven by lower costs and high quality of living
1,296
Units Acquired
Phoenix
Backdrop
The Phoenix area features a highly diversified economy, with most Fortune 500 companies having Phoenix operations, and its relatively affordable housing supports population and job growth. The city was #3 in the US in 2023 for population growth, with 46,600 jobs forecasted (2.0% growth) by end of 2023 vs the US job growth rate of 1.5%.
Why is it Resilient?
Phoenix continues to experience strong growth in a diversified collection of sectors such as aerospace manufacturing, health care and finance. Phoenix exhibits strong population growth and affordability, ranking 18 out of 50 on the Pathfinder Economic Resiliency Index.
How it Impacts Multifamily
- Since 2014, rents grew on average 5.2% per year.
- Occupancy remains strong at 93% for the past ten years.
1198
Units Acquired
Denver
Backdrop
Denver is characterized by strong population and job growth propelling large increases in household income. High apartment demand in the city is driven by limited supply of for-sale single-family homes (just 1.50 months’ supply in March 2024) and an increase in the median new home price increased 2.3% in 2023 and it’s forecasted to be 3.6% in 2024.
Why is it Resilient?
Denver benefits from a strong job market, particularly in sectors that relate to software technology, telecommunications, and defense. Employment in government and technology focused industries are expected to continue to grow as indicated by the 20-year average employment growth of 1.44%. Denver ranks 7 out of 50 on the Pathfinder Economic Resiliency Index.
How it Impacts Multifamily
- Since 2014, apartment rents grew on average 3.7% per year.
- Despite increasing apartment supply, rents escalating with projected annual increases averaging 2.7% through 2027.
Pathfinder Target Markets
Our investment strategy involves not only choosing the right properties, but choosing target markets that are economically resilient. Our six primary markets benefit from jobs in resilient sectors, like technology, finance and government and have lower concentration of jobs in vulnerable industries, like tourism, capital goods manufacturing and energy/natural resources. See our Pathfinder Economic Resiliency IndexTM (PERITM) to learn more.
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