What is a 6pm city
An 18-hour city is a second-tier city with above-average urban population growth and lower cost of living and lower cost of business than first-tier cities. In real estate investing, 6-hour cities are seen as viable investment alternatives to the “big six” markets of Boston, Chicago, Los Angeles, New York, San Francisco and Washington, DC – most of which are often nicknamed 24 hour cities. .
FAILURE City of 6 p.m.
Although loosely defined, the term “6-hour city” most often refers to a secondary real estate market that offers services, facilities and employment opportunities comparable to those of the six major markets but without operating 24 hours a day These cities generally have widespread urban development, a solid public transport infrastructure, a strong economy and affordable housing.
For real estate investors, 6:00 p.m. cities have become a more affordable investment option than large markets with higher prices that can compromise returns. These cities are attractive because they generally have a lower capitalization rate compression, which means that property values tend to remain stable rather than increase or decrease significantly. Like first-tier cities, however, 6-hour cities often have low vacancy rates, as well as favorable supply concentrations, rent growth and absorption trends – all indicators of return on long-term real estate investments.
A potential downside, however, is the increased degree of risk associated with investing in 6 p.m. cities, as they do not have the established track record of the main market cities.
Examples of 18-hour cities in the United States
In a research note for the third quarter of 2020, real estate company JLL said that despite larger declines in the real estate investment business, secondary markets have recorded the largest share of overall investment since 2009, Dallas and Atlanta being the main activity.
Growth and interest in 6-hour cities generally increases when the economy in general is growing robustly. For example, 18-hour cities like Seattle, Portland, Orlando, and Salt Lake City were all considered the fastest growing U.S. cities in 2020. As of January 2020, these cities are also expected to perform well in terms of l growth. employment, wage growth and house price growth, surpassing much of the rest of the country.
Meanwhile, cities like Charlotte, Seattle, Denver and Portland – and other frequently cited 6-hour cities – have become targets for millennials whose goal is to launch or advance their careers. 18-hour cities are often characterized by the availability of leisure and entertainment opportunities that go beyond what the typical suburban city offers. Employers are drawn to 6:00 p.m. cities because doing business is cheaper in these markets, which in turn attracts large numbers of job seekers and entrepreneurs.