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Now
Is The Time...
The Midwest is poised for unprecedented growth, driven by a powerful convergence of economic, financial, and technological forces. Its centralized location, robust infrastructure, and skilled workforce partnered with a resurgence in supply chain logistics, positions the Midwest as a critical hub for expansionism.
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Venture capital and private equity are increasingly recognizing the Midwest’s emerging presence and untapped potential. With record-breaking investments in clean energy, AI-driven automation, and next-generation agriculture, the region is on the cusp of an economic transformation.​
Economic Trends
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Nursing
Manufacturing
Predominant Occupations
The Midwest's labor market is anchored by two dominant industries: healthcare and manufacturing. Registered nurses (RNs) comprise 12-15% of total workforce, driven by an aging population and a strong hospital network. Manufacturing remains a cornerstone of the region’s economy, employing an additional 14-18% of the workforce.
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Cost Of Living
The Midwest region consistently outperforms other regions in several key affordability metrics. According to the Bureau of Economic Analysis, the aggregated Regional Price Parities (RPPs) has remained in the low 90’s for the past five years and indicators show that goods and services remain a consistent 12-14% less than the national average. Similarly, economic research forums report that 7 of the 8 Midwest states have a Cost of Living Index aggregation of 88.1 meaning prices average 11.9% less than the US average.
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Converged Diversification
​The Midwest has long been a magnet for large manufacturers, owing to its strategic advantages and robust industrial infrastructure, and underscored by recent data. In June 2024, the manufacturing industry in the Midwest experienced a remarkable growth rate of over 19% year-over-year, signaling a robust resurgence in the sector. Additionally, the value of manufacturing construction projects underway in the region exceeded $15 billion in April 2023, more than doubling from the previous year. These metrics shine light on why 150 of the Fortune 500 companies reside in the Midwest.
Our Target Market
Our investment approach goes beyond data. While we use select analytics to support decisions, we rely heavily on relationships, direct market insight, and a nuanced understanding of economic factors. This blend of quantitative and qualitative analysis helps us uncover value where algorithms fall short. We define our Target Market using the following criteria.
Primary Metrics
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Population Between 5,000 And 30,000
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Positive 3-yr Population Growth
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Median Income > State Median Income
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Vacancy Rate < 5%
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Apartment Per Capita Ratio < 10%
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Strong Municipal Incentives (TIF, Free Land)
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Population Density In The Middle Fifty
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Proximity To Larger Metro
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Legacy Anchor Institute (Hospital, Manufacturer)
Secondary Metrics
Target Market Conditions
Supply-Demand Imbalance
Multifamily housing within the Target Markets have experienced a contraction in total units, driven by higher construction costs, supply chain disruptions, and tighter lending conditions. Despite this contraction, occupancy rates have surged as demand for rental housing remains robust, fueled by demographic trends, rising mortgage rates, and affordability constraints in the single-family market. This supply-demand imbalance has led to increased rent growth and enhanced NOI and asset valuation.
Employment
Employment rate within each Midwest states' Target Markets has consistently exceeded the national rate, driven by a resilient labor market and diversified industry base. Strong growth in manufacturing, logistics, and healthcare sectors has bolstered job creation, supported by onshoring trends and increased investment in domestic production.
