H.I.P.E.: How We Analyze Markets Before Acquiring Multifamily Properties via Syndication
- H Squared Capital, LLC
- Jan 7
- 3 min read
Before a multifamily property is ever toured…
Before a deck is built…
Before capital is raised…
The most important decision has already been made:
The market.
In multifamily syndication, market selection does more to determine outcomes than almost any single operational decision. You can renovate a property. You can improve management. You cannot out-renovate a weak market.
That’s where the HIPE framework comes in.
HIPE is a simple but powerful lens used to evaluate whether a market has the fundamentals necessary to support long-term multifamily demand.
HIPE stands for:
H – Home Price Growth
I – Income Growth
P – Population Growth
E – Employment Growth
Let’s break down why each matters—and how they work together.
H — Home Price Growth
Why it matters: affordability pressure drives renters
Home price growth tells us how expensive it is becoming to own a home in a given market.
When home prices rise faster than wages or savings, households delay buying and stay renters longer. That dynamic strengthens demand for well-located, professionally managed multifamily housing.
Key considerations:
Are home prices increasing steadily, not spiking unsustainably?
Is ownership becoming less attainable for first-time buyers?
Does the price trend support long-term rental demand rather than speculative froth?
Strong multifamily markets often sit in the middle ground:
High enough prices to support renting, but not so inflated that the market becomes unstable.
I — Income Growth
Why it matters: rent is paid with income, not appreciation
Population alone doesn’t pay rent—income does.
Income growth reflects whether residents can support rent increases over time without stress. Markets with expanding wages tend to support healthier rent collections, lower delinquencies, and more resilient cash flow during economic shifts.
Key considerations:
Are median household incomes rising?
Is wage growth broad-based or limited to a narrow segment?
Does income growth outpace inflation over time?
Income growth is one of the strongest indicators of rental sustainability, not just rental demand.
P — Population Growth
Why it matters: demand is built on people
Population growth is the simplest indicator of housing demand: more people need more places to live.
But not all population growth is equal.
We look beyond raw numbers to understand who is moving in and why.
Key considerations:
Is growth driven by jobs, affordability, or quality of life?
Are residents staying long-term or transitory?
Is household formation increasing (renters by choice, families, professionals)?
Healthy population growth tends to be steady, diversified, and supported by multiple economic drivers—not a single trend or incentive.
E — Employment Growth
Why it matters: jobs anchor everything else
Employment growth is the backbone of any durable market.
Strong job creation:
Fuels income growth
Attracts population inflow
Stabilizes occupancy during economic cycles
Equally important is job diversity. Markets dependent on a single employer or industry carry higher risk during downturns.
Key considerations:
Are jobs growing across multiple sectors?
Is the employer base diversified?
Are jobs expanding faster than population growth?
Markets with diversified employment tend to recover faster and experience less volatility over time.
Why HIPE Matters in a Syndication Model
In a multifamily syndication, investors are placing capital into a long-term operating business, not a short-term trade.
HIPE helps answer foundational questions before a deal is ever evaluated
Will people want to live here five to ten years from now?
Will they be able to afford rent increases responsibly?
Is demand driven by fundamentals or temporary trends?
Only after a market clears these filters does property-level analysis begin.
Final Thought
HIPE isn’t about predicting the future.
It’s about stacking the odds.
When home prices, income, population, and employment are all moving in the right direction—together—you create the conditions where good operators can execute and disciplined investors can stay patient.
In multifamily syndication, that discipline starts long before the acquisition.
It starts with the market.
Next Steps: Continue Your Education
If this article piqued your interest in real estate investing, congratulations, you’ve taken the first step toward understanding how ownership can work beyond traditional paths.
To continue your education, download The Blueprint to OWN MORE OF AMERICA, a practical guide designed to help investors better understand passive real estate strategies, mindset shifts, and how syndications fit into a long-term ownership plan.
If you’d like to learn more about how value-add multifamily apartment syndications work, or how passive investors typically evaluate these opportunities, feel free to reach out:
For educational purposes only. This is not financial or investment advice.
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