“The lack of affordability in some urban areas is changing behavior, sometimes radically,” the report states.

GlobeSt - Dan Clark - Investors and fund managers are seeing that buyers and renters are moving to second or third-tier cities, according to SEI/Prequin’s 2020 Survey of Real Estate Managers and Investors on the future of real estate investment.

Just over 60% of investors and just over 40% of fund managers indicated that there has been an emphasis on secondary and tertiary cities.

“These are not all created equal from the standpoint of residents or investors. The most attractive growth prospects are often found in markets anchored by prominent universities, large medical facilities or major research and development centers,” the report states.