What are tertiary markets in real estate?

What is a Tertiary Market?

In real estate, the term "Tertiary Market" refers to smaller, less populous, and often more rural areas that are not as densely populated or economically active as primary and secondary markets. These markets typically have lower levels of real estate activity and may offer higher potential yields, but they also come with higher risks due to less economic diversity, lower demand, and potentially slower growth. Tertiary markets are often attractive to investors looking for lower property prices and the possibility of higher long-term returns, albeit with a more hands-on management approach and a deeper understanding of the local market dynamics.