Top five cities for landlording
We’ve said it for a long time now – renting is the new black. Rents are up, vacancies are down, and investors are making up more of the home buyer market than in recent years. The tides are turning and the natural real estate cycle is kicking back up – it will be a great time to be a landlord for a few years, then we’ll see people go back to buying homes, it’s all natural.
According to Local Market Monitor, the top five most rewarding cities for being a landlord are led by Houston, based on home prices, area economy and rents, and ranked by job growth.
1. Houston, TX
Projected 3-year rent increase: 18%
Q2 home price: $174,000
Current monthly rent: $818
Annual job growth: 2.5%
2. Grand Rapids, MI
Projected 3-year rent increase: 15%
Q2 home price: $128,000
Current monthly rent: $785
Annual job growth: 2.4%
3. Rochester, NY
Projected 3-year rent increase: 25%
Q2 home price: $148,000
Current monthly rent: $785
Annual job growth: 2.3%
4. Dallas, TX
Projected 3-year rent increase: 16%
Q2 home price: $166,000
Current monthly rent: $877
Annual job growth: 2.2%
5. Tulsa, OK
Projected 3-year rent increase: 19%
Q2 home price: $146,000
Current monthly rent: $671
Annual job growth: 1.8%
Investors looking to get into new cities, or to expand, the Texas and Oklahoma areas are reportedly hot right now with healthy job growth and rent increases.
Brandon
December 9, 2011 at 5:36 pm
Realtors in these areas might not need social media marketing to promote their listings (because demand is so high) but in other areas it's truly a must. Grand Rapids was kind of a surprise, but I guess where there's jobs there's a demand for properties!