BYTHE NUMBERS
RENT RANGE
RANKING BYYEAR-OVER-YEAR RENTAL RATE INCREASE (Q4)
MSAS IN SOUTH REGION RANK AT TOP
AVERAGE GROSS YIELD* (Q4)
CHANGE IN RENT (Q4)
RANK
MSA
Rental Market Trends OF RENTRANGE LIST OF MARKETS WITH LARGEST SFR RENT INCREASES FROM Q4 2014 TO Q4 2015. Tennessee account for eight of the top 10 places on RentRange’s list of the 25 MSAs with the largest single-family-home rental rate increases between the fourth quarters of 2014 and 2015. For real estate investors, the rental increases are only half of the full picture they should consider, the data and ana- lytics provider said in a news release an- nouncing the rankings. The gross yield data, which demonstrate income return from an investment prior to operating costs, indicate that markets in the South region are also ripe for investment and account for the highest gross yield percentage returns on the list. (The gross yield is the total annual income an investor receives from an investment property, divided by the price or value for the property. This figure does not account for any operating expenses including property taxes.) In the West region, where the nation’s home prices are the highest, markets across M by RentRange arkets in the South region in Florida, Louisiana, Arkansas and
1 2 3 4 5 6 7 8 9
Cape Coral-Fort Myers FL Shreveport-Bossier City LA New Orleans-Metairie-Kenner LA Deltona-Daytona Beach-Ormond Beach FL North Port-Bradenton-Sarasota FL Port St. Lucie FL San Jose-Sunnyvale-Santa Clara CA Providence-New Bedford-Fall River RI-MA Little Rock-North Little Rock-Conway AR Knoxville TN Charleston-North Charleston SC Los Angeles-Long Beach-Santa Ana CA Kansas City MO-KS Portland-Vancouver-Hillsboro OR-WA Sacramento-Arden-Arcade-Roseville CA Denver-Aurora CO Rochester NY Vallejo-Fairfield CA Columbia SC Fayetteville-Springdale-Rogers AR-MO Dallas-Fort Worth-Arlington TX Oxnard-Thousand Oaks-Ventura CA San Diego-Carlsbad-San Marcos CA Honolulu HI San Francisco-Oakland-Fremont CA
25.4% 19.6% 15.1% 14.9% 13.6% 13.3% 12.1% 12.1% 11.4% 11.1% 10.6% 10.0%
9.0% 13.3% 11.4% 10.3% 9.4% 10.4% 4.3% 6.8% 11.4% 9.6% 8.9% 5.7% 12.3% 6.5% 5.6% 6.9% 14.6% 6.8% 12.2% 9.0% 12.4%
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
9.9% 9.6% 9.4% 9.4% 8.9% 8.6% 8.5% 8.3% 8.2% 7.9% 7.8% 7.8% 7.7%
6.0% 5.7% 5.1% 5.2%
California, Washington and Hawaii occupy nine spots on the top 25 list. While the strong growth in rents is encouraging, cur- rent price levels in many of these Western markets suppress gross yields as they are consistently among the lowest on the list, according to RentRange. “The single-family rental market remains strong across the United States as the homeownership rate continues to decline and a higher percentage of the pop- ulation migrates to rental housing,” Rent- Range CEOWalter Charnoff said in the release. “As the real estate market continues
to improve, we are seeing significant rental price increases in many markets, which bodes well for investors in this space.” •
RentRange is the provider of Rental Market Intel- ligence reports to the financial services and real estate industries, delivering a wide assortment of address and geographical rental data, analytics and rent-based valuation solutions for single- and multifamily properties. Its solutions include a combination of on-demand automated rent valu- ation reports and subscription-based macro data available at the MSA, county, city and ZIP code levels. RentRange is part of the Altisource Portfolio Solutions S.A. family of businesses.
134 | think realty magazine | may :: june 2016
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