BY THE NUMBERS
LOCAL MARKET MONITOR
by Ingo Winzer ADifferent Perspective TODAY’S BEST RENTAL INVESTMENT MARKETS MAY NOT BE SEXY, BUT THEY’RE PROFITABLE. ow that real estate has stabilized, don't bother with the sexy markets. N markets—proof that there's not enough housing—but not so much that they're already too high. •
ments. Detroit and Las Vegas are no longer bargains, and the Texas markets have become expensive. Our Top 10 markets to consider for investment have good job growth, good population growth and generally modest home prices, but also an important con- sideration for long-term investors: a large and growing population of renters. A high proportion of their jobs are in business services and health care—industries that are growing but where average income encourages renting. Home prices have risen in these
The plunge in home prices after the recession provided opportunities for investors to snap up homes at bargain prices—with a view to renting them out as long-term investments or just to hold them until prices recovered. Basket cases like Detroit and Las Vegas and high- growth markets like Austin and Dallas made investment headlines. But the worst and the best of yester- day are no longer the most profitable possibilities to consider for new invest-
IngoWinzer, president of Local Market Monitor, has analyzed real estate markets for more than 20 years and in 2005 warned that many housing markets were dangerously overpriced. His views on real
estate markets are often quoted in the national press. Previously, Winzer was a founder and executive vice president of First Research, an industry research company that was acquired by Dun and Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston University.
www.localmarketmonitor.com
3 YR POPULATION GROWTH (%)
LATEST HOME PRICE INCREASE (%)
2014 POPULATION
AVG. HOME PRICE (000)
LATEST JOB GROWTH (%)
JOBS IN BS AND HC (%)
UNDER PRICED (%)
LOCAL MARKET MONITOR
1,027,703
$154
3
3.7
35
8
-24
Grand Rapids-Wyoming, MI
2,321,418
$203
7
3.5
29
9
-10
Orlando, FL
5,614,323
$200
4
3.3
30
8
-19
Atlanta-Sandy Springs-Marietta, GA
1,869,235
$259
5
3.3
30
9
12
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL
1,153,340
$258
4
3.3
28
6
1
Salt Lake City, UT
1,792,649
$227
6
3.1
31
8
-13
Nashville-Davidson-Murfreesboro, TN
2,915,582
$193
3
3
33
9
-5
Tampa-St. Petersburg-Clearwater, FL
4,489,109
$224
6
2.8
31
8
-1
Phoenix-Mesa-Scottdale, AZ
3,263,431
$409
4
2.8
29
7
6
San Diego-Carlsbad-San Marcos, CA
1,971,274
$178
3
2.8
30
5
-26
Indianapolis, IN
BS AND HC = Business Services and Healthcare
Source :: Local Market Monitor
138 | think realty magazine | may :: june 2016
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