BYTHE NUMBERS
MARKET TRENDS
second, you’ll be paying top dollar for a rental stream that could be sharply affected if the local boom cools. On the other hand, there are markets where home prices are still recovering (Florida, the Midwest) and the relatively higher rents make straight single-family
IngoWinzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employ- ment and population. Winzer, who has
analyzed real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston University. Winzer resides in Cambridge, Mass. www.localmarketmonitor.com
> Continued on :: PG 113
2017 POPULATION
JOB GROWTH RATE
HOME PRICE/ RENT RATIO
LOCAL MARKET MONITOR
HOME PRICE INCREASE AVERAGE HOME PRICE (THOUSANDS)
585,799
4.3%
9%
$258
19
Provo, UT
676,909
4.3%
13%
$235
21
Boise City, ID
1,896,425
4.0%
9%
$306
17
Fort Lauderdale, FL
513,559
4.0%
9%
$195
18
Fayetteville, AR
$245
16
2,387,138
3.7%
12%
Orlando, FL
642,850
3.7%
10%
$240
19
Ogden, UT
1,830,345
3.4%
10%
$272
21
Nashville, TN
4,707,151
3.3%
12%
$259
18
Dallas, TX
622,899
3.3%
5%
$194
18
Des Moines, IA
1,449,481
3.3%
8%
$241
17
Jacksonville, FL
5,710,795
3.3%
9%
$231
16
Atlanta, GA
Top 20 Markets for Defensive Investing MARKETS FORTIFIED TO PROTECT THE SINGLE-FAMILY RENTAL INVESTOR.
1,273,568
3.0%
9%
$275
21
Raleigh, NC
843,954
2.9%
13%
$308
21
Tacoma, WA
2,426,363
2.8%
10%
$257
21
Charlotte, NC
2,395,645
2.8%
12%
$230
18
Fort Worth, TX
by Ingo Winzer
3,524,583
2.8%
8%
$255
20
Minneapolis-St. Paul, MN
ith the national economy slowing down (yes, it is) and the Fed promising to raise interest rates, inves- tors may want to take a step back from their current investing strategy and consider their options. On the one hand, there are markets where housing remains tight and home W
your ownership costs) is just too high to rent out an entire home to one tenant. However, while both options may seem streamlined, they will take some time which could hurt your bottom line. In the first case it will take a year to do the work to split the property in two units before you’re ready to rent; in the
prices are both high and still rising, such as California. In these markets you can establish a rental property by split- ting a single-family home into multiple units or you can buy one already split. In most cases, this is the only way to in- vest in rentals in a market like Califor- nia’s because the rent (not to mention
452,422
2.5%
5%
$202
16
Corpus Christi, TX
1,038,583
2.4%
10%
$183
16
Grand Rapids, MI
500,535
2.4%
6%
$208
20
Lexington, KY
974,861
2.3%
9%
$223
17
Fresno, CA
Source :: Local Market Monitor
110 | think realty magazine :: year end 2017
thinkrealty . com | 111
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