BY THE NUMBERS
LOCAL MARKET MONITOR
Back to Basics IN THE LONG RUN, GOOD RETURNS DEPEND ON ECONOMIC FORCES THAT FAVOR RENTALS. ver the last couple of years, inves- tors saw once-in-a-lifetime oppor- tunities to scoop up distressed properties but in the long run, good returns depend on economic forces that favor rentals. Our Top 10 list shows markets where rents are high O these markets, even as home prices increase at above-average rates be- cause of insufficient construction. • by Ingo Winzer
at fire-sale prices, because the hous- ing industry had produced and sold about 5 million too many homes. Investors al- ways welcome an outsized increase
relative to home prices and eco- nomic growth is strong. Over the next five years at least, the demand for rentals will be stronger than the demand for ownership in
BY INGOWINZER
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
in the value of their property,
3 YR POPULATION GROWTH (%)
LATEST HOME PRICE INCREASE (%)
2015 POPULATION
AVG. HOME PRICE (000)
LATEST JOB GROWTH (%)
MONTHLY RENT
PRICE/RENT RATIO
LOCAL MARKET MONITOR
2,321,418
$208
6.7
3.7
10
$1,181
15
Orlando, FL
1,027,703
$160
3.1
3.9
8
$881
15
Grand Rapids-Wyoming, MI
1,869,235
$268
4.5
3.2
9
$1,422
16
Fort Lauderdale-Pompano Beach, FL
2,350,233
$196
5.0
1.8
9
$1,028
16
Fort Worth-Arlington, TX
4,604,097
$218
6.2
3.5
11
$1,087
17
Dallas-Plano-Irving, TX
2,328,652
$204
6.1
3.7
8
$978
17
San Antonio, TX
632,293
$208
4.4
3.1
6
$981
18
Ogden-Clearfield, UT
1,994,536
$201
3.6
2.3
6
$918
18
Columbus, OH
664,422
$198
5.9
2.0
8
$876
19
Boise City-Nampa, ID
3,495,176
$231
3.1
1.8
5
$1,013
19
Minneapolis-St. Paul-Bloomington, MN
Source :: Local Market Monitor
98 | think realty magazine | mar :: apr 2016
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