BYTHE NUMBERS
A view of rental real estate "sweet spot" Augusta, Georgia.
LOCAL MARKET MONITOR
AVERAGE HOME PRICE (THOUSANDS)
TARGET RENT RANGE (MONTHLY)
POPULATION (2017)
HOME PRICE INCREASE (2017)
JOB GROWTH RATE (2017)
HOME PRICE VS INCOME
LOCAL MARKET MONITOR
590,146
6%
$189
$866 - $1,082
3.1%
-16%
Augusta, GA
974,861
9%
$237
$972 - $1,215
3.0%
-1%
15 “Sweet Spots” for Rental Real Estate Investors THESE MARKETS ARE NOT TOO HOT, NOT TOO COLD, & JUST RIGHT FOR REAL ESTATE.
Fresno, CA
325,079
6%
$153
$747 - $933
2.8%
-12%
Spartanburg, SC
459,863
7%
$214
$905 - $1,131
2.7%
-15%
Visalia-Porterville, CA
547,776
6%
$198
$788 - $984
2.5%
-9%
Chattanooga, TN
650,092
9%
$185
$909 - $1,137
2.4%
6%
Lakeland, FL
by Ingo Winzer
513,559
6%
$203
$786 - $983
2.4%
-25%
Fayetteville, AR
642,850
10%
$255
$920 - $1,150
2.1%
13%
Ogden-Clearfield, UT
ith all the focus just now on hot markets like San Francisco,
in these markets did very well in the last year. This is not a guarantee for the fu- ture, but a good indication that demand for rentals will outstrip supply for some years. In smaller markets like these you'll want to pay especial attention to proper- ty location: near retail or medical centers is best. College locations are also great, but rent to faculty or staff, not students! Moderate home prices mean a fair amount of competition from the purchase market, so you should aim for higher-class rentals. The Target Rent Range indicator in the graphic at right shows where you'll find
the highest concentration of renters; aim for the upper end of that range. You'll find some sweet opportunities in places you may not have visited before. •
W
311,154
6%
$167
$948 - $1,186
1.9%
-9%
Lubbock, TX
Seattle and Denver, smart investors will want to look at places with less hype but better opportunities. In these 15 markets, home prices - and therefore demand for housing of all kinds - rose at a very good clip last year but remain well in line with local incomes. In most of them, in fact, prices are still a bargain. You'll find many properties available at moderate prices, so you can build a portfolio with diversified risk. Most importantly, the local economy
874,869
8%
$230
$846 - $1,058
1.8%
1%
Greenville, SC
343,254
8%
$168
$866 - $1,082
1.6%
-10%
Ocala, FL
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
358,880
6%
$257
$1,031 - $1,289
1.6%
-6%
Ann Arbor, MI
431,032
7%
$164
$890 - $1,113
1.6%
-15%
Killeen-Temple, TX
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.
377,924
6%
$204
$999 - $1,249
1.6%
-7%
Tallahassee, FL
429,820
7%
$154
$737 - $921
1.5%
-17%
Fort Wayne, IN
Source :: Local Market Monitor, June 2018
94 | think realty magazine :: august 2018
thinkrealty . com | 95
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