MARKETS & TRENDS
RENTAL MARKETS
Recovery Prospects MARKETS WITH A FAVORABLE RENTER OUTLOOK
by Ingo Winzer
T
he largest unknown in this pan- demic is how long it will last. The
PERCENT RENTERS
CURRENT JOB LOSSES
big job losses already have long-term consequences for the economy and the rental market; a more extended reces - sion would also lead to value declines in the homeowner market. With good news on the vaccine front, it now looks as though the homeowner market will be largely spared and that the rental market will have a moderate recovery. Not all those jobs will come back over the next two years, but many will. So, the next years will be a time to buy rental properties, many available at fire-sale prices as evictions increase and landlords can’t find new tenants. But investors must be able to carry an empty property for a while. The pros- pects for an eventual rental recovery will be strongest in places with a high percentage of renters and good eco - nomic prospects. Here are ten markets with char - acteristics favorable for an eventu - al good renter recovery. They’re not over-priced, had good growth before the pandemic, have a lot of renters, and job losses have been smaller than the national average of six percent. Our Investors Metro Analysis shows you the risks and opportunities in 200 local real estate markets at www. LocalMarketMonitor.com. Now with zip code rent data. •
36% -2.4%
Knoxville, TN (pictured)
35% -2.6%
Omaha, NE
36% -3.7%
Jacksonville, FL
37% -3.7%
Atlanta, GA
36% -3.8%
Oklahoma City, OK
36% -4.0%
Tucson, AZ
37% -4.2%
San Antonio, TX
35% -4.2%
Frederick, MD
39% -4.7%
El Paso, TX
39% -5.2%
Madison, WI
LOCAL MARKET MONITOR, CARY NC
Ingo Winzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employment 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
78 | think realty magazine :: january 2021
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