HOUSINGNEWS REPORT
RUST BELT RENTAL TOUR
liens, bird dogs, direct mail, all of that,” he said.
Patrick Jemmings, owner of Thrive Homes, said his firm’s turnkey homes have seen rents increase slightly while demand remains strong. He markets exclusively to buyers on the west coast through relationships developed with investors and turnkey providers. The market is so popular, he has even had investors from California buy in Milwaukee sight unseen — it all depends on their comfort level. “Generally north of downtown is where we’ve been focusing. We’re trying to branch out to south of downtown since Foxconn is coming in. The rents on the north side are higher than on the south,” Jemmings said.
His firm is providing totally upgraded homes originally built in the 1940s and ‘50s between 1,200 and 1,400 square feet. Most of the homes are three bedroom, one bathroom with a detached garage. Occasionally, a second bath is added. Some have a finished basement and sometimes additional living space in the attic, he noted. Rents run between $800 and $1,400 a month. “One thing we do that is kind of unique is we have a partner who has a relationship with care home providers,” he said. “If there’s a need for it we rent our homes to care home providers because they have no turnover. It’s an added bonus to our investors that they can have long- term tenants. There’s a big push in Wisconsin to privatize that and get it away from government facilities.” Most of Jemmings’ investors are financing their purchases unless they have cash, and that’s usually RENTAL MARKET PROFILE: MILWAUKEE (MILWAUKEE COUNTY) • Median Home Price: $97,900 (Up 6 percent) • Average Fair Market Rent for 3-Bedroom: $1,226 (up 5 percent) • Potential Gross Annual Rental Yield: 15.0 percent (down 1 percent)
A Brewing Marketplace in Milwaukee Like many other parts of the
Rust Belt, Milwaukee is known as a manufacturing city, and it still produces some of the nation’s best known brands of beer. But, also like many other parts of the Rust Belt, the city has been experiencing an exodus of population. But with an unemployment rate that dropped to 4.1 percent in August 2018, down from a peak of 11.1 percent in February 2010, the city’s job market is cause for optimism.
“Generally north of downtown is where we’ve been focusing. We’re trying to branch out to south of downtown since Foxconn is coming in. The rents on the north side are higher than on the south.”
PATRICK JEMMINGS OWNER, THRIVE HOMES
MILWAUKEE (MILWAUKEE COUNTY) RENTAL TRENDS AVG FAIR MARKET RENT (3-BEDROOM) ESTIMATED GROSS ANNUAL RENTAL YIELD
20.0%
$1,226
18.0%
$1,119
$1,143 $1,146 $1,168
$1,081 $1,091
$1,100
$1,057
16.0%
$1,058
$1,002
14.0%
$890 $915
12.0%
10.0%
8.0%
6.0%
4.0%
Sources: ATTOM Data Solutions, HUD
2.0%
0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
20
NOV 2018 | ATTOM DATA SOLUTIONS
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