Real estate investors looking for the best markets to buy single-family homes for the rental market should head to Nebraska according to a new report
The HomeUnion report looks at where investors can buy single-family rental (SFR) properties at bargain prices during the winter months of 2018.
The investment and management firm found that buying during the winter of 2017/18 meant buyers paid on average 6.6% less that they did in the spring/summer buying season of 2017.
"For the second year in a row, our study found that the wintertime is the best season to acquire rental properties," explains Steve Hovland, director of research for HomeUnion. "Median home prices drop substantially during the colder months, while rent losses remain marginal for landlords.”
Hovland added that on average, investors can acquire higher-yielding properties in cold-weather markets like Omaha, Neb.; Chicago and Hartford, Conn., as well as Charlotte and the Dallas/Fort Worth Metroplex.
“Rental properties in our top 10 metros are discounted between 20% and 32% in the winter months, representing a significant savings for investors," says Hovland.
Prices are often lower in the winter as families are less likely to move during the school year.
HomeUnion’s top 40 best markets to buy rental homes in the winter are:
|
Metro Area |
Temperature Spread (Degrees Fahrenheit) |
Winter SFR Price |
Summer SFR Price |
Price Decline / Savings |
|
Omaha, Neb. |
50 |
$78,100 |
$115,000 |
-32.1% |
|
Chicago |
48 |
$185,000 |
$250,000 |
-26.0% |
|
Hartford, Conn. |
44 |
$153,000 |
$205,500 |
-25.5% |
|
Columbus |
43 |
$131,000 |
$175,000 |
-25.1% |
|
Seattle |
24 |
$389,500 |
$517,000 |
-24.7% |
|
Washington, D.C. |
42 |
$265,000 |
$349,900 |
-24.3% |
|
New York, N.Y. |
43 |
$309,000 |
$405,700 |
-23.8% |
|
Cincinnati |
44 |
$85,500 |
$110,200 |
-22.4% |
|
Grand Rapids |
47 |
$110,000 |
$140,000 |
-21.4% |
|
Minneapolis |
56 |
$163,800 |
$205,000 |
-20.1% |
|
Buffalo |
45 |
$119,900 |
$150,000 |
-20.1% |
|
Detroit |
46 |
$132,000 |
$165,000 |
-20.0% |
|
Kansas City |
48 |
$100,000 |
$124,900 |
-19.9% |
|
San Francisco |
12 |
$1,037,500 |
$1,285,000 |
-19.3% |
|
Sacramento |
29 |
$280,000 |
$345,000 |
-18.8% |
|
Charlotte, N.C. |
37 |
$127,000 |
$155,000 |
-18.1% |
|
Philadelphia |
42 |
$123,000 |
$150,000 |
-18.0% |
|
Dallas |
39 |
$167,000 |
$201,900 |
-17.3% |
|
St. Louis |
46 |
$91,100 |
$110,000 |
-17.2% |
|
Portland, Me. |
27 |
$286,700 |
$345,000 |
-16.9% |
|
Salt Lake City |
46 |
$217,800 |
$261,300 |
-16.6% |
|
Louisville |
43 |
$94,000 |
$111,600 |
-15.8% |
|
Atlanta |
36 |
$115,000 |
$135,000 |
-14.8% |
|
Miami |
16 |
$205,000 |
$240,400 |
-14.7% |
|
Houston |
30 |
$145,000 |
$168,500 |
-13.9% |
|
Rochester, N.Y. |
45 |
$120,000 |
$138,800 |
-13.5% |
|
San Jose |
20 |
$823,500 |
$950,000 |
-13.3% |
|
Providence, R.I. |
42 |
$200,300 |
$230,000 |
-12.9% |
|
Raleigh, N.C. |
38 |
$169,000 |
$192,500 |
-12.2% |
|
Boston |
44 |
$290,000 |
$330,000 |
-12.1% |
|
Pittsburgh |
43 |
$75,200 |
$85,000 |
-11.5% |
|
Las Vegas |
41 |
$208,500 |
$235,000 |
-11.3% |
|
Memphis |
41 |
$81,000 |
$91,200 |
-11.2% |
|
Tampa |
23 |
$120,000 |
$135,100 |
-11.1% |
|
Nashville |
40 |
$156,500 |
$175,000 |
-10.6% |
|
Milwaukee |
50 |
$100,200 |
$112,000 |
-10.6% |
|
San Diego |
17 |
$492,500 |
$550,000 |
-10.5% |
|
Los Angeles |
18 |
$537,500 |
$598,000 |
-10.1% |
|
Denver |
39 |
$311,000 |
$346,000 |
-10.1% |
|
Oakland, Calif. |
19 |
$490,000 |
$545,000 |
-10.1% |
|
Sources: HomeUnion Research Services, Maponics |
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