These are the best markets to buy rental homes now says HomeUnion

by Steve Randall11 Jan 2018
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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