Investors looking to purchase properties in thriving housing markets would be wise to be wary of the state of the economy in the markets where they shop.
A report from HomeVestors and Local Market Monitor found that good single-family rental markets for investors are places where home prices are likely to rise at a rapid rate in the next few years, the population is growing at an accelerated pace of 4 percent or better, job growth of 2 percent or more, and low unemployment.
Housing markets that are not considered prosperous for investors like have a small population due to unstable economies, according to the report.
“Due to a shortage of home construction since the recession, local housing markets with a strong economy will experience more demand than supply in the next few years,” said Ingo Winzer, President and Founder of Local Market Monitor. “This will create higher priced homes and rising rents.”
HomeVestors and Local Market Monitor also compiled a Best Markets Top Ten List for Real Estate Investing in the last quarter of 2015, based on cities with growing job opportunities over the last year. Overall, the national average increase was 1.9 percent.
At the top of the companies' list is Grand Rapids, Michigan, with Orlando, Florida coming in second. Texas cities also had a strong presence on the list, with San Antonio third, Dallas fourth, and Austin fifth.
“In 2015, prices in all of the top ten housing markets have increased by at least six percent,” said David Hicks, HomeVestors Co-President. “Prices will continue to rise, which is one of the reasons HomeVestors, the We Buy Ugly Houses people, continues to become an excellent option for independent investors.”
HomeVestors and Local Market Monitor's fourth quarter 2015 Best Markets Top 10 List for Real Estate Investing:
- Grand Rapids, Michigan
- Orlando, Florida
- San Antonio, Texas
- Dallas, Texas
- Austin, Texas
- Portland, Oregon
- Seattle, Washington
- Charlotte, North Carolina
- Salt Lake City, Utah
- Fort Lauderdale, Florida