St Louis made the list of the “Best 100 U.S. Markets to Invest in Rental Property“, developed by HomeVestors and Local Market Monitor, coming in right in the middle at number 50. Las Vegas was in the number 1 slot and California was the star of the show with 12 metros on the list
“There are good opportunities for investors in every one of the top 100 markets,” said HomeVestors’ co-president, David Hicks. “But investors would be wise to take into account other dynamics for the ideal timing to enter the market.” Hicks sites job growth as a key indicator of a market prime for investment. “Higher job growth rates normally indicate a stronger market for rentals,” he said. “Strong growth rates and higher risk-return premiums usually point to the best markets to invest in now.”
“So, we’re in a unique position: home prices falling now but certain to increase rapidly in the future, and rents boosted not just by higher demand but also by government-sponsored inflation,” said Ingo Winzer, president and founder of Local Market Monitor. “We think this is the best opportunity for investors to accumulate rentals in the last 30 years,” HomeVestors’ co-president, David Hicks commented.
| HomeVestors-Local Market Monitor Best 100 U.S. Markets to Invest in Rental Property |
|||
| Rank and Market | Risk-Return Premium (+/-) Relative to 5.2% National Average | Change from 4th Quarter, 2011 | |
|
1.
|
Las Vegas, Nevada |
5.60%
|
0.7
|
|
2.
|
Detroit, Michigan |
3.90%
|
-0.2
|
|
3.
|
Orlando, Florida |
3.50%
|
-0.2
|
|
4.
|
Daytona Beach, Florida |
3.20%
|
-1.1
|
|
5.
|
Bakersfield, California |
3.10%
|
0.5
|
|
6.
|
Fort Myers, Florida |
3.00%
|
no change
|
|
7.
|
Warren, Michigan |
2.70%
|
no change
|
|
8.
|
Phoenix, Arizona |
2.60%
|
0.4
|
|
9.
|
Atlanta, Georgia |
2.40%
|
0.4
|
|
10.
|
Boise City, Idaho |
2.30%
|
0.4
|
|
11.
|
Tampa/St. Petersburg, Florida |
2.30%
|
no change
|
|
12.
|
Fort Lauderdale, Florida |
2.20%
|
-0.4
|
|
13.
|
Reno, Nevada |
2.20%
|
0.2
|
|
14.
|
Dallas, Texas |
2.10%
|
0.4
|
|
15.
|
Fort Worth, Texas |
1.80%
|
0.2
|
|
16.
|
Rochester, New York |
1.80%
|
-0.5
|
|
17.
|
West Palm Beach, Florida |
1.70%
|
-0.2
|
|
18.
|
Jacksonville, Florida |
1.60%
|
-0.2
|
|
19.
|
Grand Rapids, Michigan |
1.60%
|
0.4
|
|
20.
|
Sarasota, Florida |
1.40%
|
-0.2
|
|
21.
|
Fresno, California |
1.30%
|
-0.3
|
|
22.
|
Tucson, Arizona |
1.30%
|
-0.4
|
|
23.
|
Des Moines, Iowa |
1.30%
|
0.4
|
|
24.
|
San Antonio, Texas |
1.30%
|
0.2
|
|
25.
|
Austin, Texas |
1.30%
|
0.4
|
|
26.
|
Riverside, California |
1.30%
|
no change
|
|
27.
|
Tulsa, Oklahoma |
1.20%
|
-0.1
|
|
28.
|
Omaha, Nebraska |
1.00%
|
-0.1
|
|
29.
|
Memphis, Tennessee |
1.00%
|
-0.1
|
|
30.
|
Kansas City, Missouri |
1.00%
|
no change
|
|
31.
|
Houston, Texas |
1.00%
|
no change
|
|
32.
|
El Paso, Texas |
1.00%
|
-0.1
|
|
33.
|
Miami, Florida |
1.00%
|
-0.2
|
|
34.
|
Indianapolis, Indiana |
0.90%
|
0.4
|
|
35.
|
Akron, Ohio |
0.90%
|
0.1
|
|
36.
|
McAllen, Texas |
0.90%
|
0.9
|
|
37.
|
Oklahoma City, Oklahoma |
0.80%
|
-0.3
|
|
38.
|
Sacramento, California |
0.8
|
-0.4
|
|
39.
|
Raleigh, North Carolina |
0.70%
|
0.6
|
|
40.
|
Columbia, South Carolina |
0.70%
|
0.4
|
|
41.
|
Colorado Springs, Colorado |
0.70%
|
-0.1
|
|
42.
|
Fayetteville, Arkansas |
0.70%
|
0.1
|
|
43.
|
Minneapolis, Minnesota |
0.70%
|
-0.3
|
|
44.
|
Little Rock, Arkansas |
0.70%
|
0.3
|
|
45.
|
Camden, New Jersey |
0.60%
|
-0.1
|
|
46.
|
Columbus, Ohio |
0.60%
|
0.3
|
|
47.
|
Cleveland, Ohio |
0.60%
|
-0.7
|
|
48.
|
Nashville, Tennessee |
0.60%
|
0.3
|
|
49.
|
Edison, New Jersey |
0.60%
|
no change
|
|
50.
|
St. Louis, Missouri |
0.50%
|
-0.1
|
|
51.
|
Provo, Utah |
0.50%
|
0.3
|
|
52.
|
Denver, Colorado |
0.50%
|
0.5
|
|
53.
|
Charlotte, North Carolina |
0.40%
|
0.3
|
|
54.
|
Greensboro, North Carolina |
0.40%
|
no change
|
|
55.
|
Chicago, Illinois |
0.40%
|
-0.2
|
|
56.
|
Madison, Wisconsin |
0.40%
|
0.1
|
|
57.
|
Bridgeport, Connecticut |
0.40%
|
0.4
|
|
58.
|
New Haven, Connecticut |
0.40%
|
no change
|
|
59.
|
Tacoma, Washington |
0.30%
|
no change
|
|
60.
|
Richmond, Virginia |
0.30%
|
0.1
|
|
61.
|
Albuquerque, New Mexico |
0.30%
|
0.3
|
|
62.
|
Hartford, Connecticut |
0.20%
|
-0.1
|
|
63.
|
Wilmington, New Jersey |
0.20%
|
-0.2
|
|
64.
|
Albany, New York |
0.20%
|
-0.1
|
|
65.
|
Chattanooga, Tennessee |
0.20%
|
-0.2
|
|
66.
|
Winston-Salem, North Carolina |
0.20%
|
-0.1
|
|
67.
|
Louisville, Kentucky |
0.10%
|
0.1
|
|
68.
|
Baton Rouge, Louisiana |
0.10%
|
-0.1
|
|
69.
|
Santa Rosa, California |
0.10%
|
-0.2
|
|
70.
|
Portland, Oregon |
0.10%
|
no change
|
|
71.
|
Cincinnati, Ohio |
0.10%
|
-0.1
|
|
72.
|
Knoxville, Tennessee |
Equal to national average of 5.2%
|
0.2
|
|
73.
|
Pittsburgh, Pennsylvania |
Equal to national average of 5.2%
|
0.2
|
|
74.
|
Milwaukee, Wisconsin |
-0.10%
|
no change
|
|
75.
|
Lexington, Kentucky |
-0.10%
|
0.3
|
|
76.
|
Virginia Beach, Virginia |
-0.10%
|
no change
|
|
77.
|
Birmingham, Alabama |
-0.20%
|
no change
|
|
78.
|
Philadelphia, Pennsylvania |
-0.20%
|
-0.1
|
|
79.
|
Asheville, North Carolina |
-0.20%
|
-0.1
|
|
80.
|
Salt Lake City, Utah |
-0.40%
|
0.2
|
|
81.
|
Lake County, Illinois |
-0.40%
|
0.1
|
|
82.
|
Baltimore, Maryland |
-0.40%
|
no change
|
|
83.
|
Seattle, Washington |
-0.40%
|
no change
|
|
84.
|
Washington, D.C. |
-0.40%
|
no change
|
|
85.
|
Boston, Massachusetts |
-0.40%
|
0.1
|
|
86.
|
New Orleans, Louisiana |
-0.50%
|
-0.5
|
|
87.
|
Thousand Oaks, California |
-0.70%
|
-0.3
|
|
88.
|
Charleston, South Carolina |
-0.70%
|
-0.3
|
|
89.
|
Nassau, New York |
-0.80%
|
-0.1
|
|
90.
|
San Diego, California |
-0.80%
|
0.1
|
|
91.
|
Oakland, California |
-0.90%
|
0.1
|
|
92.
|
Providence, Rhode Island |
-1.00%
|
-0.1
|
|
93.
|
Honolulu, Hawaii |
-1.30%
|
-0.1
|
|
94.
|
Santa Ana, California |
-1.30%
|
0.1
|
|
95.
|
Newark, New Jersey |
-1.40%
|
0.1
|
|
96.
|
San Jose, California |
-1.40%
|
0.2
|
|
97.
|
Los Angeles, California |
-1.50%
|
0.1
|
|
98.
|
Bethesda, Maryland |
-1.60%
|
0.2
|
|
99.
|
White Plains, New York |
-1.80%
|
no change
|
|
100.
|
San Francisco, California |
-2.30%
|
0.3
|
Source: HomeVestors and Local Market Monitor
Leave a Reply
You must be logged in to post a comment.