Real estate continues to be perceived as a tool to grow wealth. Whether real estate is defined by “home is where your heart is” or by strictly investment properties, Ross Hamilton, CEO of Connected Investors, an online community for real estate investors, said, “As the stock market starts to show some weaknesses, investors continue to put their money into cash-flowing assets such as rental properties. Many of these people view rental real estate as a way to recession-proof their income and their retirement.”
Let’s assume that your real estate clients (and you) are considering investing in single-family rental properties. Where ought you look as an agent for your clients and yourself?
ATTOM Data Solutions can help point you and your clients in the right directions by utilizing ATTOM’s Q1 2018 rankings for the best US markets in terms of buying single-family rental return properties.
Counties with populations of +1M that have the biggest increase in potential annual gross rental yields for 2018 compared to 2017 include:
Harris County (Houston), TX – +7%
King County (Seattle), WA – +7%
Queens County, NY – +5%
Contra Costa County, CA – +4%
Cook County (Chicago), IL – +3%
Single-family rental growth markets with the potential of 2018 annual yields of 10% or higher include:
Cuyahoga County – Cleveland
Richmond County – Columbia, SC
Westmorland County – Pittsburgh
Winnebago County – Rockford, IL
Clayton County – Atlanta
Again according to ATTOM, the best low-risk, high return markets where 2018 annual gross rental yields look to be 10% or higher and where vacancy rates look to be 5% or lower and where property tax rates are 1% or lower include:
Randolph County – Greensboro, NC
Jasper County – Joplin, MO
Newton County – Atlanta
Rowan County – Charlotte
Wicomico County – Salisbury, MY
Note that rents are rising faster than wages in 84% of all markets nation-wide.
ATTOM Data Solutions also gives us Q1 2018 single-family rental growth by investor segments. ATTOM defines investor segments by the number of properties they own.
100+ properties owned– 9%
11-100 properties owned – 20%
6-10 properties owned – 21%
3-5 properties owned – 19%
1-2 properties owned – 12%
The average growth for all investors in single-family rental properties for 2018 is 13%.