The rental market in the United States is red hot. More than 35% of the nation's households are renters.
There are many headwinds that are holding consumers back from buying a home. Mortgage rates and surging home prices are the top reasons.
As a landlord, there is no shortage of rental demand to keep your revenue stream flowing. However, not all rental markets are created equal.
Read on to learn about the hottest markets in real estate. Explore topics such as how a property management company can help you manage multiple properties and what are the most popular investment locations.
Understanding Real Estate Markets
Before diving into the top investment cities, it's important to understand the conditions that drive a positive return on investment (ROI).
For starters, there must be an adequate supply of rental units. If supply is limited, it makes it harder and more expensive to purchase a rental property.
Economic conditions in the area are also critical. Full employment in the region is a necessity. This means there are high-quality renters in the area that are gainfully employed and can pay the rent on time.
Other qualitative factors are important as well. Things like the quality of local schools and access to a beach can drive demand for rental units. Each renter has different priorities, but social and economic factors are important ones to look for.
Hottest Markets in the United States
There are many hot markets in the country. You can tell what markets are hot by tracking metrics like monthly rent prices, employment rates, and inventory. Good economic conditions lead to other important factors such as a low eviction rate.
Rent prices are perhaps the most important as they directly correlate to the landlord's profitability. If the landlord has paid off the mortgage, higher rent prices could mean more income. Higher prices could also benefit landlords if they're locked into a low rate and bought before prices exploded.
Virginia Beach and the Hampton Roads area are a perfect example. While other major cities experienced a decline, rental prices in Hampton Roads are increasing by more than 5%. This growth rate was one of the highest in the country.
Boise, Idaho is another popular city to invest in. Investors like the city's strong job market, affordable housing, and growing population.
Houston and Dallas are similar to Boise in terms of attractiveness. An added benefit to investing in Texas is low property taxes and no state income tax.
Las Vegas, Nevada is another strong rental market. Sin City is popular with investors because it is a tourist destination. This label leads to a strong job market and a growing population.
A Property Management Company Can Help
There's nothing left holding you back from investing in these hot real estate markets. If you have the capital but do not have the time to manage it, a property management company can help.
If you want to invest in the hottest markets and need a property management company to help, contact us today to speak with an expert.