Best places to buy Rental Properties in 2019

Real Estate Rental Properties
Saturday June 22, 2019

Best places to buy Rental Properties in 2019

2019 is believed to be revolutionary for the real estate industry. With exciting new opportunities and increased demand for housing properties, it is safe to say that real estate will soon become the highest income generating business in the world. The environmental factors that have a direct effect on the value of your investment property are job growth, population growth, and affordability. These are the characteristics of an ideal location for real estate investment. In this article, we will give you a list of the best places you should consider if you are planning to buy rental properties in 2019.

Best places to buy Rental Properties in 2019

1. Orlando, Florida

Orlando is one of the best places to invest in rental properties in 2019. With 52,000 new jobs created last year and an estimated 3.2% annual employment rate in the next 10 years, Orlando is becoming more and more attractive in the eyes of investors. The rising population in an area ultimately increases the demand for housing properties. Orlando’s population has increased by 227% than the national average in the last 7 years. This trend is expected to continue until the end of 2019 which will automatically increase the demand for housing as well. Moreover, a well-furnished property in a good neighborhood can still be purchased for about $156,117. making it one of the most affordable places to live in.

Market Statistics

  • Median Sales Price: $201,000
  • Median Rent Per Month: $1,398
  • Median Household Income: $42,000
  • Population: 2.5 M
  • 1-Year Job Growth Rate: 4.17%
  • 6-Year Equity Growth Rate: 66%
  • 7-Year Population Growth: 17%
  • Unemployment Rate: 2.9%

2. Pittsburgh, Pennsylvania

Pittsburgh is another attractive place that can be considered for investment. Between 2015 and 2016, 6773 jobs were created in the education and health sectors. This means that the demand for housing in Pittsburgh is increasing at a quick rate. Furthermore, the city has been ranked 12th in the list of best cities for millennials. The millennials often prefer renting to buy which means that the demand for rental homes will increase. Moreover, 3-bedroom single family homes only cost $141,000 which makes Pittsburgh one of the most affordable places.

Market Statistics

  • Median Sales Price: $141,000
  • Median Rent Per Month: $1,115
  • Median Household Income: $59,000
  • Metro Population: 2.3 M
  • 1-Year Job Growth Rate: 0.68%
  • 6-Year Equity Growth Rate: 21.00%
  • 5-Year Population Growth: -1.00%
  • Unemployment Rate: 3.8%

3. Huntsville & Montgomery, Alabama

The fourth largest city in Alabama is well known for its technology, space and defense industries. There have been 31000 jobs created by military sector in this city and this number is expected to increase in the coming years. The population growth rate has increased by 8.62% over the last 7 years which is 3.62% higher than the national population rate. The price of 3-bedroom single family homes is $151,000 which is 25% lower than the national average.

Market Statistics

  • Current Median Home Price: $151,000
  • Median Rent Per Month: $1,121
  • Median Household Income: $58,000
  • Population: 455,000
  • 1-Year Job Growth Rate: 3.56%
  • 6-Year Equity Growth Rate: 28.00%
  • 7-Year Population Growth: 8.62%
  • Unemployment Rate: 3.5%

4. Houston, Texas

The best reason to consider Houston to buy an investment property is that job growth rate is higher than the entire US. Houston’s population increased by 15.87% in the last 7 years as compared to the national growth rate which is only 3.93%. The price of a single-family home in 2018 was $159,000 which is 21% lower than the national price. The monthly rent is 0.91% of the purchase price as compared to the national rent which is 0.74% making it an attractive place in the eyes of investors.

Market Statistics

  • Current Median Home Price: $159,000
  • Median Rent Per Month: $1,440
  • Median Household Income: $62,000
  • Metro Population: 6.9 M
  • 1-Year Job Growth Rate: 3.75%
  • 6-Year Equity Growth Rate: 36.70%
  • 6-Year Population Growth: 15.87%
  • Unemployment Rate: 4.1%

5. Cleveland, Ohio

Cleveland has seen a rapid increase in jobs in the health and technology sectors. From 2000-2015, the population rate has increased by 77% which is far high the regional rate of 7.7%. Houses in the city can be bought for $70,000-$85,000 which means that there is a good opportunity for cash flow and appreciation in the market.

Market Statistics

  • Current Median Home Price: $129,000
  • Median Rent Per Month: $1,152
  • Median Household Income: $52,000
  • Metro Population: 2.1 M
  • 1-Year Job Growth Rate: 2.12%
  • 6-Year Equity Growth Rate: 15.24%
  • 7-Year Population Growth: -0.82%
  • Unemployment Rate: 6.4%

6. Cincinnati & Dayton, Ohio

Cincinnati metro area has the 4th largest no. of new facilities in the US and has a huge no. of job opportunities in the health sector. Since 1990, the city has seen a 14% increase in population growth and cost of living is 11.4% below the national average. The prices of fully renovated cash flow properties range from $80,000 to $150,000 making it an affordable city.

Market Statistics

Metro Population: 2.2 M
Median Household Income: $57,000
Current Median Home Price: $150,000
Median Rent Per Month: $1,272
1-Year Job Growth Rate: 0.82%
6-Year Equity Growth Rate: 16.0%
7-Year Population Growth: 3.05%
Unemployment Rate: 4.1%

7. Chicago, Illinoishio

There are 30 fortune 500 companies in the metro area of Chicago that generate GDP OF $500 billion. The population rate in Chicago is so high that it has exceeded the city’s limits automatically increasing property prices in the area. The good properties in mid-level neighborhoods can be found between $127,500 and $160,000 and the rent is over $1552 per month which means that there is a strong chance of appreciation.

Market Statistics

Metro Population: 9.5 M
Median Household Income: $63,000
Current Median Home Price: $196,000
Median Rent Per Month: $1,542
1-Year Job Growth Rate: 0.67%
6-Year Equity Growth Rate: 24.0%
7-Year Population Growth: 0.65%
Unemployment Rate: 5.4%

8. Kansas City, Missouri

The employment growth rate is impressive as 18,100 jobs were added in IT, healthcare and manufacturing sectors in the last year alone. The population growth rate has increased by 6.15% since 2010 which has increased the total no. of people to 2.1 million. Good properties in the city can be found between $100,000 and $120,000 and monthly rent is about $1275 showing the city’s increasing appreciation potential.

Market Statistics

Metro Population: 2.1M
Median Household Income: $45,000
Current Median Home Price: $162,000
Median Rent Per Month: $1,275
1-Year Job Growth Rate: 1.67%
6-Year Equity Growth Rate: 17.00%
7-Year Population Growth: 5.72%
Unemployment Rate: 3.9%

Sources

 https://www.zillow.com/kansas-city-metro-mo_r394735/home-values/
 https://factfinder.census.gov/
 https://www.deptofnumbers.com/employment/missouri/kansas-city/

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