Welcome!

News Feed Item

RealtyTrac Ranks Best Overall Markets for Buying Residential Rentals and Renting to Boomers, Millennials

370-County Analysis Finds Annual Rental Returns Average Nearly 10 Percent; Counties in Florida, Carolinas, Arizona Top Best Places to Rent to Baby Boomers; Baltimore, Philadelphia, Jacksonville, Fla., Top Best Places to Rent to Millennials

IRVINE, CA -- (Marketwired) -- 07/03/14 -- RealtyTrac® (www.realtytrac.com), the nation's leading source for comprehensive housing data, today released its Q2 2014 Residential Property Rental Report, which ranks the best markets for buying residential rental properties along with the best markets for renting to baby boomers and the best markets for renting to millennials.

For the report RealtyTrac analyzed median sales prices for residential property and average fair market rents for three bedroom properties in 370 U.S. counties with a combined population of 186 million people -- 60 percent of the total U.S. population. Rental returns were calculated using annual gross rental yields: the average fair market rent of three-bedroom homes in the county, annualized, and divided by the median sales price of residential properties in the county.

The 370-county analysis found that investors buying U.S. residential rental property in the second quarter of 2014 are getting an average annual return of 9.97 percent, down from an average annual return of 10.60 percent a year ago.

Median home prices in the 370 counties analyzed in the report increased more than 7 percent on average in the second quarter of 2014 compared to a year ago, while average fair market rents for three-bedroom homes increased an average of less than 1 percent.

"Home prices have increased at a faster pace than fair market rents in most counties over the past year, eroding the average returns available to investors buying rental properties," said Daren Blomquist, vice president at RealtyTrac. "Even so, an average annual return of nearly 10 percent across all the counties we analyzed nationwide is still solid, and investors holding on to rental property for the long term will also typically benefit from home price appreciation on top of the annual returns from rental income.

"Investors leveraging demographic trends will often be able to amplify rental returns and home price appreciation, particularly when it comes to trends in the baby boomer and millennial generations, which combined account for approximately 147 million people -- more than 60 percent of the U.S. adult population," Blomquist continued. "Many individuals in both of those demographic groups are in the midst of major life changes that will often involve changes in housing, something that smart real estate investors should take into consideration when deciding when and where to buy or sell."

Top 25 overall markets for buying rental properties
RealtyTrac factored in unemployment rates along with annual gross rental yields to select the 25 best markets for buying residential property rentals. Counties in the top 25 all had unemployment rates of 4.5 percent or lower in April 2014 -- well below the national average of 6.3 percent -- and had an annual gross rental yield of 9 percent or higher.

The three best markets for buying residential property rentals were Anderson County, S.C. in the Anderson metro area (15.33 percent annual gross rental yield); Woodbury County, Ia., in the Sioux City metro area (13.02 percent); and Pickens County, S.C., in the Greenville-Maudline-Easley metro area (13.00 percent).

Other metro areas with counties in the top 25 best markets for buying residential property rentals were Gainesville, Fla., Washington D.C., Columbia, S.C., Pittsburgh, Pa., Columbus, Ohio, Charleston, S.C. and Omaha, Neb.

"We have not had the apartment building development that we really need leading to a decreased supply in available rentals, which is causing rental rates to increase," said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, covering the Oklahoma City and Tulsa, Okla. markets, both of which had counties in the top 25 best markets for buying residential property rentals. "We are also noticing that the new qualified mortgage rules are restricting many first time home buyers from being able to qualify, which is adding to the demand for rental properties."

Top 25 markets for renting to baby boomers
RealtyTrac combined demographic data from the U.S. Census Bureau with the annual gross rental yield data to identify the 25 best markets for renting to the baby boomer population -- those born between 1945 and 1964. All 25 counties on the list saw an increase of at least 10 percent in the baby boomer demographic between 2007 (looking at the population aged 43 to 62 at that time) and 2013 (looking at the population aged between 49 and 68 at that time) and had a baby boomer population that represented at least 24 percent of the total population in 2013.

Annual gross rental yields for the top 25 baby boomer rental markets ranged from 5.50 percent in Placer County, Calif., in the Sacramento metro area up to 20.93 percent in Pasco County, Fla., in the Tampa Bay-St. Petersburg metro area. Pasco County was joined by 15 other Florida counties in 12 other Florida metro areas in the top 25.

Other metro areas with counties in the top 25 for renting to baby boomers were Lake Havasu City-Kingman, Ariz., Wilmington, N.C., Daphne-Fairhope-Foley, Ala., Prescott, Ariz., Asheville, N.C., Seaford, Del., Bend, Ore., and Hilton Head, S.C.

Markets in the top 25 for renting to baby boomers with the biggest increase in baby boomer population between 2007 and 2013 were Brunswick County, N.C., in the Wilmington metro area (49.7 percent increase), Charlotte County, Fla., in the Punta Gorda metro area (34.3 percent increase), Beaufort County, S.C., in the Hilton Head Island-Beaufort metro area (33.9 percent increase), Sussex County, Del., in the Seaford metro area (31.0 percent increase), and Citrus County, Fla., in the Homosassa Springs metro area (28 percent increase).

Top 50 markets for renting to millennials
RealtyTrac also identified the 50 best markets for renting residential property to the millennial population -- those born between 1977 and 1992. All 50 counties on the list saw an increase of at least 10 percent in the millennial demographic between 2007 (looking at the population aged 15 to 30 at that time) and 2013 (looking at the population between 21 and 36 at that time) and had a millennial population that represented at least 24 percent of the total population in 2013.

Annual gross rental yields for the top 50 millennial rental markets ranged from 5.53 percent in Charleston County, S.C., up to 21.32 percent in Baltimore City, Md.

Along with Baltimore, the top five markets for renting to millennials were Philadelphia County, Pa. (20.78 percent annual gross rental yield), Duval County, Fla., in the Jacksonville metro area (14.95 percent), Cumberland County, N.C., in the Fayetteville metro area (13.43 percent), and Newport News City, Va., in the Virginia Beach-Norfolk-Newport News metro area (13.20 percent).

Markets in the top 50 for renting to millennials with the biggest percentage change in the millennial population from 2007 to 2013 were Orleans Parish, La., in the New Orleans metro area (71.2 percent increase), Denver County, Colo., (57.5 percent increase), Montgomery County, Tenn., in the Clarksville metro area (46.3 percent increase), Hudson County, N.J. in the New York metro area (44.3 percent increase), and Multnomah County, Ore., in the Portland metro area (41 percent increase). All five of these markets had annual gross rental yields of 6 percent or higher.

Best markets for rental returns with no unemployment filter
Based solely on the annual gross rental yield, counties with the best returns on rentals were Wayne County, Mich., in the Detroit metro area (28.39 percent annual gross rental yield); Clayton County, Ga., in the Atlanta metro area (27.39 percent); and Saginaw County, Mich., in the Saginaw metro area (26.28 percent).

Other counties with gross rental yields among the top 10 highest were Genesee County, Mich. (21.39 percent), Baltimore City, Md. (21.32 percent), Pasco County, Fla. (20.93 percent), Sumter County, S.C. (20.84 percent), Philadelphia County, Pa., (20.78 percent), Bibb County, Ga. (20.52 percent), and Winnebago County, Ill. (19.26 percent).

Report methodology
The RealtyTrac Residential Property Rental Report provides annual gross rental yields for 370 counties nationwide with a population of at least 100,000 and where there were at least 40 residential property sales in April 2014. The gross rental yields are calculated using median sales prices of residential property from RealtyTrac sales deed data along with fair market rents for three-bedroom properties from the U.S. Department of Housing and Urban Development (HUD). In states where the full price is not required to be recorded on the sales deed (non-disclosure states of Alaska, Idaho, Indiana, Kansas, Louisiana, Maine, Mississippi, Missouri, New Mexico, North Dakota, Texas, Utah, and Wyoming), RealtyTrac uses median list prices from properties listed on the local Multiple Listing Service (MLS). Demographic data used in the report is from the U.S. Census bureau, and unemployment data used in the report is from the Bureau of Labor Statistics.

Report License
The RealtyTrac U.S. Residential & Foreclosure Sales report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.

Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information contact our Data Licensing Department at 800.462.5193 or [email protected].

About RealtyTrac
RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 125 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac's housing data and foreclosure reports are relied on by many federal government agencies, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2631301

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...