Richard Stein – Realtor®, GREEN, SFR, CBR, eCertified®

Local Agent, Worldwide Marketing – Douglas Elliman Real Estate formerly Prudential Douglas Elliman Real Estate

Investors Are Unlocking Biggest Profits Here

The county offering the highest returns from single-family rental properties so far in 2017: Clayton, Ga., in the Atlanta metro area. That’s according to the first-quarter 2017 Single Family Rental Market report, released by ATTOM Data Solutions. Researchers analyzed single-family returns in 375 U.S. counties, each with populations of at least 100,000, and more than 6,000 U.S. ZIP codes with a population of 2,500 or more.

Read more: Where Investors Are Upping Rental Costs

Other counties offering some of the highest annual gross rental yields in the nation on single-family properties are Baltimore City, Md.; Bibb County, Ga., in the Macon metro area; Monroe County, Pa., in the East Stroudsburg metro area; and Saginaw County, Mich., the report showed.  

Among counties with populations of at least 1 million, these areas were offering the highest gross rental yields: Wayne County, Mich., in the Detroit metro area; Cuyahoga County, Ohio, in the Cleveland metro area; Allegheny County, Pa., in the Pittsburgh metro area; Philadelphia County, Pa.; and Franklin County, Ohio, in the Columbus metro area.

The average annual gross rental yield among the 375 counties tracked was 9 percent in 2017. To compute it, ATTOM Data Solutions divided the annualized gross rent income by the median purchase price of single-family homes.

“While good returns on single-family rentals are hard to come by in high-priced coastal markets and in some other housing hot spots such as Denver and parts of Dallas, Austin, and Nashville, solid returns on single-family rentals will continue to be available in many parts of the Southeast, Rust Belt, and Midwest for investors purchasing in 2017,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “And single-family rentals should continue to yield strong returns in many parts of the country going forward given the market undercurrents of low rent-ready housing inventory and low homeownership rates.”

Blomquist notes that average fair-market rents rose in 2017 in 86 percent of the markets his team analyzed, even while average wage growth outpaced rent growth in 67 percent of markets—“a recipe for sustainable growth in the rental market.”

Source: RealtyTrac

 

3 Metros With the Most New Construction

The pace of construction is a major influence over whether housing prices remain affordable in a city, according to a recent article at Forbes.com. Between 2010 and 2016, an overall annual rise in national housing permits led to major metros issuing permits for projects “in the [high-$400,000 or low-$500,000] figures annually,” according to Census data. But three metros stood above the rest: Dallas-Fort Worth-Arlington, Texas; New York-Newark-Jersey City, N.J.-N.Y.; and Houston-The Woodlands-Sugar Land, Texas. In fact, these three metro areas combined accounted for 13.5 percent of the nation’s approved housing units, Forbes.com notes.

The Dallas metro area issued 273,853 housing permits during that seven-year period, New York issued 283,814, and Houston issued the most at 316,639 permits. Los Angeles—which was number four on the list—was far behind at 160,278. The majority of the 51 major metros on Forbes’ list didn’t pass the 100,000 mark.

Dallas, Houston, and New York are seeing rapid growth in population, welcoming at least 200,000 new residents from early 2010 to mid-2015. A spike in jobs is responsible for the population growth and is leading to a surge in their housing markets.

Between 2010 and 2015, Houston and Dallas saw the biggest growth in net population: 736,531 and 676,582, respectively. They are national leaders in corporate and business relocation, job growth, and wage growth. That said, they also have the second- and third-lowest median home prices of the nation’s 11 largest metros (Houston at $176,000 and Dallas at $202,000).

Source: “Houston, Dallas, & New York City: America’s Great 3-Way Housing Supply Race,” Forbes.com

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34 Pearsall Ave, 3E – Glen Cove,, NY – $249,000 – Available

One Of The Largest One Bed Units, Totally Renovated, Beautiful Kitchen And Bath, Oversized Closets, Large Terrace.

15 E Rockwood Rd, Plandome, NY – $4,999,000 – Available

3.65 Acres In Plandome, Possible Subdivision. Current House Sits On Corner Of Property Approx. 5000 Sf. Renovated, 5 Bedroom With Two Living Rooms, Fireplace, Two Story Entry Laundry On First Floor.

1439 Old Northern Blvd, Roslyn NY – $3,500 – Available

Unique, Updated Two Bedroom, With Large Walk In Closet, Gas Fireplace Opens To Living Room And Dining Room, Large Bath, Gas Cooking And Heat, Private Patio With Pond. Pets Will Be Evaluated On An Individual Basis With Extra Security

1 & 2 Finnin Bayville NY –  Two family with two houses – $749,000 – Available
Two houses on one property both rented
Gross $5,000 month, $60,000 year, taxes $11,860.20
CAP: 6%+

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