Where It's Good to Be a Landlord
December 22, 2016
It’s a good time to be an investor of single-family rentals. Rent growth over the past year has jumped 6.7 percent.
And investors in Seattle are particularly feeling rich. Seattle came out on top as the market where single-family rentals are seeing the highest growth, according to a new analysis by HomeUnion, an online real estate investment firm.
Read more: More Single-Family Rentals Being Built
“Many of the metros at the top of our list have these two common characteristics: strong job growth, and residents who prefer renting over homeownership as median home prices remain relatively high and the cost of mortgage debt continues to increase,” says Steve Hovland, director of research at HomeUnion. “Meanwhile, a degree of softness has impacted the most heated rental markets, like San Francisco and San Jose, which has pushed those metros to the bottom of our list,” Hovland adds. “We’re seeing declines in rents for the most expensive Bay Area neighborhoods, as well as slowing rent growth in San Jose submarkets. However, rents remain extremely high on a relative basis in both these markets – in the $4,000 range.”
View the following list of the rental markets seeing the highest growth in the U.S.:
*Rents are same-house, year-over-year rents.
Updated: July 19, 2018