March 24, 2015 // Franchising.com // DALLAS – The nation’s economy is growing at its fastest rate since 2000, which spells great news for residential property investors for the year ahead. The latest data from HomeVestors (the “We Buy Ugly Houses®” people) and Local Market Monitor, the national real estate forecaster, shows excellent conditions from coast to coast, whether the property is for rental or resale.
“The Top 10 markets for real estate investment all have a common thread: a fast growing economy, which means more jobs and more renters,” said Ingo Winzer, president and founder of Local Market Monitor. “This also means that rent and property values will be increasing in many markets because housing construction has been at very low levels for years and can’t possibly catch up with the increased demand.”
Topping the Best Markets list once again are Texas cities: Houston (1), Austin (2) and Dallas (3), with Denver (4) and Orlando (5) rounding out the top 5, all which have seen substantial job and population growth.
“Texas continues to be a sure bet when it comes to real estate investing. Lower oil prices may slow some areas, but the diversified economy and pent up demand for real estate will help to mitigate the impact on rental markets,” noted David Hicks, HomeVestors co-president. “Places like Austin and Dallas have rapidly growing technology and financial sectors that make the oil slump less significant.”
Along with job growth and population growth, relatively low home prices are factors making investments in single-family homes as rental properties a nearly risk-free opportunity in some markets. All top five markets have a median home price below $300,000.
A couple of California cities broke the Top 10 list, with San Jose and Oakland at number six and eight, respectively. “California has higher home prices, but the state is growing again, both in jobs and population. Because most of these markets are no longer underpriced, investors in these markets are likely to see more of their gain come from price appreciation and less from a long-term rental stream,” explained HomeVestors co-president Ken Channel.
Seattle (7) and Portland’s (10) growing technology sectors and their desirable quality of life make them valuable markets, while Miami’s rapidly growing population and high rents take the list at number 9.
“We believe 2015 bodes well for rental property investors. The economy shows no sign of slowing down and consistently low home prices and population growth make investing conditions ideal,” said Channel.
The Best Markets Top 10 markets for real estate investing are:
The data identifies markets that will be good rental markets and where home prices are likely to increase at a good rate over the next few years. Criteria include markets where:
Markets are excluded that:
Dallas-based HomeVestors of America, Inc. is the largest professional house buying franchise in the U.S. with over 60,000 houses purchased since 1996. HomeVestors recruits, trains and supports its independently owned and operated franchisees that specialize in building businesses based on buying, rehabbing, selling and holding residential properties. Most commonly known as the "We Buy Ugly Houses®" company, HomeVestors strives to make a positive impact in each community. In 2015, HomeVestors was recognized as the 27th fastest growing franchise by Entrepreneur Magazine and number 119 in the Franchise 500 by Entrepreneur Magazine. For more information, visit www.HomeVestors.com
Local Market Monitor, the premier real estate forecasting solution, offers investors in homes and home mortgages the local market risk intelligence they need to make informed decisions. Using a proprietary formula called the Equilibrium Home Price, Local Market Monitor determines if markets are currently over or under valued, equipping users with a long-term risk and investment perspective. Covering over 300 local markets, Local Market Monitor also presents key investors with a 12, 24 and 36-month home price forecast. The solution includes sorting capabilities allowing subscribers to view and compare real estate markets along various metrics, including an Investment Suitability Ratings to identify opportunities based on individual investing goals. To learn more, visit www.localmarketmonitor.com or call 800-881-8653.
SOURCE HomeVestors of America Inc.