With the housing market looking to be back on track, and many cities growing at rapid rates, a lot of people are thinking about places to invest in rental properties in the new year. Often times, these opportunities allow us to look at outperforming cities, and help us get a jump start on investment potentials. After seeing how 2016 shaped certain cities in terms of the housing and economic markets, now would be the best time to start considering where to invest in 2017.
To do this, we took various factors into account. These included median home prices, population growth, job growth, median rent prices, unemployment rate, & percent of people renting. By taking these things into account, we get a better understanding of areas that are ripe for investment rental properties in 2017. Here is our list, in no specific order:
Austin, TX
In 2016, Austin continued its growth in many areas. These included an expanding housing market, increased job growth, and a high population flow into the city. With Austin becoming a major hub, we believe it provides a great opportunity to invest in rental properties.
- Median Home Price: $265,000
- 3-Year Population Growth: +9%
- Percent of People Renting: 42%
- Average Rental Price: $1,216
- Unemployment Rate: 2.6%
- Rate of Job Growth: +4.2%
Nashville, TN
A newcomer to consider, Nashville saw major growth this year in their housing market. With the number of people renting increasing, as well as an expanding job market, Nashville could be another great place to consider for rental investment properties in 2017.
- Median Home Price: $264,000
- 3-Year Population Growth: +6%
- Percent of People Renting: 34%
- Average Rental Price: $1,006
- Unemployment Rate: 3.8%
- Rate of Job Growth: +3.5%
Riverside, CA
Another quiet newcomer, Riverside saw a stable rental market in 2016, and is poised for more growth in 2017. With unemployment on a steady decline, this could mean new opportunity in places to invest in rental properties in the new year.
- Median Home Price: $234,000
- 3-Year Population Growth: +3%
- Percent of People Renting: 37%
- Average Rental Price: $1,374
- Unemployment Rate: 5.9%
- Rate of Job Growth: +3.4%
Orlando, FL
Orlando has been up-and-coming for quite some time now. The city has seen a sharp decrease in unemployment, and a rise in population flow of people coming in. 2017 could prove the right time for homebuyers looking at places to invest in rental properties in the city before it’s too late.
- Median Home Price: $222,000
- 3-Year Population Growth: +7%
- Percent of People Renting: 38%
- Average Rental Price: $1,185
- Unemployment Rate: 4.5%
- Rate of Job Growth: +4.4%
San Antonio, TX
There is a lot going on in Texas these days! San Antonio is just another one of these increasingly growing cities in the state that is getting a lot of job growth and population flow. Perfect for new or experienced investors looking for places to invest in rental properties!
- Median Home Price: $229,000
- 3-Year Population Growth: +6%
- Percent of People Renting: 37%
- Average Rental Price: $1,003
- Unemployment Rate: 3.2%
- Rate of Job Growth: +2.7%
Jacksonville, FL
Last, but certainly not least, is another quiet up-and-comer from Florida! Jacksonville may have not been everywhere in the news like some of the others, but provides the stability and security needed for investment buyers looking to start dabbling into rental properties.
- Median Home Price: $242,000
- 3-Year Population Growth: +5%
- Percent of People Renting: 34%
- Average Rental Price: $1,134
- Unemployment Rate: 5.4%
- Rate of Job Growth: +3.6%