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| Todd Teta |
IRVINE, CA --
ATTOM Data Solutions, curator of the nation’s premier property database, released its Q1
2019 Single Family Rental Market report, which ranks the best U.S. markets for
buying single family rental properties in 2019.
The report analyzed single family
rental returns in 432 U.S. counties each with a population of at least 100,000
and sufficient rental and home price data.
The average annual gross rental yield
(annualized gross rent income divided by median purchase price of single-family
homes) among the 432 counties was 8.8 percent for 2019, up from an average of
8.7 percent in 2018.
“Buying single-family homes to rent
them out is a better deal for investors so far this year, than it was at the
same time in 2018, as profit margins are rising in a majority of counties
across the United States,” said Todd Teta, chief product officer at ATTOM
Data Solutions.
“Last year, at this
time, investors were seeing returns drop in three-quarters of the counties that
were analyzed. So far this year, those margins are up in six out of every 10
counties analyzed.
"But despite the generally rosier picture,
profits vary widely and investing in the single-family home rental market is
not always a great move. The typical bottom-line gain from county to county
this year has ranged from as high as 29 percent to as little as 3 percent.”
Counties in
Baltimore, Macon, Vineland, Rockford, Detroit post highest rental returns
Counties with the highest potential
annual gross rental yields for 2019 were Baltimore City, Maryland (24.5
percent); Bibb County, Georgia in the Macon metro area (21.9 percent);
Cumberland, New Jersey, in the Vineland-Bridgeton metro area (21.2 percent);
Winnebago, Illinois, in the Rockford metro area (17.1 percent); and Wayne
County, Michigan in the Detroit metro area (17.1 percent).
Along with Wayne County, Michigan,
the highest potential annual gross rental yields among counties with a
population of at least 1 million were Cuyahoga County (Cleveland), Ohio (12.0
percent); Allegheny County, Pennsylvania (10.9 percent); Cook County (Chicago),
Illinois (9.7 percent); and Philadelphia County, Pennsylvania (9.4 percent).
Rental returns increase from a year ago in over half of the
counties analyzed
Potential annual gross rental
yields for 2019 increased compared to 2018 in 248 of the 432 counties analyzed
in the report (57 percent) led by Buncombe County, North Carolina in the
Asheville metro area (up 29.1 percent); Santa Clara County, California in the
San Jose metro area (up 24.8 percent); Henderson County, North Carolina, in the
Asheville metro area (up 24.6 percent); Erie County, Pennsylvania (up 24.3
percent); and Muscogee County, Georgia in the Columbus metro area (up 23.5
percent).
Along with Santa Clara County,
California, the biggest increase in potential annual gross rental yields for
2019 compared to 2018 among counties with a population of at least 1 million
were Sacramento County, California (up 12.2 percent); Orange County (Los
Angeles), California (up 10.9 percent); Dallas County, Texas (up 10.8 percent);
and Kings County (Brooklyn), New York (up 10.6 percent).
Counties in San Francisco, San
Jose and New York post lowest rental returns
Counties with the lowest potential
annual gross rental yields for 2019 were San Mateo County, California, in the
San Francisco metro area (3.4 percent); San Francisco County, California (3.7
percent); Marin County, California, also in the San Francisco metro area (4.0
percent); Santa Clara, California, in the San Jose metro area (4.2 percent);
and Kings County (Brooklyn), New York (4.3 percent).
Along with Santa Clara County,
California and Kings County, New York, the lowest potential annual gross rental
yields among counties with a population of at least 1 million were in Fairfax
County, (Washington, D.C. metro area) Virginia (4.7 percent); Queens County,
New York (4.8 percent); Alameda County (San Francisco metro area), California
(4.9 percent); and Orange County (Los Angeles metro area), California (5.0
percent).
Rents rising faster than wages in
55 percent of markets
Rents rose faster than wages in 236
of the 432 counties analyzed (55 percent), including Los Angeles County,
California; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona;
San Diego County, California; and Orange County, California.
Wages rose faster than rents in 196
of the 432 counties analyzed (45 percent), including Cook County (Chicago),
Illinois; Kings County, New York; Queens County, New York; Clark County (Las
Vegas), Nevada; and Tarrant County (Dallas-Fort Worth), Texas.
Best SFR growth markets in
Cleveland, Columbia, Pittsburgh, Rockford, Atlanta
The report identified 98 “SFR
Growth” counties where average wages grew over the past year and with potential
2019 annual gross rental yields of 10 percent or higher.
The 98 SFR Growth markets included Wayne
County (Detroit), Michigan; Cuyahoga County (Cleveland), Ohio; Allegheny County
(Pittsburgh), Pennsylvania; Milwaukee County, Wisconsin and Marion County
(Indianapolis), Indiana.
ATTOM Data Solutions also incorporated
weekly wage data from the Bureau of Labor Statistics and demographic data from
the U.S. Census into the report.
CONTACTS:
Christine Stricker
949.748.8428
Data and Report Licensing:
949.502.8313
