Dayton, Ohio;
Rochester, N.Y.; Cleveland, Ohio; Pittsburgh, Pa.; and Knoxville, Tenn., markets lead the top 5,
offering strong returns from lower prices and steady demand
SANTA
CLARA, Calif., Oct. 1, 2024
/PRNewswire/ -- Amid rising home prices and mortgage rates, savvy
real estate investors can still find hidden gems in affordable
metros across the country, with Dayton,
Ohio, standing out as the top destination for property
investment this year. Realtor.com® today unveiled a list
of the top U.S. markets for real estate investment, showcasing
opportunities for would-be investors in less obvious but highly
promising markets, with the spotlight shining brightly on the
Midwest and Northeast regions.
The top 10 in rank order include: Dayton, Ohio; Rochester, N.Y.; Cleveland-Elyria,
Ohio; Pittsburgh, Pa;
Knoxville, Tenn.; Albany-Schenectady-Troy,
N.Y.; New
Haven-Milford, Conn.;
Buffalo-Cheektowaga, N.Y.; Grand Rapids-Kentwood, Mich.; and Columbus, Ohio.
"For buyers interested in investing in rental properties or
other real estate, it's key to know which areas are both affordable
and in high demand to be able to capitalize on any investment
opportunities, especially with today's higher prices and rates,"
said Danielle Hale, chief economist
at Realtor.com®. "With low vacancy rates and strong
demand, the markets we've highlighted as top markets for investment
opportunity offer a great mix of affordability and growth
potential. These spots give aspiring investors a chance to tap into
long-term growth and set themselves up for solid returns as the
market shifts."
The top markets for real estate investment are noted for their
affordability, low rental vacancy rates, rising rents and sustained
buyer demand, making them prime candidates for investment.
Realtor.com® research indicates that these markets saw
nearly double (1.95x) the average page views per property compared
to the national trends, with home prices an average of 21.7% lower
than the national average, offering compelling value for
investors.
Rental vacancy rates in these hotspots averaged just 4.8% so far
in 2024, well below the national average of 6.6%, signaling a
strong rental market with minimal property turnover. Furthermore,
13.8% of buyers in these markets were investors in Q1 2024, 1
percentage point below the national average, but up 4.4 percentage
points from 2019 levels, reflecting a growing trend of real estate
investment since pre-pandemic levels despite economic
challenges.
Dayton, Ohio reigns supreme
as the top investment hotspot
Dayton, Ohio topped the list for investment
opportunity with its below-average home prices and robust demand,
boasting a low 4.7% rental vacancy rate in early 2024. Investor
activity has picked up over the past five years, with 13.7% of
buyers in the first quarter being investors, just shy of the
national average.
Other Midwest metros, such as Cleveland, Ohio; Pittsburgh, Penn.; and Grand Rapids, Mich. also offer strong returns
for investors, thanks to their low prices and steady demand.
Climbing home prices in these markets reflect sustained buyer
interest, while relatively low home prices mean the typical monthly
mortgage payment is lower than the U.S. average.
"As the rental market eases in many areas, the Midwest and
Northeast stand out for their combination of affordability and
stability," said Hannah Jones,
Realtor.com® senior economic research analyst.
"These regions offer investors a prime chance to secure steady
rental income and tap into growing demand, making them attractive
for both seasoned and first-time investors alike."
While Midwest and Northeast lead, South and West also hold
opportunities
While the South and West have
historically been popular regions for investors, recent
affordability challenges and rising inventories have shifted focus
to the more stable, growth-ready markets in the Midwest and
Northeast, and only a handful of markets from the South and West
made the list. Knoxville,
Tenn., is the sole Southern city to make the list, while
Fresno, Calif., and
Albuquerque, N.M., stand out in the West as top
investment spots for their notable demand and price growth, despite
their higher home prices.
Top Investor Markets
|
Market
Rank
|
Geo
Name
|
Region
|
Average
Page
Views
per
Property
vs U.S.
|
Median
Listing
Price
|
Median
Listing
Price YoY
|
Property
Count
YoY
|
Rental
Vacancy
Rate
|
2024Q1
investor
share
|
Typical
housing
payment
|
|
USA
|
USA
|
1
|
$427,000
|
0.4 %
|
9.7 %
|
6.6 %
|
14.8 %
|
$2,100
|
|
1
|
Dayton, Ohio
|
Midwest
|
2.09
|
$239,000
|
6.7 %
|
5.7 %
|
4.7 %
|
13.7 %
|
$1,200
|
|
2
|
Rochester,
N.Y.
|
Northeast
|
2.93
|
$265,000
|
9.5 %
|
-5.2 %
|
4.5 %
|
14.7 %
|
$1,300
|
|
3
|
Cleveland-Elyria,
Ohio
|
Midwest
|
1.97
|
$241,000
|
12.0 %
|
-9.4 %
|
4.3 %
|
17.4 %
|
$1,200
|
|
4
|
Pittsburgh,
Pa.
|
Midwest
|
1.47
|
$246,000
|
10.9 %
|
0.9 %
|
6.3 %
|
13.7 %
|
$1,200
|
|
5
|
Knoxville,
Tenn.
|
South
|
1.71
|
$469,000
|
5.4 %
|
23.8 %
|
4.0 %
|
14.0 %
|
$2,300
|
|
6
|
Albany-Schenectady-Troy, N.Y.
|
Northeast
|
1.47
|
$424,000
|
14.2 %
|
-6.6 %
|
3.1 %
|
12.4 %
|
$2,100
|
|
7
|
New Haven-Milford,
Conn.
|
Northeast
|
2.60
|
$408,000
|
7.8 %
|
-13.4 %
|
2.4 %
|
13.6 %
|
$2,000
|
|
8
|
Buffalo- Cheektowaga,
N.Y.
|
Northeast
|
1.62
|
$266,000
|
9.0 %
|
-2.0 %
|
8.1 %
|
11.8 %
|
$1,300
|
|
9
|
Grand Rapids-Kentwood,
Mich.
|
Midwest
|
1.28
|
$409,000
|
6.3 %
|
-3.0 %
|
3.8 %
|
7.1 %
|
$2,000
|
|
10
|
Columbus,
Ohio
|
Midwest
|
2.39
|
$381,000
|
6.6 %
|
7.6 %
|
7.1 %
|
19.4 %
|
$1,900
|
|
25
|
Fresno,
Calif.
|
West
|
1.15
|
$460,000
|
5.3 %
|
-7.7 %
|
3.9 %
|
19.5 %
|
$2,300
|
|
33
|
Albuquerque,
N.M.
|
West
|
1.04
|
$409,000
|
4.3 %
|
12.5 %
|
7.7 %
|
10.7 %
|
$2,000
|
|
|
Note: Fresno, Calif. and Albuquerque, N.M.
included to represent the top-ranking metros in the Western
region.
|
Methodology
The report analyzed
Realtor.com® listing data and public data
for the 75 largest U.S. metros. It used the 12-month
average of listing prices, views per property, and housing stock,
along with 2024 Q1 and Q2 vacancy data, to identify the top markets
for real estate investment. The best markets were determined by a
combination of high listing viewership, low home
prices, significant price growth, growing inventory, and low rental
vacancy rates.
About
Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital
real estate more than 25 years ago. Today, through its website and
mobile apps, Realtor.com® is a
trusted guide for consumers, empowering more people to find their
way home by breaking down barriers, helping them make the right
connections, and creating confidence through expert insights and
guidance. For professionals, Realtor.com®
is a trusted partner for business growth, offering consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com®
is operated by News Corp [Nasdaq:
NWS, NWSA] [ASX:
NWS, NWSLV] subsidiary Move, Inc. For more
information, visit
Realtor.com®.
Media Contact
Sara
Wiskerchen, press@realtor.com
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SOURCE Realtor.com