HomeVestors and Local Market Monitor Issue Best Markets Top 10 List: Demand for Rental Properties Heats up Heading into Summer
Texas Cities Dominate Top 10 Best Markets List; Denver Tops List
DALLAS (July 6, 2015) – Despite the decrease in inventory of foreclosed homes, there is still plenty of opportunities for potential real estate investments, this according to new quarterly data from HomeVestors, the We Buy Ugly Houses® people, and Local Market Monitor, the premier real estate forecasting solution.
“For the last few years, investors have been able to find real estate bargains they could turn into rental properties. That period is pretty much over – the inventory of foreclosed homes has been picked fairly clean, at least in the larger markets,” said Ingo Winzer, president and founder of Local Market Monitor. “You don’t need a bargain in order to make a good real estate investment. Demand for rentals continues to increase in many markets, while home ownership erodes. It’s strongest in those markets growing the fastest, which describes our Top 10 list.”
Topping the Best Markets Top 10 List is Denver, while Texas cities continue to dominate the list with Dallas (2), Houston (3), Austin (4) and San Antonio (7) representing the Lone Star State. Rounding out the Top 5 is Seattle.
“Job and population growth spurs great conditions for investing in single family rental properties,” notes David Hicks, HomeVestors co-president. “Places like Austin, whose population growth is triple the national average, continue to grow and create a bigger demand for real estate. The lack of foreclosure inventory may also explain the current record number of HomeVestors® franchises. Increasingly, independent investors are looking to HomeVestors’ We Buy Ugly Houses® trademark to generate a consistent flow of motivated seller leads” explained Hicks.
Southern cities rounded out the list with Orlando (6), Charleston, South Carolina (8), Nashville (9) and Raleigh, North Carolina (10), respectively.
“There are still some bargains to be found in these cities, particularly in Orlando, Nashville and Raleigh. Charleston is the smallest market among our Top 10, but it’s ideal for attracting vacation renters and retirees,” explained HomeVestors co-president Ken Channell. “Although home prices have increased moderately in many parts on the country, there are still smart opportunities for investing in real estate. The economy appears have stabilized and job and population growth make ideal conditions for investing.”
The Top 10 Best Markets List for real estate investing are:
- Denver, CO
- Dallas, TX
- Houston, TX
- Austin, TX
- Seattle, WA
- Orlando, FL
- San Antonio, TX
- Charleston, SC
- Nashville, TN
- Raleigh, NC
About the Quarterly Data:
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:
- The population has been growing at above-average rates (4% or better) with growth coming from people moving there in search of jobs;
- The current rate of job growth of 2% or better; and
- There is low unemployment, so that new jobs will be filled by people who move there, not by unemployed people who are already there.
Markets are excluded that:
- Have a small population because they don’t have stable economies.
About HomeVestors of America, Inc.
Dallas-based HomeVestors of America, Inc. is the largest professional house buying franchise in the U.S., with more than 60,000 houses bought 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 2014, for the ninth consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. In 2014 HomeVestors was recognized as the 25th fastest growing franchise by Entrepreneur Magazine and number 126 in the Franchise 500 by Entrepreneur Magazine. For more information, visit www.HomeVestors.com.
About Local Market Monitor
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.