In HomeUnion’s National SFR Research Report, Atlanta ranked first, followed by Orlando and Seattle
IRVINE, Calif., Feb. 27, 2017 – HomeUnion, an online real estate investment management firm, has announced that Atlanta is the best real estate investment market in the nation based on opportunities for growth. Atlanta is followed by Orlando and Seattle, and topped the charts due to strong supply and demand fundamentals, combined with steady employment growth. HomeUnion’s Opportunity ranking measures the strength of metro areas across the country based on cap rates and entry prices for investment housing, as well as several demand and supply drivers. Cap rates are the relationship between an investment property’s net operating income (rent minus expenses) and the market value of the property.
“Atlanta provides single-family rental (SFR) buyers with the best opportunity to invest in a high-growth market that includes the possibility of added value through appreciation. However, unlike an investment in a similar property in other fast-growing markets, Atlanta properties are affordable,” explains Steve Hovland, director of research at HomeUnion.
“Many companies are moving some or all of their technology positions to the region. Most notable expansions include companies like Equifax and Anthem, employers not traditionally known for their software engineers,” notes Hovland. “These high-wage positions are encouraging landlords to raise rents faster than appreciation, giving Atlanta landlords some of the best investment opportunities for growth in the nation.”
Here are some key takeaways on Atlanta’s investment housing market:
- The metro’s year-over-year employment growth is projected at 2.8 percent this year, compared to 1.87 percent growth nationally.
- Single-family rental (SFR) vacancy in Atlanta is expected to drop by 120 basis points to 5.1 percent.
- Rents for Atlanta SFRs are anticipated to grow to $1,323 per month, up 3.5 percent from 2016.
- Prices for investment homes in Atlanta ended 3Q 2016 at $114,000, with over 90 percent of investors choosing to use leverage
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Research Report.
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion