This latecomer to the recovery offers buyers strong incentive to invest in rentals.
IRVINE, Calif., March 16, 2017 – HomeUnion®, an online real estate investment management firm, has announced that Chicago is one of the hottest single-family rental (SFR) property markets in the nation, based on three separate rankings included in its 2017 National Single-Family Rental Research Report. Chicago ranks No. 1 in the Upside Potential Ranking, fifth in the firm’s Opportunity Ranking, and sixth in its Cap Rate Ranking. Upside Potential measures the strength of markets that have been slower to the housing market recovery, and therefore still present strong investment opportunities for investors, while the Opportunity Ranking identifies markets with favorable entry prices and limited threats. The Cap Rate ranking measures a property’s operating income divided by price.
“Clearly, Chicago provides a number of incentives for single-family rental investors,” explains Steve Hovland, director of research at HomeUnion®. “The economy is booming, thanks to expansions by a diverse array of companies across multiple sectors, such as McDonalds and Beam-Suntory. As a result, vacancy rates to continue their downward trajectory. Additionally, investors are finding cap rates are at nearly 7.5 percent extremely attractive.”
- SFR vacancy in Chicago is expected to decrease by 90 basis points to 5.1 percent.
- Rents for Chicago SFRs are anticipated to grow to $1,615 per month, up 1.9 percent from 2016.
- Prices for investment homes in Chicago ended 3Q 2016 at $172,500, with about 83 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 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®