HomeUnion® analyzed 30 metros for its second-annual powerhouse single-family rental market rankings
IRVINE, Calif., Sept. 27, 2017 – HomeUnion®, an online residential real estate investment management firm, has released its second annual Power Rankings list, which measures how well 30 single-family rental (SFR) markets are expected to perform through year’s end. For this study, the firm analyzed markets based on local demand drivers and limited risk of losing renters.
Specifically, HomeUnion® Research Services measured the following to produce the list:
- Employment
- Rent growth
- Short turnover time
- Rent-to-income ratio
- Construction/permitting levels
- Cap rates/returns
Dallas moved up four places to top of this year’s list in place of last year’s most powerful SFR market, Tampa. Dallas/Fort Worth investment home prices remain just under $200,000 and cap rates are at a solid 5.6 percent, offering investors good upside in today’s market. Meanwhile, declining demand drivers pushed Tampa down 14 places to No. 15. Notable gains were made by Miami, the New York metro area, Buffalo and Boston, metros that rounded out the top five in this year’s rankings.
“The Dallas/Fort Worth Metroplex has one of the strongest job markets in the U.S., which is the primary rental demand driver,” says Steve Hovland, director of research for HomeUnion®. “We expect D/FW to lead the nation in total new jobs in 2017, adding over 100,000 this year. The trade, transportation and utilities; and leisure and hospitality sectors, were among the market leaders and tend to favor rental-household creation,” he notes.
Here’s a complete list of the 2017 Power Rankings:
Metro | Rank | Median Investment Home Price | Median Rent | Cap Rate |
| Dallas | 1 | $199,300 | $1,630 | 5.6% |
| Miami | 2 | $209,900 | $1,980 | 6.3% |
| New York, N.Y. | 3 | $431,100 | $2,148 | 3.9% |
| Buffalo, N.Y. | 4 | $105,000 | $1,285 | 8.5% |
| Boston | 5 | $333,800 | $2,337 | 4.7% |
| Phoenix | 6 | $180,000 | $1,264 | 4.7% |
| Detroit | 7 | $167,500 | $1,406 | 5.7% |
| Seattle | 8 | $450,000 | $2,218 | 3.3% |
| Atlanta | 9 | $131,000 | $1,243 | 6.4% |
| Minneapolis | 10 | $172,300 | $1,513 | 5.8% |
| Chicago | 11 | $235,000 | $1,798 | 5.2% |
| Nashville | 12 | $166,300 | $1,437 | 5.4% |
| Baltimore | 13 | $145,000 | $1,431 | 6.7% |
| Tampa Bay | 14 | $128,000 | $1,301 | 6.7% |
| Oakland, Calif. | 15 | $540,000 | $2,866 | 3.4% |
| Los Angeles | 16 | $601,300 | $2,959 | 3.4% |
| Pittsburgh | 17 | $83,000 | $920 | 7.6% |
| Charlotte, N.C. | 18 | $150,000 | $1,239 | 5.5% |
| Cincinnati | 19 | $91,700 | $1,161 | 8.3% |
| Philadelphia | 20 | $125,000 | $1,386 | 7.3% |
| Cleveland | 21 | $72,500 | $1,158 | 10.4% |
| Denver | 22 | $313,000 | $1,917 | 4.1% |
| Jacksonville, Fla. | 23 | $141,000 | $1,310 | 5.9% |
| New Orleans | 24 | $127,500 | $1,535 | 7.7% |
| Houston | 25 | $166,900 | $1,573 | 6.3% |
| Indianapolis | 26 | $98,000 | $1,081 | 7.7% |
| Kansas City | 27 | $139,400 | $1,118 | 5.7% |
| San Francisco | 28 | $1,160,000 | $4,496 | 2.5% |
| Milwaukee | 29 | $135,000 | $1,411 | 6.6% |
| Washington, D.C. | 30 | $275,000 | $1,881 | 4.5% |
Source: HomeUnion® Research Services
About HomeUnion®
HomeUnion® is an online real estate investing platform. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in rental 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 six 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.
Media Contact:
Stacey Corso
Communications Manager, HomeUnion®
stacey.corso@homeunion.com
415.672.6460
