IRVINE, Calif., July 18, 2017 – HomeUnion, an online real estate investment management firm, has identified zip codes in 20 metros that maximize real estate returns while minimizing risk over a five-year horizon. To rank the neighborhoods, HomeUnion analyzed the attractiveness of a neighborhood for investing in single-family rentals (SFRs) over five years, as well as school quality. In order to qualify, each zip code must have schools ranked in the 70th percentile for school quality by Maponics.
“As more Americans seek to diversify their investment portfolios into real estate, we have put together a list of the best zip codes in 20 markets for them to invest and hold over a five-year period or longer,” explains Steve Hovland, director of research for HomeUnion. “Typically, SFRs in areas with good schools have been attractive to long-term investors, though those areas have been more challenging to locate for remote investors in today’s heated housing market,” he added. Alternatively, areas with good schools are easier to attract renters during economic expansions and recessions. Any investor looking for long-term real estate investments should consider how the asset will perform during each stage of the economic cycle to mitigate risk.
Here are the top 20 zip codes for real estate investors seeking five-year returns:
|Zip Code||Submarket||Metro Area||Annualized Total Return*||School Rating|
|33434||Hamptons at Boca Raton, Fla.||West Palm Beach||8.1||87.9|
|48322||West Bloomfield Township, Mich.||Detroit||6.9||74.4|
|33158||Palmetto Bay, Fla.||Miami||6.8||83.9|
|33327||Weston, Fla.||Fort Lauderdale, Fla.||6.6||70.5|
|66223||Overland Park, Kan.||Kansas City||6.2||97.4|
|60016||Des Plaines, Ill.||Chicago||6.0||76.4|
|97224||King City, Ore.||Portland, Ore.||5.8||81.9|
|44023||Chagrin Falls, Ohio||Cleveland||5.6||70.8|
|75022||Flower Mound, Texas||Dallas||5.6||84.0|
|77059||Clear Lake City, Texas||Houston||5.6||76.0|
|85259||North Scottsdale, Ariz.||Phoenix||5.5||88.0|
|63043||Maryland Heights, Mo.||St. Louis||5.5||71.9|
|73003||Edmond, Okla.||Oklahoma City||5.4||90.0|
|91602||North Hollywood, Calif.||Los Angeles||5.4||71.4|
*Total return includes projected appreciation and cash flow based on HomeUnion’s proprietary underwriting methodology.
Sources: HomeUnion Research Services, Maponics
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 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 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
Unless otherwise indicated, the information contained herein and that constitutes the basis for data points used by HomeUnion in formulating its projections is current as of the date indicated on this page. Such information is believed to be reliable and has been obtained through our research and from sources believed to be reliable, but no representation or warranty is made, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the information and opinions.