SUBSCRIBE to HomeUnion and get interesting articles delivered straight to your inbox or save them for reading later |

HomeUnion® Ranks the Best Seasonal Bargains for Investment Housing

The top three metros to find bargains based on seasonality are Pittsburgh, San Francisco and Milwaukee.

IRVINE, Calif., Nov. 16, 2016 – HomeUnion®, a leading online real estate investment and management firm, has released a list of the biggest seasonal bargains for investment housing, and found that the winter off-peak period can be the best time of the year to acquire single-family rentals (SFRs). Nationally, the average cap rate for SFRs during the winter months was 6 percent last year, compared to 5.3 percent in the summer. The new Seasonal Single-Family Rental Investment Advantage Report also found that investors pay 7.2 percent less per square foot for the same property during the winter as they do during the spring and summer buying season.

“Based on seasonal cap rate fluctuations, our study conclusively found that early winter is the best time to acquire SFRs,” explains Steve Hovland, director of research for HomeUnion®. “In many metros, median home prices drop substantially during the colder months, while rent losses were marginal for investors. Winter is the perfect time to acquire solidly performing SFR assets in cold-weather metros such as Pittsburgh and Chicago, as well as in the Sun Belt markets of Jacksonville, Tampa and Greenville, S.C. These markets all ranked among our top 20 metros,” he says. For properties that need a little TLC, a winter purchase can give contractors ample time to bring the property up to a level that maximizes rents as the spring renting season commences.

“We also discovered that school quality isn’t as important to investors in the winter: Buyers interested in neighborhoods with high-ranked schools make up a greater proportion of sales during the summer compared to the winter,” Hovland adds.

Here’s a complete list of the markets offering the biggest discounts during the winter months:

Metro AreaCap Rate IncreaseTemperature Spread2016 Winter Median SFR Price2016 Summer Median SFR Price2016 Average Winter Rent2016 Average Summer Rent
Pittsburgh31.4% 47$69,000$87,000$1,000$1,180
San Francisco21.8%17$920,000$1,200,000$3,900$4,360
Milwaukee19.3%54$70,000$92,000$1,100$1,190
Philadelphia18.8%46$127,000$161,300$1,420$1,520
Chicago18.3%52$128,000$225,000$1,460$1,560
Columbus18.2%48$110,000$149,800$1,200$1,350
Boston18.1%46$247,000$300,000$2,020$2,130
Cincinnati16.3%47$74,900$115,000$1,090$1,200
Cleveland16.0%47$62,000$80,100$1,100$1,150
Greenville, S.C.15.9%38$86,250$140,000$1,130$1,220
Detroit15.9%51$120,000$163,000$1,210$1,390
Oklahoma City15.2%44$85,000$100,000$1,060$1,130
Palm Beach15.2%15$235,500$275,000$2,130$2,280
Seattle12.8%27$320,000$437,200$1,910$2,090
Birmingham, Ala.12.0%37$76,700$110,000$970$1,050
Washington, D.C.11.8%45$255,000$333,300$1,800$2,020
Tampa11.7%21$109,100$130,000$1,160$1,210
St. Louis11.5%49$85,000$105,000$1,050$1,100
Jacksonville11.4%27$103,900$166,800$1,160$1,250
New York11.3%45$310,000$408,000$2,090$2,300
San Jose11.1%24$742,000$1,050,000$3,350$3,470
Houston10.7%30$145,100$170,000$1,500$1,610
Minneapolis10.4%59$146,000$179,000$1,380$1,490
Austin10.2%34$219,300$257,700$1,560$1,680
Portland, Ore.10.2%33$260,000$300,000$1,660$1,760
Salt Lake City9.6%54$187,500$251,500$1,260$1,380
Oakland, Calif.9.4%24$428,000$545,000$2,510$2,700
Denver8.1%43$283,000$335,000$1,810$1,970
Baltimore7.9%45$173,000$200,000$1,520$1,660
Miami7.8%14$192,400$215,400$1,850$1,990
Dallas7.7%38$136,500$178,600$1,440$1,530
Orange County7.6%15$615,000$716,600$2,900$3,250
Phoenix7.6%38$161,900$186,000$1,110$1,200
Memphis7.2%43$82,400$89,400$980$1,040
Indianapolis7.0%49$87,000$106,200$1,060$1,100
Atlanta7.0%37$104,000$117,000$1,130$1,180
Orlando7.0%21$147,800$165,000$1,240$1,280
Los Angeles6.8%18$455,000$550,000$2,380$2,530
Nashville6.5%42$129,900$150,000$1,220$1,300
Sacramento6.2%40$260,000$306,000$1,440$1,570
San Antonio6.0%32$125,000$157,700$1,300$1,380
San Diego5.6%12$452,000$495,000$2,290$2,460
Las Vegas4.9%49$178,300$204,000$1,250$1,310
Raleigh, N.C.4.9%39$147,500$180,000$1,200$1,350
Kansas City4.8%49$92,000$106,875$970$1,080
Charlotte4.6%38$110,000$137,000$1,130$1,170
Riverside3.9%30$250,600$272,000$1,590$1,670

Sources: HomeUnion® Research Services, Maponics

www.HomeUnion®.com

 

# # #


About HomeUnion®

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 data-driven proprietary analytics to incorporate 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 18 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

Leave a Reply

Your email address will not be published. Required fields are marked *

Need Help Investing?

We have experienced real estate investment professionals standing by to answer questions and help you with next steps.