Rental properties in Omaha, Neb., Chicago and Hartford, Conn., offer investors the best seasonal bargains
IRVINE, Calif., Jan. 4, 2018 – 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). On average, SFR investors paid 6.6 percent less per square foot for the same property during the winter of 2018 as they did during the spring and summer buying season in 2017.
“For the second year in a row, our study found that the wintertime is the best season to acquire rentals,” explains Steve Hovland, director of research for HomeUnion®. “Median home prices drop substantially during the colder months, while rent losses remain marginal for landlords. On average, investors can acquire higher-yielding properties in cold-weather markets like Omaha, Neb.; Chicago and Hartford, Conn., as well as Charlotte and the Dallas/Fort Worth Metroplex,” he says.
“Home prices are seasonal as many buyers and sellers delay an acquisition or disposition to avoid a move during a school year. As a result, smaller homes occupied by empty nesters or childless families are more likely to change hands,” notes Hovland.
Here’s a list of the 40 best metro areas to buy rental properties in the wintertime:
Metro Area | Temperature Spread (Degrees Fahrenheit) | Winter Price | Summer Price |
|
| Omaha, Neb. | 50 | $78,100 | $115,000 | -32.1% |
| Chicago | 48 | $185,000 | $250,000 | -26.0% |
| Hartford, Conn. | 44 | $153,000 | $205,500 | -25.5% |
| Columbus | 43 | $131,000 | $175,000 | -25.1% |
| Seattle | 24 | $389,500 | $517,000 | -24.7% |
| Washington, D.C. | 42 | $265,000 | $349,900 | -24.3% |
| New York, N.Y. | 43 | $309,000 | $405,700 | -23.8% |
| Cincinnati | 44 | $85,500 | $110,200 | -22.4% |
| Grand Rapids | 47 | $110,000 | $140,000 | -21.4% |
| Minneapolis | 56 | $163,800 | $205,000 | -20.1% |
| Buffalo | 45 | $119,900 | $150,000 | -20.1% |
| Detroit | 46 | $132,000 | $165,000 | -20.0% |
| Kansas City | 48 | $100,000 | $124,900 | -19.9% |
| San Francisco | 12 | $1,037,500 | $1,285,000 | -19.3% |
| Sacramento | 29 | $280,000 | $345,000 | -18.8% |
| Charlotte, N.C. | 37 | $127,000 | $155,000 | -18.1% |
| Philadelphia | 42 | $123,000 | $150,000 | -18.0% |
| Dallas | 39 | $167,000 | $201,900 | -17.3% |
| St. Louis | 46 | $91,100 | $110,000 | -17.2% |
| Portland, Me. | 27 | $286,700 | $345,000 | -16.9% |
| Salt Lake City | 46 | $217,800 | $261,300 | -16.6% |
| Louisville | 43 | $94,000 | $111,600 | -15.8% |
| Atlanta | 36 | $115,000 | $135,000 | -14.8% |
| Miami | 16 | $205,000 | $240,400 | -14.7% |
| Houston | 30 | $145,000 | $168,500 | -13.9% |
| Rochester, N.Y. | 45 | $120,000 | $138,800 | -13.5% |
| San Jose | 20 | $823,500 | $950,000 | -13.3% |
| Providence, R.I. | 42 | $200,300 | $230,000 | -12.9% |
| Raleigh, N.C. | 38 | $169,000 | $192,500 | -12.2% |
| Boston | 44 | $290,000 | $330,000 | -12.1% |
| Pittsburgh | 43 | $75,200 | $85,000 | -11.5% |
| Las Vegas | 41 | $208,500 | $235,000 | -11.3% |
| Memphis | 41 | $81,000 | $91,200 | -11.2% |
| Tampa | 23 | $120,000 | $135,100 | -11.1% |
| Nashville | 40 | $156,500 | $175,000 | -10.6% |
| Milwaukee | 50 | $100,200 | $112,000 | -10.6% |
| San Diego | 17 | $492,500 | $550,000 | -10.5% |
| Los Angeles | 18 | $537,500 | $598,000 | -10.1% |
| Denver | 39 | $311,000 | $346,000 | -10.1% |
| Oakland, Calif. | 19 | $490,000 | $545,000 | -10.1% |
Sources: HomeUnion® Research Services, Maponics
To purchase rentals at a discount, read 2018’s best winter investment housing markets for investors on HomeUnion®.com.
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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 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 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
Senior Communications Manager, HomeUnion®
stacey.corso@homeunion.com
415.672.6460
