With rent prices increasing right alongside home prices in many markets, rental investment can pay serious dividends for those savvy enough to do their homework before they invest. But like the old adage goes, one critical element is “location, location, location.” With that in mind, HouseCanary recently examined the state of rental investment, including single-family, condos, and apartments, to see which markets are hot … and which are not.
In order to make that determination, HouseCanary examined year-over-year (YOY) price growth within the top 100 U.S. metropolitan statistical areas (MSAs) by population, dividing things into three subcategories: single-family homes, condos, and apartments.
So, which MSA featured the highest YOY price growth in the single-family rental (SFR) sector? The Sunshine State should take a bow—not only is Florida home to the top MSA, it also accounts for three of the top 10 entries.
Palm Bay-Melbourne-Titusville, Florida, was the MSA featuring the strongest YOY rent price growth for SFR, coming in at 6.6 percent. The other two Florida MSAs that made the top 10 are Deltona-Daytona Beach-Ormond Beach at 5.8 percent and #5, and Tampa-St. Petersburg-Clearwater at 5.6 percent and #7.
Here’s how the rest of the top 10 broke down:
- Seattle-Tacoma-Bellevue, Washington—6.1 percent (#2)
- Stockton-Lodi, California—6.0 percent (#3)
- Salt Lake City, Utah—5.9 percent (#4)
- Boise City, Idaho—5.7 percent (#6)
- Sacramento-Roseville-Arden Arcade, California—5.4 percent (#8)
- Nashville-Davidson-Murfreesboro-Franklin, Tennessee—5.4 percent (#9)
- McAllen-Edinburg-Mission, Texas—5.3 percent (#10)
On the other end of the spectrum, here are the 10 MSAs with the lowest YOY rent price growth for SFR, according to HouseCanary.
- Virginia Beach-Norfolk-Newport News, Virginia/North Carolina—0.4 percent (#100)
- Harrisburg-Carlisle, Pennsylvania—0.5 percent (#99)
- Bridgeport-Stamford-Norwalk, Connecticut—0.6 percent (#98)
- Augusta-Richmond County, Georgia/South Carolina—0.8 percent (#97)
- Rochester, New York—0.9 percent (#96)
- Little Rock-North Little Rock-Conway, Arkansas—0.9 percent (#95)
- New Orleans, Metairie, Louisiana—0.9 percent (#94)
- Columbia, South Carolina—1.0 percent (#93)
- Syracuse, New York—1.0 percent (#92)
- Hartford-West Hartford-East Hartford, Connecticut—1.1 percent (#91)
To see the rest of HouseCanary’s findings, including the results for condos and apartments, click here.