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Why Are Blue State Investors Renting Out Red State Homes?

Market Studies BHA new analysis from ATTOM Data Solutions has found that 16 percent of all single-family investment homes in the United States are owned by out-of-state investors‒‒and most of these setups are owners from politically blue states renting out homes in predominantly red states.

California, with more than 452,000 single-family investment homes itself, leads states in investors owning the most out-of-state investment homes. According to ATTOM, 24 percent of all investment homes owned by Californians are located out of state.  Florida, Texas, New York, Illinois, and Virginia round out the top five states where investors own out-of-state property. Overall, there are 3.4 million single-family, non-owner occupied homes nationwide.

“In many cases those lower-priced markets are in politically red states with the out-of-state investors often hailing from politically blue states,” ATTOM reported. “Passive real estate investors—think young professionals with well-paying day jobs or baby boomer homeowners flush with home equity wealth—in high-priced housing markets are looking beyond their backyards for real estate investing opportunities in lower-priced markets.”

For buyers who are looking to buy investment homes outside of their local markets, more technology and platforms are available these days, according to Gary Beasley, CEO of Roofstock.

“A lot of demand is people in the Bay Area and New York City looking to buy in the Southeast,” Beasley said. “We have one Google engineer who just bought his sixth house. He said ‘this is fantastic, real estate is so expensive here and I don’t want to be tied just to Bay Area real estate.’”

Florida, with 366,000 investment homes, leads states with the most homes owned by out-of-state investors. Second-place North Carolina featured 202,00 such homes, with Tennessee, Arizona, and Georgia close behind. Texas, just as it did for states with the most property owners invested outside the state, finished high on the list of states where outside investors own a lot of property.

Maricopa County, Arizona, home to Phoenix, led counties with the most investment homes owned by out-of-state investors are. Clark County, Nevada (Las Vegas); Lee County, Florida (Cape Coral); Cape May County, New Jersey (Ocean City); and Wayne County, Michigan (Detroit), rounded out the top-five.

attom-graph

To view the full report from ATTOM Data Solutions, click HERE.

About Author: Scott Morgan

Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He's been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing.
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