Investors shifted their focus back to the Midwest this year, according to a new report released by HomeUnion, an online real estate investment and management firm.
HomeUnion analyzed two years of sales data on single-family rental properties nationwide to find the most popular markets with investors this year. Metros located in the Midwest dominated its top 10 list, with Chicago in the top spot.
“The list highlights the growing popularity of Midwest real estate markets,” says Steve Hovland, director of research for HomeUnion. “Rental properties in these metros are trading at a faster rate than before as their local economies continue to grow, the cost of living is lower than it is in most coastal metros, and median local incomes are keeping pace with home values.”
Meanwhile, Florida markets like Tampa, Jacksonville, and Fort Lauderdale waned in popularity this year and were among those at the bottom of HomeUnion’s list.
“Higher prices are pushing some vacation home buyers to the sidelines in many popular Florida markets,” Hovland explains. “Investors are also becoming more selective when choosing assets in these booming Florida markets.”
HomeUnion identified the following 10 most sought-after real estate investments markets of 2017:
- Chicago: 30.4% (the percentage point increase in investment home sales from 2016 to 2017)
- Columbus, Ohio: 18.1%
- Atlanta: 6.9%
- Detroit: 2.6%
- New York: 2.5%
- Cincinnati: 2.1%
- Philadelphia: 1.6%
- Orange County, Calif.: 1.5%
- Indianapolis: 1.3%
- Milwaukee: 1%
Source: HomeUnion
