HomeUnion Names the Highest-Yielding Investment Housing Markets
Cleveland offers real estate investors the highest yields, while Orange County has the lowest yields
IRVINE, Calif., Jan. 17, 2017 – HomeUnion, an online real estate investment management firm, has released a list of the single-family rental (SFR) rental markets that offer investors the highest yields. Cleveland leads the nation, with first-year yields of 10.9 percent for investment housing, while Orange County offers the lowest yields on average to SFR investors – 3 percent.
“Strictly based on yields, and not accounting for employment growth and future rental demand, Cleveland, Columbia, S.C., and Memphis top our list of SFR markets for returns,” says Steve Hovland, director of research for HomeUnion. “In these metros, investors stand to gain big with a small initial investment over a shorter-term horizon. On the other hand, Orange County, San Jose and San Francisco will provide SFR buyers with the lowest yields on their investments. At this stage in the real estate cycle, investing in these West Coast markets doesn’t pencil out for most buyers, unless they seek a long-term appreciation play or desire the cache associated with purchasing California properties located in highly ranked school districts.”
Below is a list of the highest-yielding SFR markets:
|
Metro Area |
2017 Yields |
|
Cleveland |
10.9% |
|
Columbia |
9.3% |
|
Memphis |
8.5% |
|
Philadelphia |
7.9% |
|
Atlanta |
7.6% |
|
Chicago |
7.5% |
|
Jacksonville |
7.4% |
|
Tampa |
7.1% |
|
Charlotte |
7.1% |
|
Detroit |
6.9% |
Below is a list of the lowest-yielding SFR markets:
|
Metro Area |
2017 Yields |
|
Orange County |
3.0% |
|
San Jose |
3.1% |
|
San Francisco |
3.2% |
|
Los Angeles |
3.5% |
|
San Diego |
3.5% |
|
Seattle |
3.6% |
|
Oakland |
3.9% |
|
Denver |
4.2% |
|
Portland |
4.3% |
|
Riverside-San Bernardino |
4.5% |
Source: HomeUnion Research Services
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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 proprietary analytics to incorporate data on 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.
