Article From: http://www.builderonline.com
GoBankingRates: Florida cities lead the top, the Midwest snuggles into the bottom.
And now, from GoBankingRates, Los Angeles, we have a new top-10, or 15, or whatever list, this one regarding the viability of investing in real estate.
Among the top-10: Orlando, Tampa, Denver, Seattle, Austin, Reno, Dallas, Portland (Oregon), Raleigh and Miami. Among the bottom-10: Anchorage, Pittsburgh, Chicago, Virginia Beach, Cleveland, Honolulu, Detroit, Tulsa, Omaha and El Paso.
GOBankingRates examined 61 out of the 100 most populous cities based on employment growth, or percent change in the city’s number of employed people year-over-year; population growth: the percent change in the city’s population year-over-year; increase in home values: the percent change in the city’s median home value year-over-year’ and years to pay off property: the number of years it would take for rental income to pay off the median home value.
“Growing populations in the top 10 cities on our list are fueling the need for more housing,” said Cameron Huddleston, Life + Money columnist for GOBankingRates. “That’s why these cities are such great places to own investment property now. On the other hand, the cities at the bottom of our list have seen little-to-no population growth, so the demand for housing isn’t as high – which means real estate investors won’t do as well there.”
Other findings:
Five out of the ten best cities to own property are located in Florida and Texas.
Population levels are actually declining in places like Anchorage and Cleveland, pushing them to the bottom of the list.
When it comes to real estate investments, Midwest isn’t best – none of the Midwest states made it into the top 15 of the best states to own investment property.
Seattle, Austin and Reno rank among the top 10 places to own investment property. However, it takes 17 to 19 years to pay off median home values in these cities based on yearly rents.
There’s more on this study here