For investors eyeing the acquisition of single-family rentals, major Texas markets and locales in the South represent the best opportunities for future investments — despite a decrease in the inventory of foreclosed homes.

“For the last few years, investors have been able to find real estate bargains they could turn into rental properties. That period is pretty much over,” said Ingo Winzer, president and founder of Local Market Monitor. “You don’t need a bargain in order to make a good real estate investment.”

According to Local Market Monitor and homebuying franchise HomeVestors, the top markets for single-family rental investment moving forward are Denver, Dallas, Houston, Austin and Seattle.

[Tweet “Top markets for single-family investment: Denver, Dallas, Houston, Austin, Seattle”]

Rounding out the top ten are the southern-located cities of Orlando, Florida; San Antonio; Charleston, South Carolina; Nashville; and Raleigh, North Carolina.

HomeVestor’s co-president Ken Channell points to Orlando, Nashville and Raleigh as the best cities for bargains, along with Charleston — a market that’s ideal for attracting vacation renters and retirees.

The top ten markets have several market conditions in common: population growth that exceeds 4 percent coupled with current job growth of more than 2 percent and low unemployment.

“Job and population growth spurs great conditions for investing in single-family rental properties,” said David Hicks, co-president of HomeVestors, citing Austin — a market where population growth is triple the national average.

Four of the top ten markets for single-family rental buys — Charleston, Denver, Seattle and Orlando — are located in states with the highest recent home price appreciation. South Carolina saw a 10.3 percent rise during the past 12 months, according to CoreLogic. Other top-performing markets for price appreciation include:

  • Colorado (9.8 percent)
  • Washington (8.8 percent)
  • Florida (8.7 percent)

Email Erik Pisor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×