A new report from BiggerPockets, a social networking website for real estate investors, named the 10 U.S. markets where it said investors can expect the best and worst returns on residential real estate.
BiggerPockets reviewed the 50 biggest U.S. metropolitan statistical areas, looking at real estate sales prices there along with gross rents as a percentage of the purchase price.
Dallas led the list of markets providing the greatest return, followed by Portland, OR; Denver; Miami; Tampa, FL; Seattle; Nashville, TN; Atlanta; Houston; and Austin, TX, in the top 10 spots. Indianapolis, Washington, DC, Hartford, CT, Baltimore and New York yielded the least return, according to the company.
BiggerPockets’ list follows the spirit of other recent reports that explore where inventory, population, employment and pricing conditions hit a sweet spot and where buyers and investors can find affordable opportunities.
Realtor.com recently reviewed the country’s top 100 MSAs to find the 10 that had the least competition for homes. The real estate listing website’s 10 "most overlooked" markets include El Paso, TX, in the top spot followed by Albany, NY, Virginia Beach, VA, Winston-Salem, NC, and Augusta, GA.
Similarly, Coldwell Banker’s annual Home Listing Report ranked more than 2,000 U.S. real estate markets by the average price of a four-bedroom, two-bathroom home there. While cities on the West Coast dominated the top of the list — the first 11 were in California — the bottom of the list reveals cities with investment potential, including Cleveland and Detroit.
In an April report, Realtor.com looked at affordability, housing inventory, mortgage availability and employment potential in the country’s 100 largest MSAs to determine which were likely to meet the needs of price-sensitive first-time homebuyers. Portland, ME, Philadelphia, St. Louis, Allentown, PA, and Albany, NY, led its top 10 ranking.
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