Dive Brief:
- Two companies, RentRange and RealtyTrac, looked at where smaller investors could put money into single-family housing and get a good return.
- The study had a limited focus – three-bedroom homes,
- The top 25 markets turned out to be places where big investors had taken 5% of less of sales in the preceding three months and where unemployment was no higher than 7.5%
Dive Insight:
The study was broken down by counties, and it looked for places where the gross margin, which is the rental income divided by the purchase price of the value. It didn't say that it mattered whether the investment was in an existing house or new construction, though the lead time for construction might squeeze home builders trying to take advantage of the opportunities.