For investors looking to find bargains in the single-family rental (SFR) market, winter is here … and that’s a good thing. According to a study by HomeUnion, an online real estate investment and management firm, the off-peak winter period can be one of the best times of year to acquire single-family rental homes. HomeUnion reports that investors paid 6.6 percent less per square foot during the winter months of 2018 than they did during summer 2017, when the buying market is in full swing.
Steve Hovland, Director of Research for HomeUnion, says, “For the second year in a row, our study found that the wintertime is the best season to acquire rentals. Median home prices drop substantially during the colder months, while rent losses remain marginal for landlords. On average, investors can acquire higher-yielding properties in cold-weather markets like Omaha, Nebraska; Chicago, Illinois; and Hartford, Connecticut.
HomeUnion ranked the 40 best metro areas to buy rental property during the wintertime, with Omaha, Nebraska topping the list. HomeUnion found the average wintertime price for Omaha to be $78,100, down 32.1 percent from the summertime average of $115,000. Here are the list’s top 10 entries, along with the price decrease between summer and winter months.
- Omaha, Nebraska: -32.1 percent
- Chicago, Illinois: -26.0 percent
- Hartford, Connecticut: -25.5 percent
- Columbus, Ohio: -25.1 percent
- Seattle, Washington: -24.7 percent
- Washington, D.C.: -24.3 percent
- New York, New York: -23.8 percent
- Cincinnati, Ohio: -22.4 percent
- Grand Rapids, Michigan: -21.4 percent
- Minneapolis, Minnesota: -20.1 percent
You can see the rest of HomeUnion’s rankings by clicking here.
Investors interested in the single-family rental market should take note of Five Star’s 2018 Single-Family Rental Summit, set to unfold March 19-21, 2018, at the Renaissance Nashville Hotel in Nashville, Tennessee. The three-day Summit will feature top subject matter experts and skilled SFR practitioners leading discussion panels and training sessions related to property acquisition and management, financing, strategies for small, mid-cap, and large investors, and new developments related to technology and professional services. You can find more information by clicking here.