When it comes to the hottest housing markets in the country it’s always California this and California that. In fact, 13 out of the top 20 real estate markets in the country in March were located in the Golden State. Now, California dominates another list entirely.
California holds four out of the five spots for counties with the lowest returns for landlords, MarketWatch reports. By determining the annual gross rental yield, RealtyTrac created a list of the best and worst counties in the country to be a landlord. Taking a year’s worth of rent and dividing it by median home prices determined the average annual gross rental yield. The national average was a very strong 9.4 percent.
In places such as San Francisco County, San Mateo County, Marin County, and Santa Cruz, however, the numbers were not quite so good. Those four counties had annual gross rental yields of 3.4 percent, 3.6 percent, 3.9 percent, and 4.0 percent respectively. The very lowest returns, however, are Arlington County, Va., at 3.3 percent.
On the other side, Baltimore City, Clayton County, and Wayne County had the highest annual gross rental yields with corresponding totals of 28.5 percent, 25.8 percent, and 24.3 percent.
And, since millennials are the belles of the ball for all things consumer driven, the study also analyzed the best markets for renting to them. The top three spots were taken by Milwaukee County, Wisc., Richmond County, Va., and Bell County, Texas with annual gross rental yields of 15.7 percent, 13.7 percent, and 11.9 percent.
To see the full lists of the places with the best and worst returns for landlords, follow the link below.