A report from Roofstock.com, an online marketplace for housing investments, found that in Houston, single-family rental investors are seeing average annual returns of 12.8 percent, just below the national average.
These rental investments are surpassing returns on stocks and bonds; bonds saw an average 3 percent annual yield. Roofstock CEO and co-founder Gary Beasley said in an announcement that single-family rentals have, "historically been considerably less volatile than stocks and bonds and generates consistent monthly income," The Houston Chronicle reports.
"After a booming 2017, first-quarter turbulence in the stock market was an abrupt wake-up call for investors," said Beasley. Roofstock crunched the numbers including data from the S&P 500, the Federal Reserve, U.S. Census Bureau and Zillow. The Oakland, Calif.-based company provides an online marketplace for buying and selling leased single-family rental houses. It operates in 25 markets across the U.S. and has 30 listings in Texas.
Related Stories
Affordability
How Many Households Are Priced Out by Rising Mortgage Rates?
Soaring interest rates are pricing a growing number of Americans out of the new-home market, and that share is expected to keep rising as the Fed sends borrowing costs even higher
Affordability
Will Rising Mortgage Rates Undermine a Market Recovery Ahead of the Spring Buying Season?
Dwindling supply and rising borrowing costs are backing prospective buyers into a corner just as the spring market heats up
New-Home Sales
Homebuyers Persevere Despite Rising Mortgage Rates, Home Prices
Interest rates are on the rise, but prospective buyers are still forging ahead with home purchases at the start of the spring market