Real estate has always been a popular investment choice. Today, it probably appears even more appealing thanks to a huge number of renters who lack the necessary funds to purchase a home.
Millennials are finally beginning to head out on their own, leaving the comfort of Mom and Dad’s house. Unfortunately for them, just because they are interested in buying a home, that doesn’t mean it is going to actually happen. Instead, huge numbers of Millennials uninterested in living in apartments are forced to rent single-family homes instead, which spells a big opportunity for any real estate investors out there, especially those in the cities ranked in the top ten list of CNBC’s best towns for real estate investors.
Today, most real estate investors exist on a smaller scale and are seeing more lucrative opportunities in less-obvious markets, according to CNBC’s Diana Olick. Among those places on the top ten list you might not expect are Syracuse, N.Y. and Milwaukee-Waukesha, West Allis, Wis. The Milwaukee area was seventh on the list with a year-over-year change in rent in the first quarter of 17.2 percent. The average gross yield also experienced a 10.45 percent increase year-over-year. Syracuse was sixth on the list with a 17.4 percent change in rent and an 11.27 percent increase in the average gross yield, the highest increase on the list.
The Cape Coral-Fort Myers area in Florida took the top spot on the list with a 29.2 percent change in rent and a 7.81 percent rise in the average gross yield. Other cities on the list are Knoxville, Tenn. (3), Shreveport-Bossier City, La. (5), and Charleston-North Charleston, S.C. (10).
Rental units are expected to be a good investment for the foreseeable future until inventory finally manages to catch up to demand and more starter homes become available on the market.
To view the entire list, click the link below.