Florida, Louisiana Dominate Top 25 U.S. Markets for Rent Increases in 2015
According to a new report by RentRange, housing markets throughout the South region in Florida, Louisiana, Arkansas and Tennessee account for eight of the top ten increasing rental markets in the U.S. in 2015.
In the West region, where the nation's home prices are the highest, markets across California, Washington and Hawaii occupy nine spots on the top twenty-five list. While the strong growth in rents is encouraging, current price levels in many of these Western markets suppress gross yields as they are consistently among the lowest on the list.
For real estate investors, the rental increases are only half of the full picture they should consider. The gross yield data, which demonstrate income return from an investment prior to operating costs, indicate that markets in the South region are also ripe for investment and account for the highest gross yield percentage returns on the list.
"The single-family rental market remains strong across the U.S. as the homeownership rate continues to decline and a higher percentage of the population migrates to rental housing," said Walter Charnoff, Chief Executive Officer of the RentRange business. "As the real estate market continues to improve, we are seeing significant rental price increases in many markets, which bodes well for investors in this space."