CNN Money once described Bridgeport as a "hardscrabble city ... which has long suffered from sleazy politics and urban decay but is finally cleaning up its act." And, in our opinion, Bridgeport cleans up well.
As more businesses flee the high taxes and burdensome regulations of New York City for the more business-friendly environs found in Stamford and Greenwich, the overflow of workers is landing in - you guessed it - Bridgeport.
They like what they find in Bridgeport, too. Lower rental rates and an ideal location on the Pequonnock River and Long Island Sound are just two of the many reasons it's an attractive city to live. Bridgeport residents can rent a loft in a converted warehouse for far less than in nearby cities. Then there are the condos in Bridgeport's trendy Black Rock neighborhood. Its waterfront park, shops and eateries draw a diverse population.
Commercial real estate brokerage Marcus & Millichap forecasts a stable employment environment in Bridgeport and Fairfield County as a whole. In fact, Bridgeport employment opportunities are downright rosy, with employment gains "led by hiring among retailers as well as companies in the professional and business services sector," putting its employment at levels above the previous peak.
Q2 2015 Bridgeport Rental Market Update
In Q2 2015, Bridgeport was the 17th-best Northeastern housing market to own rental properties in and 72nd-best in the country as a whole. Since Q1 2015, Bridgeport fell 12 spots in the Rental Ranking Report's regional rankings for the Northeastern U.S. and 24 spots in the national rankings.
The Bridgeport rental real estate market is currently one of the worst in the entire country for rental property investors. Bridgeport suffers from an awful vacancy rate of 8.70 percent (about 30 percent less than the national average in Q2 2015), extremely low property value appreciation rate of 2.18 percent (about 60 percent less than the national average), and low job growth rate of 1.36 percent (only about two-thirds of the national average). Perhaps most alarming for rental property investors is Bridgeport's abysmal 3.68 percent rental capitalization rate, a metric which compares its annual rents and property values; Bridgeport's "cap rate" was the lowest in the U.S. in Q2 2015 and around 46 percent less than the national average for that metric. This strongly indicates that Bridgeport offers poor returns for prospective rental property owners.
Fortunately, the Bridgeport rental real estate market does have one redeeming quality. Local rental prices increased by an impressive 5.64 percent year-over-year in Q2 2015, an increase about 13 percent higher than the national average for that metric during that time period. This could indicate that the anemic Bridgeport rental real estate market may be improving.
Q1 2015 Bridgeport Rental Market Update
The Q1 2015 Rental Ranking Report found Bridgeport to be the fifth-best market in the Northeastern U.S. for rental real estate owners and 48th-best in the U.S. as a whole, out of the 75 markets evaluated by the report. The median rent in Bridgeport increased 11.63 percent in the year ending in Q1 2015, the third-highest rent variance in the country during that time frame. Its vacancy rate of 4.40 percent is far below the national average of 7.12 percent and ranks it 17th in the U.S. for that metric. Bridgeport also ranks third in the U.S. on our Job Availability Index, a measure of future job growth and, in turn, future demand for housing. Taken together, these stats indicate that demand for housing in Bridgeport is high and will only continue to increase as more jobs come to the area - helping rental property owners net even better returns.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the median number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Bridgeport rental property?
Things are looking up in Bridgeport. Rents are rising and job growth is high enough to likely cause area rents to increase even further. If there ever was a time in recent memory to invest in Bridgeport rental housing, this is it.
Thinking about renting out a property in Bridgeport? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.