Home to many of the world's top insurance companies' headquarters, Hartford is often referred to as the "Insurance Capital of the World." But there is far more to this beautiful Northeastern city than the insurance industry. Boasting the oldest public art museum in the nation, the Wadsworth Atheneum, the oldest public park, Bushnell Park, and the oldest continuously published newspaper, The Hartford Courant, you will find a vibrant historic and cultural scene throughout the city. Also ranked highly by Forbes for its educational resources, Hartford is home to Trinity College and the University of Hartford, among others.
Q2 2015 Hartford Rental Market Update
In Q2 2015, Hartford was the 15th-best Northeastern housing market to own rental properties in and 69th-best in the country as a whole. Since Q1 2015, Hartford jumped one spot in the Rental Ranking Report's regional rankings for the Northeastern U.S. and two spots in the national rankings.
The Hartford rental real estate market is admittedly far from perfect. Hartford rental prices rose by just 0.33 percent year-over-year in Q2 2015, one of the lowest rental price increases in the U.S. during that time period and more than 90 percent less than the national average for that metric. To make matters even worse for Hartford rental real estate investors, local property values only appreciated by 2.28 percent year-over-year in Q2 2015, also one of the lowest increases in the U.S. during that time period and around 55 percent less than the national average for that metric.
Regardless, Hartford rental real estate can still be a lucrative investment for those who own it. The Hartford rental capitalization rate, which compares annual rents to property values, is a modest 6.63 percent. While slightly below the national average, this "cap rate" indicates that Hartford nonetheless offers fairly good returns for those who choose to invest there. The moderately low local vacancy rate of 5.60 percent (about 17 percent less than the national average for that metric) and decent job growth rate of 1.90 percent (only around 6 percent less than the national average) indicate that Hartford will likely be no less attractive for rental real estate investment for quarters to come.
Q1 2015 Hartford Rental Market Update
Hartford is currently a challenging environment for value-seeking rental real estate investors. According to the Q1 2015 Rental Ranking Report, Hartford ranks 71st out of the 75 rental markets it evaluated, and is 16th - almost last - in the Northeast.
Landlords don't have many problems keeping Hartford real estate rented out; the city's vacancy rate of 4 percent is the tenth best in the country and indicates a high demand for housing. But rents have fallen slightly, down 2.2 percent, despite the strengthening of rental markets nationwide. The cap rate is a modest 6.9 percent, down slightly when compared to the last Rental Ranking Report. Property appreciation momentum is slow as well - 72nd among the 75 Rental Ranking metros.
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 average 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 Hartford rental property?
Despite its poor performance in the Q2 2015 Rental Ranking Report, you can still net significant rental income as a landlord in Hartford. Be prepared to hit singles rather than home runs for a while, though. Focus on doing your due diligence and making careful, conservative projections concerning cost, rental income and future price appreciation.
Thinking about renting out a property in Hartford? 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.