Part of Massachusetts' historic Pioneer Valley, Springfield is often referred to as the "City of Homes" thanks to the wealth of attractive architecture found within it. Springfield also holds the distinction of being located close to more than 32 universities and liberal arts colleges. The region is home to more than 110,000 university students, and this contributes to strong perennial demand for affordable rental housing.
Q2 2015 Springfield Rental Market Update
In Q2 2015, Springfield was the fourth-best rental market in the Northeastern U.S. and 31st-best in the country as a whole. Since Q1 2015, Springfield jumped nine spots in the Rental Ranking Report's regional rankings for the Northeastern U.S. and a whopping 37 spots in the national rankings.
Sleepy Springfield had the highest annual rental price appreciation in Q2 2015, an incredible 21.20 percent increase that was more than four times larger than the national average during that period. Springfield also had an extremely low vacancy rate, 3.20 percent (less than half the national average), during that time. Finally, Springfield's moderately high annual job growth rate of 2.09 percent in Q2 2015 serves to explain why the demand for housing seems to have greatly increased there while simultaneously hinting that, at this pace, the demand for Springfield housing may remain strong for quarters to come.
The Springfield rental real estate market is far from perfect, however. Springfield property values only appreciated 2.54 percent year-over-year in Q2 2015, an increase exactly half the national average and one of the lowest property value appreciation rates in the U.S. during that period. It also had a fairly high median age of housing inventory of 75 days (compared to the national average of 63 days) in Q2 2015, indicating that demand for Springfield housing isn't as strong as some of the aforementioned real estate statistics would suggest.
Q1 2015 Springfield Rental Market Update
The Q1 2015 Rental Ranking Report finds that Springfield has the 13th-best ROI for rental properties in the Northeast and 68th-best rental ROI in the country out of the 75 Rental Ranking metros. Springfield's vacancy rate of 5.2 percent is moderately better than the national average of 7.12 percent. Its cap rate of 6.85 percent is slightly lower than the national average of 7.18 percent, thanks to the downward pressure caused by falling rents (the median Springfield rent fell 3.1 percent in the year ending in Q1 2015 - the second worst change in rental prices out of all 75 metropolitan areas evaluated by the Rental Ranking Report).
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 Springfield rental property?
Thinking about renting out a property in Springfield? 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.