Springfield, MA: Rental Property ROI Analysis
|75 US City Avg.
Part of Massachusetts'
Pioneer Valley, which includes the towns on Amherst, Deerfield, Northampton and South Hadley, the community of Springfield is often known as the "City of Homes," thanks to a wealth of attractive architecture. As part of the Hartford-Springfield region, Springfield also holds the distinction of being located within close proximity to more than 32 universities and liberal arts colleges; the region is home to more than 110,000 university students.
As you may imagine, this influx of students makes the Springfield rental real estate market an excellent candidate for investment. All Property Management Q2 2014 Rental Ranking Report agrees, as Springfield has been ranked 3rd BEST for rental real estate investment the region â€“ up two spots from last quarter. This ranking also jumps the city ten places from last year to 17th in the nation.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
Springfield, Massachusetts, while lacking in job growth and strong capitalization rates, ranks quite well for rental rates and vacancy. Springfield has seen year-over-year growth in rental rates of 1.69 percent, which places it 5th among the 75 Metropolitan Statistical Areas that All Property Management evaluates for the Rental Ranking Report. Similarly, vacancy rates are at 4.1 percent, indicating that there is a potential demand for new rental properties in the market. Another positive for Springfield is year-over-year home appreciation of 5.65 percent.
What does a high-ranking mean?
Is owning a rental property in Springfield profitable?
Quite simply, there has never been a better time to consider rental property investment in Springfield and the surrounding areas.
Excellent growth in rental rates and low vacancy rates indicate there is a need for additional rental options in the city, and that rental prices continue to rise.
Thinking about renting out your Springfield property? Seek the assistance of a local, qualified property manager and automate your rental profit.
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Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.