It is said that great cities share common traits, such as innovation, livability and good governance. The best cities, however, are those able to maintain a distinctive identity. While Worcester, Massachusetts fits all three of the first set of categories, it excels at the latter. Here you will find a city that capitalizes on its assets - its history, architecture, natural surroundings and native-grown businesses.
Worcester residents enjoy all that there is to do here, including enjoying the amazing arts, cultural and entertainment scenes and taking advantage of its many green spaces and parks.
Business and industry thrive in the "Heart of the Commonwealth," with biotechnology, healthcare, medical research, advanced manufacturing and information technology as its dominant industries. Worcester also embraces entrepreneurs. To combat "brain drain" among the city's 30,000 college and university students, the Worcester Regional Chamber of Commerce created StartUp Worcester. This initiative offers seed money to young entrepreneurs with amazing startup ideas.
Q2 2015 Worcester Rental Market Update
In Q2 2015, Worcester was the third-best rental market in the Northeastern U.S. and 24th-best in the country as a whole. Impressively for such a relatively insignificant metropolitan area, Worcester is outranked only by Boston and Washington, D.C. in the Northeast, putting it ahead of much larger metros like New York and Philadelphia in that region. Since Q1 2015, Worcester jumped one spot in the Rental Ranking Report's regional rankings for the Northeastern U.S. and 14 spots in the national rankings.
The Worcester rental real estate market is admittedly far from perfect for rental property owners. Property values appreciated at a sluggish rate of 3.22 percent year-over-year in Q2 2015, 37 percent lower than the national average for that metric during that period. Homes also stayed on the market slightly longer in Worcester than average - 72 days compared to the U.S. average of 63 days. Combined, these statistics indicate that demand for Worcester housing isn't particularly high and rental property investors can therefore find better returns elsewhere.
Regardless, Worcester rental real estate can still be a lucrative investment. The best proof of this is Worcester's stellar 10.66 percent year-over-year rental price appreciation, which was the ninth-best in the U.S. and 114 percent higher than the national average for that metric during that period. Worcester's astonishingly low vacancy rate of just 1.40 percent was the lowest in the U.S. - by far - during Q2 2015 and was almost 80 percent less than the national average. Given that Worcester has fairly strong job growth (an annual increase of 2.09 percent in Q2 2015, slightly above the national average), it seems unlikely that these generally favorable conditions for rental property investors will end anytime soon.
Q1 2015 Worcester Rental Market Update
The Q1 2015 Rental Ranking Report found that Worcester is the fourth-best market for rental real estate investment in the Northeast and 38th-best in the U.S. out of the 75 markets the report evaluated. Worcester fared relatively poorly in Q1 2015 for most of the nine metrics used by the Rental Ranking Reports, with three exceptions.
Worcester experienced an eyebrow-raising year-over-year median rental price appreciation of 8.82 percent in Q1 2015, over three times the national average for that metric during that time frame. Worcester's vacancy rate of 4.50 percent was almost half that of the national average, 7.12 percent last quarter. Lastly, Worcester ranked seventh in the U.S. on our Job Availability Index, which measures future job growth in the 75 Rental Ranking Report metros (job growth being one of the major drivers of demand for rental housing). If these stats don't convince you that demand for Worcester rental housing is high and will only continue to increase, nothing will.
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 Worcester rental property?
Worcester's rapidly-rising rents, low vacancy rate, and outstanding future job growth indicate that it is now and will continue to be an excellent market for rental real estate investment.
Thinking about renting out a property in Worcester? 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.