Home to one of the country's leading research universities, Syracuse University, the Great New York State Fair, the Syracuse Jazz Festival and the Milton J. Rubenstein Museum of Science and Technology, Syracuse is renowned for being a wonderful place to live, work, and play. In fact, Forbes has ranked it on its lists of the most affordable U.S. cities and the best cities to raise a family in. Residents of Syracuse also enjoy plenty of recreational opportunities and wide-open green spaces; it has more than 170 parks and recreation areas, including Burnet Park, location of the first public golf course in the U.S., Rosamond Gifford Zoo and the Onondaga and Kirk Parks.
Syracuse has a lot of students per capita, thanks to the presence of the prestigious Syracuse University, SUNY Upstate Medical University, SUNY College of Environmental Science and Forestry, two nursing colleges and the Empire State College. Large student populations lead to high and sustained demand for rental housing, so we encourage investors to not be discouraged by Syracuse's low Rental Ranking and focus instead on its solid cap rate and the annually-renewing population of renters who flock to Syracuse for schooling.
Q2 2015 Syracuse Rental Market Update
In Q2 2015, Syracuse was the 16th-best Northeastern housing market to own rental properties in and 70th-best in the country as a whole. Since Q1 2015, Syracuse jumped two spots in the Rental Ranking Report's regional rankings for the Northeastern U.S. and five spots in the national rankings.
Most of the real estate statistics taken into consideration by the Rental Ranking Report paint a less than rosy picture of the Syracuse rental real estate market. Most alarmingly, Syracuse property values only appreciated 2.39 percent year-over-year in Q2 2015, less than half the national average for that metric and one of the lowest property value appreciation rates during that time period. The Syracuse vacancy rate, 10.30 percent (53 percent higher than the national average), annual job growth rate, 0.66 percent (67 percent less than the national average), and median age of housing inventory, 75 days (almost two weeks more than the national average), were also some of the worst in the country during Q2 2015.
Fortunately for current and prospective Syracuse rental property owners, the local rental market appears to be heating up. Syracuse rental prices jumped an astonishing 11.66 percent year-over-year in Q2 2015, an increase about 134 percent higher than the national average that was also the sixth-highest rental price appreciation rate during that time period. The capitalization rate, a statistic that compares annual rents and property values that is commonly used by investors to gauge the attractiveness of rental properties, was an impressive 8.68 percent for Syracuse rental real estate in Q2 2015 - about 27 percent greater than the national average. In comparison, New York City's "cap rate" is a mere 6.58 percent; this indicates that, surprisingly, rental real estate investors can get better returns on their investments in Syracuse than in the extremely hot New York real estate market.
Q1 2015 Syracuse Rental Market Update
Syracuse ranked 18th in the Northeast and 75th in the U.S. in the Q1 2015 Rental Ranking Report - dead last both regionally and nationally in terms of its attractiveness for rental real estate investors. But that doesn't mean landlords can't make money there! Syracuse has a solid average capitalization rate of 8.91, placing it in the top ten markets nationwide for that important rental housing investment metric.
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 Syracuse rental property?
An exceptional capitalization rate and status as a bustling college town means that investment in Syracuse rental housing can be profitable both in the short and long terms.
Thinking about renting out a property in Syracuse? 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.