All Property Management recently released the latest iteration of the Rental Ranking Report, a quarterly report that ranks 75 major U.S. metropolitan areas by the strength of their rental markets. Using real estate statistics from a variety of governmental agencies and trusted nongovernmental sources like the National Association of Realtors, we discovered that housing markets across the country are becoming increasingly competitive. This has lead to rapidly-rising rents, low vacancy rates and impressive property value appreciation.
These trends are especially true in the Western and Southeastern regions of the country, where stellar job growth in markets like San Francisco, Louisville, Denver and Raleigh is greatly increasing the demand for housing and making it even more lucrative for rental property owners. Click here to read more of our Rental Ranking Report findings.
Here are the top rental markets in each region of the U.S.:
WEST – SEATTLE
Seattle rents increased by a whopping 11.90 percent year-over-year, the fifth-highest rent variance in the country and almost 140 percent higher than the average rent variance. Impressive annual job growth (3.91 percent, the fourth-highest in the U.S.), moderately low vacancy rates (4.00 percent, 14th-lowest in the U.S.), and steep property value appreciation (8.95 percent, 11th-highest in the U.S.) also indicate how exceptionally strong demand currently is for Seattle housing. See a list of Seattle property managers >>
SOUTHWEST – AUSTIN
The attractiveness of Austin’s housing market is largely attributable to its phenomenal annual property value appreciation rate of 9.85 percent, the fifth-highest increase for that metric and almost twice that of the national average. Austin’s booming population (helped out by its 3.26 percent annual job growth rate, one of the highest such rates in the country) has led to the moderately-low local vacancy rate and median age of housing inventory of just 4.50 percent and 46 days, respectively. See a list of Austin property managers >>
SOUTHEAST – NASHVILLE
Nashville’s 9.30 percent year-over-year rental price increase was the 13th-highest in the U.S. and almost 90 percent higher than the national average during that period. Nashville’s stellar annual job growth (3.44 percent, seventh-highest in the U.S.), moderately low vacancy rate (4.80 percent, almost 30 percent lower than the national average), and even lower median age of housing inventory (a mere 42 days, 33 percent lower than the national average) also highlight how exceptionally strong the demand for Nashville housing currently is and will likely continue to be for many quarters to come. See a list of Nashville property managers >>
NORTHEAST – WASHINGTON, D.C.
The capitalization rate, a metric used to compare annual rents to property values that is commonly used by investors to gauge the attractiveness of rental properties, was 6.17 percent for Washington, D.C. rentals. While slightly below the U.S. average, this “cap rate” is hardly horrible and indicates that solid returns can be earned there. Washington, D.C.’s low median age of housing inventory (54 days, nine days less than the national average), even lower vacancy rate (5.20 percent, about 23 percent less than the national average), and moderately high annual job growth rate of 2.19 percent indicate that demand for housing there is and will likely remain quite strong for some time. See a list of Washington, D.C. property managers >>
MIDWEST – COLUMBUS
Columbus rents jumped a whopping 9.90 percent, the tenth-highest rent variance in the U.S. and an increase almost twice as large as the national average. Columbus’s moderately low vacancy rate of 5.50 percent and median age of housing inventory of 52 days, both almost 20 percent lower than their respective national averages, further indicate how strong the demand for housing currently is there. See a list of Columbus property managers >>