Worcester Now 5th-Best City In The Nation For Residential Property Rental Income
A new index shows that Worcester ranks in the top five U.S. cities in terms of income for residential landlords
Compiled by All Property Management (APM), the country's largest online network of property management services, the new report's goal is to help investors make informed decisions based on current marketplace analysis. Factors such as residential vacancy rates, cap rates and annual rent increases were considered, in addition to data from the U.S. Census Bureau, U.S. Department of Housing and Urban Development, U.S. Bureau of Labor Statistics and CoreLogic.
Depicted graphically at the bottom of this page, APM's Rental Property Management Health Index found that Worcester ranks fifth in the nation in terms of income potential for investors in residential rental properties. As "The Heart of the Commonwealth," Worcester scored well in housing appreciation at 8.1%, yearly rent increases at 11.41%, and a low, 4.45% vacancy rate. These factors outweighed a low job growth and urban development cap ranking to place Rochester fifth in the country in terms of rental property profitability.
"Worcester was ranked as the number four metro-suburban area in the U.S. for job gains in 2012 by the Wall Street Journal' and the 10th best city for families last year by Forbes," says Joe Salvia, vice president and regional manager for Maloney Properties. "It is also recognized as one of the top five housing markets in the country by MSN Real Estate.
"Combine all these factors in with the growth of the Health Sciences industry, from both a service provider and employment perspective; expansion of cultural and entertainment venues; reemergence of the transportation services, including both commuter rail and airport services; the ever-increasing higher education capacity of the nine major colleges and universities in the city and five additional in the region; the continued expansion and success of both "Restaurant Row", Shrewsbury Street and the transforming of the Canal District, and who could ask for more? Worcester provides big-city resources and services, along with family-oriented conveniences and amenities," says Salvia.
APM's Rental Property Management Health Index provides essential information to help investors assess the long-term value of rental properties nationwide, according to Steve Cook, award winning real estate journalist and co-publisher of Real Estate Economy Watch.
"Not only does the Rental Property Management Health Index offer investors a quick, comprehensive grasp of the current rental market on a national scale, it provides the type of data that should be most important from a business standpoint, like yearly rent variances and a particular city's urban development trends," said Cook. "While other tools may show near term-deals on distress sales, the APM Health Index educates investors on the potential wisdom of investing in any given market for the long term, regardless of temporary price discounts or short-term market trends." APM's new index provides a holistic view to aid potential investors in deciding where to purchase a profitable rental property. Research indicates 65 percent of individual investors plan to purchase additional properties in the coming year, and Wall Street firms have amassed more than $10 billion to invest in an institutional asset class.
"As investors look to explore new markets, get out of current markets, or double down, the data from this index will allow them to compare various factors and weigh which ones matter most to them," said APM CEO Reggie Brown. "Good information is essential for a wise investment, regardless of the investor's size."
Founded in 2004, Seattle-based All Property Management, is the largest online network of property management services, connecting tens of thousands of property owners with thousands of licensed property managers across North America each year. All Property Management allows property owners to maximize rental investments by connecting them with professional property managers who can meet their specific property needs, from single family home rentals to multi-unit apartment complexes and homeowners' associations.
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