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Last updated: April 5, 2021 • Real Estate Market

Best rental market in the United States

The face of real estate investment in the US has drastically changed since the Covid 19 pandemic. People’s preferences for real estate have changed, and as an investor, you have to be aware of the trends if you want to expand your portfolio and maintain a high return on investment. Real estate is about location, but it’s not one single best location to invest in the rental market.

There are plenty of cities where real estate is booming at the moment, and most of these locations have three factors in common: affordability, population, and job growth. If you can find a market with all these three factors, you’ll probably be able to find good investment opportunities for both appreciation and cash flow.

Becoming familiar with the best rental markets in the US will prepare you for your first buy-and-hold-asset if you want to become a real estate investor. It will also give you some great tips on promising real estate markets if you are already an experienced investor. The location you choose to invest in will ultimately determine the success of your assets: therefore, we created this list with some of the best rental markets in the US to help you find out the best location for you to invest in.

Houston, Texas

houston texas city park view

Houston is considered one of the best rental markets in 2021, and there are a few good reasons as to why that is true. People who relocate to Houston have plenty of job opportunities, which rings true for Houston and most Texan cities. The metro area has a population of about 7 million people, and it keeps growing. Since Houston has the second-highest concentration of Fortune 500 companies next to New York, there is no question as to why this city is booming so fast.

Despite its high rate of job and population growth, Houston TX continues to remain a highly affordable city for its size and popularity amongst career-seekers. With all these three components, there is no question of why Houston holds one of the most successful rental markets in the US. With a short initiation in Houston’s housing market as an investor, you would find out that the average home value is close to $175,000, and the monthly rent in the city averages around $1,500.

Property value is slowly but surely rising, which is good news for investors, and it could be good news for you as well if you want to start buying rental properties in the metro area. Get in touch with real estate agents in Houston TX, and learn more about the area’s real estate market.

Jacksonville, Florida

skyline jacksonville florida main street

In the city of Jacksonville FL there is no shortage of beauty and great real estate investing opportunities. Ranked as one of the three best cities in the Sunshine State for its rental market, there is no surprise that one of Florida’s famous coastal towns takes the spotlight in the rental market department. After all, it is a hot spot for tourists looking for some of the best places to buy vacation rental properties. 

Amongst the great things the city has to offer, the lack of income tax, sunny weather, and the growing job market are a few, to begin with. With more people being drawn to Houston, the city has experienced a population growth of 14% over the past ten years. With popular industries such as finance, healthcare, technology, and the military being some of Jacksonville’s biggest employees, residents enjoy a profitable job market.

Now with an average home price of about $190,000, Jacksonville is a relatively affordable place for a coastal city of its stature. Keep in mind that the city is also an international seaport, and Jacksonville’s infrastructure improvements have boosted the city’s economic growth by at least 4% last year. With the help of real estate agents in Jacksonville FL you can learn more about the housing market growth and take advantage of it.

Durham, North Carolina

durham carolina downtown skyline

Part of the “Research Triangle ” and known for its technology industry, the city of Durham has come a long way since the housing bubble burst after the market crash in 2008. At that time, Durham was considered one of the least favorable places to invest in real estate. However, the city’s stable economy and population growth managed to increase the rental demand, turning the city into one of the best rental markets in the US.

Because of the Triangle’s popularity amongst new and out-of-state residents, Durham’s real estate performs above the US average, raising the interest for the area amongst real estate investors. From 2016 to 2017, the rent grew by 10%, and the average rent for a one-bedroom apartment in 2019 was close to $1,100/month. 

Durham offers a dense suburban feel, and more than half of the households are occupied by renters. The median home value is close to $250,000 and the area has a good record for being an excellent place for long-term real estate investment. As an investor in rental properties in the area, you can expect many career-oriented professionals to be your target population since living in Durham NC provides plenty of great job opportunities thanks to the Research Triangle. Get in touch with realtors in Durham NC, if you want to learn more about the real estate market and start your investment affairs in the area.

Dallas, Texas

dallas texas city blue sky

Going back to Texas, we have another city that ranks on our list of top rental markets in the US, the city of Dallas. For many, there is no surprise that Dallas was and remained the city with one of the most thriving real estate markets. Signs show that the housing market in the Dallas metro area will be strong in 2021. Some factors that influence the rising market are strongly related to the affordability of the area. With an average home price of about $260,000 and a median rent of about $1,500, you can find some affordable housing in certain parts of Dallas and even lower or comparable rent prices.

Dallas is also the fourth most populous metropolitan area in the US, and historically, the city was an important center for the cotton and oil industries. With two powerful industries leading the city’s economic growth, it’s only normal that real estate growth would follow. Nowadays, about half of the Texan population working in the tech industry is situated in the Dallas metro area.

Dallas is also home to a diverse population of people, given the fact that the city has a long-standing history in sports, entertainment, along with its vast shopping and restaurant scene. What the majority of investors love about the real estate in the area is closely related to finding hidden gems that are less expensive and newly-remodeled homes. With a bit of research and the help of real estate agents in Dallas TX you could land quite a few substantial investments in the busting rental market.

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Chicago, Illinois

chicago illinois downtown view

The rental market in Chicago IL was and remains one of the strongest markets in the US: therefore, it belongs on our list of best places to invest in real estate. Chicago is the third-largest metropolitan area in the US, and it is well known for its diverse economy, large population, and stable market. Chicago has high private-sector employment, and several factors indicate that it is an excellent marketplace for rental property investments.

With a large population of renters in the area, Chicago’s investment properties are far better than other rentals in the country. The average rent price is about $1,000 for a one-bedroom apartment and $1,300 for a two-bedroom apartment. Chicago’s rental market is appreciating slower than average but surely, and the year-over-year increase is about 1%.

Chicago is often rated as the city with one of the most balanced economies in the US, with a strong economy and job growth. The city’s impressive urban setting is highly sought after, and with its towering skyscrapers and Fortune 500 companies, many new US residents settle in the area every day. If you want to learn more about the area’s rental market, reach out to our real estate agents in Chicago IL, who can help you nail down the best rental investments in and around the neighborhoods.

Conclusion

One of the largest and most profitable real estate niches is the rental market, and the US has its fair share of top rental markets that are well known for their excellent investment potential. Many factors might point you towards a city with a high potential for real estate investment. Factors such as affordability, job, and population growth are always good signs of a thriving rental market. 

With the research underlined in this article, we hope that both beginner and experienced real estate investors could look into this article’s highlighted rental markets and find profitable investment opportunities in these areas. We also encourage you to leave a comment down below if you find this article useful, and don’t forget to share it with your friends and family.

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