What are the most popular cities for renters? As a rental property investor, knowing where there is high demand is important. After all, you don’t want to invest in a rental property that doesn’t gain enough tenants. Here are the cities you should consider investing in this year.
Most Popular Cities for Renters
Homeownership has been declining for the past decades and has only seen a slight uptick recently. The reason for the decline is likely due to high housing costs and cost of living. People are also moving to less expensive cities with better jobs and fewer taxes.
Meanwhile, the rental market has been slowly growing in the last decade. This is because renting tends to be cheaper and affords people certain rights and protections. Renting also saves people money as there are no real estate taxes or repair bills to pay. Where are people renting the most? Here are the most popular cities you should consider.
1. Kansas City, MO
The Midwest seems to be the most popular region for renters lately. Hence, it is unsurprising that Kansas City takes the top spot as the most in-demand city for renters. It has some of the shortest commute times in the country and provides affordable housing. Moreover, it has a thriving economy with varying industries, so its people will have good job opportunities.
Kansas City has over 240,000 housing units, 39.61% are renter-occupied. The city continues to garner attention from apartment seekers, and the trend is only growing yearly. Its median gross rent from 2017 to 2021 is $1,040.
2. Overland Park, KS
The second most desired city for renters is Overland Park, KS. It strikes a good balance of having ample job opportunities, rent affordability, and access to great public facilities. Overland Park has safe neighborhoods, inclusive parks, and high-quality schools, so it’s a great place to start a life. The city is also home to over 15,000 housing units, with renters occupying 38.56% of the units. Overland Park’s median gross rent from 2017 to 2021 is $1,248.
3. Minneapolis
The third most popular city for renters is Minneapolis. Even though there’s been a drop in the number of available apartments, the demand for them is still high. That’s because it has an expanding job market and a growing economy. Minneapolis also has great transportation with lots of interesting activities. The median gross rent for Minneapolis from 2017 to 2021 is $1,159.
4. Cincinnati
Cincinnati is a buzzing rental city in the Midwest, and it’s no surprise why. That’s because the city is fairly affordable, with a median gross rent of only $814 from 2017 to 2021. The city has many major universities like Xavier University and the University of Cincinnati. It has a low vacancy rate of 3.6%, so it’s a fairly strong rental market.
5. Albuquerque, NM
Albuquerque is one of the most popular cities for renters because of its high quality of life. It also has a decent cost of living compared to other cities. The city has been unable to keep up with the housing development and construction demand. As a result, many renters can compete for one vacant unit. The median gross rent for Albuquerque was $932 from 2017 to 2021.
6. Detroit
Detroit is a popular city for renters because of its affordable living cost. It’s also an emerging city for tech hubs and the life sciences industry. Thus, rental property investors can expect to generate high investment returns. The city only has a median gross rent of $899 from 2017 to 2021.
7. Atlanta
Atlanta has seen consistent growth in the rental market. This is likely because Atlanta has many job opportunities and Fortune 500 companies in the area. Furthermore, it has access to one of the largest international airports, a diverse community, and mild winters. It also has moderately affordable units, making it an attractive choice. The city has a median gross rent of $1,342 from 2017 to 2021.
8. Orlando, FL
Orlando has been consistently attracting renters. In fact, there has been growing interest in renting in the city every year. This may be because the city has a strong job market and diverse culture. It also has some of the most popular theme parks in the country, including Universal Orlando, Walt Disney World, Discovery Cove, Sea World, and Legoland. The city also has lower taxes and relatively affordable housing. Its median gross rent was $1,346 from 2017 to 2021.
9. Arlington, VA
Arlington is a popular city for renters because of its great location. It’s easy to commute from the city to the capital of the US. Moreover, the city is more affordable to live in compared to bigger cities. Arlington is home to many small restaurants, public parks, and schools. The median gross rent in Arlington was $2,094 from 2017 to 2021.
10. Raleigh, NC
Raleigh is a vibrant city in North Carolina and is one of the most popular cities for renters. In fact, the demand for housing is so high that the area’s supply hasn’t been able to keep up. This may be because the city has many universities and a diverse economy.
It also invests heavily in the tech sector and has a high quality of life. Raleigh also has many parks and greenways, colleges, theaters, and museums, making it an attractive place to live. The median gross rent in Raleigh was $1,237 from 2017 to 2021.
Know Where To Invest
People change behaviors constantly due to economic, financial, and social factors. It’s important to stay updated on how the rental and housing market shifts. After all, it can be costly to invest in an area that does not have decent demand.
Of course, it can also be difficult to know all the information when you’re not an expert. There’s also a lot of information to keep up with as the rental market shifts quite often. That’s where a property management company can help. Look through our online directory to find a management company today!
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