Monthly Archives: December 2015

The 10 US Markets With the Biggest Rent Increases & Decreases in 2015

In a bid to bring you most authentic tool that will assist you in your real estate investment decision, this post is the result of detailed study of the US markets in 2015 and an outlook to 2016. It was posted by Allison Leung and with permission reproduced here:

 

In a study released today on rent affordability, RealtyTrac found that, assuming a 3 percent down payment, buying a home is more affordable than renting in 58 percent of US housing markets. Still, home price appreciation continued to outpace rent growth in 55 percent of the markets, and rent growth continued to outpace weekly wage growth in 57 percent of markets.

“Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents,” commented RealtyTrac VP Daren Blomquist. “In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.”

Markets With the Biggest Increases & Decreases in Rents

In the 504 counties studied, the following was discovered:

  • Three-bedroom property rents are likely to increase an average of 3.5 percent in 2016 compared to 2015 across all markets, according to HUD data
  • Weekly wages in Q2 of 2015 were up an average of 2.6 percent from a year ago
  • Median home prices were up an average of 5.0 percent in Q3 of 2015 compared to a year ago

Markets with the biggest increases in rents include:

  • Sumter, South Carolina
  • Burlington, North Carolina
  • Goldsboro, North Carolina
  • Houma-Thibodaux, Louisiana
  • Missoula, Montana

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The biggest increases among counties with populations of one million or more include:

  • Santa Clara County, California in the San Jose metro area (up 9.3 percent)
  • Travis County, Texas in the Austin metro area (up 8.0 percent)
  • San Diego County, California (up 7.5 percent)
  • Cook County, Illinois in the Chicago metro area (up 7.3 percent)
  • Bexar County, Texas in the San Antonio metro area (up 7.2 percent)

The markets that saw the biggest decrease in rents include:

  • Johnson City, Tennessee
  • Abilene, Texas
  • California-Lexington Park, Maryland
  • Ithaca, New York
  • Roseburg, Oregon

Counties with a population of one million or more with the biggest decreases are:

  • Suffolk and Nassau counties in Long Island, New York (both down 6.8 percent)
  • Clark County, Nevada in the Las Vegas metro area (down 1.4 percent)
  • Sacramento County, California (down 0.4 percent)
  • Contra Costa County, California in the San Francisco metro area (down 0.3 percent)

 

Next, we will discuss the Most & Least Affordable Markets for Renters in 2016 using the 2015 data.

Wishing you all a Merry Christmas as we look forward to exciting moments in 2016.

10 Best Real Estate Housing Markets Through 2016

We have been looking at the US market expections for 2016 in our previous posts ( US Housing Market Forcasts for 2016: Kansas City Part 1, 2 and 3). We looked at the Mid Western State of Kansas and examined three major locations and the indices seem to indicate positive showings for 2016.

In this post, we will take a peep at the ranking of the top 10 hosing markets for 2016 as predicted by ‘Housing Predictor’. Here are  the details:

The best housing markets forecast for the next five years are composed of 10 cities scattered from Washington State to Florida. These 10 U.S. Miami, Florida cities are projected by Housing Predictor to have the highest probability of appreciating the most for all cities in the nation through 2016.

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Most of the best real estate markets are centrally located to attract a large number of sizeable employers, and are likely to produce better regional economic conditions as a result. A few are exceptions to this rule, including Miami, which tops the list with the highest projected housing inflation.

Miami is an international designation for vacationers and has become a world class resort community, attracting home and condo purchasers from all over the world. If there’s ever been a time to buy housing in Miami in this decade, chances are this is it.

Across the nation, San Francisco ranks second on the list. A rich diverse cultural mix of people has transformed the greater Bay Area into a world class city to make home. Further south on the San Francisco Peninsula, Los Altos ranks third. Ushered in by the rich high tech business, more millionaires are busting out on the peninsula than anywhere else in the U.S. and the majority of buyers are paying cash for homes.

Seattle has weathered the housing downturn better than the majority of the nation, despite a sizeable decline in home values. The city has a reputation for getting more rain than most other places and it’s an anchor for major employers, including Microsoft, Amazon and Boeing. Higher salaries paid to workers should bolster the housing market.

Medford and Eugene, Oregon should also lead the nation out of the housing downturn, with higher home values than most of the rest of the country over the next five years, a necessity to be named to the list.

As a recognized leader in the wine industry, Napa is forecast to see more economic growth than ever before in its history, pushing new home construction and values much high

Top 10 Markets for 2016

Rank City Forecast Appreciation
1. Miami, FL 18.7%
2. San Francisco, CA 15.9%
3. Los Altos, CA 15.5%
4. Seattle, WA 14.9%
5. Medford, OR 13.9%
6. Eugene, OR 12.8%
7. Napa, CA 12.7%
8. Naples, FL 12.5%
9. Austin, TX 11.6%
10. Tucson, AZ 10.5%

Naples, Florida has been a vacation destination for old time east coast residents for decades and shouldn’t have much of a problem re-establishing itself over the next five years.

Austin, Texas is a technological hub attracting a younger sector, and lots of growing companies supplying jobs to bolster the housing market.

Lastly, Tucson, Arizona should be re-energized over the period to reemerge as a growing boom town in the new decade.