We all know how crazy the housing market is right now, no matter if you’re buying, renting, or even selling. If you’re not in the loop, hello, welcome to the madhouse! Now is a great time to invest in real estate, but where you invest matters. Let’s break down the top five places in the United States, where you’re bound to have success as a landlord in either traditional rental agreements or rent-to-own opportunities.

Try to put your own biases aside and let’s look at straight statistics.

Florida

Median home value: $328,576

Median home value increase: 23.9%

Occupied housing: 82%

Average rent: $2,271 per month

Average rent increase: 37.56%

Renter-occupied housing: 36%

Population growth: 0.84%

Job growth: 2.57%

It’s no secret Florida is one of the most relaxed states when it comes to how it’s handling the COVID-19 pandemic, so it’s no wonder why many people are flocking there. Florida has a humid, subtropical climate, making it a desirable location for many northerners to escape the chill of winter. As a landlord or investor, you would see great return based on the rising population and rising rental costs in recent months. (1)

 

Texas

Median home value: $267,523

Median home value increase: 20.5%

Occupied housing: 88%

Average rent: $1,448 per month

Average rent increase: 10.94%

Renter-occupied housing: 38%

Population growth: 1.02%

Job growth: 2.97%

Recently, many large companies have been on the move to Texas. In fact, many popular ones such as Tesla, Amazon, Apple, and Google all have a major stronghold in the state already. Why does this matter, you might ask? These big tech companies employ hundreds of thousands of people, many in the millennial age range. A soft subject for many people between the ages of 25 and 40 is the sad reality that they aren’t able to afford a traditional mortgage. Student loan debt, inflation, and generational divide are some of the key factors in this struggle for many. Creating rent-to-own opportunities would be beneficial for both parties here. Texas has great job growth as well as a manageable average rent. (2)

 

Utah

Median home value: $505,789

Median home value increase: 29.6%

Occupied housing: 90%

Average rent: $1,636 per month

Average rent increase: 23.49%

Renter-occupied housing: 29%

Population growth: 1.42%

Job growth: 4.14%

Realtor.com (3) has recently named Utah, specifically the Salt Lake City region, as the anticipated best housing market for 2022. As rental rates increase, many smart investors are looking to get a piece of the red rock pie! Utah has a lineup of some of the most beautiful national parks making it a great location for those looking for adventure.  With high home prices yet manageable average rent, Utah has a diverse market that is sure to bring success to the savvy real estate investor looking to build rent-to-own opportunities.

 

Idaho

Median home value: $446,550

Median home value increase: 38.2%

Occupied housing: 87%

Average rent: $1,429 per month

Average rent increase: 21.72%

Renter-occupied housing: 28%

Population growth: 1.87%

Job growth: 4.32%

Do you like potatoes? Idaho has more to offer than just that! Idaho has the highest population and job growth percentages on this list. In recent years, Boise has had a booming housing market, and that trend is anticipated to continue through this year. The market is at a resting point currently but is expected to pop off again in the spring. If you’re an investor wanting to build property, Idaho has great opportunities for you since there is currently not enough housing to keep up with the demand from people wanting to move there. (4)

 

Nevada

Median home value: $404,060

Median home value increase: 25.6%

Occupied housing: 89%

Average rent: $2,065 per month

Average rent increase: 34.46%

Renter-occupied housing: 43%

Population growth: 1.51%

Job growth: 3.31%

Just shy of 50% of Nevada’s residents are renting. Nevada is dominated by the Great Basin Desert to the north and the Mojave Desert to the south. There’s plenty of space to spread out and build if you’d like to invest that way or go to a densely populated area such as Las Vegas or Henderson. For the past few years, Vegas has been a mecca in the luxury real estate boom. Las Vegas has had historic wealth growth due to cryptocurrency and has been experiencing historic low mortgage rates as well. People with money are looking to move here, so the investing opportunities are immense. (5)

In an age with so much fluctuation, the housing market is consistently on the rise. Homes are in high demand and a lot of people need help securing a good place to live. Providing rent-to-own opportunities can be mutually beneficial and help the market continue to get better and better for everyone.

Additional Resources

(1) Florida Market Information

(2) Texas Market Information

(3) Realtor.com

(4) Idaho Market Information

(5) Luxury Real Estate in Las Vegas