Three Western Markets Are Investor Saturated

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IRVINE, CA-Three Western markets made the list of the top 25 investor-saturated single-family rental markets in the country, according to RealtyTrac. Canyon County, ID; Pierce County, WA; and Clark County, NV; ranked 17^th, 23^rd and 25^th, respectively, on the list that was dominated by markets in Georgia, North Carolina and Florida.

Meanwhile, no western markets made the firm's list of the top 25 hidden-gem markets for single-family rentals in the country. This list was dominated by markets in Texas, Alabama and New York.

The top 25 investor-saturated single-family rental markets list included markets with 500 or more sales in the three months ending in July. The top 25 hidden-gem single-family markets were determined by evaluating gross rental yield data provided by RentRange, institutional-investor sales data provided by RealtyTrac and unemployment data for more than 450 nationwide counties with populations of 100,000 or more. The analysis was limited to single-family homes with three bedrooms. The top 25 markets had the highest gross rental yields in counties where institutional-investor purchases accounted for 5% or less of all residential sales in the three-month period ending in July and the unemployment rate was 7.5% or lower.

The data shows that looking outside of core markets for single-family rental buys has become a necessity in a field with so many interested players and so little inventory. It also shows that in many markets, there are simply too many investors willing to pay high prices for these rentals, meaning that those who can't or won't will have difficulty being satisfied.

“Buying single-family homes as rentals still yields solid returns in many markets across the nation, but it is difficult for individual investors and even small- to medium-sized institutional investors, to find reasonably priced inventory in markets dominated by the 800-lb. gorillas in the single-family rental space,” says Daren Blomquist, VP for RealtyTrac. “With this analysis, we've identified the top overlooked markets where single-family rentals still make good financial sense, but where there is little to no competition from the big players.”

According to Wally Charnoff, CEO of RentRange, “Real estate opportunities vary greatly market by market. The availability of gross rental yield information and other valuable analytics empowers buyers to make more scientific decisions about where to invest.”

As GlobeSt.com reported earlier this month, Nevada's foreclosure rate ranked highest nationwide in August, taking over the top spot that Florida had previously held, reports RealtyTrac. The state's foreclosure activity spiked 104% during the month, 11% higher than a year ago, with the number of filings at 2.5 times the national average.

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