How To Find Rent Growth, Appreciation & Cash Flow Markets
July 4, 1776 The Continental Congress declared that the thirteen American colonies were no longer subject to the monarch of Britain and were now united, free, and independent states.
243 years later, let’s see what those 13 real estate markets look like for:
- Appreciation
- Home Values
- Rent Growth
- Cash Flow
We’re using each State’s “Percentile Ranking” for these maps, which simply means, each state is ranked from best to worst and assigned a percentile grade. (’99’ is the best score, ‘0’ is the worst.)
We’ll take a closer look inside those 13 original colonies…
Appreciation
The Master Score is the best single indicator (if you only want to look at ONE scoring element); it integrates all data into a single score. A Strong Master Score indicates a high probability of continued strong real estate appreciation.
(We also have similar Indicator Maps, ranking tables and searchable filters for ALL Market levels, including City, County, Zip Code and even Neighborhoods!)
Home Values
The map below comes from our new Home Value Finder and Indicator Map tools. It shows the statewide Median Home Value ranking compared to all states nationwide.
The Pink & Purple colors represent the most expensive housing markets; Red and Orange colors indicate states with the lowest real estate values.
Much of New England has some of the most expensive real estate markets in the country (see Pink & Purple map colors.)
Real estate in the three southernmost former colonies have moderate to low-ish priced homes.
(We also have similar Home Value maps, ranking tables and searchable filters for ALL Market levels, including City, County, Zip Code and even Neighborhoods!)
Rent Growth
We track, analyze and score median rents paid for Single Family Residential (SFR) properties as well as the rental GROWTH rates for virtually all markets.
Below is a map of the statewide Annual Rent Growth rate (over the last 3 years) as compared to all other states.
Two states, Massachusetts and South Carolina, have some of the highest rental growth rates in the country.
(We also have similar Rent Growth Rate maps, ranking tables and searchable filters for ALL Market levels, including City, County, Zip Code and even Neighborhoods!)
Cash Flow
The likelihood of a positive-cash-flowing-property is primarily a function of the property cost, financing and rental market.
Because we track BOTH home values*AND* rental rates across the country…
“We’re able to compute rent yields for virtually every market in the country, down to the Zip Code and Neighborhood levels.
It doesn’t stop there…
Because we also track, analyze and score all markets based on their LOCAL real estate cycles, we can COMBINE each market’s rent yield (cash flow) with its appreciation cycle and get the best of both worlds:
Cash Flow + Appreciation
In short, this indicator identifies markets with BOTH higher cash flow potential AND higher appreciation potential.
The map below shows you each state’s rank (against all states nationwide) when you COMBINE its Hot Market Score with its Cash Flow score.
North Carolina, South Carolina and Georgia all have relatively strong real estate markets, lower house prices and strong rental growth rates. It is very rare for all those indicators to ‘line up’ like they are currently for these three state-level markets, as evidenced by the Red (Strong) color.
(We also have similar Hot Market + Cash Flow maps, and searchable analytics for ALL Market levels, including City, County, Zip Code and even Neighborhoods!)
The new Heat Maps, Micro Market Ranking, Home Value Finder and Cash Flow Finder tools used to create this article are (currently) included at no additional cost with every PRO account.
YOUR real estate success is a function of knowing where to employ your time, talent and capital for the highest returns with the lowest risk and effort, in the shortest time period.
Did you know that you can grab a PRO account for about $16/mo when you choose an annual account for your local market?
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Important Caveat: North Carolina, South Carolina and Georgia scored very high on the “Hot Market + Cash Flow” map above. Those states have plenty of hot, emerging, low-priced, cash flowing micro markets right now. They also have plenty of weak, crummy micro markets that you do NOT want to invest in.
Every sub-market is unique and has its own real estate cycle. You can’t just throw a dart at a map of those states and start investing ANYWHERE.
For maximum results, use HousingAlerts to drill down deeper; find the absolute best cities, counties, zip codes and even neighborhoods tailored for YOUR investing tactics and strategies.
We have been rolling out some amazing new micro market tools for Wholesalers and Rehabbers. Our Neighborhood Ranking tool alone should save you thousands a month in targeted acquisition and lead generation costs. Click here to buy now.
