20
WINTER STRONG TIME
FOR RENTAL MARKET
INVESTMENTS
For investors looking to find bargains in the
single-family rental (SFR) market, winter is here
—and that's a good thing. According to a study
by HomeUnion, an online real estate investment
and management firm, the off-peak winter
period can be one of the best times of year to
acquire single-family rental homes. HomeUnion
reports that investors paid 6.6 percent less per
square foot during the winter months of 2018
than they did during summer 2017, when the
buying market was in full swing.
Steve Hovland, Director of Research for
HomeUnion, says, "For the second year in a
row, our study found that the wintertime is the
best season to acquire rentals. Median home
prices drop substantially during the colder
months, while rent losses remain marginal for
landlords. On average, investors can acquire
higher-yielding properties in cold-weather
markets like Omaha, Nebraska; Chicago,
Illinois; and Hartford, Connecticut.
HomeUnion ranked the 40 best metro areas
to buy rental property during the wintertime,
with Omaha, Nebraska, topping the list.
HomeUnion found the average wintertime price
for Omaha to be $78,100, down 32.1 percent
from the summertime average of $115,000. Here
are the list's top 10 entries, along with the price
decrease between summer and winter months.
» Omaha, Nebraska: -32.1 percent
» Chicago, Illinois: -26.0 percent
» Hartford, Connecticut: -25.5 percent
» Columbus, Ohio: -25.1 percent
» Seattle, Washington: -24.7 percent
» Washington, D.C.: -24.3 percent
» New York, New York: -23.8 percent
» Cincinnati, Ohio: -22.4 percent
» Grand Rapids, Michigan: -21.4 percent
» Minneapolis, Minnesota: -20.1 percent
Investors interested in the single-family
rental market should take note of Five Star's
2018 Single-Family Rental Summit, set to
unfold March 19-21, 2018, at the Renaissance
Nashville Hotel in Nashville, Tennessee. e
three-day Summit will feature top subject
matter experts and skilled SFR practitioners
leading discussion panels and training sessions
related to property acquisition and management,
financing; strategies for small, mid-cap, and
large investors; and new developments related to
technology and professional services.
