Cleveland is an especially strong market for rental property investors, according to an analysis from HouseCanary, a real estate industry data analytics firm.
Forbessays a new report from HouseCanary identifies (in this order) Cleveland, Detroit, Columbus, Indianapolis and Pittsburgh as the top five cold-climate markets offering the best rental investment opportunities during the first quarter, a traditionally slow buying time.
“These markets experience a seasonal slowdown yet still offer relatively high Effective Gross Yield (EGY) potential for investors, giving them an opportunity to buy low and rent high,” notes Alex Villacorta, executive vice president of analytics at HouseCanary, who led the team that compiled the report.
Cleveland topped House Canary’s Investor Opportunity Rankings with an EGY of 13%.
From the story:
HouseCanary found a direct link between parts of the United States with cold winter weather and markets where EGY for rental investors remained high while the seasonal home price growth stabilized or declined. “Not surprisingly, weather plays a very strong factor in the seasonal sales dip,” Villacorta said.
The typical end of the year slowdown in all residential markets opens investment opportunities.
“Real estate sales tend to heat up again in the springtime during the second quarter (Q2) of the year, when both buyers and sellers are more active, so it might make the most sense for rental investors to strike while their opportunity is hot and demand is not,” Villacorta adds.