Based on Home Union’s analysis of single-family rental (SFR) sales data from 2016 through 2017, Indianapolis has the ninth most sought after realty investment market in the country.
“To remain ahead of the market and meet investor demand, we analyzed investor migration patterns and preferences since the beginning of 2016,” said the online realty firm’s research director Steve Hovland.
According to the list, which was released Dec. 7, the number of home sales increased by 30.4 percent from 2016 through 2017. However, transactions were only made for investment purposes as more than half of the properties purchased had absentee owners.
Chicago tops the list, with a majority of Midwest real estate markets ranking in the top 10. Meanwhile, Tampa, Jacksonville and Fort Lauderdale landed at the bottom.
“This list highlights the growing popularity of Midwest real estate markets. Rental properties in these metros are trading at a faster rate than before as their local economies continue to grow, the cost of living is lower than it is in most coastal metros, and median local incomes are keeping pace with home values,” Hovland said.
He also explained that vacation home buyers have lost interest in many popular Florida markets due to higher prices. Investors have also become more choosy in purchasing assets in the state.
California-based Home Union uses a combination of research and proprietary analytics to incorporate data on the more than 110 million homes and 200,000 neighborhoods included in its database. It then delivers its solutions to an on-the-ground infrastructure that currently serves six locations.