Real estate and rental markets across the country are hot right now. Demand for real estate is high, supply is low, and prices are rising. One result of this is that more buyers are becoming renters and rental markets are seeing steady growth. With decreasing vacancy rates and rising rental prices, many Landlords are seeing improved returns in these Fastest Growing Rental Markets 2022.
While that’s the national trend, there are some markets across the country that are growing at above-average rates. Here are a few markets that look particularly appealing for Landlords looking to add to their portfolio this year.
Boise is an area that has seen substantial growth as a result of changing habits for both working and living brought on by COVID-19. Boise boasts an affordable cost of living and excellent quality of life, with lots of outdoor activities and local natural beauty. As a result, the area has seen substantial growth in the last couple of years and home prices have risen by over 20%.
Even so, the median home price is around $350,000, making it an affordable area for investors. As demand in the area increases and prices rise, the pool of renters will also increase. Due to population growth and limited housing supply, Boise is experiencing substantial growth in rental markets, with more growth expected.
Salt Lake City, Utah
Salt Lake City is another area that has had notable growth in the last two years. The housing market has seen increased demand, with home price year-over-year growth of 24.1%. Rental prices have increased at a slightly slower pace, with 20.7% year-over-year growth.
Growth in home prices and rental rates often move together, so this slight disparity indicates that, despite the substantial annual growth, there is more growth to come in rental prices. Right now, housing demand outpaces the supply in the area. As long as that’s the case, rental markets will continue to grow and offer good opportunities for investors.
New York City, New York
After falling sharply due to the pandemic, New York City rental markets have recovered well over the last year and are showing substantial growth. According to Apartment List, rents rose 33% between January 2021 and January 2022. This rise is nearly double the national rate and the highest increase among the 100 large American cities studied. StreetEasy Economist Nancy Wu notes that “we’re seeing that rents have returned and basically surpassed where they were pre-pandemic.”
Some Landlords attribute the rent increase to making up for losses caused by COVID-19, responding to rising property taxes and utility costs, and adjusting for increased real estate prices. The biggest factor, however, is the mismatched supply and demand. Jenny Schuetz, a housing researcher at the Brookings Institution, notes that “[t]here are a ton of households looking to rent apartments. They run the gamut by age and income and household type and we just haven’t been building enough apartments for the last 10 years, and in some cases for longer than that.”
The result is that New York City Landlords are in a good position – vacancy rates are falling and rents are rising at above-average rates. For investors looking to get into the market, the challenge is finding an affordable property. It’s important to thoroughly research the borough or neighborhood that you’re considering in order to find one that offers a good return. After all, high rent prices don’t always mean a good return for investors if entry and carrying costs are too high. Some local experts suggest avoiding Manhattan and instead looking for a fixer-upper in outlying boroughs.
Tampa Bay, Florida
The Tampa Bay real estate and rental markets had a strong year in 2021 and are posed to have another big year. Inventory in the area is so low that even buyers that can afford to purchase a home are being forced to rent. As you’d expect, increased rental demand has led to surging rent prices.
The area offers some of the fastest growing rental markets and some of the highest year-over-year rent growth. The median home price is currently $365,650. That’s up a stunning 30% over last year, but still means that there are affordable homes for investors. The area is expected to continue to see growth in the year ahead and is a rental market that investors should pay attention to.
Providence, Rhode Island
The media rent price in Providence is $1,341, up 20.9% over the previous year. Renting is more affordable than owning in Providence, which has led to more people choosing to rent. The result is that rental prices have gone up faster than home prices in the area.
Rental demand is high and rent prices are rising. While it can be a difficult market to enter, investors that can find a good opportunity will have no trouble finding Tenants and can expect steadily rising rent prices.
Between Cleveland and Pittsburgh, Youngstown was once a thriving steel and manufacturing area. The area has struggled in recent years and the result is real estate prices are very low. The average home value in Youngstown is $42,867.
Despite its struggles, the area is seeing a recent revitalization. This, coupled with Youngstown’s affordability and convenient location about an hour from both Cleveland and Pittsburgh, has made the area increasingly desirable. The low cost of houses, the low vacancy rate – which is currently around 3.2%, and the rising rent prices make Youngstown one of the Fastest Growing Rental Markets in 2022.
Ready to Expand Your Portfolio?
If you’re looking to add to your real estate portfolio this year, these are five markets to consider. As you do, however, keep in mind how crucial location is and make sure to thoroughly research the rental demand, rent prices, and carrying costs for any properties you’re considering. Make sure to take advantage of the Fastest Growing Rental Markets in 2022.
Once you’ve done the work to find a good investment, the best ways to protect your investment and maximize your return are by 1) effectively screening Tenants and 2) using a state-specific Lease. Visit