Greenbook: A Local Guide to Chesapeake Living - Issue 5 | Page 53

Best markets for renting to Gen
Xers
There were 20 counties among
those analyzed where the
Generation X share of the
population was above the national
average of 16 percent, where the
Generation X population increased
at least 5 percent between 2007
and 2013, and where potential
annual rental returns on
residential properties were 9
percent or higher.
“Ohio housing is affordable,
attracting many different
income and age demographics to
the state,” says Michael Mahon,

executive vice president of a real
estate company covering the
Ohio housing markets of Cincinnati, Dayton and Columbus, where
Franklin County ranked among
the 50 best for renting to Millennials, and Licking County ranked
among the 20 best for renting to
Gen Xers as well as among the 40
best for renting to Baby Boomers.
“The stability of prices within the
Ohio markets over recent years
has contributed to an increasing
demand for housing along with job
and population growth throughout
many of Ohio’s local markets. With
many developers still in recovery
from our nation’s economic crisis,
new construction projects have
been underwhelming in meeting
Ohio’s housing demand. As demand
continues to increase and supply
continues at
conservative levels, anticipation
for 2015 is for continued increases
in rental returns throughout the
state.”
Generation X-heaving markets
with the highest annual rental
returns were counties in the
Atlanta, Chicago, Jacksonville,
Fla., Little Rock, Ark., and
Orlando metro areas.
Best markets for renting to
Baby Boomers
There were 40 markets among
those analyzed where the Baby
Boomer share of the population
was above the national average
of 25 percent, where the Baby
Boomer population increased at
least 5 percent between 2007 and
2013, and where potential annual
rental returns on residential
properties were 9 percent or
higher.
Baby Boomer bastions with the
highest annual rental returns were
counties in the Tampa, Ocala, Fla.,
East Stroudsburg, Penn., Homosassa Springs and Binghamton, N.Y.
metro areas.
Markets with biggest rent
increases in Texas, Colorado
and North Carolina ¨Among all

counties analyzed with rental data
available in both 2014 and 2015,
the average fair market rent for a
three-bedroom property was $1,255
for 2015, up 2 percent from an
average of $1,230 for fair
market rents in 2014.
Fair market rents on three-bedroom properties increased 10 percent or more from 2014 to 2015 in
35 counties with a combined population of 16.3 million. The
biggest percentage increases were
counties in Midland, Texas (up 24
percent), Denver, Colo., (up 20
percent), Asheville, N.C., (up 19
percent), Roseburg, Ore., (up 18
percent), and Seaford, Del., (up 18
percent). Other markets with rent
increases of 10 percent or more
included Chicago, Santa Barbara,
Calif., Shreveport, La., Green Bay,
Wis., and Milwaukee.
Safe haven rental markets in
Virginia, Ohio, Michigan,
Pennsylvania and North Carolina
Among the 516 counties, 70
matched the criteria for safe
haven rental markets, with
unemployment rates below the
national average of 5.6 percent and
with annual rental returns of 10
percent or higher. Markets with
the highest rental returns among
these safe haven
residential rental markets were
Richmond City, Va., (20.42
percent annual gross yield),
Trumbull County, Ohio in the
Youngstown-Warren-Boardman
metro area (15.52 percent), Muskegon County, Mich., in the Muskegon-Norton Shores metro area
(15.34 percent), Fayette County,
Penn., in the Pittsburgh metro area
(14.99 percent), and Bay County,
Mich., in the Bay City metro area
(14.78 percent).
For more information, visit 
www.realtytrac.com.
Reprinted with permission
from RISMedia. ©2015.
All rights reserved.

greenbook | spring 2015

Amazon, and the arrival of several
Silicon Valley newcomers like Facebook, Twitter, Google, and Apple,
Seattle is becoming an increasingly
popular spot for Millennials,” says
OB Jacobi, president of a Seattlebased real estate company, where
Pierce County ranked as one of
the top 50 markets for renting
to Millennials and King County
saw a 34 percent jump in Millennials between 2007 and 2013—the
13th biggest increase of the 516
counties analyzed in the report.
“Not only do many of these Millennials have stable employment, but
strong job prospects going forward, and a rosy forecast for future salary growth. All of this has
turned Seattle into a sweet spot for
those looking to buy rental properties. Vacancies are low, rents are
on the rise, and growth in Seattle's
tech sector is providing a built-in
clientele for
investors with no signs of
slowing.” 

Millennial magnet markets with
the highest annual rental returns
were Baltimore City, Md., (20.99
percent annual gross yield),
Richmond City, Va., (20.42
percent), Philadelphia County, Pa.,
(18.78 percent), Wyandotte County, Kan., in the Kansas City metro
area (17.60 percent), and Richmond
County, Ga., in the Augusta-Richmond County metro area (16.97
percent).

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