Single-family condominium investment returns to rise in 2024: Attom
Funding returns for single-family condominium properties are anticipated to rise in 2024, buoyed by lease prices which are rising sooner than home prices all around the country.
The average annual nasty condominium yield for a 3-mattress room home is projected to be 7.55% in 2024, up from an average of seven.39% for the same markets in 2023. That’s constant with a first-quarter 2024 document from ATTOM.
From 2023 to 2024, median three-mattress room rents rose more immediate than median single-family home prices in 216 of the 341 counties analyzed (63%).
“The U.S. home sales market cooled off a appropriate bit remaining year, with about a of the weakest gains over the past decade,” Rob Barber, CEO at ATTOM, stated in a news free up. “Nevertheless that wasn’t enough to develop home prices cheap for most workers, which doubtless fed enough save a matter to to push up rents and yields for merchants who lease out single-family properties.”
Indian River County, Florida (located in the Sebastian-Vero Seaside metro scheme), and St. Louis Metropolis, Missouri, are anticipated to beget the absolute top annual nasty condominium yields on three-mattress room properties in 2024 at 14.6%.
They are adopted by Cameron County, Texas, in the Brownsville-Harlingen metro scheme (13.2%); Monroe County, Contemporary York, in the Rochester metro scheme (12.8%); and Richmond County, Georgia, in the Augusta-Richmond County metro scheme (12.7%).
On the opposite finish of the spectrum, Santa Clara County, California, in the San Jose metro scheme, is anticipated to beget the lowest doubtless annual nasty returns in 2024 at 3%. It’s far adopted by neighboring San Mateo County, in the San Francisco metro scheme (3.4%); Arlington County, Virginia, in the Washington, D.C., metro scheme (3.8%); Williamson County, Tennessee, in the Nashville metro scheme (3.9%); and San Francisco County, California (3.9%).
A total of 28 counties were identified to beget doubtless annual nasty condominium yields exceeding 10% for three-mattress room properties. These embody Cook County, Illinois; Wayne County, Michigan; Cuyahoga County, Ohio; Allegheny County, Pennsylvania; and Shelby County, Tennessee.
The document analyzed single-family condominium returns in U.S. counties with a inhabitants of on the least 100,000 that had ample lease and residential trace knowledge.
The document incorporated median rents and median home prices aloof from its nationwide property database, as properly as publicly recorded sales deed knowledge licensed by ATTOM.
