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Affordability is the lowest it’s been in decades, with mortgage rates above 7% and national home prices hovering around all-time highs. Housing supply is incredibly tight as homeowners hesitate to let go of low mortgage rates they locked in. And rents are starting to fall in cities across the US.
But there are still opportunities around the country for investors, according to Dave Meyer, the host of the “On The Market” podcast from BiggerPockets. In a November 3 episode of the show, Meyer and three of his real-estate-investor guests — Kathy Fettke, Henry Washington, and James Dainard — highlighted eight markets where they believe conditions are right for investors to buy right now.
The podcast’s analysts came up with four criteria for what would make a market attractive in the current high-rate environment: median home prices under the national median (that’s $412,020, according to Redfin data); population growth; a rent-to-price above the national average; and a local unemployment rate below the national average (government data shows the current unemployment rate is 3.9%). As a rule of thumb, the closer a rent-to-price ratio is to 1.0 or above, the more likely it is to generate cash flow.
Below, we’ve compiled the data for each city listed. Median home price and appreciation data is from Redfin, while population data is from the Census Bureau. Unemployment data is from the Federal Reserve Bank of St. Louis, and price-to-rent ratios are from BiggerPockets. Commentary is also included from the podcast guest who discussed each market. The cities are listed in the order presented during the podcast.
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This article was originally published by a www.businessinsider.com . Read the Original article here. .