A new study ranks Colorado Springs third among the top 10 housing markets for rental investment in 2020.
The study, released Thursday by Millionacres — a Lakewood-based real estate investing company owned by The Motley Fool Holdings, Inc. — analyzed 188 metropolitan statistical areas across the United States based on the following market indicators:
- price-to-rent ratio using Zillow’s median home list price and median annual rent for October 2019;
- annual population change from 2017 to 2018, according to the latest annual population estimates from the U.S. Census Bureau;
- total annual growth in residential construction permits from 2017 to 2018 from the U.S. Census Bureau’s Construction Permits Survey; and
- employment growth of the five-year period from October 2014 to October 2019, according to the Bureau of Labor Statistics.
“After several years of unprecedented economic growth in nearby Boulder and Denver, Colorado Springs is finally outpacing both when it comes to new job opportunities,” the study found. “With a five-year employment growth of 17.3 percent and a median monthly rent hundreds of dollars cheaper than in Boulder and Denver, it’s no surprise that renters are flocking to the area.”
The Boise City, Idaho, and Fayetteville, Arkansas metropolitan areas took the top two spots, with Olympia-Tumwater, Washington, and Crestview-Walton Beach-Destin, Florida, rounding out the top five.
Greeley joined Colorado Springs as the Centennial State’s other top 10 showing, coming in at No. 10, according to the study.
Although Greeley’s relatively lower price-to-rent ratio means residents moving to the region may find it more affordable to buy rather than rent, rents have increased by 5.6 percent in the metro over the past year and the apartment vacancy rate remains tight at 4.3 percent as of the first quarter of 2019, according to the latest data from HUD.
For the full study, go to https://www.fool.com/millionacres/research/top-10-hottest-demand-markets-rental-investment-2020/.