The Midwest and Northeast regions seem to be the new hot spots for real estate investors. This week, Realtor.com named markets in Ohio, Michigan, Pennsylvania, New York and Connecticut among the top markets for real estate investment opportunities in 2024.
The list was compiled through an analysis of the 75 largest metro areas in the country. The metrics used include affordability, vacancy rates, rent increases and buyer demand based on 12 months of listing information and other public data.
Dayton, Ohio, holds the No. 1 spot among the best destinations for real estate investors this year. It was followed by Rochester, New York; Cleveland; Pittsburgh; Knoxville, Tennessee; Albany, New York; New Haven, Connecticut; Buffalo, New York; Grand Rapids, Michigan; and Columbus, Ohio.
With three cities on the list, Ohio demonstrated a positive trend for investing in the Buckeye State. Midwest and Northeast markets dominated the list compared to those in the South and West regions, which have become more expensive and volatile.
Each market on the list saw nearly twice the number of page views on Realtor.com compared to non-ranked areas. These cities also offer housing prices that are, on average, 21.7% below that of the U.S. as a whole. Dayton, for example, has an average home price of $239,000 — nearly $200,000 below the national average of $427,000.
Rental vacancies also played a huge factor in market affordability. The top markets had an average vacancy rate of 4.8% compared to the national average of 6.6%. This trend signified a strong market for investors with little to no turnover among tenants. New Haven, Connecticut, had the lowest vacancy rate at 2.4%.
These markets also have smaller shares of investor-driven home purchases, typically in the range of 10% to 15% as of first-quarter 2024. This compares favorably to recent CoreLogic data showing that investors accounted for 23% of all homes sold in June.
Hannah Jones, senior economic research analyst for Realtor.com, highlighted the Midwest and Northeast as prime areas of opportunity for all investors, regardless of their experience.
“These regions offer investors a prime chance to secure steady rental income and tap into growing demand, making them attractive for both seasoned and first-time investors alike,” Jones said in a statement.
