Indianapolis as America’s Best City For Renters In 2017 – Forbes Magazine
I understand how great of a city that Indianapolis is for real estate investing. I have worked in real estate investments for a number of years. Because of this, we have clients all over the world purchasing investment properties here every year because of the great Return on Investment and stable job growth, economic stability, and cost of living. Forbes recognized this as well by ranking Indianapolis as the most favorable city in the United States for renters in 2017. This is based on the fact that the median rent very low compared to income.
Affordability of Indianapolis Rentals
An $807/mo median rental amounts to just 17% of the average income in Indianapolis. The only lower city found was Kansas City, at 16%. The rate of vacancies in Indianapolis is 5.6 per cent. The lower demand for rental homes mean rental rates remain very stable. Forbes researched forty-six cities for this report. It found that median rent was $1284.00, or 27%of average income. Finance experts believe the ceiling for affordable rent is 30% of income. The magazine noted the trend among younger people is to rent rather than to buy. Younger people are no longer buying into the assumption that a home will only appreciate in value after the housing crisis. The ownership rate is 58.87%, which is actually pretty high. Apartments in this city have also grown by 2,000 to 3,000 units per annum over the past decade showing consistent growth.
- Best city for people to rent in the US in 2017 because the city is very affordable.
- After the recession, it makes more sense to rent than to buy a home than it did before the recession
- If you are paying too much in rent, it might make sense to move to Indianapolis
“Indianapolis tops our list of the best cities for renters this year thanks to astonishingly low average monthly rents and astonishingly high levels of affordability.”
What this means for Investors
Many of you know that Indianapolis is a growing, affordable, and stable city for real estate investments. In comparison to many of the other comparable cities throughout the country, real estate is not overly expensive. I see many of our clients purchasing $1,100-1,200/mo rental properties for less $90,000-100,000 and receiving a Cash on Cash ROI of 15%. That is something that is simply not available in other cities without taking on considerably more risk. Indianapolis seems to be getting more and more notable as not only a place to live, but also a place to invest in. If you are interested in learning more about building a passive income investment team in the Metro Area, contact us today for a free consultation.
About Real Property Management
Real Property Management Indianapolis Metro assists property owners and investors in finding the right rental properties, setting rent rates, advertising the property, screening tenant applications, leasing the property, maintaining and inspecting the property, and even assisting through the eviction process when necessary. Our company is a full-service Indianapolis property management company and has nearly 30 years of industry experience. For more information on how you can benefit from our services, visit www.rpmindymetro.com