BiggerPockets recently released its 2016 Real Estate Investment Market Index, and only Tampa ranked in the top 10 on all 3 lists for best cities to invest in real estate.
This index analyzed the 50 largest Metropolitan Statistical Areas to find which of these areas were likely to provide the most opportunity for real-estate investors.
Tampa holds the distinct honor of ranking in the top 10 on all 3 BiggerPocket lists in 2016, which identifies the best cities for investing in real estate. Tampa’s top ranking is also reflected with GOBankingRates.com ranking Tampa #2 among best U.S. cities to own investment property.
Here is Tampa’s ranking on all 3 top 10 lists for best cities to invest in real estate:
- 5th best market for real estate investors.
- 10th best market for residential property appreciation.
- 3rd best market for strong rent-to-value ratios.
Top 10 Cities Offering the Most Opportunity for Real Estate Investors in 2016
Coming as no surprise, Dallas, Texas topped the list for the second year in a row as the city offering the most opportunity for real estate investors. The city experienced strong price appreciation, and its rent to property value remained strong. Investors in this city saw unleveraged returns rise from 19.5% in 2015 to 20.7% in 2016.
Portland, Oregon was ranked #2, experiencing an impressive 14% year-over-year appreciation in home values. Denver fell from #2 to #3 in this year’s study, but its 13.8% appreciation remains strong. And, Tampa came in #5, with a total of 17.62% total return.
Here is the complete list of the top 10 cities that offered the most opportunity for real estate investors in 2016:
- Dallas, Texas (20.7% total return)
- Portland, Oregon (19.91 % total return)
- Denver, Colorado (19.23% total return)
- Miami, Florida (18.12% total return)
- Tampa, Florida (17.62% total return)
- Seattle, Washington (17.18% total return)
- Nashville, Tennessee (16.73% total return)
- Atlanta, Georgia (16.20% total return)
- Houston, Texas (15.63% total return)
- Austin, Texas (15.55% total return)
Top 10 Markets for Residential Property Appreciation
High appreciation rates were a big part of what drove investor returns in the best cities to invest in real estate for 2016, so 9 cities are on both the list of cities offering the most opportunity, and the list of top cities for residential property appreciation.
Tampa was ranked #10 for residential property appreciation, with a respectable appreciation rate of 9.28%.
Here are the top 10 cities for residential property appreciation:
- Portland, Oregon (14.59% appreciation)
- Denver, Colorado (13.76% appreciation)
- Dallas, Texas (13.09% appreciation)
- San Jose, California (11.72% appreciation)
- Seattle, Washington (11.64% appreciation)
- San Francisco, California (10.51% appreciation)
- Miami, Florida (10.47% appreciation)
- Nashville, Tennessee (10.28% appreciation)
- Austin, Texas (9.31% appreciation)
- Tampa, Florida (9.28% appreciation)
Top 10 Markets for Strong Rent-to-Value Ratios
Tampa came in third for the strongest rent-to-value ratio, which puts it in a unique position as the only top 10 city to make all three lists of best cities for real estate investing.
Here are the top 10 cities for rent-to-value ratio:
- Memphis, Tennessee (10.07% ratio)
- Detroit, Michigan (8.96% ratio)
- Tampa, Florida (8.35% ratio)
- Birmingham, Alabama (8.24% ratio)
- Atlanta, Georgia (8.16% ratio)
- Kansas City, Missouri (8.10% ratio)
- San Antonio, Texas (7.99% ratio)
- Oklahoma City, Oklahoma (7.97% ratio)
- Pittsburgh, Pennsylvania (7.88% ratio)
- Jacksonville, Florida (7.84% ratio)
The 10 Worst Markets for Real Estate Investors
While there are plenty of great cities in which to invest in real estate, there are some you want to avoid, at least until the environment changes.
The cities on the list for 10 worst markets for real estate investors had low rents per dollar in home value, and low appreciation.
As for the worst cities for investors in 2016, the study found that Indianapolis, Indiana was the city with the least opportunity, with New York City coming in as the 5th worst.
Here is the list of the 10 worst cities for real estate investors:
- Indianapolis, Indiana (5.02% total return)
- Washington, D.C. (7.69% total return)
- Hartford, Connecticut (8.16& total return)
- Baltimore, Maryland (8.22% total return)
- New York, New York (8.70% total return)
- Providence, Rhode Island (9.12% total return)
- Virginia Beach, Virginia (9.50% total return)
- Los Angeles, California (9.62% total return)
- San Diego, California (10.36 % total return)
- Fort Myers, Florida (10.51% total return)
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group, wholesaling single-family and multifamily investment properties in metro Tampa Bay.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.