Real estate investing is a great way to earn passive income and build wealth. It’s a great opportunity to diversify your portfolio and enjoy numerous benefits, including annual tax breaks and property value appreciation, but the market is tough. Intense competition, low inventory, and high interest rates are holding many back until the market turns, but who knows when that will be?.
If you’re thinking about investing in rental property, here are 10 most popular cities based on research findings based on the average annual cost of homeowners insurance, rent increases for a two-bedroom apartment, and the percentage of homes experiencing rent increases with prices will fall.
10. Boston
With beautiful architecture, rich history and great food, Boston has long been a popular place to travel and live. According to report, it’s also a city worth investing in.
- Average annual home owners insurance cost: $916
- Percent of homes with price drops: 22.5%
- Rent increase for 2-bedroom unit: 14.5%
9. Buffalo
Buffalo is known as the City of Lights because of the hydroelectric power generated by Niagara Falls. Buffalo has a great neighborhood vibe, a friendly community feel and there’s plenty to see and do. Plus, it’s affordable.
- Average annual homeowners insurance cost: $980
- Percent of homes with price drops: 28.5%
- Rent increase for 2-bedroom unit: 12.3%
8. Minneapolis
Known for its beautiful lakes, endless touring options, and breathtaking scenery, Minneapolis offers outdoor fun and relaxation to locals and visitors alike. The city also offers plenty of economic opportunity, a high quality of life, and an affordable cost of living. According to The report, “Minneapolis ties with Philadelphia, providing a competitive Midwest option for buying rental properties.”
- Average annual homeowners insurance cost: $1,411
- Percent of homes with price drops: 31.1%
- Rent increase for 2-bedroom unit: 17.6%
7. Philadelphia
Philadelphia is another great city to invest in rental homes. People love living in this city because of its sports culture and culinary traditions. Philadelphia has a walkable, bike-friendly infrastructure and is budget-friendly for a big city.
- Average annual homeowners insurance cost: $1,004
- Percent of homes with price drops: 33.5%
- Rent increase for 2-bedroom unit: 6.4%
6. Portland
The Pacific Northwest is home to snow-capped mountains, pasture-filled valleys, and impressively diverse landscapes. The region is a beautiful place to live, but housing costs in some locations are typically higher than the national average. However, Portland real estate prices are dropping, making it an ideal time to invest.
- Average annual homeowners insurance cost: $876
- Percent of homes with price drops: 43.4%
- Rent increase for 2-bedroom unit: 2.8%
5. Seattle
Seattle is known as the Emerald City because of its lush forests, bustling waterfront, beautiful green spaces, cool arts scene, access to nature, and uniqueness that sets it apart from other big cities. Real estate prices have fallen for the first time in over a decade, making it an investor-friendly city.
- Average annual homeowners insurance cost: $878
- Percent of homes with price drops: 31.7%
- Rent increase for 2-bedroom unit: 6.2%
4. Cleveland
Cleveland is home to many historic sites, award-winning restaurants, fun outdoor activities, and a vibrant arts scene. The city also has a growing job market and affordable housing. For investors, low homeowner insurance costs and steadily rising rents make Cleveland another interesting market.
- Average annual homeowners insurance cost: $979
- Percent of homes with price drops: Not available
- Rent increase for 2-bedroom unit: 6.8%
3. San Diego
California is known for its high cost of living, but San Diego has made the list of the most popular investment cities to rising rental prices.
- Average annual homeowners insurance cost: $791
- Percent of homes with price drops: 28.3%
- Rent increase for 2-bedroom unit: 13.4%
2. Cincinnati
Cincinnati offers affordable, quality living that’s great value for money.
With rents up nearly 15%, the market is booming and it’s time for investors to buy.
- Average annual homeowners insurance cost: $979
- Percent of homes with price drops: 35.8%
- Rent increase for 2-bedroom unit: 14.6%
1. Salt Lake City
Stunning mountain views, plenty of outdoor activities, a booming job market and affordable prices are just a few of the reasons people move to Salt Lake City. According to The Zebra, the city is the best place to buy an investment property this summer.
- Average annual homeowners insurance cost: $740
- Percent of homes with price drops: 38.4%
- Rent increase for 2-bedroom unit: 7.9%
