Editor’s note: In compiling the "10 Best Markets for Real Estate Investors" report, Inman News reached out to a range of data providers and online real estate sites that supplied statistics and charts to identify real estate markets that may be well-suited for investors. The following chart and accompanying methodology were provided by property search site HotPads.
10 states with lowest buy-vs.-rent ratios*:
1. Illinois
2. Michigan
3. New York
4. Florida
5. Washington, D.C.
6. Nevada
7. West Virginia
8. Ohio
9. Virginia
10. Arizona
| National Data, April 2010 – April 2011 | ||||||
|---|---|---|---|---|---|---|
| S t a t e |
Median Sale Listing Price |
% Change Median Sale Listing Price (12 months) |
Median Rent Listing Price (12 months) |
% Change Median Rent Listing Price (12 months) |
Rent-Buy Ratio | Change in rent ratio |
| AK | $259,900 | -4% | $1,075 | 13% | 20.15 | -3.53 |
| AL | $169,900 | -6% | $740 | 4% | 19.13 | -2.01 |
| AR | $149,000 | -3% | $675 | 1% | 18.40 | -0.63 |
| AZ | $149,000 | -17% | $888 | 4% | 14.08 | -3.57 |
| CA | $299,000 | -16% | $1,475 | 4% | 16.89 | -4.01 |
| CO | $249,500 | -8% | $996 | 10% | 20.88 | -3.90 |
| CT | $259,900 | -9% | $1,300 | 8% | 16.66 | -2.98 |
| DC | $325,000 | -11% | $2,185 | 9% | 12.40 | -2.81 |
| DE | $232,500 | -3% | $965 | 5% | 20.08 | -1.57 |
| FL | $184,900 | -14% | $1,250 | 9% | 12.33 | -3.18 |
| GA | $159,900 | -11% | $900 | 2% | 14.81 | -2.26 |
| HI | $439,000 | 0% | $1,800 | 6% | 20.32 | -1.26 |
| IA | $140,000 | -12% | $713 | 5% | 16.37 | -3.21 |
| ID | $168,500 | -9% | $693 | 3% | 20.28 | -2.55 |
| IL | $180,000 | -18% | $1,295 | 8% | 11.58 | -3.63 |
| IN | $134,900 | -4% | $723 | 6% | 15.55 | -1.48 |
| KS | $144,900 | -6% | $760 | 2% | 15.89 | -1.39 |
| KY | $148,500 | -4% | $710 | 2% | 17.43 | -1.04 |
| LA | $169,500 | -5% | $875 | 1% | 16.14 | -1.10 |
| MA | $309,900 | -5% | $1,750 | 3% | 14.76 | -1.17 |
| MD | $239,990 | -13% | $1,358 | 5% | 14.73 | -2.96 |
| ME | $195,000 | -3% | $925 | 1% | 17.57 | -0.55 |
| MI | $114,900 | -13% | $790 | 5% | 12.12 | -2.55 |
| MN | $167,000 | -12% | $979 | 1% | 14.22 | -2.09 |
| MO | $144,900 | -6% | $750 | 1% | 16.10 | -1.23 |
| MS | $154,900 | -3% | $760 | 0% | 16.98 | -0.63 |
| MT | $259,900 | 0% | $800 | 3% | 27.07 | -0.87 |
| NC | $189,900 | -7% | $850 | 5% | 18.62 | -2.46 |
| ND | $149,900 | -8% | $620 | 2% | 20.15 | -2.12 |
| NE | $135,000 | -9% | $725 | 1% | 15.52 | -1.67 |
| NH | $229,900 | -4% | $1,035 | 4% | 18.51 | -1.48 |
| NJ | $299,000 | -9% | $1,550 | 7% | 16.08 | -2.88 |
| NM | $209,000 | -7% | $820 | 7% | 21.24 | -3.27 |
| NV | $139,900 | -21% | $900 | -5% | 12.95 | -2.59 |
| NY | $349,000 | -3% | $2,395 | 2% | 12.14 | -0.62 |
| OH | $119,900 | -13% | $725 | 4% | 13.78 | -2.67 |
| OK | $150,000 | -6% | $675 | 6% | 18.52 | -2.33 |
| OR | $228,000 | -9% | $895 | 5% | 21.23 | -3.27 |
| PA | $189,900 | -9% | $1,089 | 6% | 14.53 | -2.38 |
| RI | $245,000 | -11% | $1,225 | 2% | 16.67 | -2.42 |
| SC | $179,900 | -8% | $810 | 3% | 18.51 | -2.13 |
| SD | $171,900 | 0% | $735 | -8% | 19.49 | 1.52 |
| TN | $165,000 | -6% | $826 | 5% | 16.66 | -1.93 |
| TX | $174,500 | -3% | $922 | 5% | 15.77 | -1.37 |
| UT | $195,000 | -11% | $829 | 4% | 19.60 | -3.28 |
| VA | $229,900 | -8% | $1,373 | 6% | 13.96 | -2.20 |
| VT | $240,000 | -4% | $1,300 | 8% | 15.38 | -1.98 |
| WA | $229,900 | -13% | $1,070 | 8% | 17.90 | -4.28 |
| WI | $168,000 | -7% | $860 | 4% | 16.28 | -1.90 |
| WV | $150,000 | -8% | $915 | 2% | 13.66 | -1.43 |
| WY | $210,000 | -2% | $795 | -6% | 22.01 | 0.98 |
Source: HotPads.
Methodology:
*The top 10 states were chosen based on lowest buy-vs.-rent ratios. A low buy-vs.-rent ratio indicates a market that favors buyers. The data was compiled from a sample of 1 million concurrently active rental prices and the for-sale data was calculated from a sample size of 4 million concurrently active for-sale prices on HotPads between April 2010 and April 2011.
Rental and for-sale properties are analzed by state, county, ZIP code, and number of bedrooms — HotPad calculates the average rental and sale prices for a particular size of home in a particular area. The by-bedroom rent ratio is then averaged and weighted by the number of listings, into the final rent-ratio for the area.
Source: HotPads.
Read the full report: "10 Best Markets for Real Estate Investors."
View more charts provided by data companies and online real estate websites:
