Top 5 Cities with the Highest Real Estate Returns
Some real estate markets are better for investing than others. But it's not always the gateway cities like San Fran and the Big Apple that see the most immediate cash flow. Here are the top five cities with the highest real estate ROI year-over-year, according to data by real estate social network BiggerPockets.
1. Dallas
Total return: 19.54%
Average rent: $12.5k
Rent to value: 8.69%
The "Big D" tops the list with strong price appreciation while remaining a market in which investors saw strong rents relative to property values. Investors can expect to earn back almost 20% in total annual returns.
2. Denver
Total return: 18.9%
Average rent: $14.1k
Rent to value: 5.51%
Known as the Mile High City (for its elevation and, possibly, other things), Denver is a close second with total annual returns of 18.9% and average rents running higher than Dallas.
3. Miami
Total return: 18.57%
Average rent: $15.7k
Rent to value: 8.14%
This beachside party city snags third place, right below Denver. The average rent may be high, but the annual total returns are, too.
4. Houston
Total return: 18.52%
Average rent: $12k
Rent to value: 8.39%
Texas markets sure are having some good days. Houston follows Miami with a difference of just 0.05% in total annual returns.
5. Atlanta
Total return: 16.45%
Average rent: $11.9k
Rent to value: 8.36%
The Big Peach is in fifth place with total annual returns of 16.45% and a solid rent-to-property value of 8.36%.
