In this article we discuss the 5 best places to invest in rental property in 2021. If you want to read our detailed analysis of the rental property industry, go directly to the 20 Best Places to Invest in Rental Property in 2021.
5. San Diego, California, US
San Diego is one of the largest cities in the state of California. The city has a population of 3.2 million in 2021 with a growth rate of 0.65% from the previous year. Where San Diego lacks in population growth, it makes up in the real estate growth rate, which is at an impressive 4.2% as of 2021. The average home costs around $729K in the city.
Real estate affordability in San Diego is practically a fiction due to staggering housing rates. This has led to an extremely high Price to Rent ratio which stands at a whopping 30.
4. Los Angeles, California, US
Los Angeles is the largest city in the state of California and is home to the United State’s entertainment industry including Hollywood and theatre. The population growth rate has somewhat slowed down with only a 0.1% growth in 2021 from the previous year. However, the city has a whopping population of 12 million people so there’s plenty of reasons for it to have a lucrative real estate market, especially due to new people moving in the city for economic opportunities.
The price to rent ratio in the city is insanely high at 37, meaning that most people favor renting property over buying it and that has to do with an equally insane real estate value rise that is growing at a rate of 4.4% annually with an average home costing around $615K.
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3. Boise, Idaho, US
Boise is the capital city of the state of Idaho in the United States. The city has a population of 0.45 million after an increase of 1.79% from the previous year in 2021. Real estate value in the city is on the rise due to inward migration and a rising population. The growth rate in the city for real estate prices is at 22.7%. The price to rent ratio in the city is at 16.
2. Toronto, Canada
Toronto is the capital city of Canadian province of Ontario. It’s a megacity with a huge population. Currently, its population is around 6.2 million, a 0.92% increase from the year 2020. Price to rent ratio in the city is high at 27.43. The real estate value in the city increased by 33% in 2021 compared to the last year.
Photo by Rachael Annabelle on Unsplash
1. Scottsdale, Arizona, US
Scottsdale is a metro city located in the State of Arizona in the United States. The city’s population is 0.26 million strong and is currently growing at a rate of 1.37%. Real estate price growth rate in the city is at a staggering 12% with an average house price of $700K.
The Price to Rent Ratio in the city is very high at 32.6. A decent population growth rate, a high real estate value growth rate and a very high Price to Rent ratio indicates that the city is a goldmine for rental property investors.
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