There are many factors that go into a prime real estate market that is ideal for investors and homebuyers alike. Some of these factors are simple to understand, like the location; others involve more complicated measures.
All are designed to point the way to real estate markets that are perfect for investment, especially ‘hidden gem’ markets that have a wealth of potential.
According to RealtyTrac, we have one of these hidden gem markets in our own backyard: Shelby County, Alabama. designed to point the way to real estate markets that are perfect for investment, especially ‘hidden gem’ markets that have a wealth of potential.
RealtyTrac produced a report that found the top 25 hidden gem markets in the U.S. – markets that are not on everyone’s radar for single-family homes.
It looked at a few factors, such as gross yield, median rent value, median market value, investor sales percentage, and unemployment.
Investor sales percentage refers to the percentage of investors who are institutional investors, such as banks, corporations, and funds. A lower percentage is more advantageous for average real estate investors.
According to the report, Shelby County real estate had a median market value of $157,000, an unemployment rate of 4.5% (much lower than the national average of 7.3%), and an investor percentage of 1.9%. The median rental price was $1,194 per month.
Most impressive was the gross yield of 9.1%, which is an impressive return even for this market.
Investors can use this information to find prime locations for purchasing homes and renting them to families who are in search for many of the same factors – affordable rates in places with low unemployment and hence more job opportunities.
Rising home prices and increased real estate investment in the greater Birmingham area is another piece of the puzzle that is producing an enticing picture for investors.
If you are an investor attracted to favorable real estate market conditions in the Birmingham area and need an expert property management company to maximize your return, contact gkhouses.com and call us today at 205.940.6363.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.