When it comes to the rental market, everyone can agree upon one thing—Millennials are vital. Currently, Millennials are the main component in rental tenants as they seek new methods of housing that require less commitment than buying for their free-lifestyles.
While Millennials compose the majority of tenants on the rental market across the nation, there has been a clear influx of this group flocking to certain markets. If you’re looking to get into the rental market, or are already involved but looking for new properties, selecting one of these areas as your new investment can do wonders for your ROI and occupancy rate.
Before you pick up your next rental investment property, take a look at this list of the top ten markets to rent to Millennials.
10. Kennewick-Richland, WA:
This area currently sees 20% of its population as Millennials, with an 8.5% year on year change in Millennial rates. The current fair market value for 3 bedroom rentals is $1,211 with a median average home price running at $207,000.
9. Atlanta-Sandy Springs-Roswell, GA:
This area of Georgia is currently boasting 21% of its population as Millennials with this having changed over 8.8% in recent years. Fair market rental rates for a 3 bedroom home is averaging at $1,383 with median house pricing showing at $234,000.
8. San Francisco-Oakland-Hayward, CA:
No surprise that this area should show on the list. With 23% of its population showing as Millennials, this area has seen a change in Millennial residence of 14.7%. Housing prices currently average $513,500 with a fair market rental rate of $3,251.
7. Sebastian-Vero Beach, FL:
With a Millennial population of 21%, this area of the Sunshine State has an average rental price of $1281 with a median housing price of $180,000.
6. Dallas-Fort Worth-Arlington, TX:
This area shows a Millennial population of 22%, a median housing price of $196,853, and a rental rate of $1,426.
5. Oklahoma City, OK:
Oklahoma City in Cleveland County, Oklahoma currently boasts a 27% Millennial population, one of the highest in the nation. This has shown a change of 6.6% in recent years and currently shows a 9.7% rate of rental yields. Average rental rates for a 3 bedroom home are showing at $1,178 with median prices running around $146,157.
4. Kansas City, MO:
Kansas City currently hosts a 26% Millennial population with an impressive 11.2% rental yield. The area shows a $1,293 rental rate with $138,267 showing as the median average sales price.
3. Duluth, MN:
Duluth boasts an impressive 11.8% rental yield and a Millennial population of 26%. The average rental price for a 3 bedroom home is currently $1079 and an average housing price will run about $110,000.
2. Jackson, MI:
With a Millennial population of 23% and a rental yield of 13.4%, Jackson comes in as the #2 place to rent to Millennials. The median housing price of $95,000 paired with a $1,061 rental rate make for a great ROI for investors.
1. Detroit-Warren-Dearborn, MI:
This area takes the #1 slot when it comes to renting to the Millennial population. It’s 21% Millennial population partners well with a $1,296 rental rate and a $107,000 average housing sales price.
About Mike Jordan - LinkedIn
Michael Jordan is the Founder and President of Strategy Properties, which is a diversified private investment company specializing in purchasing and renovating single family homes in Detroit and suburban Michigan.