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Comparing Rent / Price Ratios in Major Metros

Compare Rental Property R/P Ratios

2018 was an interesting year for owners and PM’s. Major hurricanes, flooding, fires, and economic turmoil, kept property investors glued to market reports to help them decide on where to invest.

We thought we’d take a new look at the most recent data from Zillow and Zumper regarding price to rent ratios in major metros to discover buying opportunities for you to drill down on. If you’re an investor/property manager, please offer your thoughts in comments.

The chart below is a snapshot in time, and we should remember that employment and rent price trends are also active and changing.  Rents are trending upward in many markets in the last few months.

Rental Price Stats from Zumper

According to a report from Zumper, San Francisco is holding onto its crown of highest rental prices in the US. That’s ahead of other superheated rental markets in New York, Los Angeles, San Jose, and San Diego.

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It seems the cities with highest rents are in California, however when you consider prices, cap rates, taxes, and rent profits, other states and cities may offer better ROI including better rental yields.

If there was a supposed downturn in California due to the loss of free trade, it’s not showing up in apartment rents here

Zumper’s national rent report reveals New York, San Jose and Los Angeles are well behind San Francisco in rent prices. Surprisingly, San Diego is ranked number 10 at $1810 per month. Their September 2018 data indicates the highest rents for a 1 bedroom apartment are a pricey $3,395 per month in South Beach, $3740 in Pacific Heights, and and $3650 in Telegraph Hill and Hayes Valley.

Zumper says 2 bedroom rents across the nation fell .3% last month yet are still up 3% YoY.

So we know which cities have the highest potential rental rates and they’re rising again. These stats below don’t necessarily reflect the complete picture for high volume, corporate investment returns in the multifamily market, but rather small to medium investors buying existing rental properties.

Price to Rent Ratios for Most Major Metros

The price to ratio is a key stat for property investors who are looking for the best properties in the best cities. See our posts on the Phoenix market, San Jose housing market, San Francisco housing, and Las Vegas housing market of recent. Here’s the most recent rent price ratios below.

The big surprise is San Jose, CA. Probably one more reason why the San Jose housing market is so hot.

Major MetroAverage RentAverage PriceRent/Price Ratio
San Jose250767500022
San Diego189532430014
Seattle190932000014
Los Angeles245040690014
Detroit6009900014
Nashville134021420013
San Francisco367058650013
Denver153424210013
Austin122019150013
Boston239535260012
Washington217230950012
Columbus75910690012
Las Vegas95012460011
Milwaukee90011320010
Atlanta147517500010
Charlotte11691318009
Minneapolis14501585009
Memphis825862009
Jacksonville995950008
Dallas12751201008
Philadelphia15501401008
San Antonio900787007
Tampa1134974007
New York/ New Jersey28752340007
Houston1215923006
Miami18001285006
Chicago15001003006
Pittsburgh1187739005

 

Are you surprised at San Jose as the rent/price leader? If you read the post on San Jose’s housing market, you’ll see the intense interest in property there. The expectations are high for 2019.  San Jose and San Francisco are epicenters for tech startups including Proptech startups.

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Software Solutions that Fit Your Company

Have you discussed ManageCasa as your preferred property management software solution? Being on the cloud with its security, uptime and tenant friendly benefits will be even more important in 2019. Learn more about the advantages.

See also: Property Software | Accounting for PropertiesPropTech StartupsProperty Management Companies | Property Management Apps | Landlord Apps Adroid iOS | Apartments for Rent | Renters Insurance | Hawaii Housing Market2019 Rental Housing Market | Apartment Rent Prices USA | Online Property Management Software | Renter Demographics | Tax Tips for Property Managers | Real Estate Portfolio Tips | Starting a Property Management Business | Tenant Screening | Increase Investment Property ROI | San Francisco Housing Forecast | Improve Property Cash Flow | Property Managers CaliforniaProperty Management Contractor Scams | Property Management Workload Tips | ManageCasa Property Management Solution

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