In analyzing the country’s biggest residential real estate markets, weighing cap and rental rates, as well as median single-family home price, the online investment and management firm HomeUnion found that purchasing in Chicago is a savvy move.
Since last year, Chicago’s cap rate – referring to the capitalization rate, or the expected return on a real estate investment – has risen 18.3 percent, nearly 3 percentage points more than any other of HomeUnion’s markets. And with a median single-family home price of only $128,000, Chicago stands as currently the most promising investment market in the country.
See our table below to see how Chicago stacks up nationwide:
| City | Cap Rate Increase | 2016 Winter Median SFR Price | 2016 Avg. Winter Rent |
|---|---|---|---|
| Chicago | 18.30% | $128,000 | $1,460 |
| Greenville, S.C. | 15.90% | $86,250 | 1,130 |
| Birmingham, Ala. | 12% | $76,700 | $970 |
| Tampa | 11.70% | $109,100 | $1,160 |
| Jacksonville | 11.40% | $103,900 | $1,160 |
| Houston | 10.70% | $145,100 | $1,500 |
| Austin | 10.20% | $219,300 | $1,560 |
| Dallas | 7.70% | $136,500 | $1,440 |
| Memphis | 7.20% | $82,400 | $980 |
| Indianapolis | 7% | $87,000 | $1,060 |
| Atlanta | 7% | $104,000 | $1,130 |
| Orlando | 7% | $147,800 | $1,240 |
| Nashville | 6.50% | $129,900 | $1,220 |
| San Antonio | 6% | $125,000 | $1,300 |
| Raleigh, N.C. | 4.90% | $147,500 | $1,200 |
| Charlotte | 4.60% | $110,000 | $1,130 |
Hi James,
Just curious, where did you get this data from?
Thanks!
Thanks for your comment, Sam! All the stats came from HomeUnion’s report.
Sam – FYI, HomeUnion’s projections are based on 15 years ownership.