Wilmington is home to the best residential real estate investment market in Delaware.
The 19801 zip code in Wilmington presents the greatest opportunity for the best real estate investments among the 384 individual real estate markets in Delaware we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Delaware
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Wilmington | 100 | 3.3 | 60% |
| 2 | Hartly | 86.2 | 4.4 | 41% |
| 3 | Magnolia | 84.8 | 3.9 | 39% |
| 4 | Camden | 82.7 | 4.3 | 41% |
| 5 | New Castle | 75.1 | 3.6 | 31% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Delaware.
1. Wilmington
We've identified the 19801 zip code in Wilmington as Delaware's best real estate investment market. Here's why.
🔎 Key data about Wilmington (19801)
| Data point | Value | Rank in state (of 384 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $175,217[1] | lowest |
| Five-year appreciation | 60%[2] | highest |
| Household income | $52,810[3] | 43rd highest |
| Affordability ratio | 3.3 | most affordable |
| Five-year population growth | 1%[4] | 26th highest |
| Unemployment rate | 4%[5] | 2nd lowest |
| Property taxes | $1,722[6] | 29th lowest |
| Educational attainment | 29%[7] | 22nd highest |
Wilmington (zip code 19801) is the best residential real estate investment market in Delaware. It has the highest property value appreciation among markets we evaluated, with a 60% appreciation of the typical property over the last five years.
Wilmington is the most affordable market among the 384 Delaware markets we evaluated, with an affordability ratio of 3.3.
2. Hartly
The 19953 zip code in Hartly is the runner-up spot for the best real estate investments in Delaware.
🔎 Key data about Hartly (19953)
| Data point | Value | Rank in state (of 384 markets) |
|---|---|---|
| InvestScore | 86.2 | 2nd highest |
| Typical property value | $361,350[1] | 22nd lowest |
| Five-year appreciation | 41%[2] | 7th highest |
| Household income | $81,792[3] | 22nd highest |
| Affordability ratio | 4.4 | 22nd most affordable |
| Five-year population growth | 14%[4] | highest |
| Unemployment rate | 5.6%[5] | 3rd lowest |
| Property taxes | $1,103[6] | 6th lowest |
| Educational attainment | 16%[7] | 38th highest |
The 19953 zip code in Hartly features a typical property value of $361,350, the 22nd lowest in the state.
Property values have appreciated 41% over the past five years, the 7th highest increase among evaluated markets in the state. Hartly homes have an affordability ratio of 4.4, the 22nd most affordable in the state.
3. Magnolia
The 19962 zip code in Magnolia comes in at No. 3 in our ranking of the best residential real estate investment markets in Delaware.
🔎 Key data about Magnolia (19962)
| Data point | Value | Rank in state (of 384 markets) |
|---|---|---|
| InvestScore | 84.8 | 3rd highest |
| Typical property value | $411,344[1] | 27th lowest |
| Five-year appreciation | 39%[2] | 11th highest |
| Household income | $104,260[3] | 8th highest |
| Affordability ratio | 3.9 | 15th most affordable |
| Five-year population growth | 9.1%[4] | 2nd highest |
| Unemployment rate | 5.6%[5] | 3rd lowest |
| Property taxes | $1,675[6] | 27th lowest |
| Educational attainment | 43%[7] | 12th highest |
With a typical property value of $411,344, Magnolia's 19962 zip code features the 27th lowest property values in the state.
Magnolia homes have an affordability ratio of 3.9, the 15th most affordable among the markets we evaluated.
4. Camden
The 19934 zip code in Camden ranks No. 4 among Delaware's residential real estate investment markets.
🔎 Key data about Camden (19934)
| Data point | Value | Rank in state (of 384 markets) |
|---|---|---|
| InvestScore | 82.7 | 4th highest |
| Typical property value | $374,079[1] | 23rd lowest |
| Five-year appreciation | 41%[2] | 5th highest |
| Household income | $87,125[3] | 5th highest |
| Affordability ratio | 4.3 | 20th most affordable |
| Five-year population growth | 3.5%[4] | 12th highest |
| Unemployment rate | 5.6%[5] | 3rd lowest |
| Property taxes | $1,452[6] | 18th lowest |
| Educational attainment | 36%[7] | 17th highest |
Property values in Camden's 19934 zip code have seen the 5th highest increase among evaluated markets in the state, with an appreciation of 41% over the past five years.
Camden's affordability ratio of 4.3 makes it the 20th most affordable among the 384 markets we evaluated.
5. New Castle
The 19720 zip code in New Castle rounds out our top five residential real estate investment markets in Delaware.
🔎 Key data about New Castle (19720)
| Data point | Value | Rank in state (of 384 markets) |
|---|---|---|
| InvestScore | 75.1 | 5th highest |
| Typical property value | $274,206[1] | 5th lowest |
| Five-year appreciation | 31%[2] | 29th highest |
| Household income | $75,403[3] | 29th highest |
| Affordability ratio | 3.6 | 5th most affordable |
| Five-year population growth | 3%[4] | 15th highest |
| Unemployment rate | 4%[5] | 2nd lowest |
| Property taxes | $1,525[6] | 24th lowest |
| Educational attainment | 23%[7] | 32nd highest |
Property values in New Castle's 19720 zip code rose 31% over the last five years, ranking the city 29th highest among evaluated markets in Delaware.
New Castle homes have an affordability ratio of 3.6, the 5th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Delaware.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Delaware
To determine the best real estate investments in Delaware we evaluated 384 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Delaware.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
