Are you looking to invest in rental property in Pennsylvania this year? Right now the overall housing market in Pennsylvania is very hot, in favor of sellers. The rental market is also hot, allowing investors to see good ROIs, if they’re investing in the right cities.
While the state as a whole is doing fairly well in the market, there are a few key places investors should turn their attention to this year. These Pennsylvania cities are experiencing job and population growth, as well as rising housing values, which are all good indicators of a smart investment.
Let’s take a look at the top five best cities in the Keystone State to invest in this year for maximum ROIs.
Known affectionately as the Steel City, this former manufacturing headquarters is one of the hottest places to live in Pennsylvania right now. Median home values are currently $152,600 (an increase in 9.1% from last year) and are continuing to rise, with Zillow predicting another increase of 5.5% over the next twelve months.
The median rent price is currently $1,450 (well above the metro average), As home values increase, rent prices are also expected to rise, making this a great city to invest in rental property.
Pittsburgh is also dubbed as one of the nation’s most liveable cities and is surrounded by universities. Many college students rent housing off campus during school or after graduation, making this market important for investors. The job market has also increased 0.2% over the past year and is predicted to grow by 24.4% over the next 10 years.
Investors should look to purchase in top neighborhoods like Squirrel Hill North, Regent Square, Point Breeze, Squirrel Hill South, and Shadyside.
The City of Brotherly Love is perhaps the most famous in Pennsylvania and is also one of the top spots investors should look to purchase real estate. Philadelphia’s housing market is currently hot, with Zillow reporting home values have increased by 10.4% over the past year and are predicted to increase over the next twelve months by another 8.4%. Rent prices are also up, with the median rent averaging $1500. As home values rise, rent prices are also expected to continue rising.
Philadelphia currently ranks as #50 on Best Cities top places to live in the world list due to its world-class attractions, incredible downtown attractions, and public transportation and walkability.
The large number of universities in this city also make the demand for rental units higher, making it an ideal city for investors. In addition, the job market has increased by 1.2% over the last year and is expected to grow by 28.4% over the next ten years.
To ensure maximum ROI, investors should look to invest in top neighborhoods, including Fitler Square, Bella Vista, Graduate Hospital, Washington Square West, Queen Village, and Society Hill.
Allentown is Pennsylvania’s third most populated city and is idyllically located along the Lehigh River in Lehigh County. Allentown has recently become popular for redeveloping and transforming its downtown area to re-boost the local economy.
Revitalization efforts are clearly paying off as the city’s housing market is now very hot, with home values having increased by 9.4% over the past year. Prices are currently averaging $134,300 and are anticipated to increase by 5.0% over the next twelve months. Rent prices have also increased and now average $1200, monthly.
The job market in Allentown has also increased by 0.5% over the past year and is expected to increase by 23.8% over the next ten years. Allentown is also home to two major college campuses, bringing in thousands of students looking to rent within the city.
West Chester is another top area for investors to look into this year. This borough has been a popular place to live for decades, due to its close proximity to Philadelphia and high home values.
Over the past year, home values in West Chester have gone up by 3.4% and now average $417,800. Home values are expected to continue growing by 1.7% in the next year. The median rent is currently $1,950, which is ~$400 higher than the metro average.
Investors may pay more for rental property in West Chester, but as long as they work with a strategic real estate agent to find the right property, the high rent averages should compensate for above average ROI.
As the seventh largest city in Pennsylvania, Bethlehem is a great place to invest in rental property. Revitalization efforts have helped improve the city’s local economy and helped boost the overall population.
Home values have increased by 6% in the past year, averaging $170,100. Zillow anticipates home values will continue to rise over the next twelve months by 3.7%. The median rent price in Bethlehem is currently $1,362.
The job market has grown by 0.5% over the past year and is expected to grow by 26.8% over the next twelve months. The population has also grown by 0.7% since 2010.
Before purchasing investment property in Pennsylvania, it’s important to team up with a local real estate agent. Agents understand the local market trends and can help you make smart, savvy investment decisions. They can also help you find the perfect rental property that matches your budget and criteria.
Whether you’re looking to break into the market or scale your real estate portfolio, get in touch with a Clever Partner Agent to get started.