Mickey Neuberger Chief Marketing Officer | realtors.com
Earlier this year, Mike Wall of eXp Realty/EZ Sell Homebuyers purchased a run-down multifamily property in East Dayton, OH.
“Over the next few months, I invested in a complete overhaul: new plumbing, electrical work, fresh paint, updated kitchens, and a security system to give tenants peace of mind,” says Wall. “The property went from being a neighborhood eyesore to one of the most desirable rental units on the block.”
What happened next was “almost unbelievable,” he adds.
“Within a week of listing the units, I had multiple applications for each one,” says Wall. “Young professionals, small families, and even a few retired couples—all eager to move in. I was able to secure tenants at rents that were 20% higher than market projections, purely because of the demand and the quality of the renovations.”
Wall’s experience highlights that certain areas offer a combination of affordability and high demand which can be beneficial for investors with limited capital.
Dayton, OH, took the No. 1 spot among Realtor.com®'s 2024 Top Markets for Investors report which indicates where real estate investments can be highly lucrative at an accessible price point.
“The top investor markets each offer investors a unique combination of advantages, but in general, these are affordable markets that see considerable buyer demand and low rental vacancy,” says Realtor.com® senior economic research analyst Hannah Jones in her report.
Dayton is noted for its low median home price—$239,000—below the national average of $427,000 over the past year.
“Investors can take advantage of low prices and capture strong demand in the area,” says Jones. “The rental vacancy rate in Dayton was just 4.7%, on average, in the first two quarters of 2024, much lower than the national average of 6.6%.”
Indeed, investors have noticed Dayton’s appeal with investors making up 13.7% of buyers in Q1 2024.
“Dayton has attracted significant buyer demand over the last year,” says Jones. “Conveniently located roughly an hour from both Columbus and Cincinnati...Investors can capitalize on the market’s proximity and affordability.”
Realtor.com's rankings highlight regions where affordability and demand create investment opportunities despite broader market turbulence due to high home prices and mortgage rates.
“Each of these markets boasts above-average listing viewership...and improving inventory levels,” says Jones.
In these top markets properties are priced an average 21.7% lower than nationally while keeping monthly mortgage payments below $2,100 on average.
These popular markets also feature an average rental vacancy rate just at 4.8%, well below national averages; with investors comprising about 13.8% of buyers here as compared to other regions reflecting heightened activity compared to previous years.
Midwest cities secured five spots on Realtor.com's top ten list while Northeast metros claimed four spots reflecting sustained buyer demand alongside climbing rent prices creating investment potential according to Jones's analysis.
Conversely southern states have seen diminished investment appeal post-pandemic due to softening buyer demand amid affordability challenges per Jones; Western regions too face high home price barriers although cities like Fresno CA & Albuquerque NM remain attractive per recent data findings indicating possible opportunities there per latest trends observed by analysts including Jones
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