San Antonio should expect one of the highest rent hikes in the U.S.
Hopefully you’ve invested in residential real estate property in San Antonio, because 2016 is promising some big numbers. However, if you’re not a homeowner who rents out a property, well, the forecast doesn't look too hot for you.
HomeUnion, a real estate investment management firm, has identified the top 10 metros with the strongest investment home rental growth in the country. San Antonio comes in at No. 9 with some data that might excite or scare, depending on which side of the spectrum you’re on.
San Antonio should expect a 4.8 percent rent growth, with a year-end rent forecast of $1,165.
"Last year, strong job growth in San Antonio fueled demand for single-family rentals," says Steve Hovland, manager research services for HomeUnion. "The metro added 33,300 positions, lifting payrolls 3.5 percent. The increase was eighth best in the nation among large metros. Another year of strong job growth coupled with an already high homeownership rate will support healthy rent growth in the Alamo City."
The top three cities on the list are San Jose, California ($3,459 year-end rent forecast, 7.3 percent growth forecast for 2016); Orlando ($1,348 rent, 6.1 percent growth); and Seattle ($4,191 rent, 5.9 percent growth). The only other Texas city in the top 10 is Austin, at No. 8, with a 5 percent hike in rent.
While the study spells good news for real estate investors, it means bad news for renters. Even so, compared to some of the nation’s struggling cities like Milwaukee, Cleveland, and Detroit, San Antonio’s economy is strong, and that’s something to be thankful for.
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