Four Reasons to Invest in the Tri Cities WA Real Estate Market
Sophisticated residential property investors find exceptional value along with excellent ROI in the Tri Cities WA real estate market.
Since the housing vacancy rate is hovering around 2.99 percent, finding qualified tenants is easy in the Tri Cities WA real estate market.
In term of residential rental properties, experienced single-family home investors find extraordinary value in the houses for sale in Tri Cities WA real estate market. In addition, the forecast for the number of renter-occupied homes is for the rate to increase from 30.7 percent in 2010 to 32.75 percent in 2020 in the southeastern Washington cities of Kennewick, Pasco, and Richland. Along with this increase in demand for rental homes in the Tri Cities area, the predicted overall vacancy rate for both owner and tenant occupied homes ranges between 2.89 and 2.99 percent. When considered together, the high demand for single-family rental homes and the low vacancy rates signal that residential investments in the Tri Cities WA real estate market should yield strong cash flow in the future.
Other Reasons to Invest in Rental Homes in the Tri Cities WA Real Estate Market
A few other examples of why knowledgeable residential property investors are currently taking positions in the Tri Cities real estate market include:
• Strong Job Growth: The cities of Kennewick, Pasco, and Richland outperformed other regions in Washington State, including Seattle, with its annual job growth of 3.6 percent in 2016. According to the Tri Cities Development Council, the employment rate is now back to the level it was before the last recession in 2008-2009.
• A Highly Educated Workforce Attracted to Well-Paying Science and Engineering Jobs in the Area: The average household income in the Tri Cities WA region is $72,733 due to 82 percent of the workforce holds a high school degree or higher. In fact, the region is home to more scientists and engineers than any other part of the United States. As people learn about the job opportunities, they are flocking to the Tri Cities. By 2020, forecasters anticipate the region will grow by approximately 20,000 households, thus supporting increased demand for single-family rental homes in the Tri Cities WA real estate market. Other reasons people are moving to homes in the region are the area’s top-rated school districts and accessible health care services.
• Affordable SFH Prices and Relatively High Rents Yield Exceptional ROI: Investors with a penchant for rehabbing homes can find dirt cheap homes in the Tri Cities, WA real estate market auctions. Others can find single-family homes in Richland, WA, requiring just a bit of cosmetic work are available for purchase with list prices ranging from the $70s to low $100,000. With the median monthly rents in the Tri Cities region ranging from $1,400 in Pasco, WA to $1,575 in Kennewick, WA, a well-managed rental property has the potential to generate an ROI more than 10 percent, which is well above the six to eight percent ROI that is typical in other areas of the country.
To explore how to proceed along the Path Forward to high ROI-generating residential investment properties in the Tri Cities WA real estate market, contact us today!