January 22, 2020

By: Kayla Matthews

If you took part in the real estate market in 2019, you likely saw both highs and lows. The sector shifts continually, revealing new opportunities and growth factors alike.

What will rental markets in 2020 bring? Will property owners see more of the same, or are significant changes in store?

6 U.S. Rental Markets to Follow in 2020 (with Rent Reports)

1. Austin, Texas

2. Atlanta, Georgia 

3. Pittsburgh, Pennsylvania

4. Oklahoma City, Oklahoma

5. Jacksonville, Florida

6. Cedar Rapids, Iowa

 

 

 

1. Austin, Texas

Between 2007 and 2017, Austin, Texas, saw more than a 32% increase in population, surpassing 2 million in 2015. Experts do not expect this growth to slow soon, with estimates calling for nearly 3 million citizens by 2030.

Currently, this metropolis is one of the top destinations for migrating talent, making it an ideal rental market to follow in 2020. Investors are still purchasing properties, and prices have slowed in the past few years. Going forward, home investors' values could experience faster growth than the expected national rate.

(* Map Results based on 984, 2-bedroom rentals seen within 6 months, See Report)

2. Atlanta, Georgia

2020 could be a boon for residential real estate in Atlanta, Georgia, with announcements of a two-tower residential project breaking ground in Midtown. The first tower will stand 22 stories high and feature 205 apartments. The second will be 27 stories and house 385 rentals.

Investors can expect updated construction trends to dominate the market, with features like renovated bathrooms, renewable energy and semi-automated components. As a downside to innovation, many believe the city's older properties could remain vacant creating inventory for real estate investors looking for renovation opportunities.  

(Map Results based on 989, 2-bedroom rentals seen within 6 months, See Report)

3. Pittsburgh, Pennsylvania

This eastern city has seen home values double, triple and quadruple in the past few years. While prices are soaring, the numbers don't rise equally across the county. With around 579,000 properties and more than 34,000 sales in each of the past three years, few are confident that the market is keeping up with trends.

Investors should be on the lookout for affordable stunners, both in and outside of the city. However, buyers should beware that they shouldn't interpret assessed values as current market values. The controversy over-assessments has left many buyers looking to other lucrative locations.

(Map Results based on 992, 2-bedroom rentals seen within 6 months, See Report)

4. Oklahoma City, Oklahoma

Oklahoma City has seen tremendous growth over the past decade, with business sectors in scientific, technical and management services rising to the top. This so-called ‘silicone prairie’ will provide investors with the best potential for affordability and growth, beating out desirable markets like Las Vegas, Tampa and Jacksonville.

This market's potential for tech growth relies on the ongoing trends of housing affordability, market demand, and economic strength. Rental investors should consider the ready or potential pool of talented workers migrating for tech opportunities as potential tenants.

(Map Results based on 837, 2-bedroom rentals seen within 6 months, See Report)

5. Jacksonville, Florida

Jacksonville, Florida, marks one of the top economies in the U.S., offering investors a chance at a diverse economy and stable employment opportunities. Real estate professionals are optimistic as home and rental prices soar, especially in the city's historic districts.

Low inventory will be a challenge for buyers looking to break into the market. Despite a lack of growth, it's still a sought-after destination for many residents, topping neighborhoods like St. Johns County and Ponte Vedra.

(Map Results based on 989, 2-bedroom rentals seen within 6 months, See Report)

6. Cedar Rapids, Iowa

This midwestern city is known for its food processing, grain production and meatpacking. With steady year-over-year population growth, the area also presents an opportunity for real estate investors. The housing market has been growing steadily over the last five years, with builders unable to keep up with demand.

This stable market is ideal for investors, lacking the highs and lows you'd see in a larger community. The strong economy, offering job opportunities, short commute times, and affordable housing suggests a continual upward trend throughout 2020.

(Map Results based on 197, 2-bedroom rentals seen within 6 months, See Report)

Rentals in 2020 — Which Markets to Follow

Several booming cities continue to dominate the new decade, including Austin, Texas and Atlanta, Georgia. However, investors have the opportunity to branch out to smaller communities, taking advantage of steady growth in areas like Pittsburgh, Pennsylvania, and Cedar Rapids, Iowa.

Opportunities can arise at any moment, from affordable housing prices too eager tenants. As a rental property owner, it's essential to keep an eye on the market as the year continues to progress.

When it comes to searching your market for the next investment opportunity, there’s no better tool to start searching rents with than Rentometer. 

About the Author: Kayla Matthews is a smart home journalist and real estate writer whose work has been featured on Houzz, Dwell, Inman and Curbed.