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Charlotte ranks low on single-family rental returns

The Charlotte metro region ranks 425thout of 586 U.S. counties for buying residential rental properties, according to RealtyTrac’s Q3 2014 Residential Property Rental Report.

Rental homeRealtyTrac’s analysis found that investors buying U.S. residential property in the third quarter receive an average annual return of 9.06 percent, while those in the Charlotte-Gastonia-Concord region get a 7.15 percent annual yield.

Rental returns were calculated using annual gross rental yields: the average fair market rent of three-bedroom homes in each county, annualized, and divided by the median sales price of residential properties in the third quarter.

Median home prices nationally increased more than 7 percent on average year-over-year during the quarter. Locally, that figure rose 8.8 percent. The median home sales price in the Charlotte region was $184,000 in August, according to RealtyTrac.

On average, 33 percent of all single-family housing units were renter-occupied nationally, while in the Charlotte region that figure was 42 percent. Nationally, on average, 67 percent were owner-occupied. Locally, 58 percent of the properties were occupied by owners.

The average rental vacancy rate was 7.4 percent, higher than the local rate of 6.6 percent.

Topping the list for rental returns was Edgecombe County in the Rocky Mount metro area, with a 41.6 percent yield, followed by Clayton County, Ga., in the Atlanta metro area (26.9 percent annual yield), and Duplin County, N.C. (24.4 percent annual yield).

The New York City metro area ranked lowest, with a yield of 2.4 percent, followed by the metro areas of San Francisco (3.2 percent) and Kings County, N.Y. (3.6 percent).


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