I sell homes in the US city that’s best to invest in – ‘demand will grow’ but ‘affordable housing’ will become harder

A CITY in Ohio has emerged as the top real estate investment destination in the US, according to recent analysis of major metro areas.

With its combination of affordable housing, increasing demand, and low rental vacancy rates, Ohio’s Birthplace of Aviation stands out as an ideal market for investors looking to maximize returns in a growing city.

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Dayton, Ohio has solidified its position as the top real estate market for investors in the US with a blend of affordability, growing demand, and low rental vacancies, according to Realtor.com.

This makes it an attractive option for those looking to capitalize on the city’s potential.

According to recent data from the 75 largest metro areas, Dayton’s low median listing prices, climbing home values, and increased investor activity over the past year have all contributed to its rise.

Additionally, the rental vacancy rate, averaging just 4.7% in the first half of 2024, indicates a robust rental market with high demand and quick tenant turnover.

Shannon Feick, a real estate professional based in nearby Cincinnati, provided further insight into Dayton’s appeal in an exclusive interview with The U.S. Sun.

IT’S THE APPEAL

Feick, who has lived in Ohio his entire life, and now does so with his wife and child, highlighted the steady increase in home prices, particularly in suburban areas where properties remain relatively affordable.

“Dayton is seeing home prices go up steadily with more people looking to buy,” he said.

“This is happening even more in suburban areas where houses are still affordable.

“I believe the demand is going to grow as more families look for affordable options outside big cities,” he added.

Feick’s observations underscore the fact that Dayton offers an appealing balance of affordability and growth, making it especially popular among families and first-time homebuyers seeking alternatives to larger urban centers.

The impact of large investors on Dayton’s market has also been significant.

Feick noted that big investors are quickly buying up homes, which has led to rising prices and an increase in rental properties on the market.

“It’s good for the local economy but also makes it harder for regular buyers to find affordable housing,” Feick explained.

This dynamic has created a more competitive housing environment in Dayton, as investors seek to take advantage of the area’s relatively low prices and strong demand.

In fact, investors made up 13.7% of homebuyers in the first quarter of 2024, a notable increase over the past five years.

STEADY RISE

Looking ahead, Feick expects the Dayton market to continue attracting outside investors, which will likely push property values even higher and make the rental market increasingly competitive.

“In the next 5 to 10 years, I think Dayton will continue to attract outside investors which will push property values higher and make the rental market even more competitive,” he predicted.

This forecast aligns with broader trends seen in the top 10 investor markets, where property values remain below the national average but have experienced steady growth.

Dayton, in particular, stands out for offering a balance of affordability and investment potential.

The rental market will play a critical role in Dayton’s future growth, according to Feick.

As more people move to the city, driven by the area’s affordability and proximity to larger job markets in Cincinnati and Columbus, the demand for rental housing is expected to rise.

“The rental market is important for Dayton’s future because it gives people who can’t afford to buy a place to live while providing steady income for property owners,” Feick said.

With its low rental vacancy rate and high demand, Dayton’s rental market is poised to support ongoing population growth and economic development in the region.

Dayton’s affordable real estate, strong job opportunities, and location near bigger cities like Cincinnati and Columbus make it a popular choice for both homebuyers and investors.

Shannon FeickReal estate professional

THE DEAL WITH DAYTON

Ultimately, Dayton’s combination of affordable real estate, job opportunities, and strategic location near larger cities has made it one of the hottest markets in the country.

“Dayton’s affordable real estate, strong job opportunities, and location near bigger cities like Cincinnati and Columbus make it a popular choice for both homebuyers and investors,” Feick added.

These factors, combined with a growing economy and investor interest, make Dayton a prime location for long-term growth and investment, with its future looking brighter than ever.

Several key factors contribute to Dayton’s appeal to investors: high page views per property indicate significant interest from potential buyers, while home prices remain below the national average, even as they have been steadily climbing over the past year.

This growth potential makes Dayton particularly attractive for investors seeking properties likely to appreciate in value.

Additionally, Dayton has seen an increase in the number of homes available on the market, providing a variety of options for prospective investors.

The city also boasts a low rental vacancy rate, averaging just 4.7% in the first two quarters of 2024 — significantly lower than the national average of 6.6%, according to Realtor.com.

This low vacancy rate suggests a strong rental market, where investors can quickly find tenants and maintain steady rental income.

Dayton has attracted significant buyer demand over the last year.

Hannah JonesRealtor.com senior economic research analyst

TOP DOG

Investor activity in Dayton has increased markedly over the last five years.

This is only slightly below the national average but represents a notable uptick from previous years, further solidifying Dayton’s position as a top investment destination.

“Dayton has attracted significant buyer demand over the last year,” says Realtor.com senior economic research analyst Hannah Jones, per the site.

“Conveniently located roughly an hour from both Columbus and Cincinnati, buyers and renters can take advantage of relatively affordable housing and a robust local economy within close proximity to other popular markets.

“Investors can capitalize on the market’s proximity and affordability,” she added.

The combination of these factors has propelled Dayton to the top of the rankings for investor markets, offering affordable entry points while maintaining robust demand from both homebuyers and renters.

This unique blend of affordability, demand, and low vacancy rates makes Dayton a compelling choice for investors looking to maximize their returns.

Dayton’s rise to the top reflects a broader trend favoring smaller, more affordable markets.

Other cities that ranked highly in the analysis include Rochester, New York, Cleveland-Elyria, Ohio, and Pittsburgh, Pennsylvania, all of which offer lower median home prices, growing inventory, and low rental vacancy rates.

If you’re considering purchasing a home, explore the top 10 cities with affordable housing options.

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