As reported by Diana Olick of CNBC in her article, “The top towns for real estate investors,” residential real estate markets across the U.S., including New Orleans, which ranked #9, are providing opportunities for investors.
As she notes in the article, “Millennials are finally moving into their homebuying years, but with precious few starter houses available for sale, a growing number of these buyers are choosing to rent single-family homes. That is a big opportunity for investors overall, especially in markets seeing the greatest rent growth.”
Partner Randy Opotowsky, lead attorney for the residential real estate practice, weighed in on the three main factors driving up the rental market in the popular areas in New Orleans.
“The first is short term rentals, which limit traditional long term rental availability. The second is that millennials, who are now coming of age to purchase, are burdened with school loans and debt. And the third is increased demand, which has in turn increased the single family price per square foot. Although interest rates continue to be at historic lows, the housing stock and moderately priced homes are just not available in the desired neighborhoods for the average buyer.”
As Olick reports, “The share of institutional investors, defined as those who purchase at least 10 properties in one calendar year, continues to shrink, now just 2.6 percent, compared to 3.4 percent a year ago, according to RealtyTrac. That has opened the door for smaller-scale investors to compete” in the residential real estate market.
Read The top towns for real estate investors in its entirety.