With apartment prices in the Big Apple near all-time highs, a growing number of New Yorkers are looking outside the five boroughs for investment properties.
The Carolinas, Georgia and Texas are among the 10 most popular destinations for New York City residents buying single-family rental homes, according to a new survey by rental-home investment platform Roofstock.
Florida tops the ranking, accounting for 35.41 percent of all out-of-state single-family rental home purchases by New Yorkers between 2013 and 2018, ahead of Pennsylvania with 11.54 percent and New Jersey with 10.59 percent.
North Carolina and South Carolina round out the top five with 4.99 and 3.44 percent, respectively. California accounted for just 2.96 percent of purchases, but the state is soaring in popularity with investments growing by 15 percent per year, according to Roofstock.
Roofstock’s co-founder Rich Ford said states like the Carolinas, Georgia and Texas appeal to New York investors because they are cheaper.
“You can find many homes in the $100,000 to $150,000 price range, so with financing, you can purchase a home with an equity check of between $25,000 and $50,000,” he said. “Equally important, the yields are much more attractive in these markets than they are in the New York area, where cap rates can be at half the level you can achieve in Georgia, Texas and the Carolinas.”
Roofstock said its study is based on property records and buying patterns on its platform, which matches investors with single-family rental homes.
Nevada, Arizona and Texas are the three most popular states among California investors. Tennessee, Michigan and Ohio made the state’s top 10 and are soaring in popularity, with investor interest growing at more than 20 percent per year.