Top 5 States For Investors to Buy Rentals in 2022

By
Mortgage and Lending with Keller Williams

With changing market and house prices hitting all-time height, there are some states where a difference between rental income and median house price is higher or lower. In states like Texas, and Georgia there is way more real estate activity in past few years. 

It's no secret that rental prices have been on the rise in recent years. According to Zillow, the median rental price in the United States increased to 15.9% year-over-year in January, to $1,856/month, and they expect prices to continue to rise in 2022 and beyond.

ZORI

The top states to invest in 2022 for short and long rental income hitting ROI after a few short years are Michigan, Tennessee, Texas, Maryland, and Pennsylvania. 

Michigan

The state of Michigan is a great place to invest in real estate. The economy is improving, and there are many opportunities for growth. In order to make the most of these opportunities, it is important to be aware of the different areas of the state that are ripe for investment. This guide will provide an overview of some of the best places to invest in real estate in Michigan in 2022.

Tennessee

  1. The healthcare industry is expected to experience significant growth in the next decade. With an aging population and advances in medical technology, the demand for healthcare services is only going to increase. Hospitals, clinics, and other healthcare facilities will be looking for ways to meet this demand, and investment in Tennessee's healthcare industry will be crucial.
  2. The tourism industry is also expected to see significant growth in the next decade. With its beautiful scenery and rich history, Tennessee is a prime destination for tourists from all over the world. Investment in Tennessee's tourism industry will be essential to accommodate the influx of visitors and keep the state's economy growing.
  3. The manufacturing industry is also expected to see significant growth in the next decade. With its central location and abundance of resources, Tennessee is an ideal place for manufacturers to set up shop. Investment in the state's manufacturing industry will be crucial to creating jobs and spurring economic growth.

Texas

As the second most populous state in the US, Texas is an attractive investment destination for businesses and entrepreneurs. The state's economy is diverse and growing, with many industries - such as energy, technology, healthcare, and manufacturing - attracting visitors and investors from all over the world.

If you're thinking about investing in Texas in 2022, here are a few things to keep in mind:

  1. The Texas economy is strong and diversified.

The Lone Star State's economy is one of the strongest and most diversified in the US. With a gross domestic product (GDP) of $1.9 trillion, Texas ranks as the 10th largest economy in the world. There are special laws and guidelines for investors who want to get financing in Texas state. The state's economy is driven by a number of key industries, including energy, technology, healthcare, and manufacturing.

  1. Texas is home to a number of major businesses and corporations.

Texas is home to some of the largest businesses and corporations in the US, including ExxonMobil, AT&T, Dell Technologies, and American Airlines. These businesses bring jobs and investment to the state, helping to drive economic growth.

  1. The Texas real estate market is booming.

The Texas real estate market is experiencing strong growth, with the state's population expected to reach 39 million by 2050. This population growth is driving demand for housing, office space, and retail space across the state. Cities like Austin and Dallas are particularly attractive investment destinations, as they offer a combination of strong economic growth and affordable real estate prices.

Maryland

Are you thinking about investing in Maryland in 2022? If so, there are a few things you should know. In this blog post, we'll cover:

  1. Why investing in Maryland is a smart move
  2. What industries are booming in Maryland
  3. What the real estate market looks like in Maryland

By the end of this post, you'll have a good understanding of whether or not investing in Maryland is right for you. Let's get started!

Investing in Maryland is a smart move for a number of reasons. First, the state has a strong economy. In fact, Maryland's GDP grew by 3.4% in 2019, which was faster than the national average of 2.9%.

The state is also home to a number of industries that are booming right now, including healthcare, information technology, and defense. These industries are attracting new businesses and jobs to Maryland, which is helping to drive economic growth.

Finally, the real estate market in Maryland is very strong. Home prices have been rising steadily for the past few years, and they're expected to continue to rise in the future. This makes investing in Maryland real estate a very attractive option for investors.

Pennsylvania

If you are considering investing in Pennsylvania in 2022, these are a few things you should keep in mind. Pennsylvania has a strong economy and housing market, and the cost of living is relatively high. However, Pennsylvania is a great place to invest, and it is expected to continue to grow in the next few years.

The first thing to consider is the economy. Pennsylvania has a strong economy, with a GDP of $1.06 trillion in 2020. The state is home to many large companies, including Comcast, PNC Financial Services, and Rite Aid. The unemployment rate in Pennsylvania was 4.6% in 2020, which is lower than the national average of 6.3%.

The second thing to consider is the housing market. Home prices in Pennsylvania have been increasing steadily for the past few years, and they are expected to continue to rise in the next few years. The median home price in Pennsylvania was $234,900 in 2020, and it is expected to increase to $248,000 by 2022.

The third thing to consider is the cost of living. The cost of living in Pennsylvania is relatively high, but it is still lower than the national average. The median household income in Pennsylvania was $61,842 in 2020, and the median rent was $1,280.

They are a few more states which can be useful for due diligence like Oklahoma, one of the top cheapest cities to live in, and the price to rent ratio is low as well. (rent price is slighter higher than in other states with similar house median price)

Price-to-rent VS Median Home value for all states in USA. 

 

City Price-to-Rent
Ratio
Median Home Value
San Francisco, California 51.79 $1,217,500
Oakland, California 42.06 $807,600
New York, New York 38.26 $680,800
San Jose, California 37.48 $999,900
Los Angeles, California 37.39 $697,200
Seattle, Washington 36.65 $767,000
Long Beach, California 35.07 $614,400
Washington, D.C. 33.61 $646,500
San Diego, California 30.38 $658,400
Boston, Massachusetts 30.12 $627,000
Portland, Oregon 28.28 $445,200
Denver, Colorado 26.02 $447,500
Atlanta, Georgia 23.83 $359,500
Austin, Texas 23.63 $378,300
Sacramento, California 23.15 $380,600
Miami, Florida 23.02 $358,500
Las Vegas, Nevada 22.34 $305,900
Minneapolis, Minnesota 22.02 $282,200
Colorado Springs, Colorado 21.88 $318,200
Fresno, California 21.79 $276,600
Chicago, Illinois 20.22 $272,200
Nashville, Tennessee 20.10 $287,300
Phoenix, Arizona 20.07 $266,600
New Orleans, Louisiana 20.04 $242,900
Raleigh, North Carolina 19.65 $274,200
Albuquerque, New Mexico 19.50 $211,800
Mesa, Arizona 19.16 $259,300
Tampa, Florida 18.42 $265,700
Virginia Beach, Virginia 18.11 $296,200
Charlotte, North Carolina 17.89 $252,100
Dallas, Texas 17.10 $231,400
Tucson, Arizona 17.01 $172,700
Louisville, Kentucky 16.33 $172,100
Arlington, Texas 15.85 $213,800
Oklahoma City, Oklahoma 15.80 $165,700
Fort Worth, TX 15.72 $209,400
Omaha, Nebraska 15.59 $175,800
Tulsa, Oklahoma 15.39 $152,700
Jacksonville, FL 15.18 $200,200
Houston, Texas 14.90 $195,800
Columbus, Ohio 14.68 $173,300
Kansas City, Missouri 14.33 $168,400
Indianapolis, Indiana 14.26 $155,400
Philadelphia, Pennsylvania 14.15 $183,200
San Antonio, Texas 13.86 $171,100
Baltimore, Maryland 13.69 $179,100
El Paso, Texas 13.14 $133,600
Milwaukee, Wisconsin 12.87 $133,600
Memphis, Tennessee 10.46 $115,900
Detroit, Michigan 5.67 $58,900

Comments (4)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Having lived in Ypsilanti MI two semesters at EMU no desire to live in Michigan:) as to PA I have went there for Cross Country training camp.... for two months... same story... the real reason where I want to live next would be similar climate to CA... preferably temperate and little humidity... I look forward to your next post where those places are:))Endre

Apr 10, 2022 09:39 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Pennsylvania is pretty vast and sprawling from what I can see from my experience and I would imagine there are a lot of opportunities you’re not even this list. Great work! :

Apr 10, 2022 10:53 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Pete. Interesting list. Many of the places would not be a consideration for me. Enjoy your day.

Apr 11, 2022 05:12 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Pete,
Thank you for sharing the real estate information.
Interesting info, though I have never had good results from rentals more than a mile from my office, perhaps with a good local manager it would be more feasable.
Wishing you continued success.
Bob

Apr 15, 2022 08:57 AM
Pete Beeda

Thanks Bob! I bought my first rental within 5 min from my office, huge savings on time and gasoline :)

Apr 19, 2022 07:42 PM