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One big factor to consider when choosing a rental market is vacancy rate. If your main goal is earn cash flow, you’ll want to invest in markets where properties are quickly and consistently rented.
On today’s show, I’m outlining the five cities with the highest vacancy rates in the country. I’ll elaborate on why each city is problematic for investors, and how to identify more ideal rental markets. Don’t miss this episode of Investing in Real Estate!
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5) Winston-Salem North Carolina. This city is known as the Camel City because of its role in the tobacco industry. Due to the decline of tobacco consumption, the city has experienced an enormous decline in employment opportunities. Without jobs, renters stay away. The city’s vacancy rate is one of the highest in the country.
4) Mobile, Alabama. Although Mobile is a beautiful port city, it has not been able to capitalize like similar cities in Georgia and Florida. Mobile has a lack of economic growth, and high taxes that discourage renters from living in the area.
3) Jackson, Mississippi. I’ve actually invested in this area before, but I certainly won’t again unless something drastic happens. The properties in Jacksonville are cheap, but this area experiences a high volume of crime. This area is full of D and F neighborhoods that are unattractive to renters.
2) Little Rock, Arkansas. You might be surprised to hear that a capital city has one of the highest vacancy rates in the country. Little Rock doesn’t experience high crime rates or dire economic circumstances, but an issue of too many properties. Homes and apartments were overbuilt in this area, and there simply aren’t enough renters to fill those spots.
1) Memphis, Tennessee. Recently, the FBI released crime statistics, and Memphis held the title of the second highest criminal activity in the United States. Not to mention, Memphis was hit hard in the recession. The combination of high crime and no jobs gives Memphis the highest vacancy rate in the country.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What is the national average vacancy rate?
- What economic indicators affect vacancy rates?
- What questions should you ask a property management team about occupancy?
- And much more about real estate investing!