Marco Santarelli, Author at Norada Real Estate Investments

28 Passive Income Ideas For 2022 To Help You Make Money

January 3, 2022 by Marco Santarelli

We shall discuss the best passive income ideas for 2022. There has never been a better moment to discover new passive income ideas. Your income has a significant impact on your lifestyle and degree of comfort. If you've just discovered that your salary is no longer sufficient to support your lifestyle, or if you simply want to generate extra money, you need a passive income strategy. Passive income provides financial security and peace of mind without requiring you to actively work for it.

By finding the right passive income strategy for you, you can develop passive income streams that allow you more flexibility and freedom. Some great passive income ideas and streams have emerged over the last decade, making it even easier for novices to generate additional money. Let's define passive income and outline some popular strategies you can use in the sections that follow.

What is Passive Income?

Passive income is money that is usually (but not always) received regularly without any or only little effort. What is so fascinating about it? Everyone aspires to generate a passive income so they may retire wealthy and live their life to the fullest. There are several types and degrees of passive income, which we will discuss. Making money while you sleep is just another fancy term for passive income. By building different sources of passive income, you can earn a good amount of money regularly from work that is already completed, such as royalties from books.

However, in order to attain financial independence, you must leverage your time and effort to establish multiple passive income streams that will continue to grow in the future. In other words, you must do something to produce passive income upfront in order to rely on it for years to come. You either have to do much, in the beginning, to set up your passive income stream, or/and you regularly have to invest at least a bit of your time, effort, or money to maintain that income.

You may now get thousands of best passive income ideas for 2022 on the internet for earning monthly residual money. However, we can narrow them down to the most effective passive income ideas and strategies. As we all know, the coronavirus epidemic has lost many people their jobs. It has reignited interest in concepts for passive income. There are several classic and new passive income techniques that can provide you and your family with a consistent source of income.

Unlike the misconception, passive income ideas do require upfront work to earn, like writing an e-book or building and monetizing a blog. Some passive income ideas — like investing in stocks or renting out a property — may take some work to get up and running, but they could eventually earn you money while you sleep.

Passive income is important because it creates stability, security, and freedom in your financial life. In a time when the COVID-19 pandemic has caused many workplaces to shut down, the country is in a recession and economists still have no idea how long the economy will be in a downturn, it’s a good idea to create multiple streams of income to protect your personal finances. Good passive income streams take time to build up. Passive income has been loosely defined as money that you earn with the least or zero amount of effort.

People often associate passive income with dividends, interest as well as lottery winnings, and capital gains from real estate. Passive income or residual income can also be derived from a business where you do not have a substantial investment in terms of labor. It's easy to see why people like the idea of passive income. You can do the work once and get that passive income forever. Passive income is the opposite of how most of us earn a living. Through it, the money comes in without much work on your part.

The question for many is how to earn a real passive income. What does it take to earn passive income? What are legitimate strategies for earning a real passive income? Let us answer all these questions and discuss some of the best passive income ideas that can be used to make extra money in 2022. The difference between active and passive income – Your business associate who does most of the work will consider the income that they earn from the partnership as active income.

This is the polar opposite of passive income because the former is money earned from rendering a service. Your salary is considered as an active income, so are tips and commissions. Let us assume that you have a 50% interest in a business venture, you have invested more than 100 working hours to make the enterprise prosper. In this scenario, you consider this as an active income whereas a passive income is earnings derived from any form of business or partnership in which a person is not actively involved.

A passive income can also be referred to as residual income. However, no type of passive income is sustainable long-term without some sort of maintenance. The best example of this is rental properties. They need maintenance as well as rental management. For e.g; your rental property will need to be repainted occasionally or may need a new carpet or an HVAC. Below, we have identified key passive income strategies you can use to build financial security.

28 Passive Income Ideas & Opportunities to Increase Your Earnings in 2022

This pandemic has had an incredibly negative impact on the economy and livelihoods. If you’re one of the millions of Americans who lost their jobs, it might be time to start earning passive income. Here is the list of the best passive income ideas and opportunities that can boost your income in 2022.

best passive income ideas for financial freedom

1. Passive Income Through Stock Investment

Owning stocks and bonds to many doesn’t seem like one of the best passive income ideas. Yet this is the very basis of private retirement accounts. You’re buying stocks, bonds, and mutual funds that contain both so that you can live off the passive income in retirement. Companies need money to finance their business so they earn it by either borrowing or sharing stocks through an IPO. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.

Investing in stocks of a company, you become one of its “owners”. When the market is down, this is the best time to buy stocks. If you aggressively save money and seek good-value, dividend-paying stocks, you may be able to achieve a solid passive income before the traditional retirement age. Diversify your holdings to reduce the risk of losing everything because a company cratered.

We have separated this from investment in bonds because of the nature of the two. In the previous paragraph, it was mentioned that this is a share of ownership of a certain entity. Some entities pay their stockholders every quarter so it is an excellent way of making a living without doing anything. But you have to be careful in choosing the company to invest in.

2. Passive Income Through Cash Back Websites

Earning a passive income through cashback websites is as passive an income method as any. You just need to go about your life as you normally would but with a little more focus on the things that you decide to buy. Cash-back websites combine spending money with earning money. This may not be considered as something that will help you go to early retirement.

But you can still earn money with no effort required from you. Not to mention that this is completely free. All you have to do is sign up for cashback on shopping websites. These shopping portals return to members a percentage of the total amount that they spend on their qualifying purchases.

For example, you can use Swagbucks to get cashback. Just use its shopping portal to buy items online or add the Swagbucks browser plug-in to get points automatically as you browse the web. According to the company, it has paid out over $400,000,000 to members. Countless members have earned as much as $12,000 using Swagbucks. It is even a safe way for teens to make a little pocket money.

Another example is MyPoints, which gives you a few different ways to earn points. To get cash back, you can use their shopping portal and earn points by buying anything from one of their partner stores. You can also get points by taking surveys, watching videos, playing games, and even reading emails.

TopCashback is slightly different as they give the full commission back to customers and make their money elsewhere. You’re able to earn 3% consistently, which may not sound like much, but is a high percentage to be earned across all sites. There are also coupons you can find and special offers that give higher cashback.

3. Selling Stock Photos Online

Stock photos can be a good passive income source if you love to take tons of pictures. You can get paid to sell photos online through stock photography websites such as Shutterstock. The photos can be from any niche such as travel, food, or any sports that you like to cover. You can put your images for sale as an independent photographer on various stock photography websites.

While this can take time to build up if you take thousands of good pictures but you would enjoy the whole process and time spent if love taking photos. After all one of the goals of financial independence is to build wealth that doesn't eat up your time, so you can enjoy life and do the things you like to do. This is a great passive income idea because it pays you to do what you want to do anyway.

Here are some of the best stock photography sites where you can sell your images and photos online for passive income. You can open an account and get started creating this passive income stream.

Depositphotos
SmugMug Pro
Shutterstock
Pixabay
iStock Photo
Etsy
Getty Images
Stocksy
Adobe Stock
Twenty20

4. Amazon FBA

Amazon has become a great source of passive income for people who want to generate extra income for themselves. If you have something to sell online, you can use Amazon's platform. Amazon is huge. It's the third-biggest website in the US. Amazon also offers a couple of different fulfillment strategies such as the “Fulfillment by Amazon” platform – also known as FBA.

Its FBA program is just like eBay, where you have something to sell and just need to find buyers. The major benefit of using FBA is that you don’t have to worry about a thing. Amazon stores your inventory at their massive warehouses and does all of the picking, packing, and shipping. Around the world, Amazon has more than 175 fulfillment centers which contain more than 150 million square feet of storage space.

With FBA, you get to store your stuff on those shelves. You also get Amazon’s world-class customer service and returns, along with other advantages (like automatic Prime eligibility and Free Super Saver Shipping) that help you scale your business—fast. The other option allows sellers to fulfill their own orders. Each method comes with its own pros and cons.

Steps to start making passive income through Amazon FBA.

Find some unique/profitable products to sell.
Something which has good demand but is not commonly available at offline retail marketplaces.
Find the suppliers of those products.
Remember that you need to buy low and sell high to have a reasonable profit margin.
List these products on Amazon through your seller account and set the prices.
You need to have a competitive pricing strategy to compete with other sellers on Amazon.
Use the right product titles and descriptions on the listing page.
Try to think about what will best help customers find your products, discover answers to their questions, and make a purchasing decision.
Ship all of the items to Amazon at one time.
Amazon takes responsibility for the packaging, labeling, and shipping of products through Fulfillment by Amazon (FBA).
Amazon collects payment, deducts their fees, and then sends you money twice per month.

Once you’ve launched your business, Amazon has tools in place to help you take your business to the next level. Amazon’s advertising solutions create new ways for you to reach and engage shoppers, regardless of whether they’re just starting to compare products, or ready to make a purchase. Ads show up right where customers will see them (like the first page of search results or product detail pages).

Please note that the sales are passive, the work isn't. Here are a few things to try in your first 90 days as an Amazon seller.

Keep an eye on your account health in Seller Central
Use Fulfillment by Amazon or Seller Fulfilled Prime
Advertise your listings or offer deals and coupons
Enroll in Brand Registry and create enhanced brand content
Expand your selection by listing more products
Use the Automate Pricing Tool in Seller Central

5. Lending Money To Others For Interest-Based Income

One of the best passive income ideas is to loan money to others and get paid in the form of interest. We’re not saying to loan money to a broke friend who never pays you back. As a private lender, you can lend to anyone in your social circle. For example, many home fix and flip investors need access to a source of capital they can tap into very quickly to fund the initial purchase of their properties.

You can partner with them to use your capital for the short term in exchange for an interest rate that is mutually agreed upon. You can also utilize peer-to-peer lending sites to loan money to others. The lending site collects the payments and provides more leverage when someone is late. You as a lender can lower your risk by diversification.

Simply lend money to a variety of people instead of putting all of your money, literally, in one basket. It is a wise strategy if you’re pursuing higher yields that beat stock market returns.

This is probably one of the few passive income ideas that involve high risks. But it is quite profitable. You can lend money to people who cannot qualify for conventional financing means. You could lend money with an interest of 6 to 10%. A good way to lessen your financial exposure is by investing in a company that will act as a mediator. They will ensure that you are paid back.

Another easy passive income idea through lending is called peer-to-peer lending in which you can give loans to other individuals who don't meet all requirements for conventional financing. A crowd lending website is where you become someone who loans out money and you get paid interest. You’re like a bank now, getting paid interest.

It’s an awesome feeling to be the lender instead of the borrower. You invest in portions of loans. With returns of 6-10%, investing with a company like Lending Club can get you substantially higher passive income than normal investment funds or bank interests.

6. Earning Passive Income As Silent Business Partner

One of the best passive income ideas most people have never heard of is becoming a silent partner in a business. Instead of lending the business money, you buy a stake in the business. Then you’re paid a percentage of the profits, and your money is backed by a percentage of the assets of the firm. There are sites where you can search for businesses seeking silent partners. Instead of giving a friend thousands of dollars for a 10 percent stake in their restaurant, you can choose from thousands of startups or small businesses for one that looks good to you. Moreover, you can reduce your risk by investing in several startups.

This is one of the best passive income ideas for those who were thinking of starting their own business but decided they didn’t want to do all the work. Know that passive income ideas like this require doing your due diligence, vetting the business’ numbers, and verifying that your rights as an investor are protected. You can also bankroll the business of your friend or family. They will then be able to run the business for you.

If this is an ongoing operation, you must study their financial statements and other aspects of their business before shelling out anything. But if you are investing in a new entity, you must know if your business partner is trustworthy. Although this does not lessen your financial exposure, you can sleep peacefully at night knowing that your money is in safe hands.

7. Starting A Blog & Monetizing It

The passive income through blogging has allowed many to stop exchanging time for money. For example, as a travel blogger, you can set up a WordPress blog and share your experiences with your readers. Whenever you go to a new place, you can write about all the cool things you saw and did there. You can make money in a few different ways. You can apply for ad programs like Google Adsense and set them up on the sidebar of your site.

If any of them click through, you will get a small fee from your advertising partner like Google. You can also sign up for some of the affiliate programs. As mentioned above affiliate marketing is one of the various ways to make money online by promoting products or websites to earn a certain percentage as a commission.

8. Affiliate Marketing

Blogging is often seen as a great way to earn almost passive income. If you run a blog and get decent traffic, you can incorporate ads to your site and get paid per click or view on each ad. If you have a lot of traffic, this can add up to a decent chunk of change. Basically, affiliate marketing involves promoting products and getting a cut of sales.

All you have to do is put a link to a product on your blog, website, or social media page and then start earning money This isn’t completely passive income; you have to create content that will attract enough viewers for the ad revenue on the blog to be worth the effort. You have to write content, but you can hire others to write content for you, as well.

You can use software to schedule posts to be published when your readers expect new content. General ad revenue for blogs has been declining due to sheer competition. The alternative for bloggers is affiliating the blog. For example, a Mommy blogger could be paid to review various baby products, though she’s legally required to disclose the relationship.

You could mention sponsors and post a link to their site or products for sale. On the other hand, you could do it yourself, doing product reviews, and sharing affiliate links to the product Amazon. Then you receive a few percent of every sale as a commission. This is one of the best passive income ideas for those blogging consistently about a topic for which they can recommend related products.

This is one of the passive income ideas that do not require any investment from you. This would be an excellent money-making venture especially if you already have an existing website and a band of loyal followers. In this scenario, you post a link that will send the viewer to a certain website where they can buy the item. If they do purchase, you get a commission.

A lot of new things have come up in affiliate marketing. For example, you could promote or run ads in an app you create. Or you could mention sponsors that helped pay for your blog or provided expert advice for your online course. That’s aside from the classic approach of putting affiliate links in a blog or emailed newsletter.

One of the new passive income ideas is using various tools to set up affiliate programs on a one-to-one basis, whether you’re referring people to someone else’s online course or sending leads to a real estate agent.

Then there are the relatively classic passive income ideas like promoting books and products via an Amazon affiliate link. This is an option even if the app exists solely to connect your audience with you as an influencer. Promote your blog posts or podcast, and you can occasionally send out a link to your ebook or someone else’s book offered through the Amazon affiliate program.

You can also buy blogs/websites that already have a good amount of traffic and generate revenue every month. Thousands of websites are created every year and put for sale by the owners. If you can buy them with a reasonable amount of web traffic — as well as a demonstrated cash flow — it could be a perfect passive income source. Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site.

There may also be affiliate programs like Amazon Affiliate generating additional revenue. Both income sources will be yours once you purchase the blog. From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $3,000. You can buy money-making websites/blogs from sites such as Flippa.com and EmpireFlippers.com.

9. Money Making Websites

Many blogs earn revenue from Google ads. Some may have affiliate income as we described above. What most don’t know is that you can buy blogs from the owners and take them over. The ideal cases have evergreen content that generates passive income for years. Add some fresh content, and you’ll increase traffic and monthly revenue. This also raises the possibility of earning money with site flipping.

Alternatively, you can build a niche blog that targets a small subset of the blog’s audience, increasing its value to the audience and advertisers. You can even increase traffic to all of your blogs by cross-linking to each of them. This is one of the better passive income ideas for those who want to do more than a blog on the same subject every day.

10. Renting Your Car

You can make passive income from renting your secondary car on popular car rental apps that put car owners in touch with car renters. You can offer a slight discount to increase your car’s demand and set a minimum amount of rental days to ensure you make get more money for your time. So, this is one of the most passive ways you can make an extra income online at the moment if you have a car you can rent for cash.

You can make several hundred dollars a month renting your car on those platforms. For example, Getaround is a car-sharing app that allows car owners to connect to people who need to rent a vehicle. Similarly, you can cover your monthly car payments or simply earn some extra cash by sharing your primary car on Turo whenever you’re not using it.

That is a pretty good return since you can recover the entire cost of your car over a period of several months. Note that there are many things you can monetize this way. Not just a car. Depending on where you live, you could rent out your parking space for the money. You may be able to rent out tools that you own. The questions you have to ask are what you’re willing to lend out and what demand for these items is like in your area.

11. Writing Books

Selling books can be an incredible way to create some genuine passive income in the form of royalties. In today's day and age, once your book is accessible on a site like Amazon, you could get a check every month for doing nothing. The more time you spend promoting your books, the more cash you'll make online and offline.

12. Drop-Shipping

With the blast of eCommerce, drop shipping has turned out to be extremely famous. Here is how it works: you make an online store that offers items from certain manufacturers. A person visits your site, orders an item, and your system sends the order request to the manufacturer of that product.

The maker at that point completes the order by shipping it directly to the person who had placed the order on your site. A cool aspect concerning this kind of business is that you don't have to stock products that you are selling – No inventory is required from your side. The customer pays for the item; you collect the commissions and the manufacturer or seller of the items stores and ships the items to the customer.

13. Selling Online Courses

One of the best passive income ideas is selling access to courses or guides to an audience that needs such content. If you have expertise on any subject, this can become of the best passive income streams for you. This can be a lot of work upfront, but once an ebook or an online course is created and marketed it can provide you with a passive revenue stream for years.

Variations of it date back to the “Four Hour Workweek”. However, this method of building passive income has evolved over the years. The money from the online course comes straight to you, and you can use it to promote your blog on the online learning platform.

You could also promote your current business with the online courses, whether you’re a home decorator, real estate agent, attorney, or building contractor. Furthermore, you could use the course to promote other content you’ve created, be it a blog or book. Or encourage them to sign up for your subscription-only newsletter.

Content creation can be one of the better passive income ideas if you connect with services that can write quality content on-demand that you simply add to the newsletter. Note that there are plenty of tools for handling the marketing and distribution side.

For example, you could set up newsletters to automatically send content to your email list. Once you identify a need and can create a decent online course that fulfills it, you’ll have people paying you for the content. If it is good, they’ll refer it to their friends, generating more revenue. You only have to create the content once and post it on a site where they pay to access it.

If you create an online course, you can sell a companion “guide” or e-book to the students. If your online guide is selling well, then you can create audiobooks or courses for them as long as it provides additional value.

You can also use online courses to promote your expertise and promote books you’ve already written. This is one of the better passive income ideas for writers since it allows you to monetize content you already have in a new way that can even raise your profile. You can either sell the ebook on your website or offer it as an affiliate arrangement with other websites that provide content related to your ebook.

14. Buying Bonds

This is often included in most passive income ideas because you can just sit back as the money rolls in. Buying bonds are considerably safer compared to investing in stocks because bonds are considered liabilities by the company that issued them. Bonds are loans offered by corporations, cities, and governments. In exchange, there is a written and signed promise to pay a certain sum of money on a certain date and condition.

On the other hand, stocks are considered equity. If ever that company files for bankruptcy, they have to settle their liabilities first before anything else. Governments can also issue bonds but not stocks. To build a large enough passive-income stream you can invest in tax-free municipal bonds, government treasury bonds, and corporate bonds.

15. Vending Machine Business

This is one of the often underestimated passive income ideas. But it is a great way to make money especially if you have found the right place to install your vending machine. Consider the number of people going in and out of that place, you will stand a big profit if you have placed the machine in a strategic area. A well-placed vending machine can potentially earn $100 per week or even hundreds of dollars per day.

For example, if one vending machine in a prime location can bring in $50 to $100 per month. If you buy 100 vending machines, all in prime locations, you may be able to hit an average of $1000 per day. Like any business, most states require vending route operators to obtain the proper permits and licenses required by their local ordinances. When planning to start a vending machine business, it's important to check your local ordinances.

16. Time Deposit

You can earn passive income by investing money in fixed deposit accounts. This is one of the best passive income ideas that present very minimal risks. Unlike other savings account, a time deposit has a stated date of maturity. You cannot withdraw such a deposit before the maturity date. The interest rate of this type of savings account is considerably higher compared to other accounts, but it depends on the term and amount placed. Once you will withdraw your savings, you have to notify the bank at least 30 days before the said date. The higher and longer you park your money, the higher the interest rates will be.

17. Podcasting

Even small podcasts can make money through a variety of different income streams such as advertisements. A podcast is an episodic series of spoken word digital audio files that a user can download to a personal device for easy listening. Podcasting doesn’t make any money until people choose to watch you.

It takes time for listeners to decide you have value. So if you’re looking to start a podcast because you need a paycheck this week, you should find another way to earn income. However, if you've made thousands of subscribers who listen to your podcasts, then it can be monetized. Just like with a blog, you can earn passive income from affiliates, or advertisers, or by selling your products and services.

For example, you can get sponsorships and plug an ad a few times in every episode. You can also opt for affiliate programs like Audible that a lot of podcasters and YouTubers take advantage of. They give you a special affiliate link to promote. When someone uses your link, you get credit for the sale and earn $15. To start a podcast, make sure you purchase the best podcasting headsets in your budget. The quality of both your audio and content matters a lot.

18. Start a YouTube Channel

When you join the YouTube Partner Program, you have the ability to earn money through YouTube. You need to be at least 18 years old or have a legal guardian older than 18 years of age who can handle your payments via AdSense. You need to create content that meets their advertiser-friendly content guidelines.

Google will review your channel before you’re accepted into the YouTube Partner Program. They also constantly review channels to ensure you’re meeting all their policies and guidelines.

YouTube channels can be monetized even if they don’t have millions of subscribers. Your earning potential isn’t determined solely by the number of subscribers and views you have, but also by the level of engagement you generate, the niche you cater to, and the revenue channels you explore. Popular YouTubers build their audiences in millions and then launch their own merchandise.

They also partner with different brands that are looking to target specific audiences. Brands are now spending their typically large advertising budgets on influencers who’ve already won the loyalty of their audiences. This creates a massive opportunity for you as a creator if you can negotiate the right deals.

You can make passive income on YouTube through the following features:

Advertising revenue: Get ad revenue from the display, overlay, and video ads.
Channel memberships: Your members make recurring monthly payments in exchange for special perks that you offer.
Merchandise shelf: Your fans can browse and buy official branded merchandise that’s showcased on your watch pages.
Super Chat & Super Stickers: Your fans pay to get their messages highlighted in chat streams.
YouTube Premium Revenue: Get part of a YouTube Premium subscriber’s subscription fee when they watch your content.

19. Become a Social Media Manager (WFM Job)

You can work from home and manage a few social media accounts of different brands. Many small business owners do not have the time to keep up with social media, so they like to hire freelancers who can work from home. A career in social media manager management is always in demand as companies fighting for online presence and recognition continue to grow.

If you have a knack for social media, you can help local businesses maintain basic social media pages for contracted monthly fees. You need to have a creative mindset, writing skills, and an understanding of how content works on social media. These skills can be learned through online courses even if you do not have a degree or diploma.

You need to stay informed about trends and tools in social media, marketing, technology, and advertising. Facebook and Instagram are the two most popular social media platforms for local businesses. Full-time social media managers are paid a heft salary. They are responsible for planning, implementing, managing, and monitoring the company's social media strategy to increase brand awareness, improve marketing efforts, and increase sales.

20. Passive Income From Airbnb Business Model

You can partner with Airbnb and earn passive income as an Airbnb host by renting your room. If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Airbnb provides a passive income generation system to monetize living space. Airbnb makes it easy to earn passive income from renting a room, an apartment, or an entire house. Their systems handle the bookings and the payments while the hosts handle all the rest.

If you have a spare room in your house, then you can put it on rent. This is one of the passive income ideas where the risks are quite minimal. All you have to do is put up an advertisement online that such a room is available for rent. You will just have to wait for people to check your spare room and rent it.

The sharing economy is based on people renting out assets they aren’t fully utilizing to earn income. This can be a rather passive income, or you can be an active player. It may almost require no physical efforts from you, such as when you rent out your vacation home on Airbnb while the property manager maintains it as they always do.

There are also many turnkey AirBnB management companies out there that can make your short-term rental passive income hassle-free. Renting out a spare room in your house is a little more work, but it is open to almost everyone.

21. Investing in Mortgage Notes

Mortgage notes are also known as real estate lien notes and borrower’s notes. They have become a popular asset class over the past few years. Investing in mortgage notes has many benefits such as — rates of return that are higher than the bank's traditional low yield bonds; and higher than most stock dividends. A real estate mortgage note is a promissory note secured by a mortgage loan.

This is one of the best passive income ideas for those who want to secure steady and substantial income, though you have to hunt for it. Real estate mortgage notes may allow you to get a regular stream of passive income without the hassles of a landlord, or you can buy the note and sell it later to another investor.

It is possible to buy loans or “notes” from others. Then you are the one that receives the payments. Every person who offered lender financing to the person who bought his or her home has such a note. Besides, some of them may be willing to take a discount on the note to get most of their cashback.

Know that this requires doing your due diligence and drafting the right legal documents to protect your investment. If you’re looking for passive income ideas, know that you should stay away from tax liens unless you know what you’re doing. Real estate mortgage notes are a good way to invest in real estate with relatively little work beyond the initial search and purchase.

22. Passive Income Through Real Estate

There are many ways to make passive income in the real estate industry. One of the most common ways is to create rental properties. A rental property is one in which you either rent out rooms or the whole house to earn extra income. If this sounds like an investment strategy you’d like to try, read on for seven smart ways to increase the profitability of your rental properties. This probably falls more in the category of semi-passive income, since an investment in real estate is always at least a little bit of an active venture.

Still, once you have a property that is established and fully rented, it's mostly a matter of managing the property and keeping it performing well. The standard approach for would-be landlords is to buy a property, make the necessary renovations, find tenants, and rent it out. Buying turnkey properties skips the middle two steps. You are buying a property that already has to pay tenants. We won’t say this is among the brand new passive income ideas for 2020, but the real estate investment approach is coming back into style.

And several factors are making it more attractive for those seeking passive income. Banks and other institutions will loan you money at affordable rates to buy properties like this. You can generate passive income almost immediately. You inherit the tenant, and you might be able to inherit the property management firm that does all the work.

You don’t have to fix up the property. Yet the seller is obligated to inform you of major problems and upcoming repairs. You can choose not to buy a house that needs a new roof, new air conditioner, or foundation repairs. There is less risk of buying a property and being blindsided with major unplanned expenses.

You can also find a growing number of properties up for sale as retiring Baby Boomer wants to sell their assets and just retire, while others hit the market as part of an estate. This does demonstrate that owning and holding rental real estate is among the most successful passive income ideas.

23. Own Rental Properties Indirectly For Cash Flow

There are several ways you can own rental properties indirectly. One is to be an investor in a rental house, owning a share of it while someone else handles the maintenance and collects the rent. This is truly a passive income. The downsides include lower returns than if you owned the property outright, illiquidity, and potential problems if your business partner makes mistakes.

If they choose bad tenants, there’s no income and you have limited say. If they are sued or go into bankruptcy, you’re joined at the hip as their business partner. One alternative is owning shares of a real estate investment trust or REIT. The shares are often as liquid as shares of stock. The rates of return are lower than if you owned the apartment buildings they built and manage, but you don’t have any liability, either.

You can invest in REITs in a variety of different ways, including purchasing shares of publicly traded REIT stocks, mutual funds, and exchange-traded funds. REITs generally own and/or manage income-producing commercial real estate, whether it’s the properties themselves or the mortgages on those properties.

You can invest in Retail REITs, Residential REITs, Healthcare REITs, Office REITs, and Mortgage REITs. REITs will provide you high dividend yields along with moderate long-term capital appreciation. Investing in REITs is one of the best passive income ideas for investors.

24. Fixing & Renting Property

There are many ways to make passive income in real estate. Many people get involved in house flipping to make more money because it seems straightforward. Buy a run-down house, make repairs, fix it up, and sell it for a profit. This approach can yield 50,000 to 150,000 dollars a year in income if you handle several houses a year, earn the standard 15,000 to 30,000 profit on a property and nothing goes wrong.

There are several problems with this approach, especially in the down housing market due to the economic impact of the coronavirus and related shutdown. It is very difficult to sell a house when people are afraid to tour it. Yet you’re legally obligated to pay the carrying costs such as the payments on a hard-money loan, mortgage, and insurance.

Why is “fix and rent” one of the best new passive income ideas? It is a solution for those who’ve fixed up a property but don’t think they can sell it for a profit in the down housing market. They can find renters because real estate is an essential activity and people still need a place to live. Renting out the property gives you a source of income to pay bills like the mortgage and insurance.

A potential side benefit of this approach is that you may hold the property so long that the tax bill on capital gains is dramatically reduced. Alternatively, you could buy houses from struggling fix-and-flip professionals to serve as rental properties. The odds you’ll get a bargain to go up the longer the housing market is in the doldrums.

Some people chose the fix and flip approach because they don’t want to find tenants or maintain properties. You can solve this problem by outsourcing that works to a good property management company.

What if your end goal remains selling the property? Putting in a tenant allows you to generate passive income until the housing market recovers. It also increases the value of the property if you choose to sell it to another investor. For example, turnkey investors will love to buy an affordable property that already has a paying tenant in it.

25. Real Estate Crowdfunding

Among the rather new passive income ideas is crowdfunding rental real estate. We are not suggesting using crowdfunding instead of applying for a mortgage. Instead, we’re suggesting you loan money to other real estate investors through crowdfunding sites. What are the benefits of this passive income approach? You can vet each investor’s project individually, but you aren’t dealing with individual investors personally.

This eliminates high-pressure sales by investment groups and the emotional appeal of aiding a friend who wants to buy a house. You can diversify your holdings, loaning several hundred or thousand dollars to each would-be investor. You get a higher interest rate than you would if it sat in a money market account.

The crowdfunding platform takes a slice of every loan issued. However, they also administer the loan payments. If someone doesn’t pay the payment, you don’t have to call them up demanding payment. The crowdfunding website will pressure the person to pay up. Lending money through the crowdfunding site eliminates the need to have a detailed contract with the borrower or having an equity stake in the property itself.

You can choose the loan duration, whether they’re using crowdfunding to save money on hard money loans or in place of a mortgage. You can choose which lending platform you go through, too. Furthermore, those seeking passive income ideas will appreciate the low cost of entry. For example, you could join a crowdfunded real estate project for just a few thousand dollars.

If you wanted to join private developers in property investment groups buying houses or apartment buildings, multiply that by a factor of ten. If you’re looking for new passive income ideas, know that crowdfunding sites allow you to diversify in other ways, as well. While you might invest the bulk of your money in real estate projects, you could put some money into someone’s new restaurant or debt consolidation loan.

Pros

You can invest in properties that you otherwise wouldn’t be able to access such as hotels.
You can find crowdfunding deals that let you put relatively small amounts of capital to work.
Portfolio diversification: You can take $100,000 and invest it equally in $20,000 increments across five different investments.
Risk Mitigation: Portfolio diversification also helps in spreading that risk across numerous investments.

Cons

The biggest drawback of crowdfunded real estate deals is that they are illiquid investments. They cannot be readily sold if you need the money.
You have to complete the target period before liquidating your investment.
You get lower returns than what you would receive if directly invested in real estate through ownership.
That is because the developer or operator with whom you are investing needs to make money too.
No control over your investments as the development of the crowdfunded property will be managed by someone else entirely.

26. Become a Social Media Influencer

A popular social media marketplace like Instagram can help you generate a strong and steady passive income stream. Did you know that the highest-paid social media influencer to date is 22-year-old social media mogul and makeup business owner Kylie Jenner? She can make more than $1 million per sponsored post shared with her 185 million followers on Instagram.

Social media influencers are creating a new class of celebrities and they can make hundreds of thousands of dollars depending on their follower count and outreach success. Affiliate links are often a bit more passive than most forms of brand partnerships on social media platforms like Instagram, Facebook, or Youtube.

These links allow followers and audiences to purchase featured products, download apps, visit specific web pages, or sign up for services. Becoming a social media influence will take some time and does not happen overnight. You need to select your niche, optimize your social media profiles, understand your audience, and create and post relevant content.

You also need to be regular and consistent in posting engaging content. Engaging with your audience is a must to build followers organically. Once you have a large social media following, you can earn money by promoting a product or advertising for a company. You can even combine this with different marketing campaigns if you are an influencer and have your blog (advertisement + affiliate income).

This is how many bloggers make money! Again, it is not 100% passive income but once set up correctly and then scaled, can be surprisingly lucrative. According to an article by Foxbusiness.com, the average influencer can take home anywhere from $30,000 to $100,000 per year by promoting products like clothing, food, hotels, and even vitamin supplements on their pages. Users with more than 1 million followers can make more than $100,000, or even up to $250,000, per sponsored post, according to a 2018 Vox report.

27. Mortgage Refinancing

If you're unknowingly paying way more for your mortgage than you need to, then this is something you should consider. The number one benefit of refinancing your mortgage is to obtain a loan at a lower rate of interest and also to decrease the monthly mortgage payment amount.

It is also that refinancing provides the borrower with fresh money at lower interest rates due to which the homeowner can lower his/her monthly payment amount. Most individuals take out loans for financing their studies, homes, vehicles, etc., and added to this; they also accumulate loans on credit cards.

On average, most households spend almost half or more of their earnings towards loan repayment and the escalating rates of interest to ensure that the term of repayment keeps on growing. By refinancing your mortgage, you can take back the portion of your income going towards your interest rate and reinvest it. When your debt is reduced, your cash flow increases. This money can then be reinvested or boost your overall savings.

28. Transcription

If you're looking for a flexible job that allows you to work from home, requires little to no prior experience, then you can opt for transcription. It is a useful skill and a great way to make money online. This job gives you the freedom to set your own hours and, in many cases, work as much or as little as you want each week.

This job typically pays per audio hour. This means that if the audio file is one hour long, you are paid for one hour of work. Also, transcription jobs are usually broken into general, medical, and legal categories.

You can choose the one you're most comfortable with. Most companies like to hire newbies after passing a transcription test. If you want to earn big money, you need to have experience and work directly with the clients.

You can also join various freelance platforms that offer transcription jobs. Just Google it. Transcription requires equipment like headphones, a foot pedal to pause clips (this leaves your hands free to type), software to enhance the sound, a computer, and a high-speed internet connection.

Are These Passive Income Ideas & Sources Effective?

Yes, all of these passive income options are viable and can augment your current income. Better still, you could make some of them your primary source of income. You get to earn without having to exert a lot of effort. All you have to do is find the right one for you. The best passive income ideas combine decent returns with little effort on your part once you’ve sealed the deal. You aren’t left worrying about the state of the financial market or struggling to manage a small business. You’re free to search for the next deal, but you don’t have to, and that’s the point of passive income. While there are many ways to generate passive income, it is important to further diversify your portfolio and look for alternative vehicles to earn more money. We've shortlisted some of the best passive income ideas & strategies which are apt for beginners who want to make more money or build wealth.

passive income for financial freedom

The coronavirus has not been the major killer they feared it would be. This is in part due to the massive government-mandated shutdown of most of the private economy and stay-at-home orders. This unprecedented near-total quarantine of the healthy is going to weigh on the economy for months if not years. For example, unemployment has already surpassed 15 percent due to the shutdown and could hit the Great Depression levels.

This has proven the importance of building multiple sources of passive income. After all, those who lost their job due to a government-ordered shut down out of fear of a future Chinese virus-like COVID or SARS don’t want to deliver pizzas or stock grocery store shelves to make ends meet. Here are a few new passive income ideas for 2020.

What does it take to earn passive income? The best passive income ideas require little to no work on your part after you’ve set up the deal. They certainly require far less work than trying to day-trade stocks, manage your own small business, or work for a large firm.

The best passive income ideas will generate revenue while you’re asleep or on vacation. This includes ad revenue from a blog, royalties from a book or online course, and rent from a rental property. People promoting passive income systems or frauds will tell you that it is so easy that you’ll earn money while you sleep.

In reality, it may do so, though you’ll always want to check in on things periodically, and there will be work to do at the very beginning. One of the misconceptions about passive income is that you can do so by trying to game the stock market or another financial institution. Day trading stocks, trying to trade cryptocurrency, and other methods are touted as the best passive income ideas, but in reality, they require work on your part and put your money at far greater risk than most investors are willing to take.

Considering the nature and benefits of passive income, a lot of people are attracted to it. A passive income can be very rewarding because you become your boss. This equates to the ability to manage your time. You can still financially gain on a business transaction while you spend time with your loved ones.

Even better, you can go on vacation and still earn money. Although you earn paid leaves in a regular job, the vacation time is counted. As you probably know, this carries a lot of risks because you are not actively doing something to ensure the success of the endeavor.

But you can lessen such risk by investing in passive income ideas that have been tested and proven to be successful. Passive income will give help you in making a safer retirement plan. Creating passive income streams means you have cash flow. Cash flow is different from savings because you’re getting an amount regularly. Something is coming in and it’s not much different from getting a paycheck. Except you’re not actively working.

Passive income in most incidents is taxed at a lower rate or can be easily deferred for a later date. Getting taxed at a lower rate means you can leverage your cash flow better, which is an important benefit of passive income. You can create multiple streams of passive income.

If you can successfully build a blog from scratch and earn through Adsense or affiliate marketing commissions, you can surely repeat and add multiple blogs to your portfolio. The effort for building successive affiliate blogs or websites is gonna be much easier than before. Similarly, after breaking even on your first rental property you buy another, and so on.

These are some of the best passive income opportunities we have listed for your knowledge. They could help you to get started in making more money and maximizing your wealth, especially in a time of economic crisis like the current one emanating from this pandemic. Achieving financial freedom via a passive income route requires some effort but is certainly doable. Also, if you truly want an early and quality retirement life, multiple streams of passive income are a great thing to have. Do you have any better passive income ideas that you would like to share? Let us know in the comments below.

References:

Active and Passive Income
https://www.investopedia.com/terms/p/passiveincome.asp
https://www.investopedia.com/terms/t/timedeposit.asp
Benefits of Passive Income
http://www.wealthylovelife.com/benefits-of-passive-income.html
https://wellkeptwallet.com/24-great-passive-income-ideas
Crowdfunding
https://www.landlordology.com/real-estate-crowdfunding
https://www.freshbooks.com/hub/startup/passive-income-ideas
https://www.moneyunder30.com/should-you-invest-in-real-estate-crowdfunding
https://www.investopedia.com/articles/investing/072514/real-estate-and-crowdfunding-new-path-investors.asp
Peer to Peer lending
https://www.financialsamurai.com/how-i-earn-over-10-passive-income-with-p2p-lending
Real estate / Landlord
https://www.quickenloans.com/blog/5-ways-earn-truly-passive-income
Stocks and bonds
https://investorjunkie.com/16179/cashflow-quadrant
Affiliated blogging
https://www.affilorama.com/introduction/how-does-affiliate-marketing-work
Online Courses
https://www.entrepreneur.com/slideshow/299914#4
http://www.mymoneydesign.com/passive-income-ideas
Income Through Various Forms of Real Estate Investing
https://www.quickenloans.com/blog/5-ways-earn-truly-passive-income
https://www.goodfinancialcents.com/passive-income-ideas/#rent
https://smartasset.com/mortgage/pros-and-cons-of-buying-turn-key-homes
https://www.forbes.com/sites/jrose/2019/02/22/real-estate-investing-without-buying-property

Fresno Housing Market: Prices | Trends | Forecasts 2022

January 3, 2022 by Marco Santarelli

Fresno is among the nation's top housing markets to watch in 2022. In fact, the Central Valley of California has become one of the nation’s hottest housing markets this year. The median price of an existing house in October was $450,000, up 13.9% from last year. The median number of days it took to sell a home in Central Valley was just 9 days. As inventory is declining, there is more pressure for home prices to increase in the next year. Months supply of inventory is 1.8, which means it would take 54 days for the current inventory of homes on the market to sell given the current sales pace.

The valley encompasses all or parts of 19 California counties including Fresno. The Fresno housing market is as hot as Central Valley. The median price of an existing home in Fresno is $385,000, which is an increase of 16.1% over last October's median price. The median days to sell a home is just 7. Fresno County consists of 53 cities. In October 2021, the median listing price of a home in Fresno County, California was $365K, an increase of 14.1% year over year (source: Realtor.com).

The median listing price per square foot for single-family homes was $219.
The median price of a home sold was $365K.
Homes in Fresno County, CA sold for approximately the asking price on average in October.
The trend for median days on market in Fresno County, CA has gone down since last month, and slightly down since last year.
Laton has a median listing home price of $700K, making it the most expensive city.
Huron is the most affordable city, with a median listing home price of $215K.
The median listing home price in Fresno City is $348.9K, trending up 16.3% year-over-year.

Fresno Housing Market Trends (Latest)

As per the real estate company named Redfin, the Fresno housing market is very competitive. In October 2021, Fresno home prices were up 13.1% compared to last year, selling for a median price of $362K. On average, homes in Fresno sell after 11 days on the market compared to 9 days last year. There were 525 homes sold in October this year, down from 528 last year.

Many homes get multiple offers, some with waived contingencies.
The average homes sell for around list price and go pending in around 10 days.
Hot homes can sell for around the list price and go pending in around 5 days.

According to the California Association of Realtors;

Existing SFR Home Sales in October were 988, down 2.1% year-over-year.
The year-to-date sales are still up 8.1% from last year.
The Existing SFR Median Price was $385K, up 16.7% year-over-year.
Total Active Listings in the month were 1,151, +5.7% change from last year.
Median Dayson Market was 8.
The Sale-to-List Price ratio was 100.9%.
% of Active Listings with Reduced Prices was 24.2%.
The unsold inventory equals 1.9 months, up 5.6%.

Fresno is the county seat of California's agricultural Central Valley and has historically been one of the most affordable cities in the state. However, rents began to rise dramatically during the pandemic, increasing by 26 percent in just 12 months. Rents in Fresno remain lower than those in San Francisco or Los Angeles, at $1,141 for a one-bedroom and $1,421 for a two-bedroom.

As of November 27, 2021, the average rent for a 1-bedroom apartment in Fresno, CA is currently $1,458. This is a 30% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Fresno increased by 1% to $950. The average rent for a 1-bedroom apartment increased by 8% to $1,458, and the average rent for a 2-bedroom apartment increased by 1% to $1,731.

The average rent for a 2-bedroom apartment in Fresno, CA is currently $1,731, up 28% compared to the previous year.
The average rent for a 3-bedroom apartment in Fresno, CA is currently $1,942, up 22% compared to the previous year.
The average rent for a 4-bedroom apartment in Fresno, CA is currently $2,400, up 32% compared to the previous year.

The future of the Fresno real estate market looks bright. The economy and unemployment rates are still an area of concern, but things are improving. Back-to-back years of rising home values and sales prices should only be the start of where the market is headed in 2022.

Fresno Housing Market Trends — Source: CAR.org

Fresno Real Estate Market Forecast 2022

According to NeighborhoodScout, Fresno real estate has appreciated by 126.79 percent over the last ten years, an average annual rate of 8.53 percent, placing Fresno in the top ten percent of all cities for real estate appreciation. Hence, if you are a home buyer or real estate investor, Fresno has unquestionably established itself as one of the best long-term real estate investments over the last decade.

In the last twelve months, Fresno's appreciation rates have remained among the highest in the country, at 12.83 percent, which is higher than the appreciation rates in 88.37 percent of the nation's cities and towns. Short-term real estate investors have found success in Fresno over the last twelve months. Fresno appreciation rates were 4.05 percent in the most recent quarter, equating to a 17.21 percent annual appreciation rate.

The typical home value in Fresno County is $358,255 on Zillow. Fresno home values have gone up 22.7% over the past year will continue to rise over the next twelve months. Metropolitan Fresno, officially Fresno–Madera, CA CSA, is a metropolitan area in the San Joaquin Valley, in the United States, consisting of Fresno and Madera counties. It is the third-largest metropolitan region in Northern California, behind the San Francisco Bay Area and Greater Sacramento.

The typical home value of homes in Fresno Metro is $358,255.
Fresno Metro home values have gone up 22.7% over the past year and Zillow predicts they will rise 16.1% in the next year.
The typical home value of homes in Fresno City is $343,982, up 23.0% over the past year.
Madera County's home values have gone up 20.6% (current = $370,454) over the past year and will continue to rise in the next year.
San Joaquin County home values have gone up 30.0% over the past year and will continue to rise in the next year.

Here is the Fresno real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast until Oct 2022.

Fresno Real Estate Market Forecast — Graph Credits: Zillow.com

Fresno Real Estate Investment Overview 2022

Is it worth buying a house in Fresno, CA? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Fresno is a good investment? Fresno is the epitome of “the Valley”, the city that Californians like to mock as a backwater drawing a steady stream of nearly local rural girls to the theoretically more cultured, exciting, and fun cities like Los Angeles. Fresno continues to be ignored in favor of hot coastal markets like San Francisco and Los Angeles.

It is located in the San Joaquin Valley, the agricultural heart of the state. It sits at the southern end of the valley. It is sometimes called the heart of the Inland Empire. You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Fresno housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Fresno we have collected ten evidence-based positive things for those who are keen to invest in Fresno real estate

Investing in Fresno real estate will fetch you good returns in the long term as the home prices in Fresno have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Fresno real estate market which can help investors who are keen to buy an investment property in this city.

Fresno Market is Big Enough to Consider

The Fresno housing market is small by Californian standards, but it is a large real estate market in and of itself. Fresno is home to over half a million people, making it the fifth-largest city in the state and coming as the thirty-fourth largest city in the United States. However, the Fresno real estate market is larger than this. When you take the suburbs into account, the Fresno real estate market contains almost a million people.

While you may hear about all the people fleeing California for states like Colorado and Idaho for a lower cost of living, it is cities like Fresno that see growth by people who need to move for the same reasons but don’t want to leave the state. This is why Fresno has grown five percent since 2010. The Fresno suburb of Clovis is one of the fastest-growing cities in the U.S. Clovis grew roughly ten percent since 2010. This population growth will continue to fuel property appreciation in the Fresno real estate market.

Fresno Real Estate is Affordable for Investors

Affordability is relative. The median home price in Fresno County is around 385,000 dollars. That’s a lot more than the average American home value. Yet the Fresno housing market is a bargain by California’s standards. After all, you’d pay more than a million for a three-bedroom ranch home anywhere near San Francisco, and LA is hard to afford unless you put half a million into a property purchase.

Fresno Has a Relatively Diverse Economy

Fresno may be in the agricultural heartland of the state, but there is more to the local economy than farming and food processing. The city is the regional services hub, resulting in many educational and medical jobs. The IRS has a regional office located here, as well. There are also several colleges in the area, but that will be addressed later in the article. While Fresno made the news of the real estate crash around 2008, the diverse and improving job market contributed to the rebounding of the Fresno housing market.

And if they ever finish that bullet train to connect Fresno to San Francisco, expect the Fresno housing market to boom as people move somewhere they can buy a house for less than 300K while earning 100K or more in Big Tech. The multiple military bases in the area provide high-tech jobs instead.

The Sizable Student Market That Rents

California State University has a campus here. Commonly called Fresno State, it is home to more than twenty thousand students. This creates a disproportionately large student population in the Fresno housing market. However, that’s not the only college in the area. Fresno Pacific University is a private four-year school, and it has more than four thousand students. Reedly College in Reedly, California is in the suburbs of Fresno. All of this gives those considering Fresno real estate investment the opportunity to have a diverse property portfolio without tying their fates to the state of one massive school.

There are several reasons why there is an unusually large pool of renters competing to stay in your Fresno real estate investment property. The seasonal nature of the agricultural industry and the slower local economy have resulted in a 7 percent unemployment rate, several points higher than the state and national average. People who have cycled in and out of the workforce aren’t going to be able to buy a home. Those working in low-paying industries can’t afford the average home, either.

The Relative Landlord-Friendliness

California is definitely tenant-friendly, but cities can be more or less in favor of property owners. We can say that the Fresno real estate market is more friendly to landlords than somewhere like San Francisco. For example, your Fresno real estate investment property isn’t subject to rent control unless you’re running a trailer park. Nor does Fresno follow in San Fran’s habit of nearly banning new construction. It is also much easier to evict someone in Fresno who doesn’t follow the terms of the lease. Furthermore, Fresno allows you to remove tenants through no fault of their own.

The Quality of Life

Quality of life generally isn’t enough to make someone pick up and move to a new city. However, plenty of people are fleeing cities like San Francisco and L.A. because of the poor quality of life there. Why would you want to pay 3000 to 4000 a month to live in a tiny room and try to avoid poop and needles on the street just to say you work for Big Tech or, hey, aren’t I cool for living in San Francisco? Fresno’s violent crime rate is much lower than L.A.’s, too. Combine a lower cost of living with reasonable wages, cleaner air, and literally clean streets, and the slightly higher odds of having your car broken into are considered worth it.

Fresno is sometimes seen as the boring middle child in a famous family. It is overshadowed by Los Angeles, San Francisco, and San Jose. Yet it is free of their many problems, too, while remaining solid and stable. That’s why you can’t afford to ignore the Fresno area.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Fresno, CA is your ability to find great real estate investments in that area.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor.

Another sizzling market to invest in real estate is Tulsa, Oklahoma. The Tulsa real estate market offers affordable properties, decent rental rates, strong property rights, low taxes, and a number of other benefits. You can’t afford to ignore this real estate market when searching for investment opportunities. It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment. There are several opportunities to profit from short-term rentals with a Tulsa real estate investment property. One is offering short-term rentals to people relocating to the area or in the area for events like college graduations.

The other best place to invest in real estate is Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region. It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.

The demand for Madison real estate investment properties by renters are higher than you’d expect for several reasons. One is that the Madison real estate market costs more than the state average due to demand. The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up long before they can buy a home. There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are homeowners.

Let us know which real estate markets you consider best for real estate investing!

Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Housing Market Data, Trends & Statistics
https://www.car.org/marketdata/data/countysalesactivity
https://www.zillow.com/fresno-ca/home-values
https://www.redfin.com/city/6904/CA/Fresno/housing-market
https://www.realtor.com/realestateandhomes-search/Fresno_CA/overview
https://www.neighborhoodscout.com/ca/fresno/real-estate
https://www.zumper.com/rent-research/fresno-ca

Diverse economy
https://en.wikipedia.org/wiki/Fresno,_California
https://realestate.usnews.com/places/california/fresno/jobs
https://en.wikipedia.org/wiki/Fresno,_California#Military_units

Student market
https://en.wikipedia.org/wiki/California_State_University,_Fresno
https://www.collegesimply.com/colleges-near/california/fresno

Affordable for investors
https://realestate.usnews.com/places/california/fresno

Large pool of renters
https://realestate.usnews.com/places/california/fresno/jobs

Rapid growth
https://www.fresnobee.com/news/local/article144649154.html

Quality of life
https://www.foxnews.com/us/san-francisco-map-shows-human-poop-complaints
https://www.bestplaces.net/compare-cities/los_angeles_ca/fresno_ca/crime
https://www.movoto.com/blog/homeownership/is-fresno-a-good-place-to-live

Charlotte Housing Market: Prices | Trends | Forecasts 2022

January 3, 2022 by Marco Santarelli

The homebuyers in the Charlotte housing market have dealt with a persistent seller’s market, which has shrunk inventory and driven up home prices. Charlotte's real estate market continues to boom without being affected by the pandemic. Homes are selling quickly, inventory is low and prices are rising fast. Last year was the eighth consecutive year of home price gains. The supply of homes for sale in the Charlotte MSA has now dropped to its lowest level in 17 years. There's just a little more than two weeks of inventory left.

Continuing the Charlotte-area housing market's hot streak, home sales and the median price paid for those homes rise in October 2021. Low mortgage interest rates, high demand, and a shortage of homes continue to fuel the Charlotte real estate market and drive prices higher. Charlotte is a magnet for newcomers, which means there will be enough demand to keep home prices from falling too far. It is seeing an influx of new residents from expensive cities in the North and West.

There's an influx of buyers from California, Chicago, New York, New Jersey, and Connecticut. Here are the latest housing indicators for this region. While inventory remains scarce, experts believe it will improve in 2022 as sellers who waited until 2020-2021 will to go to market. In 2022, both home prices and interest rates are expected to increase, which means spring 2022 will be less frenetic than spring 2021. Conditions for buyers are likely to improve in comparison to 2021 and 2020.

Charlotte Housing Market Trends & Forecasts 2022

Charlotte is a seller's real estate market, which means there are roughly more buyers than there were active homes for sale. The demand for housing outpaces the supply. In October 2021, the median list price of homes in Charlotte, NC was $369,900, trending down 10.7% year-over-year. The median listing price per square foot was $199. The median sale price was $350,000

The sale-to-List Price Ratio was 101.03%, which means that homes in Charlotte sold for approximately the asking price on average in October 2021. Ideally, a buyer would prefer a sale to ask price ratio that’s closer to 90%. The sellers in Charlotte have managed to hold good leverage in these negotiations in the past month. A seller would always prefer scenarios that can yield a ratio of 100% or higher.

The following analysis of the Charlotte housing market has been prepared by the “Canopy Realtor® Association.” The figures are for the ten-county Charlotte MSA which includes Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union Counties in North Carolina and Chester, Lancaster, and York Counties in South Carolina. The report compares key housing statistics of the Charlotte MSA from October 2021 to October 2020. On average, homes in Charlotte MSA sell after 16 days on the market.

The trend for median days on the market in Charlotte has gone down by 40.7% since last year. In a healthy, balanced market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, the Charlotte market can tip to favor buyers if the supply increases to more than six months of inventory. However, looking at the current trends, we don't see things stopping anytime soon. The current inventory of homes equates to 0.8 months of supply — a sign of a hot seller's real estate market.

Charlotte MSA Housing Market Trends

The median sales price ($345,000) rose 15.2 percent year-over-year in October 2021.
The average list price ($415,365) increased 13.2 percent, pushing the original list price to sales price ratio to 100.8 percent for the month.
It indicates that sellers in the Charlotte region are receiving more than the asking price for their homes.
Pending contracts, which gauge buyer demand, were roughly on par with activity last October, up 3.4 percent year-over-year as 4,433 properties went under contract in October 2021.
Closed sales in October 2021 compared to October 2020 decreased 7.7 percent.
New listings dropped 7.5 percent year-over-year as sellers listed 4,453 new homes for sale.
Inventory fell by 39.8 percent year-over-year to 3,170 homes for sale, or 0.8 months of supply (approximately 24 days).
Days on the market until the sale continued to fall, with data showing properties on the market for an average of 16 days, compared to 27 days in October 2020.

Charlotte City Housing Market Trends

The following report compares key housing metrics of the “City of Charlotte” from October 2021 to October 2020.

The median sales price in the City of Charlotte ($350,000) rose 20.1 percent year-over-year in October 2021.
The average list price ($432,368) increased 9.4 percent, pushing the original list price to sales price ratio to 101.2 percent for the month.
It indicates that sellers in the City of Charlotte are receiving significantly more than the asking price for their homes.
Pending contracts, which gauge buyer demand, were roughly on par with activity last October, down just 4 percent year-over-year as 1,621 properties went under contract during October 2021.
Closed sales in October 2021 compared to October 2020 decreased 7 percent.
New listings dropped 14.5 percent year-over-year as sellers listed 1,646 new homes for sale.
Inventory fell by 43.7 percent year-over-year to 1,196 homes for sale, or 0.8 months of supply (approximately 24 days).
Days on the market until the sale continued to fall, with data showing properties on the market for an average of 17 days, compared to 23 days in October 2020.

Charlotte Rent Price Trends

The average rent for a 1-bedroom apartment in Charlotte, NC is currently $1,433. This is a 19% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Charlotte decreased by -2% to $1,449. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment decreased by -3% to $1,575.

The average rent for a 2-bedroom apartment in Charlotte, NC is currently $1,575, an 11% increase compared to the previous year.
The average rent for a 3-bedroom apartment in Charlotte, NC is currently $1,785, a 12% increase compared to the previous year.
The average rent for a 4-bedroom apartment in Charlotte, NC is currently $2,030, a 10% increase compared to the previous year.

The Zumper Charlotte Metro Area Report analyzed active listings last month across 3 metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The North Carolina one-bedroom median rent was $1,094 last month. Charlotte was the most expensive city with one-bedrooms priced at $1,400 while Gastonia was third with rent at $870.

The Fastest Growing Cities For Rents in Charlotte Metro Area (Y/Y%)

Rock Hill had the fastest-growing rent, up 18.7% since this time last year.
Charlotte saw rent increase 14.8%, making it second.
Gastonia was third with rent jumping 10.1%.

The Fastest Growing Cities For Rents in Charlotte Metro Area (M/M%)

Rock Hill's rent jumped 4.9% last month, making it the fastest-growing.

Charlotte Real Estate Market Forecast 2022

What are the Charlotte real estate market predictions for 2022? These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The increase in the number of new listings indicates that sellers are willing to put their homes on the market. Right now the inventory is tight which will pull the prices up in the coming months. As you can see the Charlotte real estate market isn't cooling off as yet.

Charlotte is a hot market for investors whether they want to renovate and flip, buy to hold and rent or invest in multi-family properties. Charlotte's real estate appreciation rate in the latest quarter was around 3.01%, which equates to an annual appreciation rate of 12.61%. You can choose to market your home to potential buyers. Any homeowner looking to cash out and sell off their property should do it in the current phase.

Charlotte has a record of being one of the best long-term real estate investments in the U.S. High demand and low inventory in the Charlotte housing market led to a significant price rise in 2019. Let us look at the price trends recorded by Zillow over the past few years. Since Nov 2011, the typical home value in the city of Charlotte MSA has appreciated by nearly 113% (Zillow Home Value Index).

The typical home values in Charlotte MSA have gone up 24.8% over the past year, and the current home value is holding at $324,163. Charlotte is currently a seller’s real estate market. The demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. In other words, there are fewer homes for sale than there are buyers in the marketplace.

If mortgage rates remain low, it will continue to bolster the home buying activity and pull the home prices up. For sellers, now is the opportune time to put their Charlotte home up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase.

Charlotte-Concord-Gastonia Metro home values have gone up 24.8% over the past year and Zillow predicts they will rise 20.5% in the next twelve months.
Charlotte home values have gone up 24.2% over the past year and will continue to rise in the next twelve months due to the supply-demand imbalance.
The typical home value of homes in North Carolina is $273,098 (middle price tier of homes). Home values have gone up 22.7% over the past year and will continue to rise in the next twelve months.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until October 2022.

Charlotte Real Estate Market Forecast — Graph Credits: Zillow.com

Charlotte Real Estate Investment Overview 2022

Now that you know where Charlotte is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Charlotte a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Charlotte is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2021.

When someone considers investing in real estate, attention tends to drift to the hot markets like San Francisco or the places those residents are fleeing to due to the high cost of real estate. In other cases, investors focus on the “cool” places people want to be and assume that will yield a good return on the investment. We’ve taken the time to look for better long-term opportunities, and that brought us to the Charlotte housing market. Charlotte is the largest city in North Carolina.

It is a minimally walkable city in Mecklenburg County with a population of approximately 727,822 people. Like many fast-growing cities, the housing market in Charlotte has been defined by tight inventory, rising prices, and climbing rent. Charlotte has a mixture of owner-occupied (53.09%) and renter-occupied (46.91% ) housing units. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached are the most common housing units in Charlotte.

Other types of housing that are prevalent in Charlotte include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. The city proper is home to more than 800,000 people. The Charlotte Metropolitan Statistical Area is even larger – home to roughly two and a half million people. It is one of the country’s fastest-growing metro areas, and it was the second fastest-growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014.

If you are looking to make a profit, you don’t want to buy the most expensive property on the Charlotte real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Charlotte that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider. Let’s take a look at the number of positive things going on in the Charlotte real estate market which can help investors who are keen to buy an investment property in this city.

The Job Growth in Charlotte

Why do people move to an area? They may relocate because they want to retire there or they think it is safer. However, the general reason people move to – or away from – an area is economic opportunity. Charlotte's unemployment rate was 3.1% in Dec 2019 as compared to 3.8% in Dec 2018. The US average is 3.9%.

The area’s historically strong economy explains why roughly 100 people a day move into the area. And that propels the demand for the Charlotte real estate market. Between 2018 and 2019, Charlotte saw a 2.3 percent increase in jobs, adding more than 27,300 jobs year over year. Future job growth over the next ten years is predicted to be 45.2%, which is higher than the US average of 33.5%.

Impact of the Pandemic: Charlotte, NC Unemployment Rate is at 4.80%, compared to 5.10% last month and 10.60% last year. This is lower than the long-term average of 5.15% (Source Bureau of Labor Statistics). We can see a steady drop in Charlotte's Unemployment Rate from its peak in May 2020 (13.9%).

Charlotte Real Estate is Relatively Affordable

Home prices in Charlotte are somewhat more expensive than the rest of North Carolina but affordable when you look at national prices. Detached homes cost around $300,000, townhomes around $200,000. You can buy duplexes for roughly $400,000. Three and four-unit structures cost around $120,000. This makes the Charlotte real estate market a particularly good value for real estate investors. The current median price of homes is around $338K in Charlotte MSA and $345K in the City of Charlotte (Refer to the latest market trends & prices given above).

Demographic Momentum & Quality of Life

Charlotte has a median age of 34, several years younger than the national average. That is because many people are moving here for work. This means the Charlotte real estate market is going to see demand from both people moving here for work and young adults who stay and raise families here; young adults who come here for school and work will eventually move up in the Charlotte housing market, whether in the city or the suburbs. The fact that the city is a top destination for Millennials guarantees long-term growth for the Charlotte real estate market.

Charlotte, North Carolina ranks rather high in the U.S. News rankings of the best places to live. They were ranked 22nd in both on the list of best places to live and the best places to retire. Other places ranked higher on the desirability, sometimes due to a “coolness” factor that brings people to Austin, Texas. Charlotte’s good score was due to the availability of jobs, overall value, amenities, and safety of the community. That will attract people who may not be moving specifically for work and lead many who were raised here to stay.

This suggests the Charlotte real estate market is going to remain strong even if the local economy isn’t so hot in the future. The huge demand for homes in Charlotte provides uncommon stability in its housing market. There are also intangibles such as quality of life and strong southern comfort that can't be measured by metrics. Residing in the south usually equates to easy living, but few southern cities offer Charlotte's stable housing market.

Charlotte's Mobile Home Market

We’re not going to spend time gushing about the upper end of the Charlotte housing market. Instead, we’re going to address a market that is generally overlooked, the affordable options in the Charlotte real estate market. Per-capita income in Charlotte is around $33,209 and the Median household income of a Charlotte resident is $53,274 a year. The US average is $53,482 a year.

This prices many out of the housing market, since the median rent is roughly $1,500 a month. If you do the math, you’ll find that with an average household income of $53,482 and a median list price of $292,000, the Charlotte area sports a price-to-income ratio of 5.45. In other words, it’s just as unaffordable here as it is for those living in New York or Denver.

The solution for many is staying in a mobile home. Mobile homes cost around $40,000 a year, still out of reach for many would-be renters. The relatively mild climate of the Carolinas eliminates the problem of keeping mobile homes warm in the winter, as well. The Carolinas contain a large number of mobile homes, so they’re considered an acceptable alternative for many renters.

Nearly 20% of homes in South Carolina are mobile homes, and 17% of homes in North Carolina are. Yet there are relatively few people building mobile home parks, though they’re still regularly installed on private rural land. Given the incredibly high ROI of mobile home parks due to their low maintenance requirements, we couldn’t neglect this unique aspect of the Charlotte real estate market.

Charlotte's Landlord Friendliness

North Carolina is considered landlord-friendly. The state doesn’t have notice of entry laws. A written agreement is recommended by not mandated for leases that last less than a year. There’s a five-day grace period before you can assess late fees on rent. You don’t have to have a rental license to be a landlord. The state doesn’t have rent control or rent regulation. If they don’t pay the rent, you can begin eviction on the 11th day. If they violate the lease, especially for criminal offenses, there’s no need to give notice and the eviction process is expedited.

A new law makes Charlotte even more landlord-friendly. A law that passed in the summer of 2018 allows landlords to recover attorney’s fees and court costs from tenants when the eviction goes to court. Therefore, one of the reasons we recommend the Charlotte housing market is the fact that you won’t own a property where the tenants aren’t paying rent for months while you rack up insane legal bills.

Low Property Taxes

South Carolina has the sixth lowest property taxes in the U.S. North Carolina did worse at 22nd out of the 50 states, but that’s certainly better than neighboring Georgia; that state was average at 25th place. You would pay a little more than locals if you’re an out-of-state landowner. Factor in its cheaper than average real estate, though, and you’ll pay an average of $1300 a year in property taxes on a South Carolina property. Compare that to the median $2700 bill in Texas, $3300 you’d pay in Wisconsin, $4000 you’d be billed in Illinois, and the whopping $7600 bill for a home in New Jersey.

Charlotte's Big Student Market For Rental Properties

Being the largest city in the state guarantees there’s a sizable university in town. Charlotte boasts several of them. The University of North Carolina has a campus here, of course. Queens University of Charlotte, Davidson College, Johnson C. Smith University, and two dozen others are located in and around Charlotte, North Carolina. You could buy up apartment buildings in and around massive campuses or next door to smaller schools like Johnson and Wales University.

The Redevelopment in Charlotte Downtown

Charlotte is seeing a wave of the redevelopment of downtown. Properties along transit corridors are eligible for grants and special privileges. The city has targeted specific corridors for redevelopments like Rozzelles Ferry Road and Beatties Ford Road. North Charlotte, too, is slated for redevelopment. If you buy up properties in the vicinity and renovate them, you could either rent them out at higher rates in the future or sell them at a sizable profit. The interesting opportunity lies in the car-free city center that could result in rundown buildings becoming upscale properties. That project is called the North Tryon Vision Plan, and it covers a sixty-acre, 50 city block area.

Conclusion

Charlotte real estate appreciated 79.40% over the last ten years, which is an average annual home appreciation rate of 6.02%, putting Charlotte in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Charlotte has a track record of being one of the best long-term real estate investments in the nation through the last decade or so. As with any real estate purchase, act wisely. Evaluate the specifics of the Charlotte housing market at the time you intend to purchase.

Highest Appreciating Charlotte Neighborhoods Since 2000 (By Neighborhoodscout.com)

S Kings Dr / S Independence Blvd
E 3rd St / S Mcdowell St
East Blvd / South Blvd
Grace St / Parson St
New Life Theological Seminary / N Davidson St
The Plz / Shamrock Dr
Eastway Dr / Arnold Dr
Hawthorne Ln / Belvedere Ave
Central Ave / Saint Julian St
Hawthorne Ln / Parkwood Ave

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Charlotte.

Consult with one of the investment counselors who can help build you a custom portfolio of Charlotte turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Charlotte.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Charlotte turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Apart from Charlotte, you can also invest in the Durham real estate market. There are many reasons to buy investment properties in Durham. An unusual combination of features makes Durham attractive to real estate investors since it creates a large population of renters willing and able to pay more per month to live here because they cannot necessarily find their dream home. Durham is going to see heavy population growth over the next decade. Another seventy thousand people are expected to contribute to the demand for properties in the Durham real estate market overall.

The second real estate market in the state of North Carolina lies in the city of Wilmington. The Wilmington real estate investment is stable, slowly growing, and not going to see a change in the demand for rental properties any time soon. Several factors contribute to rents being higher than you’d expect given the average wages and property values, increasing the ROI on Wilmington rental properties. Furthermore, there are several niches you can explore to achieve even higher returns, depending on the market you’d like to serve.

Asheville is another hot real estate market in the state of North Carolina. The Asheville area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.

Greensboro, NC is another good real estate market. Greensboro is the third-largest city in the state. The Greensboro real estate market offers an ideal situation for investors seeking steady, predictable returns. Return on investment is relatively high and not expected to decline, while the property itself is relatively cheap. The job market is strong enough to slowly attract residents and increase pay rates, but it won’t result in a massive influx of new construction to undermine existing property values. The area is large and diverse enough to give investors a choice of property types and markets to serve.

Let us know which real estate markets you consider best for real estate investing!

Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Latest Market Trends and Statistics
https://www.zillow.com/Charlotte-nc/home-values
https://www.zillow.com/Charlotte-Concord-Gastonia-nc/home-values/
https://www.carolinahome.com/market-data/monthly-reports
https://www.zumper.com/blog/charlotte-metro-report/
https://www.neighborhoodscout.com/nc/charlotte/real-estate
https://www.realtor.com/realestateandhomes-search/Charlotte_NC/overview
https://www.zumper.com/rent-research/charlotte-nc

Demographics
https://en.wikipedia.org/wiki/Charlotte,_North_Carolina
http://www.city-data.com/city/Charlotte-North-Carolina.html

Mobile homes
http://www.statemaster.com/graph/hou_per_of_hou_uni_tha_are_mob_hom-housing-percent-units-mobile-homes
https://www.reonomy.com/blog/post/how-to-invest-in-mobile-home-parks

Quality of life
https://realestate.usnews.com/places/north-carolina/charlotte

Landlord friendliness
https://www.avail.co/education/laws/north-carolina-landlord-tenant-law
https://portcitydaily.com/local-news/2018/06/30/heres-how-north-carolinas-new-eviction-fee-law-changes-things-for-landlords-and-tenants

Property taxes
https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/

University
https://www.collegesimply.com/colleges-near/north-carolina/charlotte/

Redevelopment
http://charlottenc.gov/ED/Development/Pages/Corridor.aspx
https://www.bizjournals.com/charlotte/news/2017/02/17/developments-planned-for-north-end-neighborhoods.html
https://nextcity.org/features/view/charlotte-moves-toward-a-car-free-city-center

Chicago Housing Market: Prices | Trends | Forecasts 2022

January 3, 2022 by Marco Santarelli

We'll discuss the latest trends and projections for the Chicago housing market. Prices are expected to continue to increase through the rest of the year while the number of sales is expected to decrease. In September, median prices rose in both Illinois and Chicago PMSA. Homes in Illinois sold at a rapid pace in September as inventory remained low and median price increases slowed, according to data from Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in September 2021 totaled 16,782 homes sold, down 6.7 percent from 17,988 in September 2020. The market exhibits positive price growth but a decline in sales volume. The median home sale price in the Chicago Metropolitan Area (it comprises the nine counties) was $290,000 in September 2021, up 5.5 percent from $275,000 in September 2020. In a seller's market, real estate prices increase. The strong buyer demand is driving prices in the Chicago metro area as compared to the previous year.

Although the statewide median price increased by 6.0 percent in September 2021, year-over-year percentages decreased for the third consecutive month. The trend began in July 2021, when the median price increased 12.4% year over year but fell short of the 22.7 percent increase in June 2021, according to Illinois REALTORS®. The median price is a representative market price in which half of the homes sold for more and half for less.

Stronger buyer activity will continue with speedy sales and multiple offers leading to price gains. According to local realtors, Illinois and Chicago PMSA both have already recovered to their pre-bubble levels on average. The median sales price in July 2008 has been adjusted to 2021 values to enable calculation of the housing price recovery considering the effects of inflation.

While prices continue to grow in both Illinois and Chicago, sales are forecast to decline over the next few months. Illinois home prices will rise 8.3% to 19.6% this year, while the Chicago PMSA will rise 6.9% to 16.0%. The median price forecast indicates positive annual growth for October, November, and December in both Illinois and the Chicago PMSA.

Chicago Housing Market Trends & Forecasts 2022

Chicago Real Estate Market — Data by Illinois REALTORS®. The forecast is deemed reliable, it is not guaranteed.

Below is the latest report of the “Chicago Housing Market.” The source of this report is the Illinois REALTORS® and the counties included are Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will. The report compares the Chicago metro and the city's housing metrics from September 2021 with September 2020.

In the nine-county Chicago Metro Area, 11,653 homes (single-family and condominium) were sold last month, a 7.8 percent decrease over the 12,643 homes sold in September 2020. The median home sale price in the Chicago Metropolitan Area was $290,000 in Sep 2021, up 5.5 percent from $275,000 in September 2020.

Closed Sales were down -7.8% year-over-year.
Sales were also down -0.8 from the previous month's closed sales.
The median sales price rose from $275,000 to $390,000, a growth of 5.5%.
The inventory of available homes decreased by 25.8 percent year-over-year, from 30,517 to 22,633.
The Days on Market Until Sale decreased by 40.5%, from 37 to 22.

Illinois Housing Market Trends — Screenshot Courtesy: ILLINOIS REALTORS®

City of Chicago Housing market Trends

Realtor.com's latest report shows that in October 2021, the median list price of homes in Chicago, IL was $339,000, trending down -5.8 percent year over year. The median price per square foot for listings was $249. The median price of a home sold was $305,000. The sale-to-List Price Ratio was 98.67%, which shows that homes sold for 1.33% below the asking price on average in October. Chicago has 78 distinct neighborhoods. As the most expensive neighborhood, Lincoln Park boasts a median listing price of $599,900. A median listing price of $175,000 in West Ridge makes it the most affordable neighborhood in the city.

According to Illinois REALTORS®, sales of single-family and condominium homes in the city of Chicago reached 2,611 units in September 2021, representing a 0.9 percent decrease over the previous September's total of 2,635 units. The median price of a home in Chicago in September 2021 was $320,000, representing a 0.7 percent decrease over the previous year's median price of $322,350.

Closed sales in the City of Chicago decreased by 0.9 percent year on year.
In addition, sales increased by +0.9 percent when compared to the previous month's closed sales.
The median sales price decreased from $322,350 to $320,000, representing a 0.7 percent decrease over the previous year.
The inventory of available homes decreased by 22.1 percent, from 11,327 to 8,821.
The Days on Market Until Sale decreased by 5.9%, from 34 to 32.

Chicago Real Estate Foreclosure Trends

In September, for the Chicago PMSA, the percentage of foreclosed sales (e.g. REOs) among the total sales was 2.7%. 11,238 regular sales were made, 6.6% less than last year. 333 foreclosed properties were sold, 36.6% less than last year. The median price was $295,000 for regular property sales, up 5.7% from last year; the comparable figure for the foreclosed properties was $235,000, up 20.5% from this time last year.

Chicago Rent Prices

The Zumper Chicago Metro Area Report analyzed active listings last month across 7 metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Illinois one-bedroom median rent was $1,165 last month. Schaumburg was the most expensive city with one-bedrooms priced at $1,550 while Skokie was the most affordable city with one-bedrooms priced at $1,150.

The Fastest Growing Cities For Rents in Chicago Metro Area (Y/Y%)

Oak Park had the fastest-growing rent, up 15% since this time last year.
Schaumburg saw rent climb 7.6%, making it the second-fastest-growing.
Arlington Heights was third with rent increasing 6.8%.

The Fastest Growing Cities For Rents in Chicago Metro Area (M/M%)

Arlington Heights had the largest monthly rental growth rate, up 5.2%.
Naperville was second with rent climbing 5%.
Chicago saw rent jump 4.2%, making it third.

Chicago Rental Market Trends — Source: Zumper

Chicago Real Estate Market Forecast 2022

The Chicago housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the United States. It is also one of the hottest real estate markets for investing in rental properties. What are the Chicago real estate market predictions for 2022? In 2018, the Chicago real estate appreciation rate was running at about half the national rate; at a 3 percent range when the nation was at 6 percent. After cooling off, Chicago became the weakest housing market of 2019. The home prices grew by a mere 1.5 percent, lagging behind the nation.

Let us look at the price trends recorded by Zillow over the past few years. Since Nov 2011, Chicago metro home values have increased by around 53% (Zillow Home Value Index). As you can see in the graph, the Chicago housing market was weak in 2019, essentially flat, but prices have gone up 13.9% over the past twelve months.

Similar growth has been recorded by NeighborhoodScout.com. Their data shows that over the last ten years the Chicago annual appreciation rate has been averaging at 3.76%. The cumulative appreciation rate over the ten years has been 44.62%. In the latest quarter, the property appreciation rate was 1.94%, which annualizes to a rate of 7.99%. This figure corroborates Zillow's forecast, which also predicts that home prices in this region are expected to increase over the next twelve months.

The sales forecast presented by the University of Illinois to Illinois Realtors for October, November, and December suggests a decrease on both a yearly basis and a monthly basis for both Illinois and the Chicago PMSA. Annually for Illinois, the three-month average forecasts point to a decrease in the range -3.4% to -4.6%; the comparable figures for the Chicago PMSA are a decrease in the range -5.0% to -6.8%. On a monthly basis, the three-month average sales are forecast to decrease in the range of -3.7% to -5.0% for Illinois and decrease in the range -4.1% to -5.5% for the Chicago PMSA.

The median price forecast indicates positive annual growth for October, November, and December in both Illinois and the Chicago PMSA. In Illinois, the median price is forecast to change by 5.8% in October, 6.7% in November, and 7.0% in December. For the Chicago PMSA, the comparable figures are 5.1% in October, 6.7% in November, and 6.4% in December.

Here is Zillow's housing forecast for Chicago, Cook County, and Chicago MSA until May 2022. Chicago is expected to see strong home price gains in 2021. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months.

Chicago-Naperville-Elgin Metro home values have gone up 13.9% over the past year and Zillow predicts they will rise 11.1% over the next twelve months.
Chicago home values have gone up 9.5% over the past year and will continue to rise over the next twelve months.
Cook County home values have gone up 11.6% over the past year and will continue to rise over the next twelve months.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until Sep 2022.

Chicago Real Estate Market Forecast — Courtesy of Zillow.com

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers have taken their homes off the market. As expected by many analysts, prices have declined much less than sales, and forecasts point to slightly positive price increases over the next few months in Chicago.

The Illinois Department of Employment Security (IDES) announced that the unemployment rate decreased over the year in all fourteen Illinois metropolitan areas in September for the sixth consecutive month according to preliminary data released today by the U.S. Bureau of Labor Statistics (BLS) and the Illinois Department of Employment Security (IDES). Jobs were up in twelve metropolitan areas and down in two. The Chicago Metro Division had the largest unemployment rate decrease (-6.1 points to 6.1%).

“While today’s data shows us how much has improved across the state over the last year, we know there is still room for further recovery and to get people back to the workforce,” said Deputy Governor Andy Manar.

The good thing for the real estate industry is that it is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. Sellers, brokers, and homebuyers seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic.

Home sales have been climbing to the highest level in recent years as buyers moved quickly to snap up available homes amid historically low-interest rates. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Chicago can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. This housing market is skewed to sellers due to a big imbalance in supply and demand.

For buyers in Chicago, the good news is that mortgage rates are still low. Most buyers are driven by record-low mortgage rates, are eager to get into an increasingly competitive market to find their dream home. More home sellers are listing their properties on the market. So what does that mean? Buyers have more options, and rates are low. Unless they have personal or financial reasons to hold off, now is a great time to buy a property in the Chicago housing market.

With sales prices up and interest rates still low, buyers who are on the fence should make their move. Currently, the inventory remains relatively higher in the city of Chicago. Buyers may be in a better position to negotiate a deal and bring that seller down to a more workable price. In fact, it is the right time to buy and sell in this market.

Please do not make any real estate or financial decisions based solely on the information found within this article. Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Many variables could potentially impact the value of a home in Chicago in 2021 (or any other market) and some of these variables are impossible to predict in advance. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control.

Chicago Housing Market Overview For 2020

We shall now do a quick recap of the impact of the pandemic on the Chicago housing market. The median home price in Chicago rose 9.2% year-over-year to $338,500 in April. The rolling 12-month median, which considers the whole year of sales up until April 30^th, was $299,900, up 4.3 percent. The City of Chicago saw 2,039 homes sell in April – a steep 21.4% drop since last April. The impact of the COVID-19 pandemic was evident in April and May, driving Chicago home sales and inventory lower even though median prices remained pretty much stable.

Data from the Chicago Association of Realtors showed fewer buyers were willing to purchase a home from late March through mid-April. Roughly 330 residential properties went into contract in each of the three weeks before April 18 compared to 674 homes that went into contract for the week ending March 7, before the falloff. New listings also declined by almost 50 percent. 588 homes hit the market in each of the three weeks before April 18. That compared to 1,313 new listings that went on the market in the first week of March.

COVID-19 and a stay-at-home order continued to have a significant effect on the Chicago housing market in May, disrupting spring home sales and driving down available inventory for buyers. Home sales in May declined at a steeper rate than in April. However, the median price of homes sold was higher than the corresponding period in 2019. May 2020 data from Illinois REALTORS® shows that in the nine-county Chicago Metro Area, home sales (single-family and condominiums) there was a sharp decline in closed sales and inventory due to stay at home orders.

The Chicago housing market ended 2020 strong with December and year-end jumps in sales and median prices. In Dec 2020, 10,530 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, a 32.0 percent increase from the 7,976 homes sold in December 2019. Year-end 2020 home sales totaled 120,256, up 8.8 percent from 110,523 homes sold in the region in 2019. The median home sale price in December 2020 was $266,250 in the Chicago Metro Area, an increase of 12.3 percent from $237,000 in December 2019. The year-end 2020 median price reached $268,000, up 8.1 percent from $248,000 in 2019.

In the city of Chicago, home sales (single-family and condominiums) in December 2020 totaled 2,220 homes sold, up 17.3 percent from December 2019 sales of 1,892 homes. Year-end 2020 home sales totaled 25,999, down 0.8 percent from 26,217 homes sold in 2019. The median price of a home in Chicago in December 2020 was $307,500, up 11.4 percent compared to December 2019 when it was $276,000. The year-end 2020 median price reached $316,000, up 7.1 percent from $295,000 in 2019.

Illinois Housing Market Statistics (Describes 2020 Year-to-Date)

In 2020, home sales totaled 172,394, up 9.6 percent from 157,268 in 2019. The year-end 2020 median price reached $225,000, up 7.7 percent from $209,000 in 2019. Months Supply of Inventory in 2020 was 2.0, a decline of – 44.4% from the previous year. In the Metro Chicago Housing Market, which comprises the nine counties, the number of homes sold in the metro area during the year rose by 8.8 percent in 2020, to 120,256 sales. That’s the highest since 2012, according to the Illinois Realtors market report released in December.

Months Supply of Inventory in 2020 for the metro area was 1.8, a decline of – 45.5% from the previous year. This shows that it was a strong seller's market in 2020. A seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. With continued record low-interest rates, there's an increase in demand for properties as indicated by the year-over-year increase in closed sales of all properties.

The median home sale price in December 2020 was $266,250 in the Chicago Metro Area, an increase of 12.3 percent from $237,000 in December 2019. The year-end 2020 median price reached $268,000, up 8.1 percent from $248,000 in 2019. In the City of Chicago, the year-end 2020 median price reached $316,000, up 7.1 percent from $295,000 in 2019.

chicago real estate trends — Source: Illinoisrealtors.org

Chicago Real Estate Investment Overview 2022

Is Chicago a Good Place Real Estate Investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Chicago housing market forecast for answers on why to put resources into this market. Chicago is a strong renter market. Over 50% of the population rents in this city. Chicago is the 6th most walkable city in the nation. Chicago metro area has a population of approximately 8,865,000, a 0.03% increase from 2019. It is the most populous city in the U.S. state of Illinois, and the third-most-populous city in the United States.

Chicago has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in Chicago. Other types of housing that are prevalent in Chicago include single-family detached homes, duplexes, rowhouses, and homes converted to apartments. Single-family detached homes account for roughly 25.98% of Chicago's housing units.

Chicago has been one of the hottest real estate markets in the country for many years. In the past ten years, the annual Chicago real estate appreciation rate has amounted to 4.40%, according to NeighborhoodScout.com. Chicago metropolitan area or Chicagoland is an area that includes the city of Chicago and its suburbs. So if you buy a Chicago real estate investment to use as a rental property, you could benefit in this market.

Although the recent population loss has been a concern for real estate investors, Chicago is still the most populous city in the Midwestern United States. About three million people live in Chicago and another ten million in the surrounding metro area. Chicago MSA is the third-largest metropolitan area in the U.S. It has a large population, a diverse economy, and a stable market. It is home to 32 Fortune 500 companies, with very high private sector employment.

Chicago's 58 million domestic and international visitors in 2018 made it the second most visited city in the nation, as compared with New York City's 65 million visitors in 2018. These are just some of the highlights that make Chicago a great place to live and invest in real estate. The list can go on and on. Chicago is also a major world financial center, having the second-largest central business district in the United States.

Top Reasons To Invest In The Chicago Real Estate Market?

Chicago was ranked first in the 2018 Time Out City Life Index (Time Out Group).
On the UBS list of the world's richest cities.
Often rated as having the most balanced economy in the United States.
Ranked seventh in the entire world in the 2017 Global Cities Index.
Home to 12 Fortune Global 500 companies and 17 Financial Times 500 companies.
Third-largest gross metropolitan product in the United States.
Strong Rental Market – Over 50% of the population rents.
Fully renovated single-family homes with great ROI.
Solid blue-collar areas with high rents.
High private sector employment.
Major transportation hub in the United States.
It has the largest number of federal highways & railroads in the nation.
Strong economic and job growth.
Chicago tourism recorded 55 million visitors in 2017.
The tourism and hospitality industries have added thousands of jobs, generating billions of dollars in direct spending by visitors.
An international hub for finance, culture, commerce, industry, education, technology, telecommunications, and transportation.

Let’s take a look at the number of positive things going on in the Chicago real estate market which can help investors who are keen to buy an investment property in this city.

Chicago Rental Market Is Very Strong

What makes Chicago such a hot market for rental real estate? Over 50% of the population rents. The large population of renters means that rental income for properties is far better than you’d see if you invested elsewhere in the country. Luxury Rentals Are a Profitable Niche in Chicago. Many people know that there are solid blue-collar areas with high rents, but it isn’t just the working class that rents townhomes and condos. According to Crain’s, the number of upper-income households in Cook County that rent has nearly doubled over the past ten years.

The Institute for Housing Studies at DePaul University found that the number of rental households among those earning at least $132,000 a year nearly doubled, while those earning $80,000 to $132,000 saw the number of renting households increase by just over 50%. Chicago has a booming supply of high-end rentals, especially luxury apartments downtown. Home prices in the Chicago area are low compared to regional income.

Yet economic uncertainty and shifts in the employment market are leaving many who want to live in a single-family home unable to afford to buy one. This is causing many to rent single-family homes instead. Crain’s last year's April report found that the hottest areas for detached single-family homes were in Calumet Heights, Gage Park, and West Ridge. However, home prices are low compared to rents almost everywhere in the Chicago metropolitan area.

The workforce in Chicago is shifting from high-paying but slow-to-no growth manufacturing jobs to lower-paying and less stable retail, business services, and healthcare jobs. This is causing many who would have been able to afford a middle-class home to rent apartments instead. Crain’s last year's April report stated that the hottest Chicago markets for condos and townhomes were Grand Boulevard, Kenwood, and Lincoln Square.

Chicago Rental Prices Trends

As of November 14, 2021, the average rent for a 1-bedroom apartment in Chicago, IL is currently $1,500. This is a 2% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Chicago increased by 2% to $1,050. The average rent for a 1-bedroom apartment increased by 4% to $1,500, and the average rent for a 2-bedroom apartment increased by 1% to $1,787.

Two-bedroom apartment rents average $1,787 (a 1% decrease from last year).
Three-bedroom apartment rents average $2,025 (a 4% decrease from last year).
Four-bedroom apartment rents average $2,700 (an 8% decrease from last year).

53% of the households in Chicago, IL are renter-occupied while 48% are owner-occupied. The most expensive neighborhoods in Chicago are River West, Streeterville, and River North.

The most affordable neighborhoods where the rent prices are below the average Chicago rent:

Austin
The Island
Cottage Grove Heights
Fernwood
Longwood Manor
Princeton Park

Chicago Real Estate Prices Are Reasonable

Because households at all income levels choose to rent instead of buy, they are reducing demand for houses for sale, slowing the rise in home prices. This also explains why housing prices haven’t skyrocketed despite the limited supply. Chicago’s inventory of homes for sale is very tight. Both attached and detached single-family home inventory has been declining since 2012.

At the end of 2017, potential buyers in Chicago had about five thousand fewer properties on the market to select from than if they’d been shopping at the end of 2016. This contributed to homes closing five days faster than the year before. If you start shopping for rental real estate, you could find something and rent it out.

Chicago’s real estate market has been one of the slowest to recover since the housing bubble burst at the start of the Great Recession. Home prices were 19% below their pre-crash levels in 2017, and they aren’t expected to hit peak values yet. This means that the Chicago real estate market is likely going to continue its slow, upward market trend.

Chicago Rehabbed Homes Are Readily Available

Chicago is seeing a surge in fully renovated single-family homes. The Chicago Association of Realtors’ data found that most of the strong suburbs are on the south side of Chicago, and this is where many homes are being rehabbed and sold. Calumet Heights is in this category; a quarter of properties sold were either rehabbed or candidates for rehabilitation. These properties are ideal for investors who want to buy a property to rent out.

Chicago's Job Growth Keeps People Coming

Chicago is not only home to several corporate headquarters; there has been a recent trend of companies moving their headquarters to Chicago as well. The steady increase in jobs has contributed to a slow but steady increase in rents. Many businesses are attracted by Chicago’s labor pool, the largest in the nation. As these businesses move into the area and attract relocating professionals, many are forced to rent because they can’t find houses fast enough in the areas they want to live in or simply choose to rent upon relocation in one of the luxury apartments downtown.

The Chicago metropolitan area is made up of four metropolitan divisions—separately identifiable employment centers within the larger metropolitan area. In the greater Chicago metropolitan area, education and health services had the largest employment gain from November 2018 to November 2019, adding 15,600 jobs. The Chicago area’s 2.1-percent rate of job growth in education and health services was lower than the nationwide advance of 2.9 percent.

Chicago’s government supersector added 10,800 jobs from November 2018 to November 2019. Local job growth was concentrated in educational services, which added 10,600 jobs. The 2.0-percent increase in Chicago’s government employment compared to a gain of 0.7 percent nationally. The churn also keeps people renting in Chicago. Chicago’s unemployment rate has gone up while dropping in other cities as jobs shift from Chicago to the suburbs. This economic uncertainty keeps many who can afford to buy a home renting. It also keeps the rental market itself strong, since many want to remain free to follow their jobs as required.

Where to Invest in Chicago Real Estate Market?

In Chicago, arts and culture abound at top institutions like The Art Institute. Although the winters can test anyone's resolve, Chicago summers are among the best in the world, with things to do every weekend, outdoor festivals, and Lake Michigan at your doorstep. Chicago has an incredibly deep pool of potential renters at all levels of the market. Several factors guarantee that they’re not going to turn into new home buyers any time soon.

Chicago real estate market is a prime destination for investors who would like to buy where the ROI is going to be high and likely to improve over time. It won't be long before Chicago makes you feel right at home. Good cash flow from Chicago rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Chicago in a growing neighborhood would be key to your success.

When looking for the best real estate investments in Chicago, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Chicago might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

There are 76 neighborhoods in Chicago. Lincoln Park has a median listing price of $649.9K, making it the most expensive neighborhood. Auburn Gresham is the most affordable neighborhood, with a median listing price of $189.9K (on Realtor.com).

Some of the popular neighborhoods in Chicago, Illinois are Near North Side, Lakeview, West Town, Andersonville, South Loop, Bronzeville, Norridge, Logan Square, Old Town, Wicker Park, Bridgeport, Irving Park, Norwood Park, Bucktown, West Loop, and Hyde Park.

Chicago's North Side is the city's most densely populated residential section. For $200,000 price, you can purchase properties with one or two bedrooms and one or two baths. Chicago's West Side is home to the University of Illinois at Chicago. With a $200,000 budget, you can buy condos that typically offer one to two bedrooms and one or two baths.

You can buy Chicago investment properties in the Pilsen neighborhood. Pilsen is a great area for those who want a diverse portfolio of investment properties without having to run all over the city. Pilsen is located on Chicago’s Lower West Side. It features a mix of condos, apartment buildings, and single-family homes. The area is suburban enough to attract families. Its schools are a C+, which is close to the Chicago average. Parks and other amenities explain why Niche.com gave the area a B- for families.

CHECK OUT → Best Neighborhoods in Chicago Where You Can Buy Investment Properties.

Humboldt Park is another good neighborhood to buy investment properties in Chicago. The home prices in Humboldt Park peaked in 2006 but fell dramatically during the Great Recession. Home prices here hit a record low in 2012. Humboldt’s housing prices are on the rise again, though they remain below their 2006 peak. The average home price is around 300,000 dollars, while rents are around 1700 dollars a month. The area is notable for the number of foreclosed and distressed properties available to investors, and this helps pull the average rental rate down.

Highest Appreciating Chicago Neighborhoods Since 2000 (By Neighborhoodscout.com)

N Whipple St / W Bloomingdale Ave
N Campbell Ave / W Fullerton Ave
W Diversey Ave / N Pulaski Rd
W Armitage Ave / N Whipple St
N California Ave / W Wabansia Ave
N Francisco Ave / W Bloomingdale Ave
N California Ave / N Milwaukee Ave
N Maplewood Ave / W Wabansia Ave
N California Ave / W Division St
W Armitage Ave / N California Ave

Illinois is in the midwestern United States. Surrounding states are Wisconsin to the north, Iowa and Missouri to the west, Kentucky to the south, and Indiana to the east. Illinois also borders Michigan, but only via a northeastern water boundary in Lake Michigan.

Apart from the Chicago real estate market, you can also invest in the housing market of Indianapolis. The median sales price in Indiana saw a year-over-year increase of 9.7 percent to $170,000. Not surprising is the fact that Indianapolis house prices are also on the rise in the year 2020. Demand is still outpacing the supply, the new construction is slow, and competition for quality homes remains tough.

Like most cities nationwide, Indianapolis has experienced real estate appreciation over the last couple of years. The real estate appreciation rate in Indianapolis in the last quarter was around 0.81%, which amounts to an annual rate of 3.3%. However, it is quite unclear whether the rate of appreciation would remain steady or not due to the short-term effects of the ongoing pandemic.

Economic uncertainty might hold back sales volume for a short period in 2020. Most housing analysts expect Indianapolis house prices to remain flat or drop by a small fraction for the remainder of the year 2020.

If you head towards the west of Illinois, you should consider investing in Kansas City, MO. There is probably no hotter market right now than Kansas City, Missouri. A large, prosperous, self-sufficient, and culturally rich city, it is no wonder why it has seen a continuous rise in its employment, directly impacting the local real estate.

The Kansas City real estate market is very hot and in many ways the envy of housing pundits on both coasts. It is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, Kansas City is now emerging as a growing market for real estate investments. High demand and low inventory are driving up both home prices and the speed of home sales in the Kansas City Housing Market.

Consult with one of the investment counselors who can help build you a custom portfolio of Chicago turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Chicago.

Not just limited to Chicago or Illinois but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Chicago turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Let us know which real estate markets in the United States you consider best for real estate investing!

REFERENCES

Market Prices, Trends & Forecasts
https://www.illinoisrealtors.org/marketstats/
https://chicagorealtor.com/may-2021-market-snapshot/
https://www.zillow.com/chicago-il/home-values
https://www.illinoisrealtors.org/wp-content/uploads/2020/12/Annual_forecast_2021.pdf
https://www.neighborhoodscout.com/il/chicago/real-estate
https://www.realtor.com/realestateandhomes-search/Chicago_IL/overview
https://www.forbes.com/sites/ingowinzer/2016/05/25/should-you-invest-in-chicago-real-estate/#64c07e3c2ad1
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm

Housing Price Forecasts Illinois and Chicago PMSA, August 2020
https://www.illinoisrealtors.org/wp-content/uploads/2020/08/Forecasts_August_2020.pdf

Upper household rental rates
http://www.chicagobusiness.com/realestate/20180411/CRED0701/180419970/more-upper-income-households-renting-in-chicago-area

Housing inventory numbers
http://www.chicagonow.com/getting-real/2018/04/chicago-real-estate-market-worst-home-sales-decline-in-20-months/

2016 to 2017 housing inventory decline data
http://www.chicagotribune.com/business/ct-biz-chicago-home-sales-supply-20180124-story.html

Labor pool stats
https://www.homeunion.com/real-estate-investment-locations/chicago-illinois/

Trump’s Tax Plan Makes Many Reluctant to Buy
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm

Foreclosures
https://www.realtytrac.com/statsandtrends/il/cook-county/chicago/

Crain’s April real estate report
http://www.chicagobusiness.com/realestate/20180419/CRED0701/180419837/heres-where-the-real-estate-market-has-been-hottest-in-2018

Philadelphia Housing Market: Prices | Trends | Forecast 2022

January 3, 2022 by Marco Santarelli

If you are looking at buying real estate in Philadelphia in 2021, you must read until the end. Philadelphia is a hot seller's real estate market by all housing indicators. There is a huge gap between supply and demand leading to a rapid price appreciation. Philadelphia home prices rose by nearly 13% in 2020. The same trend is predicted for 2021. Low-interest rates, tight supply, and high buyer demand will keep the market hot and exert even more upward pull on house prices.

The median days on market in the Philadelphia region was 11 in October 2021, 1 day less than in September but 1 day longer than in October 2020. In the Philadelphia region, half of all homes sold (49 percent) in 11 days or less. October saw a slight decline in demand, relegating the Philadelphia metropolitan area to the moderate category.

With fewer completed and pending sales and decreasing demand, buyers who have withdrawn from the market may wish to reconsider. Both Philadelphia and its environs remain seller's markets. The median sales price of single-family homes in the Greater Philadephia housing market has was $304,000, up 8% year-over-year.

Philadelphia Housing Market Trends & Forecasts 2022

We shall now discuss some of the most recent housing trends in the Philadelphia area which will help you understand the way the local real estate market moves in this region.

Philadephia Is a Seller’s Real Estate Market

Philadelphia has been one of the hottest real estate markets in the country in 2021 and its market temperature remains sizzling hot. It means that the demand from buyers is exceeding the current supply of homes for sale. With low inventory and low-interest rates for buyers, both Philadelphia and surrounding counties have seller’s markets right now.

As a result, regardless of the location of your purchase, the market will be nearly identical – competitive. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The level of competition, however, can vary from county to county or city to city. Overall, the shortage of supply and an increase in the demand for housing will push the prices higher in the Philadelphia metro region.

The following housing report of the Philadelphia Metro Area is based on October 2021 Bright MLS housing data. In the past month, houses in the Philadelphia metro area sold for higher prices and that is mainly due to low mortgage rates and tight inventory. As new listings are still low as compared to last year's numbers, the housing inventory has been squeezed further leading to a surge in asking prices of the Philadelphia properties.

Philadelphia Housing Demand Index

In October, buyer demand for homes in the Philadelphia metro area remained unchanged. The Bright MLS | T3 Home Demand Index remained at 111, indicating that buyer interest is Moderate. Although the Index remained unchanged month over month, it was nearly 13% lower than a year ago. Buyer interest has been weakest for lower-priced single-family homes and strongest for higher-priced single-family homes for several months.

Demand for higher-priced single-family homes fell a modest 5% month over month, outperforming only the already-weak demand for lower-priced single-family homes. Other types of housing demand remained relatively stable. Months' supply of homes varied between 1.3 months for mid-priced single-family homes and 5.8 months for higher-priced condos. Months' supply for each type of home remained relatively stable over the month, with the exception of higher-priced condominiums, which increased from 4.9 to 5.8 months.

Philadelphia Real Estate Market — Housing data by Bright MLS, Inc. Forecast by Zillow.

Philadelphia Housing Price Trends (October 2021)

The median sales price in the Philadelphia region was $304K in October 2021, a 9.0% increase over October 2020.
Single-family home prices dipped -1.1% compared to September.
While townhomes fell –2.0%, median sales price decline from September, condo/co-op pricing was unchanged month-to-month.
In the Philadelphia Metro area, the average sold-to-list price ratio remained above 100% in October.
It shows that homes in the region are still selling for above list price, on average.
Philadelphia County was the only local market where the average sold-to-list price ratio was below 100%.

Philadelphia Housing Prices — Credits: Bright MLS

Philadelphia Housing Sales & Contract Signings

According to BrightMLS, in October, home sales in the Philadelphia region were down 12.8 percent year over year.
Thus, the year-over-year decline in home sales reflects last year's unusually robust activity.
Between September and October, sales activity fell 5.9 percent, which is a slightly larger month-to-month decline than in recent years.
Detached home sales decreased by -5.7 percent from September levels.
Townhome and condo/co-op sales decreased by -5.5 percent and -8.7 percent, respectively.
The biggest year-over-year declines in sales were in Montgomery County, PA (-16.6%) and Gloucester County (-14.7%), and Mercer County (-13.7%) in New Jersey.
The number of new pending sales remained relatively unchanged year over year but increased by 3.4 percent from September.
Between September and October, new pending sales typically increase in the region, though this year's increase is more modest than in recent years.

Philadelphia Housing Supply Trends

Inventory levels in the Philadelphia housing market remain extremely low, with fewer new listings coming to market in October. The number of new listings across the region was down 12.9 percent from October last year. This is the fourth consecutive month in which new listings in the Philadelphia region have decreased year over year.

New listings declined also between September and October (-5.5%) which is a bigger month-to-month decline than the region would have in a typical year.
Detached homes saw a 6.8% decline compared to the month prior.
Townhomes and condos saw more modest declines of 4.3% and 3.5% respectively.
The number of new listings is down everywhere across the region with the exception of Kent County.
The months’ supply of homes ranged from 1.3 months for mid-priced single-family homes to 5.8 months for
higher-priced condos.

Median Days on Market

Additionally, this housing indicator indicates that this metro area is experiencing a strong seller's market. Homes are selling quickly, and in some areas, extremely quickly. In a “balanced” market, the average days on market (DOM) for a home is between 60 and 70 days.

Median days on market increased by one day from last October to 11 days.
In October, homes sold most quickly in Chester County, where the median days on market was 6.
Mercer County saw the biggest jump in median days on market, rising to 18 in October.
Overall, however, homes are still selling very quickly across the region.

Philadelphia Real Estate Foreclosures

In Pennsylvania, foreclosures in Philadelphia continue to be high. Philadelphia foreclosures make it a large distressed seller's market. In 2019, Philadelphia had one of the highest foreclosure rates in the U.S. at 0.75%. About 5,000 Philadelphia properties entered foreclosure, according to Attom Data Solutions. That’s down significantly from 2010 when more than 12,700 properties reported foreclosure filings.

In January 2020, Philadelphia was one city that was highlighted for having a high foreclosure rate. One in every 1,072 housing properties in the area was a foreclosure back then. To solve this problem, the Pennsylvania Housing Finance Agency has been working with homeowners via their Residential Mortgage Foreclosure Diversion program.

According to the Philadelphia Inquirer, the city’s this program, born out of the recession in 2008, has prevented nearly 14,000 foreclosures. The program assists homeowners by working with lenders to help lower mortgage payments and provides a moratorium on foreclosures for eligible Philadelphians burdened with liens.

Sheriff's sales of homes in Philadelphia are scheduled to resume in September. Before the pandemic, the city's foreclosure cases must still be processed through Philadelphia's Mortgage Foreclosure Diversion Program. The city's foreclosure rate is “still quite low,” according to Chelsea Barrish, vice president of program impact at Clarifi, a financial counseling nonprofit based in Philadelphia. Residential foreclosures in Philadelphia have remained between 20 and 30 per month, according to Michael Froehlich, managing attorney of Community Legal Services' homeownership and consumer rights unit.

The American Rescue Plan Act, the federal coronavirus relief package, allocated $350 million to Pennsylvania to help homeowners with mortgage payments and other housing-related expenses. This package is intended to avert mortgage defaults, foreclosures, utility shutoffs, and home foreclosures. The Pennsylvania Housing Finance Agency, which will administer the state programs, is still working out the details, but homeowners may be able to use funds to pay off delinquent mortgages, property taxes, insurance, and utilities. Pennsylvania's program is set to begin in late fall.

Philadelphia Real Estate Market Forecast 2022

What are the Philadelphia real estate market predictions for 2022? Philadelphia housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Three and four-bedroom row houses and attached homes are the most common housing units in Philadelphia. Other types of housing that are prevalent in Philadelphia include large apartment complexes, single-family detached homes, duplexes, and homes converted to apartments.

Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Since Nov 2011, the typical home value in Philadelphia Metro has appreciated by nearly 48%. For a period of almost three years, 2013 t0 2016, the house prices remained flat without much appreciation. From mid-2016, we can see a steep rise in housing prices and they have gone up 16% over the past year alone.

Similar growth has been recorded by NeighborhoodScout.com as their data also shows that in the past ten years, Philadelphia real estate appreciated by nearly 62.72%. This amounts to an annual real estate appreciation of nearly 4.99%, which puts Philadelphia in the top 30% nationally for real estate appreciation. In the latest quarter, the appreciation rate has been 3.52%, which annualizes to a rate of nearly 14.83%.

This figure corroborates Zillow's positive forecast. It confirms that home prices in this region are expected to continue their growth over the next twelve months. First-time home buyers will remain a strong force while younger Gen-Z buyers are expected to play a growing role in this housing market as well. Both Generation Z homebuyers and those New Yorkers seeking more bang for the buck will keep houses moving in Philadelphia.

Here is the latest housing forecast for Philadelphia, Greater Philadelphia, and Philadelphia County until Oct of 2022 (Zillow Home Value Forecast). And as long as mortgages remain cheap, the real estate boom in Philly should continue into 2022. There's good profit potential for the period of one year if you are looking for homes for sale with good flipping profit. It can be a profitable property investment opportunity if you can find a good deal. A long-term investment in Philadelphia real estate will yield even greater profits.

Philadelphia-Camden-Wilmington Metro or The Delaware Valley home values have gone up 16% over the past year and Zillow predicts they will rise 12.6% in the next twelve months.
In the city of Philadelphia, home values have gone up 11.7% over the past year and they will continue to rise in the next twelve months.
Philadelphia County home values have gone up 11.7% over the past year and they will continue to rise in the next twelve months.
Bucks County home values have gone up 15.1% over the past year and they will continue to rise in the next twelve months.
Chester County home values have gone up 15.2% over the past year and they will continue to rise in the next twelve months.
Delaware County home values have gone up 17.3% over the past year and they will continue to rise in the next twelve months.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until October 2022.

PHILADELPHIA REAL ESTATE MARKET FORECAST — Courtesy of Zillow.com

Philadelphia Housing Market Overview for 2020

The ongoing pandemic has not had any impact on Philadelphia home prices. Historically low-interest rates, tight inventory, and strong demand are continuing to favor sellers in the Philadelphia housing market. New Yorkers moving here in search of more for less also kept the real estate market afloat during the pandemic.

According to data from RENTCafé, Philadelphia bucked a trend of both fewer people renting and more renters moving out of the city in 2020. Overall, rental applications rose by eight percent, and the number of renters moving into the city from elsewhere rose by four percent, while those who left it fell by one percent.

Data from RENTCafé sibling Yardi Matrix shows that 1,843 new units were added to the stock of city apartments in 2020. The suburban inventory grew even more, with 2,757 units coming online this year. Percentage-wise, the city slightly outpaced the suburbs in unit growth.

Here's Kevin Gillen's latest quarterly report for Q4 2020. He is a Senior Research Fellow at The Lindy Institute, and produces quarterly reports on the current state of the region's housing market, providing an overview of the market and its impact on buyers and sellers.

Philadelphia Home Prices

The average price of Philadelphia homes rose by 5.0% in Q4 on a quality and seasonally adjusted basis. This was a significant acceleration from the previous quarter’s rate of 0.7%.
The median house price broke $200,000 for the second time in 12 months, hitting $210,000 in Q4 2020.
Philadelphia’s house prices rose by an average of 12.8% on a year-over-year basis.
This price appreciation is nearly triple the city’s historic annual average house price appreciation rate of 4.5%.
The last time that Philadelphia saw such large double-digit appreciation was in 2006.

Philadelphia Sub-Markets Trends

Annualized (YoY) house price changes in individual submarkets continue to be uniformly positive — and also well above their historic averages
In West Philadelphia's neighborhoods, the average home price went from $85,000 a year ago to about $120,000.

Philadelphia Home Sales

After plunging to an 8-year low in Q2 (due to both COVID and government-imposed restrictions on showing homes), sales activity has since risen sharply.
The number of arms-length sales in Philadelphia was 6,097 in Q4.
It was up from 5,339 in Q3, which in turn was up a whopping 71% from just 3,127 transactions in Q2.
This is well above the 4,000 average, even though slightly lower than the number of transactions in the same quarter of 2019.

Philadelphia Housing Supply

The Philly housing supply dropped to an all-time low of 2,511 houses listed for sale. That’s 60% less than the historical average of 7,400.
It is also the first time that the supply of homes available for purchase has fallen below 3,000 housing units for sale.
When supply is low, buyers tend to bid higher than what they would otherwise before another buyer beats them to it.

Day On Market

In a market that is considered “balanced,” the housing market predicts that the average days on market (DOM) for a home is 65 days.
In Philly, the average was 41 days, showing a strong favorability to sellers.
This is just 7 days shy of the previous record of 34 days, set way back in July 2005.

Inventory and Months' Supply

At the current pace of sales and the current level of inventories, Philadelphia would completely burn through its current supply of homes available for sale in just 2.2 months.
If inventory levels are around 6.5 months, there is a balanced real estate market. This is the historical statewide benchmark for the monthly supply of home inventory available for sale.
It clearly shows that Philly is a seller's real estate market.

Philadelphia Real Estate Investment Overview 2022

Should you consider Philadelphia real estate investment? Many real estate investors have asked themselves if buying an investment property in Philadelphia is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2021 & 2022. Let’s talk a bit about Philadelphia before we discuss what lies for investors and homebuyers.

Philadelphia is one of the oldest and largest cities in the United States. Philadelphia is too often written off as a has-been, a historical city that has joined the Rust Belt. However, this city is on the rebound and the Philadelphia real estate market predictions show us an excellent opportunity for investors in 2021. It is the largest city in Pennsylvania and the second largest on the East Coast. It is the sixth biggest city in the United States (Phoenix has beat out Philly for that spot in the top five).

And unlike many other big cities, its population is slowly growing. Its population has grown every year for at least seven years, and it is the second-fastest-growing county in the region. How big is the Philadelphia Housing Market? Well, more than one and a half million people live in Philadelphia proper. Philadelphia is in the hub of the Delaware Valley. That is the sixth-largest metropolitan area in the United States. That metro area is home to around six million people.

If you only look at Philadelphia and its immediate suburbs, then the Philadelphia housing market still includes four million people. Let’s look at the state of the Philadelphia real estate market and the factors driving the market in the short and long term. This article alone is not a comprehensive source to make a final investment decision for Philadelphia.

Density Provides Opportunity

One downside of a thoroughly built-up market is that you cannot expand out – everything else is already built out. This means you can only really build up, redevelop, or subdivide. The relative lack of supply compared to demand also keeps rents and property values strong, too. More than half of the jobs are in Center City and University Center, meaning that nearly everyone wants to live in and around these areas. If you can find properties to convert into multi-family housing or luxury housing, you’ll earn a significant return on the investment.

Philadelphia Real Estate Is Very Affordable

The median selling price for Philadelphia real estate is around $208,000. These prices vary wildly depending on the perceived safety and desirability of the neighborhood. The fact remains that you can find $40-$60,000 single-family homes for sale that you can rent out to single mothers with children who would value a little privacy. You can find condos and older homes that could be renovated and flipped with a modest profit margin. In several zip codes within the Philadelphia housing market, more than 10% of real estate transactions are “flipped sales”.

Strong Real Estate Appreciation

We’ve addressed the ROI you’d likely see as a landlord. The other half of that equation is the increasing value of the property you’d recoup if and when you sell it. According to Zillow, Philadelphia properties saw a roughly 11% price increase in the last twelve months, and they expect prices to go up in 2021 as well. Philadelphia appreciation rates continue to be some of the highest in the nation, including the larger metro area where the months' supply has shrunk to 1.1 months.

One of the best investment opportunities in the Philadelphia housing market is those areas you already know everyone wants to live. For example, the Graduate Hospital neighborhood is hot. The 19118 and 19106 zip codes are seeing the greatest property valuations and price increases.

Interestingly, there are zip codes next to these that have seen flat and declining values; if you buy properties in the 19132 or 19125 zip codes that have flat or falling values and attract those wanting to live in 19121 or 19133, you could see significant returns. This means you don’t have to do deep research or guess to know how to profit from the Philadelphia real estate market.

Highest Appreciating Philadelphia Neighborhoods Since 2000 (By Neighborhoodscout.com)

Kensington
E Girard Ave / N Delaware Ave
E Girard Ave / E Palmer St
E Norris St / Aramingo Ave
Port Richmond
S Columbus Blvd / Packer Ave
Pattison Ave / S Broad St
S 6th St / Dudley St
S 10th St / Mifflin St
S 5th St / Mifflin St

The Large Philadelphia Rental Market

Around 46% of housing units in the Philadelphia housing market are rented out, somewhat higher than the national average. This is driven in part by the relatively poor urban population and in part by the higher than average number of singles living alone. Center City has a large, carless population that will prioritize living by public transit and, because they don’t have a vehicle, cannot move out to the suburbs. Do your legal research before you buy rental properties in the Philadelphia real estate market because you’ll be subject to taxes and fees that aren’t mandated by Pennsylvania state law.

Nearly every large city is home to universities, themselves home to a large population of renters – students. Philadelphia as both an old and large city contains several universities. There are twenty-four-year universities alone in Philadelphia, several of which are in Center City. There are another dozen two-year and tech schools in Philadelphia. And adding to the diverse Philadelphia student rental market are the medical schools and seminaries in the city.

The traditional rental income from properties in the Philadelphia housing market is $1300 a month, though this value includes everything from two-bedroom single-family homes to five bedrooms three bath luxury properties. If you use the median property value of $200,000, the traditional cash-on-cash return for these properties is 2.6%. Find a deal or upgrade a home to cater to an upscale market, and you’d see better rates of return.

There is another reason to expect better ROI, and that is the fact that rents in Philadelphia are rising. The median rent for properties in the Philadelphia housing market is estimated to be $1400 a month, though that’s lower than you’d see in the surrounding suburbs. There is only room to go up. As of September 5, 2021, the average rent for a 1-bedroom apartment in Philadelphia, PA is currently $1,350. This is a 10% decrease compared to the previous year while studio apartment rents have remained flat. The rental market should remain strong. While Yardi Matrix’s Ressler says the region will add some 12,000 units to its apartment inventory over the next two years, he also predicts rents will rise modestly in the city and a good deal more in the suburbs.

The Strong Short-Term Rental Market

While other major cities have waged war on Airbnb and other short-term rental sites, Philadelphia realizes this is a good way to cater to tourists and help local homeowners earn income. This is why Philadelphia stands out as friendly to short-term rental sites like Airbnb. One of the few conditions to meet is the payment of the 8.5% tax on all profits and you don’t make the property not look like a home. Note that these rules apply to primary residences. As a non-resident landlord, you can rent out homes via Airbnb, too, but you have to apply for a visitor accommodations variance. Multi-family housing can also be rented out via Airbnb in Philadelphia if you fill out the right paperwork.

It Is Relatively Landlord-Friendly

Many real estate investors want to know if an area is landlord-friendly or tenant-friendly. Pennsylvania itself is generally landlord-friendly. Philadelphia, though, is somewhat stricter. In early 2018, the City Council discussed laws that would limit evictions to those cases with just cause. Just cause does include failure to pay rent, nuisance behavior, and breach of the lease. You simply cannot evict someone to renovate the property.

The tenant would have to be given a chance to accept a new lease or higher rent when renewing the lease, rather than being evicted. Other laws are much more land-lord friendly. There is no payment grace period law. There aren’t limits on late fees. There are no pet laws. While the state of Pennsylvania doesn’t require a license to rent out a house, anyone buying properties in the Philadelphia housing market does have to get a commercial activity license and housing rental license.

We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Philadelphia. The Philadelphia real estate market offers an ideal mix of affordable properties you can snap up and a large population of renters who aren’t going to buy homes any time soon. You won’t face the same hostility as a landlord as you might in New Jersey or New York, whether renting to long-term tenants or tourists.

Another hot real estate market in the state of Pennsylvania where you can invest for the long term is Harrisburg. Harrisburg has a more favorable legal and tax climate, and it is stable. That makes it a good choice for real estate investors as long as you are investing in rental income instead of massive capital gains. And you could still earn a lot of money with fix-and-flip in the Harrisburg housing market.

On the south of Pennsylvania lies the state of Maryland. In Maryland, Baltimore is a favorable destination for real estate investors from all over the country. If you are looking for an affordable real estate market with a high potential for return on investment, you should consider Baltimore. Baltimore's real estate appreciation rate in the latest quarter was around 1.9%. Looking at the positive forecast, the annual appreciation rate is predicted to be between 7% to 8%.

On the east of Pennsylvania lies the expensive New York City real estate market. Even though New York City is one of the most expensive real estate markets in the world, there are relatively affordable neighborhoods where people compete for apartments and homes. NYC real estate is most likely to be a profitable investment when rented out over a long holding period.

If you are looking to make a profit, you can buy and hold an investment property in NYC that you might move into or sell at retirement in the future. NYC real estate investment has a track record of being one of the best long-term investments in the nation. NYC's real estate prices have appreciated by roughly 42% over the last decade.

Not just limited to Philadelphia or Pennsylvania but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Philadelphia turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Let us know which real estate markets you consider best for real estate investing in 2021!

References

https://www.brightmls.com/
https://www.zillow.com/Philadelphia-pa/home-values
https://www.neighborhoodscout.com/pa/philadelphia/real-estate
https://www.realtor.com/realestateandhomes-search/Philadelphia_PA/overview
https://www.littlebighomes.com/real-estate-philadelphia.html
https://www.phillymag.com/property/2020/12/24/2020-2021-real-estate-trends/
https://www.realtytrac.com/statsandtrends/pa/philadelphia-county/philadelphia
https://www.inquirer.com/real-estate/housing/home-equity-underwater-philadelphia-attom-20200211.html
https://en.wikipedia.org/wiki/Demographics_of_Philadelphia
https://www.mashvisor.com/blog/philadelphia-real-estate-market-2018-invest
http://worldpopulationreview.com/us-cities/philadelphia-population
https://en.wikipedia.org/wiki/List_of_colleges_and_universities_in_Philadelphia
https://billypenn.com/2018/06/29/why-your-philly-airbnb-wont-get-shut-down
https://www.avail.co/education/laws/pennsylvania-landlord-tenant-law
http://www2.philly.com/philly/news/eviction-just-cause-bill-housing-curtis-jones-20180214.html
http://www2.philly.com/philly/business/real_estate/residential/20170122_For_profitable_flipping__few_places_are_hotter_than_Philly_area.html