{"id":155932,"date":"2023-08-01T08:24:37","date_gmt":"2023-08-01T14:24:37","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=155932"},"modified":"2023-10-21T05:10:57","modified_gmt":"2023-10-21T11:10:57","slug":"best-build-to-rent-housing-markets","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/best-build-to-rent-housing-markets","title":{"rendered":"Top 5 Build-to-Rent Housing Markets for Cash Flow and Appreciation in 2023"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC7809117023\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><em>This article is presented by&nbsp;Rent To Retirement. Read our&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/editorial-guidelines\" target=\"_blank\" rel=\"noreferrer noopener\">editorial guidelines<\/a>&nbsp;for more information.<\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investing in real estate isn&#8217;t something that involves using just one strategy. The best strategy for you depends on the type of investor you are and the current market dynamics. In 2023, build-to-rent (BTR) is quickly becoming the most effective investment strategy for beginners and experienced investors alike.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">BTR gives investors the opportunity to purchase new construction properties below market value in growing locations. There are many advantages associated with using BTR to grow your investment portfolio, which include hardly any maintenance, builder warranties, substantial appreciation in growing markets, the ability to attract high-quality tenants, and more financing options. We\u2019ve started using a unique portfolio lender that finances new construction rentals with as little as 5% down, with no PMI (private mortgage insurance) costs. It is creative financing options like this that have allowed us to expand our portfolio quickly in the BTR space, obtaining more properties with less capital down.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now that the market is slowing down, many builders have a surplus of builds they began last year in anticipation the market would continue without slowing down. At the same time, rising interest rates have slowed down institutional buying in the BTR space nationwide. This unique combination of factors allows the individual investor the timely opportunity to purchase new-construction rentals below market value in some of the best markets throughout the U.S. If you know the right markets to look in, you&#8217;ll have access to inventory that wasn&#8217;t available a year ago when it was a red-hot seller&#8217;s market.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many of these new construction properties are available with immediate equity and appreciate quickly if you are in the correct market. This allows you to be able to access equity quicker than you otherwise would during different market conditions or when you\u2019re not investing in the ideal market.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The best BTR markets are ones that are popular among new residents searching for a place to live. If you own or invest in a property that has low vacancies, it&#8217;s easier to maintain a consistent cash flow. When the property is in a hot market, it will steadily appreciate while you hold on to it.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Before you invest in build-to-rent properties, you should know more about the top markets that will help you benefit from cash flow and appreciation. Here is an in-depth look at five markets to consider.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">National Data for Comparison<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.macrotrends.net\/countries\/USA\/united-states\/population-growth-rate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Population growth over the past five years<\/span><\/a><span data-preserver-spaces=\"true\">: 2.36% increase<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Average home appreciation over the past five years<\/span><\/a><span data-preserver-spaces=\"true\">: 31.65% increase<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Median home price (as of April 2023)<\/span><\/a><span data-preserver-spaces=\"true\">: $436,800<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.usatoday.com\/story\/money\/2023\/05\/07\/single-family-homes-rent-increase\/70185035007\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Average rent for single-family home (as of March 2023)<\/span><\/a><span data-preserver-spaces=\"true\">: &#8211; $2,330 per month<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.creditkarma.com\/insights\/i\/average-american-income\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Median household income<\/span><\/a><span data-preserver-spaces=\"true\">(as of 2021): $70,784 per year<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Unemployment rate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(as of June 2023):- 3.6%<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/ACTLISCOUUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Average inventory supply<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(as of June 2023):- Around 614,000<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MEDLISPRIPERSQUFEEUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Price per square foot<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(as of June 2023): $225<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Lehigh Acres, Florida<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1194\" height=\"566\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image3.jpg\" alt=\"Lehigh Acres, Florida\" class=\"wp-image-155936\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image3.jpg 1194w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image3-300x142.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image3-1024x485.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image3-768x364.jpg 768w\" sizes=\"auto, (max-width: 1194px) 100vw, 1194px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Lehigh Acres is a premier market in Florida that&#8217;s known for its picturesque lakes and sprawling golf courses. It also has proximity to numerous sandy beaches along the Gulf of Mexico.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The median price for single-family homes in Lehigh Acres is<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/realestateandhomes-search\/Lehigh-Acres_FL\/overview\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;$369,000<\/span><\/a><span data-preserver-spaces=\"true\">, which is well below the national average of nearly $437,000. Over the past five years, home values have increased by more than 106%, which is well above the national average. These numbers indicate that property investments in this area should pay off quickly.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are currently&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.movoto.com\/lehigh-acres-fl\/market-trends\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">more than 4,000 homes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;for sale in Lehigh Acres. Since properties continue to appreciate in value, this location is a great spot for making BTR investments. Keep in mind that the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/LAUCN120710000000003A\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">unemployment rate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in this area is just 3.1%. When you want to build residential real estate in Lehigh Acres, the average price per square foot is around $214 as of April 2023, which is just below the national average.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Huntsville, Alabama<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"477\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/huntsville-1024x477.jpg\" alt=\"huntsville, alabama\" class=\"wp-image-155942\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/huntsville-1024x477.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/huntsville-300x140.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/huntsville-768x358.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/huntsville.jpg 1214w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Huntsville is a large city in the Appalachian area of northern Alabama. Its population is currently just under 221,000, which makes it the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/worldpopulationreview.com\/us-cities\/huntsville-al-population\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">most populous city<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the state. Over the past five years, the population has grown by around 6.25%, which is substantially larger growth in comparison to national population growth rates.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The increase in people choosing to move to Huntsville is driven by affordable home prices and a strong economy. Companies like Target, Boeing, and Northrop Grumman call the city home, which keeps unemployment rates low and makes the city more appealing to young professionals searching for a job and a place to settle down. As of May 2023, the unemployment<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/hvilleblast.com\/huntsville-has-lowest-unemployment-rate-in-nation\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;rate in Huntsville<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is 1.6%, which is tied for the lowest rate in the country.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When looking specifically at housing, the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/realestateandhomes-search\/Huntsville_AL\/overview\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">median home price<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is right around $420,000, which is slightly below the national average. Over the past five years,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/ATNHPIUS26620Q\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">home values have risen by nearly 42%<\/span><\/a><span data-preserver-spaces=\"true\">. Keep in mind that the national average is just 31%.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image4.jpg\" alt=\"All Transactions Home Price Index for Huntsville, Alabama MSA (1985-2023) - St. Louis Federal Reserve\" class=\"wp-image-155937\" style=\"width:1058px;height:423px\" width=\"1058\" height=\"423\" title=\"\"><figcaption class=\"wp-element-caption\"><em>All Transactions Home Price Index for Huntsville, Alabama MSA (1985-2023) &#8211; <a href=\"https:\/\/fred.stlouisfed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">St. Louis Federal Reserve<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">The median listing price per square foot is $171, which means that building a home in this city shouldn&#8217;t be too expensive. There are around 1,200<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.movoto.com\/huntsville-al\/market-trends\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;homes for sale<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the area. The inventory buyers have access to is at its lowest in more than a year, which is part of the reason why home values have been increasing.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. San Antonio, Texas<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1214\" height=\"566\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/San-Antonio.jpg\" alt=\"San Antonio\" class=\"wp-image-155943\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/San-Antonio.jpg 1214w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/San-Antonio-300x140.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/San-Antonio-1024x477.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/San-Antonio-768x358.jpg 768w\" sizes=\"auto, (max-width: 1214px) 100vw, 1214px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">San Antonio is a highly popular city that&#8217;s home to the University of Texas at San Antonio and many exciting attractions that residents and tourists alike love to visit. The popularity of San Antonio is relatively recent, which is why property investors are able to make high returns when it comes to appreciation.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The city has a population of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/worldpopulationreview.com\/us-cities\/san-antonio-tx-population\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">right around 1.48 million<\/span><\/a><span data-preserver-spaces=\"true\">. Over the past five years, population growth has been 5.64%, which far exceeds the national population growth of 2.36%. When you&#8217;re investing in BTR properties, choosing a location with high population growth is highly recommended.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The median listing price for a single-family home in San Antonio is&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/realestateandhomes-search\/San-Antonio_TX\/overview\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">around $315,000<\/span><\/a><span data-preserver-spaces=\"true\">, which is much more affordable than the home values found in most other big cities. Despite this affordability, homes were priced at an average of $225,000 in July 2018, which means that prices have increased by 40% over the past five years. This is another number that&#8217;s better than the national rate.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are currently&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.movoto.com\/san-antonio-tx\/market-trends\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">around 10,000 homes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;on the market in San Antonio, which is the lowest inventory has been since February 2022. As for the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.expressnews.com\/business\/article\/san-antonio-unemployment-may-10-000-jobs-added-18154996.php\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">unemployment rate<\/span><\/a><span data-preserver-spaces=\"true\">, as of May 2023, it&#8217;s just 3.8%. There are numerous companies with headquarters in San Antonio, including AT&amp;T, Rackspace Technology, and USAA.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&nbsp;If you want to build a home in San Antonio, the cost of doing so is around $177 per square foot as of April 2023, which isn&#8217;t that expensive in comparison to other cities across the U.S.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Rockport, Indiana<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1214\" height=\"566\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/Rockport-covered-bridge.jpg\" alt=\"rockport covered bridge\" class=\"wp-image-155944\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/Rockport-covered-bridge.jpg 1214w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/Rockport-covered-bridge-300x140.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/Rockport-covered-bridge-1024x477.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/Rockport-covered-bridge-768x358.jpg 768w\" sizes=\"auto, (max-width: 1214px) 100vw, 1214px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rockport is a quaint city that&#8217;s home to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/worldpopulationreview.com\/us-cities\/rockport-in-population\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">just under 2,000 people<\/span><\/a><span data-preserver-spaces=\"true\">. Despite the small size, Rockport is a great destination for investors because of its affordable home values and proximity to larger cities like Evansville and Louisville. Many people who work in Evansville are choosing to live in smaller cities like Rockport.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In April 2023, the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.movoto.com\/rockport-in\/market-trends\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">price of a home<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in Rockport was around $319,000, which makes for a 167% increase in comparison to the median home values in April 2018. Home values are still well below national rates, which shows that there&#8217;s room to grow.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"960\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2.jpg\" alt=\"Rockport, Indiana Home Prices (Jan. - Apr. 2023) - Movoto\" class=\"wp-image-155935\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2.jpg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2-300x144.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2-1024x492.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2-768x369.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/image2-1536x738.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><figcaption class=\"wp-element-caption\"><em>Rockport, Indiana Home Prices (Jan. &#8211; Apr. 2023) &#8211; <a href=\"https:\/\/www.movoto.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Movoto<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">There<\/span>&#8216;s just over<span data-preserver-spaces=\"true\"> 30 homes on sale at the moment. As long as supply continues to outstrip demand, home values should increase at a steady rate. You can build a home in Rockport for just $83 per square foot as of April 2023, which makes it easy to build properties and rent them out for a high return.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The unemployment rate for this area is&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.stats.indiana.edu\/profiles\/profiles.asp?scope_choice=a&amp;county_changer=18147\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">around 2.6%<\/span><\/a><span data-preserver-spaces=\"true\">, which means that people who come to Rockport are generally able to find jobs and will want to search for homes or apartments to rent.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Columbia, South Carolina<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1214\" height=\"566\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/columbia-sc.jpg\" alt=\"columbia sc\" class=\"wp-image-155945\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/columbia-sc.jpg 1214w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/columbia-sc-300x140.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/columbia-sc-1024x477.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/columbia-sc-768x358.jpg 768w\" sizes=\"auto, (max-width: 1214px) 100vw, 1214px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">As the capital city of South Carolina, Columbia has long been a favorite among real estate investors. The people who live there have easy access to exciting destinations like the Columbia Museum of Art and the Riverbanks Zoo &amp; Garden. This place is also home to the University of South Carolina, which is one reason why this is a good place to invest.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Columbia has a population of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/worldpopulationreview.com\/us-cities\/columbia-sc-population\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">right around 138,000<\/span><\/a><span data-preserver-spaces=\"true\">. Since 2018, the city&#8217;s population has grown by 2.07%, which is similar to the U.S. average. Even though Columbia is considered to be a large city, homes in the area&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/realestateandhomes-search\/Columbia_SC\/overview\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cost a median of $265,000<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and have a median price per square foot of around $145, which shows that you can build real estate at a relatively affordable cost.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When looking specifically at rent, the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zumper.com\/rent-research\/columbia-sc\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">average price<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;for a one-bedroom apartment or home was just under $850 in July 2021. Two years later, the average rent is $1,132, which indicates that investors who own rental properties are building high cash flows on the properties they invest in.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Home values have appreciated by around 70% over the past five years. One reason why home values have increased recently is because inventory has dropped off considerably. In December 2022, there were more than&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.movoto.com\/columbia-sc\/market-trends\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">5,800 homes on the market<\/span><\/a><span data-preserver-spaces=\"true\">. Between 2018 and the end of 2022, inventory had never dipped below 5,500 homes in a single month. As of April 2023, there are only 1,954 homes on the market, which gives investors a unique opportunity to help meet demand with a BTR approach.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/ycharts.com\/indicators\/columbia_lexington_county_sc_unemployment_rate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">unemployment rate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in Columbia was 2.50% as of May 2023. It&#8217;s often well below the national average. Companies like Amazon, Walmart, and Blue Cross Blue Shield have headquarters in this city, which is a major reason why the unemployment rate is so low and home values continue to rise. More job opportunities mean more demand for housing.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conclusion<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">BTR is a great investment option in 2023. You can use it to maximize cash flow, appreciation, and equity, especially in these five markets. Adding the right investments to your portfolio can set you up perfectly for long-term success.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Make better use of the BTR strategy with appealing financing options that allow you to put less money down compared to traditional loans that stretch your capital further and create a higher ROI. Investing in the right BTR market will give you the opportunity to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/brrrr-method\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BRRRR<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;new construction within just a few years of property ownership and ultimately scale quicker and achieve the infinite returns we are all chasing in real estate investing.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('DoorLoop Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/best-build-to-rent-housing-markets',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"wp-block-heading has-text-align-left mt-0\"><strong>This article is presented by Rent To Retirement<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/03\/rtr.png\" alt=\"\" class=\"wp-image-147742\" style=\"width:294px;height:207px\" width=\"294\" height=\"207\" title=\"\"><\/figure>\n\n\n\n<p>Rent To Retirement is the Nation&#8217;s leading Turnkey Investment Company offering passive income rental properties in the best markets throughout the US to maximize Cash Flow &amp; Appreciation! Rent To Retirement is your partner in achieving financial independence &amp; early retirement through real estate investing. Invest in the best markets today with a comprehensive team that handles everything for you!<\/p>\n\n\n\n<div id=button-custom-event-block_63c9a33918e17 class='button-custom-event'>\n      <a href=\"https:\/\/renttoretirement.com\/\" x-on:click=\"window.analytics.track(&#039;Sponsored Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/best-build-to-rent-housing-markets&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn More About Rent To Retirement<\/a>\n  <\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>These markets are the best build-to-rent markets in the U.S. for cash flow and appreciation. See where you should invest here!<\/p>\n","protected":false},"author":613655,"featured_media":155945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119],"tags":[],"class_list":["post-155932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/155932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613655"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=155932"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/155932\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/155945"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=155932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=155932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=155932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}