Bucks County ranked in the bottom half among best markets for buying single-family rental properties in 2021. ATTOM Data Solutions, Irvine, Ca., analyzed the local trends in a new report.
The 1Q 2021 Single Family Rental Market report ranked 495 counties with a population of at least 100,000. It plotted rental data from the U.S. Department of Housing and Urban Development and home price data from publicly recorded sales.
Bucks County ranked in No. 426, with an annual gross rental yield for 2021 of 5.5 percent.
The statistic represents a eight percent drop in yield year-over-year. Conversely, however, the county also reported year-over-year wage growth of nine percent.
The median sales price of single-family rental properties in the first quarter of 2021 was $367,250.
However lower yields are not a uniquely local issue.
“The single-family home rental business is less profitable this year compared to last year across most of the country, with yields on the average deals decreasing,” said Todd Teta, chief product officer at ATTOM Data Solutions. “That’s happening as home prices on properties that investors are paying for, in most areas, are rising considerably faster than rents, which is cutting into their profit margins.”
Read the entire report at ATTOM Data Solutions.