2016 BiggerPockets Real Estate Investment Market Index

[Mindy Jensen]

The 2016 Real Estate Investment Market Index is now live on the BiggerPockets Blog.

Written by our Director of Operations (and spreadsheet lover) @Scott Trench, this study analyzes the top 50 Metropolitan Statistical Areas to determine those that were most likely to produce outsized returns for residential real estate investors.

Looking for a new market? This Index will show you where investors are making the most money (and where they're not doing so well).

Want to see how your market stacks up to the rest of the country? 

Dallas, TX, Portland, OR, Denver, CO, Miami, FL, Tampa, FL, Seattle, WA, Nashville, TN, Atlanta, GA, Houston, TX, Austin, TX, Fort Myers, FL, San Diego, CA, Los Angeles, CA, Virginia Beach, VA, Providence, RI, New York, NY, Baltimore, MD, Hartford, CT, Washington, DC, Indianapolis, IN, Nashville, TV, San Francisco, CA, San Jose, CA, Jacksonville, FL, Pittsburgh, PA, Oklahoma City, OK, San Antonio, TX, Kansas City, MO, Birmingham, AL and Detroit, MI all show up on the list.

How does your city stack up to the rest of the country?

Read the Index now...

[Bill S.]

@Nick Moser A significant portion of the Denver market returns are related to appreciation (rent growth and property value increase). Most of the resent data I have seen indicates that there is no end in sight for this as long as current trends continue. There is concern that the overall economy is slowing a bit which will provide some headwinds. Basically the numbers (demand vs supply) say that we should continue to see growth (rents and home prices). At the same time we all know from experience that things don't last forever so it stands to reason that the current trends will end. The million dollar question is, When? It is always advisable to do deals that make sense in terms of income and debt service. If you are a buy and hold investor, there is no reason not to buy if it makes sense for you today. I don't think it's advisable to buy a negative cash flow deal or a deal you will need to get out in 3-5 years. The bottom line is that in 30 years the price we paid for real estate today will be laughable. With the interest rates we are paying today we will wish we had bought the whole world. You might look at another market and see you could have done better there but I don't think there will be any regrets about buying Denver real estate now after you have owned it 30 years.

There appear to be some head winds coming so it's no time to really stick your neck out and it might be a good time to put some aside for a rainy day. At the same time, it's hard to make a reasonable case that the market is going to crash in the near term.

Ultimately you have to do what makes sense for you.