A just-published study by GoBankingRates.com finds that homeownership is out of reach for more than half of households in many large U.S. cities, led by – no surprise – San Francisco, followed by Boston and Miami. (Six of those metros in the top 10 are in California.)
That’s better news for investors who already have properties in one of those places than it is for consumers looking to buy a residence for themselves, as you can expect rental prices to increase.
But what about investors who might want to buy in one of those cities on the list to take advantage of the growing rentership rate? Are you out of luck?
Not necessarily –there are “gems” to be found in any market. You just need to know what to look for, and it certainly helps to have team members with boots on the ground. Through our Multifamily Syndication Academy and other mentoring programs, we share many techniques that have proven helpful to me and my team. (For more information, please click here.)
The GoBankingRates.com study used the median home listing price in the 100 biggest cities to determine the monthly mortgage payment. Sources included Zillow and the U.S. Census Bureau. Using the widely accepted rule of thumb that no more than 30 percent of income should go toward housing, GoBankingRates.com calculated the income needed to afford a mortgage in those cities and compared it to the number of households with income equal to or greater than that amount. Their listing of 16 cities ranks those where homeownership is out of reach for more than 50 percent of households, from the lowest percentage to highest. You can find their report by clicking here.
Vinney Chopra is the Founder and CEO of Moneil Investment Group and President of Ideal Investments Group. Since coming to the United States more than 40 years ago - with only $7 in his pockets - he has built four successful businesses as well as his passions: a multifamily syndication academy and youth academy. With a bachelor's degree in mechanical engineering, he added a master's degree in business administration in marketing from The George Washington University, shifting his focus to marketing and motivation. He has been a professional fundraising consultant and motivational speaker for more than 35 years and also is a licensed real estate broker in California. Vinney and his wife started their real estate investments in 1983. He currently owns single-family homes and multifamily units in Texas, California, Atlanta, Arizona and India. People often call him “Mr. Enthusiasm” or “Mr. Smiles” for his positive attitude and commitment to bringing great value to everyone whose lives he touches.