Millennials are a hot topic in the U.S. housing market so we couldn’t leave them out of our five-part series on the best U.S. markets for buying single family rentals. In this fourth installment we look at the 17 best markets we consider millennial meccas that also boast high potential gross rental yields.
A growing population of millennials should translate into growing demand for single family rentals as those millennials reach life milestones such as marriage and kids that may warrant a move from an apartment to a single family home. And eventually those millennials may provide single family rental investors a convenient exit strategy for selling their homes.
Using data from the ATTOM Data Solutions Q3 2016 Single Family Rental Market Report, we narrowed down the 473 counties analyzed in the report to just 17 millennial meccas by only including counties where millennials — those born between 1981 and 1997 — accounted for at least 25 percent of the population in 2014 and where the millennial population grew from 2013 to 2014. Lastly, all counties on the list have a potential gross annual rental yield of at least 10 percent for properties purchased in 2016.
The five most populous counties making the millennial mecca list were Philadelphia County, Pennsylvania (10.1 percent gross annual rental yield); Milwaukee County, Wisconsin (13.1 percent); Prince George’s County, Maryland in the Washington, D.C. metro area (10.1 percent); Duval County, Florida in the Jacksonville metro area (11.2 percent); and El Paso County, Texas (11.0 percent).
Counties on the list with the highest share of millennials were Onslow County, North Carolina in the Jacksonville metro area (37.6 percent of population millennials in 2014); Richmond City, Virginia (33.1 percent); Bell County, Texas in the Killeen-Temple metro area (30.1 percent); Richland County, South Carolina in the Columbia metro area (30.1 percent); and Saint Louis City, Missouri (29.3 percent).