Many blue state residents are putting politics aside to capitalize on the lower-priced real estate markets in red state and get good deals on rental investments, says Realtor.com writer Clare Trapasso. According to a recent report from ATTOM Data Solutions, 16% (3.4 million) of the nearly 20.4 million single-family rentals nationally are owned by out-of-state investors.
“Many rental homes owned by out-of-state investors are concentrated in red states, likely because they are relatively inexpensive markets,” Daren Blomquist, senior vice president at ATTOM, said in a statement. “Meanwhile there are many investors from blue states owning elsewhere, likely because their own backyard markets are so high-priced.”
Many of these mom and pop investors are young professionals with good-paying jobs, or baby boomers with an eye toward retirement who want to invest some of their home equity into these lower-cost properties, according to the report.
“A lot of demand is people in the Bay Area and New York City looking to buy in the Southeast,” Gary Beasley, CEO of Roofstock, an online marketplace for single-family rentals, told ATTOM.
Here are the six states with the most out-of-state-owned investment homes—along with their median listing price from realtor.com®: