Altisource’s RentRange Identifies the 25 Cities With the Largest Rental Rate Increases

Financial Performance Data Removes Guesswork from Residential Real Estate Investing

LUXEMBOURG, February 17, 2016 – RentRange, the provider of the Rental Market Intelligence™ reports, today released data ranking the top twenty-five U.S. Metropolitan Statistical Areas (MSAs) by average rental rate increase for single-family homes between the fourth quarter of 2015 and the same quarter in 2014. Additionally, the data analysis identified the average gross yield generated by rental properties within these markets in the fourth quarter of 2015.

 

The RentRange^® data show how markets throughout the South region in Florida, Louisiana, Arkansas and Tennessee account for eight of the top ten increasing rental markets on the list. For real estate investors, the rental increases are only half of the full picture they should consider. The gross yield* data, which demonstrate income return from an investment prior to operating costs, indicate that markets in the South region are also ripe for investment and account for the highest gross yield percentage returns on the list.

 

In the West region, where the nation’s home prices are the highest, markets across California, Washington and Hawaii occupy nine spots on the top twenty-five list. While the strong growth in rents is encouraging, current price levels in many of these Western markets suppress gross yields as they are consistently among the lowest on the list.

 

“The single-family rental market remains strong across the U.S. as the homeownership rate continues to decline and a higher percentage of the population migrates to rental housing,” said Walter Charnoff, Chief Executive Officer of the RentRange business. “As the real estate market continues to improve, we are seeing significant rental price increases in many markets, which bodes well for investors in this space.”  

 

Ranking by Year-Over-Year Rental Rate Increase – Q4

Rank	MSA	Change in Rent – Q4	AverageGross Yield* – Q4
1	Cape Coral-Fort Myers FL	25.4%	9.0%
2	Shreveport-Bossier City LA	19.6%	13.3%
3	New Orleans-Metairie-Kenner LA	15.1%	11.4%
4	Deltona-Daytona Beach-Ormond Beach FL	14.9%	10.3%
5	North Port-Bradenton-Sarasota FL	13.6%	9.4%%
6	Port St. Lucie FL	13.3%	10.4%
7	San Jose-Sunnyvale-Santa Clara CA	12.1%	4.3%
8	Providence-New Bedford-Fall River RI-MA	12.1%	6.8%
9	Little Rock-North Little Rock-Conway AR	11.4%	11.4%
10	Knoxville TN	11.1%	9.6%
11	Charleston-North Charleston SC	10.6%	8.9%
12	Los Angeles-Long Beach-Santa Ana CA	10.0%	5.7%
13	Kansas City MO-KS	9.9%	12.3%
14	Portland-Vancouver-Hillsboro OR-WA	9.6%	6.5%
15	Sacramento-Arden-Arcade-Roseville CA	9.4%	5.6%
16	Denver-Aurora CO	9.4%	6.9%
17	Rochester NY	8.9%	14.6%
18	Vallejo-Fairfield CA	8.6%	6.8%
19	Columbia SC	8.5%	12.2%
20	Fayetteville-Springdale-Rogers AR-MO	8.3%	9.0%
21	Dallas-Fort Worth-Arlington TX	8.2%	12.4%
22	Oxnard-Thousand Oaks-Ventura CA	7.9%	6.0%
23	San Diego-Carlsbad-San Marcos CA	7.8%	5.7%
24	Honolulu HI	7.8%	5.1%
25	San Francisco-Oakland-Fremont CA	7.7%	5.2%

 

*The gross yield is the total annual income an investor receives from an investment property divided by the price or value for the property. This figure does not account for any operating expenses including property taxes.

 

Methodology:

 

RentRange produced the rankings of three-bedroom homes using metropolitan statistical areas, a standardized method for identifying city centers and immediate suburban areas. RentRange gathers rental data on approximately 250,000 single-family houses per month from a variety of contractual sources, including multiple listing services, property managers, landlords and listing web sites. Yields are derived from RentRange’s proprietary automated valuation model.

 

About RentRange^®

 

RentRange is the provider of Rental Market Intelligence™ reports to the financial services and real estate industries, delivering a wide assortment of address and geographical rental data, analytics and rent based valuation solutions for single and multi-family properties. Its solutions include a combination of on-demand automated rent valuation reports and subscription-based macro data available at the MSA, county, city and zip code levels. The company fills a longstanding void in the information services community by providing a standardized, reliable source for national residential rental data that is essential for confident and effective decision-making. RentRange is part of the Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) family of businesses.

 

About Altisource^®

 

Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer-debt industries. 

Altisource's proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. Additional information is available at altisource.com.