The latest sales data for real estate across America shows a dip in March – a fact that the National Association of Realtors said reflected a downturn in “housing mobility”.
Its chief economist said this could become a societal trend as folks decided to “stay in place” rather than move for reasons of work or family.
Maybe remote working is a contributing factor, although the NAR economist didn’t mention this in published articles on NAR’s monthly housing data.
However, the US Census Bureau has published a new report that shows families in Rural America are heading for their nearest cities in greater numbers.
As an article on Realtor.com pointed out, of the top 10 counties to see a population decline, five are in Mississippi.
Rural areas in Georgia, Alabama and Oregon are also losing folks to the cities.
The Census Bureau’s Household Pulse Survey found 37% of respondents said they were moving for economic reasons. They hoped to find a better standard of living in urban areas that offered greater employment opportunities.
Consequently, property prices in the cities targeted by migrating residents of Rural America are on the rise. These centers include Jackson in Mississippi, Mobile in Alabama, and Memphis, Tennessee.
The US Department of Agriculture has said improving infrastructure, like better internet connectivity for telecommuting, would reduce internal migration.
However, for investors and landlords, this migratory trend could hold potential.
Finding the right type of accommodation in areas attracting people leaving rural areas could be a good investment in terms of capital gain and steady rental income.
Here are six tips for investing in this scenario..
Research local economies – Delve deep into the region’s economic drivers. You should look at the local job market, identifying the major industries and employers.
Population trends: Growing populations often indicate a healthy economy and increasing housing demand.
Developments: New infrastructure projects (roads, public transport, utilities) are a sign of a strong future for an area. They can significantly boost property values.
Values trends: Uncover median sale prices, price per square foot, and the number of days properties stay on the market.
Rental market: Research vacancy rates and tenant demand in target areas. A strong rental market ensures consistent income.
Property management – Don’t try to manage a property if it’s beyond driving distance. Hire a local property manager who’ll oversee tenant screening, rent collection, maintenance and legal compliance.