If you’re a real estate investor preparing to buy a rental property in Dayton, you’re well-positioned to enjoy some positive cash flow and impressive ROI over the long term.
Home values have gone up everywhere around the country and specifically in our market. What that means is of course relative to the neighborhood and the region we’re talking about. As Dayton begins to gather more attention from real estate investors locally and those from outside of the state, the market will respond. This is a city that’s spreading out geographically. You’ll find that investment properties cost more in suburban areas, but the urban market is offering lower priced entry points.
Everything starts with your own investment goals when we’re talking about how to buy in Dayton. You need to know what kind of neighborhood is part of your investment plan, what types of properties fit your strategy, and how much risk you’re willing to take on.
As professional Dayton property managers who help real estate investors identify opportunities, we want to give you a real estate and rental market update for the rest of 2024 and 2025.
Here’s what we can tell you.
Dayton, Ohio is a Great Market for Real Estate Investment
Given that we live, work, and conduct business in Dayton, you might think we’re a bit biased when it comes to our opinion of the Dayton rental market. And, we are. But, there are also the hard facts and the real data that support our bias. Dayton manages to balance affordable properties with strong future growth. That’s a recipe for profit. This is a large rental market with stable property values. The costs of entering the market and managing those investments is fairly low, and you can expect a solid return on your investment.
Let’s take a look at the statistics that tell the story:
- In 2019, the population of Dayton was 140,640. While the number of people living in the city has been in decline, that doesn’t mean there’s a lack of tenants. The percentage of Dayton’s population that’s renting a home is more than half; 53%. That’s higher than the national average, and a big jump over the last few years. More people are renting than buying right now, and that’s a shift that’s good for real estate investors interested in rental properties.
- Home values and prices have jumped dramatically. Just a few years ago, we told you that the average home value in Dayton was around $53,000! Today, the average home value in Dayton is $150,000, according to Zillow, and according to Realtor.com, the average home price for a listed property in Dayton is $180,000.
- Depending on the data you’re looking at, the average rents in Dayton are right around $1,000 per month. This is an increase from the $795 averages we were seeing in 2019 and 2020.
As the Fed begins to seriously consider a rate deduction, you’ll find that mortgage prices begin to fall. They’re already beginning to come down from their historic high. That’s going to generate a lot of new interest in the real estate market.
If you’re thinking about investing, buy before the rush. Let’s talk about how to do that effectively.
Buying Rental Real Estate in Dayton
Understanding market trends in Dayton is crucial for making informed investment decisions. Here are some key trends to consider that we’re following now and into the next year:
- Increased Property Values
Over the preceding few years, Dayton has seen a steady increase in property values. This trend is expected to continue, promising potential capital appreciation for your investment.
- Diverse Housing Options
From historic homes in charming neighborhoods to modern apartments downtown, Dayton offers a wide range of housing options. This diversity allows investors to grow a diverse portfolio and to attract different tenant preferences and demographics.
- Focus on Sustainability
Dayton, like other rental markets, is increasingly focusing on sustainable development, with new constructions incorporating eco-friendly features. Properties with green certifications can attract environmentally conscious tenants and may offer additional tax incentives. Such upgrades will also reduce your operational costs in many cases.
Why Invest in Dayton Real Estate?
Why Dayton and why now?
Real estate investment, particularly in a city like Dayton, comes with numerous benefits. Our team has been working with a growing number of investors who understand the value of a reasonably priced market like Dayton where price points are low and rents are rising.
Not only is it more affordable to buy a property here than it is in other markets, there are also lower costs to lease, manage, and maintain that investor. Your maintenance costs are lower. Market costs are not as high as what they might be in Chicago or Austin. Rental laws are far friendlier to landlords than they are in Los Angeles or Seattle.
Situated within proximity to major cities like Cincinnati and Columbus, Dayton offers a strategic location for businesses and residents. Its transportation and infrastructure network, including highways and airports, schools and amenities, enhances connectivity and accessibility.
Really, though, it comes down to money. The combination of affordable entry costs and rising property values means investors can expect a healthy return on investment.
Additionally, high rental demand ensures consistent income streams.
Tips for Investing in Dayton Real Estate
We are Dayton property management experts, and we always advise investors, whether they’re new or experienced, to work with property managers as soon as they know they want to buy in a particular market. These are three quick tips to investing successfully:
- Research Neighborhoods. Each neighborhood in Dayton has its unique character and investment potential. Conduct thorough research to identify areas with high demand and growth prospects.
- Leverage Local Expertise. Collaborate with local real estate agents and property managers who understand the nuances of the Dayton market. Their insights can be invaluable in making informed decisions.
- Diversify Your Portfolio. Consider a mix of residential and commercial properties, single-family homes and multi-unit buildings to spread risk and maximize returns.
Investing in Dayton’s rental real estate market presents a promising opportunity for investors seeking growth and stability. With its thriving economy, affordability, and demand for rentals, Dayton is likely to deliver substantial returns.
Let’s talk about your investment goals. Contact us at ManCo Property Services.