In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Arizona. Three towns made our list: Wasilla, Fairbanks, and Anchorage. We curated data from studies on the best places to buy an investment property, median listing price, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Alaska is the largest state by area, the 3rd least populous, and the most sparsely populated. You may in fact be able to see Russia from its maritime border with the country to its west, across the Bering Strait. To the north are the Chukchi and Beaufort seas and southern parts of the Arctic Ocean. The Pacific Ocean lies to the south and southwest. British Columbia and the territory of Yukon to the southeast and east. Alaska is stunningly beautiful. You can visit the highest peak in the U.S., Denali, in Denali National Park. See the northern lights from one of the best places on the earth, visit one of its 100,000 glaciers, whale watch, or see a brown bear catch a salmon mid-air. It’s a wild place.
Home values are on the rise in all of our picks, while still maintaining an affordable range and strong average rent prices. The number of leads per property tops out at 49 for our #3 pick, Anchorage, and the average number of days on the market for each city is under two weeks. Alaska should not be the last place you consider investing. Let’s take a look at the best places to buy a rental investment property on The Last Frontier.
#3: Anchorage, AK
Anchorage is the largest city in Alaska and lies between the sea and the mountains. As of 2018 its population was nearly 300k. Anchorage by the numbers: over a 122 miles of bike paths, 130 kilometers of Nordic ski trails, it’s an expansive town and covers 1,955 square miles, and 5,000-foot-plus peaks of Chugach State Park. As for the investment numbers-home values have increased 5.6% year over year, the median listing price is $318k, and the average rent is strong at $1700. Anchorage is number one for the number of leads per property at 49, with just 13 days on the market on average.
- Population growth:-1.9%
- Employment growth: -1.3%
- Increase in home values: 5.6%
Median Listing Price: $318k
Average Rent: $1700
Average Number of Leads per Property: 49
Number of days on the rental market: 13
#2: Fairbanks, AK
Fairbanks is the second largest city in Alaska with just over 100,000 residents. The University of Fairbanks Alaska is located there as well as an Army and Air Force Base. The summers are long and warm, averaging 22 hours of daylight and 80 degrees, and the winters are short and cold, cold, cold with temperatures as low as -62 degrees. You can keep yourself occupied in the winter by watching the northern lights, snowmobiling, and skiing. You can hike, raft and golf all day long in the summer. Home values have reported a small increase of 1.4% year over year. The median listing price is just over 200k with strong average rents reported at $1612. Leads are modest at 10 per property on average with just 7 days on the market.
- Population growth:-1.5%
- Employment growth: -3.1%
- Increase in home values: 1.4%
Median Listing Price: $210k
Average Rent: $1612
Average Number of Leads per Property: 10
Number of days on the rental market: 7
#1: Wasilla, AK
Wasilla is the 6th largest city in Alaska and is part of the Anchorage metropolitan area. It’s just 45 minutes from Anchorage and claims to be closer to the real “Alaskan Experience.” You can get there by train, a plane, an automobile, a snowmobile or a dog sled! It’s a quaint and friendly town. Homes values have increased 11% year over year with a median listing price of $290k and an average rent price of $1425. Leads are solid at 16 per property with just 13 days on the market. If you want the true Alaskan experience and access to the largest city, Wasilla should be your pick.
- Population growth:0%
- Employment growth: 0%
- Increase in home values: 11%
Median Listing Price: $290k
Average Rent: $1425
Average Number of Leads per Property: 16
Number of days on the rental market: 13
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.
