In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Connecticut. Four towns made our list: Stamford, Waterbury, New Britain, and Bridgeport. We curated data from studies on the best places to buy an investment property, median sale prices, 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.
Connecticut is a true Yankee state. This New England original has beautiful forested hills, shoreline beaches, historic towns, colonial architecture and urban landscapes – it is also close to New York City and Boston, which is a plus. The name comes from the Native American word “Quinnehtukqut,” which means, “besides the long tidal river.” Connecticut is known for its prestigious education opportunities, like Yale, antiques, distilleries, and nutmegs. Connecticut’s history has strong ties to European culture giving it vibrant history, art, and festivals that are celebrated across the state every year.
Let’s take a look at the best places to buy an investment property in The Constitution State, or as nutmeggers say, The Nutmeg State.
#4: Stamford
You can’t not like Stamford – in this town you get a great mix of everything – the shoreline, nightlife, shopping, art, and great education. It’s a place for singles, retired couples, and new families – this is evident in its steady population and employment growth. While the average rent is a bit more than other Connecticut towns, you get what you pay for with renovated areas, beautiful parks and recreation areas, as well as a thriving music scene where the Alive@Five Festival is held every year. While it might be known for its Thanksgiving Day Parade with some of the largest helium balloons in the country, Stamford landlords can expect an average of 155 leads per property. It won’t be hard filling your property with the best tenants in 16 days or less.
- Population growth: 0.5%
- Employment growth: 0.7%
- Increase in home values: 8.2%
Median Sale Price: $471k
Average Rent: $2,307
Average Number of Leads per Property: 155
Number of days on the rental market: 16
#3: Waterbury
Waterbury’s motto is: “the place to live, work, and play.” Located in central Connecticut, Waterbury is in a strategic area that has low-crime rates, great education, affordable housing, and lots to do – plus, it’s an easy drive to NYC and Boston! It was known as the Brass City in the 19th century, and manufacturing is still a strong part of Waterbury’s economy and job growth. The diverse culture established by early immigrants contributes to the vibrant arts, festivals, dining, and downtown. Waterbury has many diverse housing opportunities such as large suburban homes, townhouses, and urban downtown lofts – investing in Waterbury is a great opportunity for landlords, as there is a 21.8% increase in home values and a median sale price of only $124k. Renters, especially UConn-Waterbury and Post University students, love the low average rent of $966. This means landlords can expect over 100 leads per property!
- Population growth: -.3%
- Employment growth: 0.6%
- Increase in home values: 21.8%
Median Sale Price: $124k
Average Rent: $966
Average Number of Leads per Property: 106
Number of days on the rental market: 34
#2: New Britain
We prefer the Brits in New Britain if we do say so ourselves! New Britain is one of the best places to work and raise a family in Connecticut. The business community is made up of a variety of high-tech industries, manufacturing, and also Central Connecticut State University. New Britain prides itself on the of the best park systems in the states with trails and sporting complexes tucked into its safe neighborhoods. With affordable housing, average rent is only $1,029 and the median sale price is a steal – only $162k! Whether it’s volunteering at one of the many community events, enjoying theatre, visiting its museums, or watching a Bees game, New Britain won’t disappoint. Landlords can expect around 67 leads per property with only three weeks on the rental market – you will easily be able to eliminate renters with red flags. Property investors – forget about old Britain across the pond and join the New Britain train.
- Population growth: -0.4%
- Employment growth: 0.7%
- Increase in home values: 4.5%
Median Sale Price: $162k
Average Rent: $1,029
Average Number of Leads per Property: 67
Number of days on the rental market: 21
#1: Bridgeport
Home to the only zoo in Connecticut, Bridgeport is also the fifth-largest city in New England where over 144,000 residents live. Another fun fact, this town was famously home to P.T. Barnum, who was also its mayor at one point. Today, Bridgeport is a thriving area with over 1,300 acres of public land for parks, a beautiful shoreline, several museums, and theatres. Furthermore, baseball and hockey are popular ways of life in Bridgeport where you can watch the AHL’s Bridgeport Sound Tigers or other regional baseball games. For property investors, Bridgeport is a smart choice where there are almost 150 leads per property with two weeks on the market – this will save time and money on marketing. Additionally, landlords can expect a great return on their investment as the increase in home values is 14.7% with the median sale price only around $200k – much lower than a lot of New England. Come join the Bridgeport circus – you won’t regret it!
- Population growth: -0.9%
- Employment growth: 0.7%
- Increase in home values: 14.7%
Median Sale Price: $200k
Average Rent: $1,365
Average Number of Leads per Property: 144
Number of days on the rental market: 14
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.
