In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Delaware. Three towns made our list: Wilmington, Middletown, and New Castle. 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.
Out of anyone, Delaware knows how it feels to be first. One of the original 13 colonies, Delaware was the first state to ratify the U.S. Constitution and join the Union. Currently, Delaware is still the second smallest state, but it is constantly growing its population and economy with a low unemployment rate. It is referred to as the Chemical Capital of the World as the state economy heavily relies upon chemical manufacturing such as pharmaceuticals, but also has a high number of workers in the finance and insurance sectors. As another added bonus, Delaware is one of the few states without sales tax – talk about bargain shopping!
With beautiful beaches, historical towns, easy access to the big cities, and breathtaking landscapes, Delaware might be the place to be. Let’s take a look at the best places to buy an investment property in The First State.
Wilmington holds the status of Delaware’s largest city and economic engine where more than half of all Fortune 500 companies call the city their corporate home – this accounts for the 2.4% employment growth! This city has a rich history seen in its architecture and historical sites such as the Harriet Tubman Byway and Rodney Square. Wilmington has a city vibe, while also providing a small-town feel evident in its affordable housing with both historic and also new neighborhoods. From downtown lofts to the Riverfront, average rent is only around $1,329 with a median sale price of $217k! This price blows the neighboring metro areas of Philadelphia, New York, and Washington DC out of the water. Have no fear landlords – in Wilmington you will have a record of 154 leads per property, with only 11 days on the market!
- Population growth: -0.4%
- Employment growth: 2.4%
- Increase in home values: 17.7%
Median Sale Price: $217k
Average Rent: $1,329
Average Number of Leads per Property: 154
Number of days on the rental market: 11
Middletown was once a tavern stop about halfway between Appoquinimink Creek in Odessa and Bohemia Landing – the perfect name for a town literally in the middle. Only 24 miles south of Wilmington, this small-town is full of history and character known for the Middletown Peach Festival, the Everett Theatre, and its charming main street area. However, soon Middletown might not be such a small-town as the population is growing by 6.6% with a steady employment growth of 2.4%. There are several neighborhoods available for residents with an extremely affordable average rent of $990. Because the growing population is in need of housing, landlords in Middletown can expect their property to be on the market for only two days with a solid 15 leads to find the best renter.
- Population growth: 6.6%
- Employment growth: 2.4%
- Increase in home values: 1.6%
Median Sale Price: $289k
Average Rent: $990
Average Number of Leads per Property: 15
Number of days on the rental market: 2
#1: New Castle
It might be less than four square miles, but historic New Castle is a colonial treasure filled with cobblestone streets, local shops and cuisines, and historical architecture and sites – including the First State National Historic Park. Located in the Brandywine Valley, and in close proximity to Wilmington, this riverside town remains one of the most important colonial villages in America. As seen by its high population and employment growth, it’s an attractive place for renters who want more of a relaxing, almost countryside, environment including students from Wilmington University and University of Delaware. New Castle is an excellent investment location where the average rent is only $1,884, and it has the lowest median sale price compared to the other Delaware cities – only $188k. Yet, the best part for property investors is not just that you will get around 98 reliable leads, but an average of only one – yes, one – day on the market! New Castle is clearly the best jewel in the Diamond State .
- Population growth: 4%
- Employment growth: 2.4%
- Increase in home values: 8%
Median Sale Price: $188k
Average Rent: $1184
Average Number of Leads per Property: 98
Number of days on the rental market: 1
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].
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.
- 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.