In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Pennsylvania. Three towns made our list: Phoenixville, Reading, and Allentown. 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.
“Pursue your happiness,” as they say in Pennsylvania. Although this state is famous for its vital place in America’s history, Philly cheesesteaks, home to Hershey’s, and beautiful landscapes, Pennsylvania is also a great state to consider property investing in. Living in Pennsylvania means you won’t be short of things to do or places to visit – easy public transportation is one of the state’s best features. It also has the sixth biggest economy in the United States and is home to some of the largest public and private companies in the U.S. The state also has great higher-education opportunities including University of Pennsylvania, Swarthmore, and Haverford. It’s understandable why our best towns in PA are only on the rental market for 11 days or less.
Let’s take a look at the best places to buy an investment property in The Keystone State.
#3: Phoenixville
Nestled into the Philadelphia countryside, Phoenixville is on the rise. It is located at the intersection of the Schuylkill River and French Creek giving it great historical vibes and also a more modern and artsy culture. This town is known for manufacturing nails and rails while also being a fun tourist stop with a charming Main Street, wine-tasting, theatres, and a variety of trails for the outdoorsy folks. Another fun fact – its iconic Colonial Theatre was featured in the 1958 film The Blob which now hosts Blobfest every summer. Overall, Phoenixville is very attractive for renters for its charm, affordable rent of $1399, and the University of Valley Forge. Landlords can expect a nice return due to the steady increase in home values of 8.9%. With a solid number of eight leads per property, landlords will be able to fill their properties in 11 days or less!
- Population growth: 0%
- Employment growth: 1.6%
- Increase in home values: 8.9%
Median Sale Price: $385k
Average Rent: $1399
Average Number of Leads per Property: 8
Number of days on the rental market: 11
#2: Allentown
Once known as a hub for the iron industry, Allentown has a rich history located on the Lehigh River. Fun fact: the town is 60 miles southeast of Scranton, AKA, home to Dunder Mifflin’s favorite office. Allentown has undergone redevelopment and revitalization after the decline of manufacturing and the rise of more service related industries – it is now an excellent place to both live and work. It is also home to the Liberty Bell museum, where it once was stored in a church, art museums, the Trexler Nature Preserve, and many iconic breweries. There is a mix of generations in Allentown which is great for landlords who should expect around 119 leads per property and only nine days on the market. Property investors won’t have a hard time finding renters with a steady population growth and a reasonable rent of $1063 for a two-bedroom.
- Population growth: 1%
- Employment growth: 1%
- Increase in home values: 19%
Median Sale Price: $145k
Average Rent: $1063
Average Number of Leads per Property: 119
Number of days on the rental market: 9
#1: Reading
Located in southeastern Pennsylvania in Berks county, Reading was an important part of the area’s history and development. Famously known for the real Reading Railroad that Monopoly players might be familiar with, Reading has historically relied heavily on agriculture as well as manufacturing. The town has a good mix of outdoor activities, art and music festivals, and delicious restaurants. Only an hour outside of Philadelphia, Reading is a great place for suburban renters who are looking for affordable living – the average rent is only around $957! The increase in population and employment is evident in the large average number of leads expected for landlords – 271. Furthermore, properties are usually only on the market for eight days. Landlords, we hope you are ready for Reading because it’s our number one town in PA.
- Population growth:0.4%
- Employment growth: 1.2%
- Increase in home values: 11.1%
Median Sale Price: $140k
Average Rent: $957
Average Number of Leads per Property: 271
Number of days on the rental market: 8
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.
