Local housing markets get buy rating from reports; why did developer pull the plug on Johnson City high-end apartments?


By DON FENLEY
According to a study by RealtyTrac, monthly house payments on a median-prices home is more affordable than the monthly fair market rent on a three bedroom property in 76$ of the U.S. counties included in the analysis.
Johnson City was the only local MSA that was part of this study and the economics favored buying over renting. The analysis showed the February annual gross rental yield for cash investors was 10.7%, up 1.8% from last year. The fair-market rent for a three bedroom home is $997 in Johnson City and the study listed the median home price in the three-county MSA area at $111,750, down 6.5% from last year. It also concluded that it would take 19% of the median income in the area to buy a median priced home.

The report can be found by CLICKING HERE

Other trend tracking sources are showing much the same result.

Here’s how the Realtor.com monthly rent/buy analysis for local markets looks. The rent/buy considerations is made on the economics of both after a 12-year period.

JOHNSON CITY
Buy – rents have increased by 14% in past three months. A major high-end apartment development also fell through this week. Although the reasons the North Carolina developer backed out of the Mill property development have not been made public, it’s likely that a current study indicated that other high-end developments that have managed to come on-line or get past the grading stage while the Mill site developer was battling Johnson City opponents pushed the high-end apartment market close to the saturation point.

KINGSPORT
buy – rents have decreased 1% in the past three-months.

GREENEVILLE
Buy – rent trend data is not available.

Bristol TN
Not available.

Bristol VA
Rent – rent – rental trend data is not available.

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