Tri-Cities apartment complexes are not the only rental properties attracting investors. Single-family rentals have long been a staple for local real estate investors, but the share of out-of-state investors is also noteworthy.

A new analysis from ATTOM Data Solutions shows out-of-state investors own 19,349 (14.7%) of the 131,563 single-family investment properties in the Tri-Cities region of NE Tenn. and SW Va.

According to the analysis, there are 3.4 million single-family investment homes (non-owner occupied) owned by an out-of-state investor nationwide. That’s 16% of all single-family investment homes.

The portion in the NE TN part of the Tri-Cities region is close to the national share – 14% while it’s a little higher in SW VA – 16%. However, some local housing markets have a share that’s double the national and local total. For example:

• Johnson County’s share is 31%. That’s 2,439 of the county’s 7,766 single-family investment properties.
• Bristol VA’s share of out-of-state investments is 44% of that market’s 1,811 properties.
• Out-of-state investors own 39% of the single-family investment properties in Scott Co. VA.

Washington Co. TN has the smallest share of out-of-state investment properties – 9% of the county’s 18,941 single-family rentals.

According to the analysis, “in many cases, those lower-priced markets are in politically red states with the out-of-state investors often hailing from politically blue states.”

Beyond the political observation, it says, “Passive real estate investors — think young professionals with well-paying day jobs or baby boomer homeowners flush with home equity wealth — in high-priced housing markets are looking beyond their backyards for real estate investing opportunities in lower-priced markets.

“States with the most investment homes owned by out-of-state investors are Florida, North Carolina, Tennessee, Arizona, Georgia and Texas, with Michigan and Pennsylvania also in the top 10.” ATTOM’s report says most of the out-of-state investors in Tennessee properties are from Florida.

Here’s how the out-of-state local housing markets look. The first number is the local market’s total number of single-family investment properties, the second is the share owned by out-of-state investors.

Northeast Tennessee:

Carter – 13,941, 15%.

Greene – 18,786, 12%.

Hawkins – 17,436, 19%.

Johnson – 7,776, 31%.

Sullivan – 30,413, 12%.

Unicoi – 4,409, 15%.

Washington 18,941, 9%.

Southwest Virginia:

Bristol VA – 1,811, 33%.

Lee – 4,472, 16%

Norton – 533, 11%.

Scott – 1,520, 39%.

Washington – 6,469, 14%.

Wise – 5,066, 17%.

Categories: CORE DATA, REAL ESTATE