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.
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%.
Bristol VA – 1,811, 33%.
Lee – 4,472, 16%
Norton – 533, 11%.
Scott – 1,520, 39%.
Washington – 6,469, 14%.
Wise – 5,066, 17%.