Lucky Seven: The USA’s Seven Hottest Housing Markets in 2017

Home ownership can be a gamble. Forces beyond your control can have a strong effect on the value of your home. Economic trends, climate change, corporate relocations, your neighbors; there’s a hundred possibilities that can improve or harm your home value. But that’s true of many investments, and historically real estate has been a good place to spend your investment money. Nowhere has it a better roll of the dice in 2017 than in these red hot real estate markets. In markets like these, people are increasingly turning to corporate rentals to find great high-quality housing options.

SEATTLE Corporate Housing

Seattle, Washington 

Seattle area homes have appreciated an average of 13.5% in the past year. This makes it the absolute hottest market in the nation. There’s not a lot of land for building, which make existing homes that much more valuable. The median single-family home value is a mind boggling $730,000. The housing market in Seattle was list this high in 2006. It experienced the bubble in 2012, and since have increased 79%, more than 20% above the 2006 high. Incomes aren’t rising as fast as home prices, but a relatively low 4.4% unemployment rate also helps.

Portland and Mount Hood Panorama. Portland, Oregon, USA.

Portland, Oregon

In 2017, Portland is growing by 111 people every day. Like other cities, there’s a shortage of housing, especially near town. New home supply is only meeting half the demand here, resulting in a 5.2% rise in home values. It should be noted that that’s 11% less than the meteoric 16% rise in 2016, and that the market is cooling slightly; it’s still plenty hot enough to make our list.

Salt Lake City, Utah

Salt Lake City-Ogden-Provo

The “next Silicon Valley” of Salt Lake and outlying communities of Ogden and Provo are growing fast. New tech startups, relocating companies, and stalwarts Marriott and Delta are pushing growth that has led to buyer bidding wars and offers of 20-25% above home values. Predicted sales and price growth are expected to top 4.5% in 2018. Ogden, 40 miles north, is expected to grow at 4.7%, while Provo will grow at a predicted 4.3%.

silicon valley, 3D rendering, blue street sign

San Jose/Sunnyvale/Santa Clara

The original Silicon Valley is here, too. Good luck finding a home to buy; 99.77% of all homes are off-market, most in the nation. Median prices here top $1 million, and with well heeled investors buying what little is available, less than 6% of homes in the area have declined in price this year.

San Francisco

San Francisco

The median price of a single-family home in San Francisco is at an all time high of 1.6 million dollars in October 2017, and at $900,000 for 2017. However, this reflected a large number of luxury home sales, while condos and smaller homes have risen less quickly and made up more of the market this year. Nevertheless, home values rose 4.7% in this slowing but still white-hot housing market.

Dallas City

Dallas/Fort Worth, Texas

A strong economy, low unemployment, and room for growth have put the metroplex on the hottest housing market list. Low corporate taxes and cost of living have resulted in more corporate headquarters here than anywhere else in the nation. Sales growth is predicted at 6%, and price growth at 5.6%, while the median home goes for $339,300. 2018 should again be a banner year for the Dallas/Fort Worth housing market.

nshvile-tn

Nashville, Tennessee

List prices have risen 89% in five years. Prices have soared 10.8% this year. Homes are selling overnight with multiple offers. A fast-growing health care sector and lower costs of living are partly fueling an influx of residents. The expected growth rate for 2018 is 7.7%, meaning Nashville’s tune will be a happy one for home owners and builders for at least the year to come.

Need a Short-Term Rental in a Hot market?

Relocating staff, project tech workers, traveling professors, travel nurses and health care professionals needing temporary housing have been turning to CHBO for outstanding corporate rental options. In hot markets like these, when buying isn’t an option, renting a high quality corporate short-term rental is a great option, allowing you to delay buying until you get the “lay of the land”, or to find temporary housing that feels like home for an extended assignment. Search for your ideal furnished housing option today, or call CHBO toll free at 877.333.2426 for five-star support!

Three Ways to Prepare Your Short Term Rental for Severe Weather

Save Download Preview flooding houses with rising water

Weather can be unpredictable. Recent hurricanes and flood events in the Caribbean, Florida, Louisiana, and Texas have shown that, as did the tragic fires in Northern California. Your corporate rental is a major investment that you want to protect. Having homeowners insurance should be a given, as well as flood insurance in low-lying areas requiring you to be covered. Beyond insurance there are other ways you can not only prepare your home but also protect yourself from income lost to severe weather that prevents a tenant’s stay. Here are three ways you can prepare your short-term rental for severe weather.

A meteorologist displaying hurricane supplies

Supply “Must Have” Items in Your Corporate Housing

Just like you would in your own home, provide basic emergency supplies for corporate tenants. Bottled water, canned food, a first-aid kit, a hand-crank radio, flashlights, and an emergency kit are important to have on hand. Secure these items in a cabinet with a combination lock. When extreme weather occurs, provide your tenants with the combination. Finally, be sure your home is well maintained both inside and out. If high winds, heavy rain or snow strike, be sure your home is up to the challenge.

TRAVEL INSURANCE

Offer Travel Protection Insurance for Hurricane Rentals

In some states where vacation rentals are more common, if you do not offer your tenants a travel insurance option, and a mandatory evacuation prevents a stay, you must refund them. However, if you offer them insurance, no refund is required. In other states, no refund is required unless your lease agreement covers it. You’ll need to know the laws regarding severe weather refunds in your state and municipality, run it by the attorney drawing up your standard lease contract.

This is distinct from a security deposit because it is different than “tenant caused” damages. CHBO’s covers you in case of tenant accidental damage, a cost that can be passed on the tenant in lieu of a security deposit.

Car covered with Ice

Add a Severe Weather Clause to Your Lease Agreement

In the case of a mandatory evacuation, you could offer a refund or a rebooking at a discount. But you need clear language that only mandatory evacuations apply; guests who are simply disappointed because rain is predicted can’t get a refund, as the home is still usable.

In the case of mandatory evacuations, you could issue a refund in advance when government authorities declare the evacuation, or if the stay is in progress, partially refund for unused days, or credit guests for a future stay.

Again, be clear that this applies only in the case that your property cannot be used due to evacuation. This happens most often with severe storms or hurricane rentals, where there are a few days of advanced notice. If roads are icy but not closed, for example, this doesn’t mean a refund as your short-term rental itself is still usable and the tenant should use chains or winter tires with four-wheel drive.

You may not be able to predict when and where severe weather strikes. You can, however, prepare your corporate rental for hurricanes and your lease as best you can so that when bad weather strikes you are ready.

How to Choose a Location for Your Furnished Corporate Rental

Real estate rentals from CHBO

Welcome to the world of Corporate Rental! Excited to become a corporate landlord? Not sure how to start? Let’s look at some things to know before you take the plunge.

Flexible? Where to Buy Your New Executive Rental

If you’re able to buy anywhere, you should think about these factors.

First, what areas or cities are growing economically? Where do people need luxury rentals? Project work and corporate relocation are main reasons tenants look for short-term housing. So is the temporary need for medical expertise or a long-term shortage of it. Do some research into areas where these situations are frequent. For example, places with lots of military bases or oil companies will need furnished rentals for relocating staff, since people in these careers move often. Also, rapidly growing cities are good because they attract construction professionals and travel nurses.

Second, how do local laws, taxes, regulations, costs, impact your investment? Be sure to fully study local laws regarding temporary housing rentals and taxes, utility costs in that area, etc. These things can have a great impact on your bottom line. Look for areas with low costs and taxes and minimal regulations.

Finally, be sure it’s a place you’ll want to visit often. Not only will you visit when setting up the home or for upkeep, you may want to use it for your own travel.

Modern Apartment Buildings Exteriors Or Contemporary Architecture

Will Your Corporate Tenants Want The City or The ‘Burbs?

Once you’ve picked a region or city, you need to zoom in. Where within that place should you buy? This depends, and there are many pros and cons.

Look at where the city you’ve chosen is growing. Is there a downtown or inner city being redeveloped? Is there a “hot” place to live? Are the suburbs expanding? The best choice is to buy where your tenants will want to live.

This also depends on your target tenant. Relocating families will need larger, family homes close to their new work locations. Temporary project workers will want to be close to the office but don’t need a big home because they tend to travel solo or as a couple. Know your city and the type of corporate tenants that come there so you know what location is best. Other key aspects are:

1) Walkability – The CHBO walk score takes into account how easy it is to live without a car. The scale looks like this:

  • 90–100 Walker’s Paradise – Daily errands do not require a car
  • 70–89 Very Walkable – Most errands can be accomplished on foot
  • 50–69 Somewhat Walkable – Some errands can be done on foot
  • 25–49 Car-Dependent – Most errands require a car
  • 0–24 Car-Dependent – Almost all errands require a car

Zillow.com discovered that Walkability in metro areas means your property is more likely rise in value and less likely to fall in value during downturns. Corporate tenants tend to value Walkability highly. You should too.

2) Crime and Safety – All corporate tenants have one thing in common. They want to live in safe places. So be sure you check crime reports for the areas you are considering. If possible, drive through the area and look for signs that it’s a high crime area such as burglar bars on windows or doors, more police presence than normal, and an excess of litter are examples.

3) Ambiance – Tree lined boulevards, parks and flowers, local retailers of interesting wares, friendly pubs and roadside cafes, beautiful views in the distance. There’s a charm to certain neighborhoods, and these are just some of the things that add to that charm. Seek out areas with ambiance.

4) Convenience – No one likes the grind of a long commute, no matter the method of travel. Try to find properties that offer close access to public transport, major roads, and the airport. You’ll need to balance closeness to these systems with the noise that can result, but a few blocks away is usually far enough. Research the area and be sure that parks, fitness centers, medical care, groceries and shopping aren’t far either.

Residential Neighborhood

What Type of Home to Buy?

 You’ve found the perfect town and the perfect location. Now, what type of home to invest in?

  • Condominiums have the benefit of lots of common amenities like pools and fitness centers, on-site property management, and covered parking. They tend to be found in denser, urban areas but can also be located in suburbs as they sprawl out from the city. Safety and noise tend to be a bigger concern with apartments. Some benefit from a Condo Association that set rules making the entire property more desirable.
  • Townhomes are the mid point between apartments and single-family homes and tend be found, like apartments, in areas where land is at a premium. You’ll benefit from a lower price than a comparable single family home, and some maintenance and common landscaping is provided. You won’t have a yard however, and typically stricter HOA’s may limit pets and have noise restrictions. Townhomes are a good balance overall and offer lots of space while still being located in more urban parts of town.
  • Single Family Homes give your corporate tenants more privacy, and may feel more like home. Executives, especially traveling with their family, will insist on the additional space. If you’re targeting long-term tenants, locating near a good school district could be important. Amenities are private, and yards tend to be larger. Single-family homes tend to have covenant or HOA agreements as well, which limit variety.

Remember that the kind of property can depend on the location. For example, a city without a well developed downtown wouldn’t be a place to buy a downtown loft. A city like Austin, on the other hand, has a hip urban central area and urban condos and townhomes are more desirable. Also try to look for properties with amenities that go hand in hand with the area or climate. A lake house should have a dock; a home in a hot, humid city should have a pool, etc.

These guidelines are a good starting point for basing your decision where to locate your furnished corporate rental. The CHBO Handbook can help you navigate your way in the successful world of corporate rentals.  Have more questions? Feel free to call CHBO and get expert help toll free at 877.333.2426 today!