Millennials, those born between 1982 and 2004, are set to shape the U.S. economy in a big way in coming years.
While Millennials are less likely to form households in their 20s, as the economy recovers many will, inevitably move out of their homes and look to rent.
RealtyTrac found the 50 best markets for renting residential properties to Millennials.
"Investors leveraging demographic trends will often be able to amplify rental returns and home price appreciation, particularly when it comes to trends in the baby boomer and millennial generations, which combined account for approximately 147 million people — more than 60 percent of the U.S. adult population," RealtyTrac's Daren Blomquist said in a press release.
To qualify, these markets had to have 10% in the millennial demographic between 2007 and 2013 and the Millennial population accounted for at least 24% of the total populations in 2013.
Annual gross rental yields for the top 50 millennial rental markets ranged from 5.53% to 21.32%. Rental returns were based on gross rental yield: "the average fair market rent of three-bedroom homes in the county, annualized, and divided by the median sales price of residential properties in the county."
The top five markets based on annual gross rental yield:
1. Baltimore City, Maryland: 21.32%
2. Philadelphia County, Pennsylvania: 20.78%
3. Duval County, Florida: 14.95%
4. Cumberland County, North Carolina: 13.43%
5. Newport News City, Virginia: 13.20%
Here's a great interactive map from RealtyTrac highlighting the 50 best rental markets for Millennials:Learn About Tableau
Note: For the report RealtyTrac analyzed median sales prices for residential property and average fair market rents for three bedroom properties in 370 U.S. counties with a combined population of 186 million people — 60 percent of the total U.S. population. Rental returns were calculated using annual gross rental yields: the average fair market rent of three-bedroom homes in the county, annualized, and divided by the median sales price of residential properties in the county.
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