Why West Coast Investors Are Turning to Midwestern Real Estate Notes
Summary
This article discusses the shift of real estate investors from the West Coast to the Midwest and Southeast due to higher returns and lower home prices. Hosts in these regions may benefit from increased demand, while West Coast hosts may face challenges. Consider researching real estate notes to potentially diversify investments.
Key Insights
- •Capitalization rates in California for apartments and multifamily homes average between 5% and 7%.
- •Rent prices in the Midwest, for example, increased 6.1% in the first half of the year, double the pace of 2024. The Southeast is also strong, with 2.7% growth, led by Alabama and Georgia.
- •San Francisco median home prices are over $1.4 million, while LA rents go for an average of $2,760, if not higher.
- •Median home prices in the Midwest are $330,500 compared to the average of $531,100 for the West Coast.
- •Rental vacancies in the Midwest are also low, at 6.6% compared to the national average of 7%.
Action Items
- ✓Consider investing in real estate notes in the Midwest or Southeast to diversify your investment portfolio and take advantage of potentially higher yields.Effort: mediumImpact: medium
Tools & Resources
- →Connect Invest: Curious how Connect Invest helps West Coast portfolios stay productive without another rental headache? Check out how our region?diversified notes can bring yield and optionality to your holdings.
Related News
KB Home bets on built-to-order strategy amid a spec-heavy market
KB Home is shifting its focus to a built-to-order (BTO) strategy, aiming for higher margins in a challenging market. Hosts should pay attention to this trend as it may impact competition and pricing in their local markets, especially if private builders react to the changes.
![An Overview of Dynamic Pricing for Hosts [+5 Tools Included]](/_next/image?url=https%3A%2F%2Fwww.igms.com%2Fcontent%2Fimages%2Fwordpress%2F2022%2F10%2FDepositphotos_dynamic_pricing.jpg&w=3840&q=75)
An Overview of Dynamic Pricing for Hosts [+5 Tools Included]
This article discusses dynamic pricing for short-term rentals, explaining how it works to optimize revenue and occupancy by adjusting rates based on market conditions. Hosts should consider implementing dynamic pricing, using tools that automatically adjust rates, to stay competitive and maximize profits.
United Real Estate CEO Dan Duffy on the roadmap for competitive advantage
This article highlights the importance of data and AI in gaining a competitive edge in the 2026 housing market, emphasizing that hosts who prioritize data-driven decisions and adapt to market changes will thrive. Hosts should focus on leveraging data and AI to make informed decisions about their STR business to capture market share.
Foreclosure Starts Fall 7.6% Nationally, But These Key Counties Show Rising Distress
Foreclosure starts are down nationally, but certain counties are seeing a rise in early-stage filings, which can indicate future pre-foreclosure opportunities. Hosts in Florida, California, Ohio, North Carolina, and Texas should monitor county-level data to anticipate potential distressed property sales and consider how this might affect their local markets.