11Feb

Price-to-rent ratio and Gross Rental Yield in USA

14 comments so far

As I promised in earlier post at Buying Property in USA blog, I have calculated price to rent ratios and gross rental yield of all the US states. I am currently writing an article with more details how I exactly got the numbers etc. However for the most of foreign investors is interested mainly in this table:

I have also found a table of P/R ratios for various European states. That table is quite a bit older and it’s hard to compare it to my calculations from 2010, but still it is visible that most of the other countries have quite worse rental yield than USA.

I haven’t calculated rental yield for Australia, but I am pretty sure it’s quite low as well. If you guys know the rental yield and price to rent ratio for Australia, please post it in the comments!

EDIT: I have written a detailed article about calculating the Rental Yields and where I got the data, etc. : http://ezinearticles.com/?Price-To-Rent-Ratio-(Rental-Yield)-for-All-US-States—Real-Estate-Analysis&id=5904389

Categories: General Education

Friday, February 11th, 2011 at 12:43 pm and is filed under General Education. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

14 Responses to “Price-to-rent ratio and Gross Rental Yield in USA”

  1. Posted by Hilma 13th February, 2011 at 6:44 pm

    Great related information! I have been seeking for everything like this for a time now. Many thanks!

  2. Posted by charles 21st February, 2011 at 3:31 am

    Hi Sir,

    can you contact me, I would like your advice on purchasing property in US.

    my email enclosed
    thanks!

  3. Posted by admin 11th March, 2011 at 10:37 pm

    Hi Charles,

    if it’s not anything too personal, me and other readers would definitely appreciate if you would ask here, so others can see the answers etc. If it’s something personal, let me know and I will send you an email. Thanks.

  4. Posted by Michael W 7th April, 2011 at 10:18 pm

    Hi!

    I’ve been buying rental property in a USA location where I have a family member and property management infrastructure in place. The key is not to buy “median-priced” property, but to have a clear-cut strategy. We cherrypick and buy good properties at well below median prices, and enjoy median rents. This easily delivers double digit net before-tax returns.

  5. Posted by lisa 9th April, 2011 at 10:46 am

    Hi Charles,
    I was wondering if I bought a cheap house at roughly around 60k in USA for an investment,what could I approxiametely expect to gey back annually renting it? In other words, is the renting proportionaly as low as buying?

  6. Posted by Matthew Pollock 12th June, 2011 at 7:40 am

    This is excellent work, and thank you for quoting our Global Property Guide rental yields research.

    We will probably take a leaf out of your work next time we update our own US rental yields figures.

    Deriving rental yields for non-US markets is, in reality, much much more difficult than for the US, because the rents data isn’t there.

    As one reader has commented, several US states are beginning to look very attractive as property investments, especially because the US currency is relatively low at present.

    Nowhere in Europe can you get the value that you get in the US.

  7. Posted by GPG Rental Yields 16th June, 2011 at 1:15 pm

    In international perspective, US rental yields are now beginning to look highly attractive. The dollar’s low levels compound these attractions. When the dollar begins to rise again – a certainty, given the pressures on the Euro and on sterling – the combination of US high rental yields, undervalued and rising currency, and rising property markets, should prompt a serious rebound in US markets pushed by foreign buyers.

  8. Posted by Jim 17th June, 2011 at 1:04 pm

    I moved from Australia to the US about 3 years ago and own some Australian real estate. The median house price is very high compared to the US, about $450K. This is the result of a slow but inexorable, 50-year internal migration to the small handful of large cities.

    Currently, rental yield is relatively low with a P/R ratio of around 24 (gross yield of 4.2%). Like Canada, there are many who believe that Australia is in a property bubble which, if it were to correct, rental yields should improve.

  9. Posted by admin 11th July, 2011 at 7:30 pm

    Thanks for the input Jim!

  10. Posted by Gail Holst 15th July, 2011 at 11:19 pm

    Phoenix property management
    thank you for sharing this great list of calculations . .well- detailed and useful . .

  11. Posted by Bryan 26th July, 2011 at 3:39 am

    hi, i have some questions about buying us property

    thanks

  12. Posted by admin 18th August, 2011 at 5:16 am

    Hi Bryan,

    go ahead and ask here. I will reply to your comment!

  13. Posted by Tan 15th August, 2011 at 4:07 am

    Hi,

    I would like your advice in purchasing property in US. Please contact me via my email.

    Thanks…

  14. Posted by Rean 21st December, 2011 at 4:26 am

    Thanks for sharing with detailed article about the calculating. I look at the links you shared. 🙂

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