If you are a real estate investor looking for an emergent market with a promising return on investment (ROI) potential, then look no further than Connecticut. Here is an overview of the top five markets across the state to help you focus your efforts when looking for your next real estate investment project.
Bridgeport is a promising location for investors looking to optimize their ROI, with data indicating that the average investment property yielded an 86.7 profit margin. The average home price is 176,200, which means that properties are generally affordable for savvy investors looking to enter the Connecticut real estate market. A major appeal of Bridgeport is its relative proximity to New York City, which is a factor that promises to yield a steady stream of potential tenants. The local community has evolved into a desired location for higher-income employees seeking a short commute to Wall Street without having to pay the substantially higher price of living found in the city. Over the course of the last three years, the Bridgeport market has collectively appreciated by 6.7% and is projected to rise another 6.6% by the end of 2021. If your investment portfolio is focused primarily on rental units, then Bridgeport is the ideal market, with 59.4% of the local residential population comprised of tenants and the median rent listing price topping the national average at $1,600.
The Waterbury market is often overlooked, but with a potential ROI of approximately 140% for fix-and-flip properties it is definitely an area investors should check out. The average home value is $116,200, a low price point that makes it relatively easy for investors to expand their portfolio in Waterbury. Over last year alone, the Waterbury real estate market appreciated by 5.6% and industry experts project that home values will rise another 4.4% in the coming months. Around 57.5% of the Waterbury population are renters, meaning that real estate investors can garner a steady stream of passive income from multi-family units which comprise the majority of the currently listed inventory of available properties.
Although it may require additional capital up front to invest in the Cornwall real estate market, the area is an outstanding choice for investors seeking to draw a higher rate of return. The median property value is $419,200. Cornwall is a sought-after destination for second-homeowners as it offers a number of year-round recreational options including hiking, fishing and skiing. The area has seen a recent surge in teleworking professionals, as 19% of the Cornwall population telecommutes and are employed in highly-skilled industries such as technology and finance. With a unique combination of excellent school systems, low crime and a high rate of home ownership, Cornwall is a desirable location for homebuyers—which is great news for real estate investors looking to fix-and-flip homes.
This seaside community is a hot market for house flippers seeking a healthy return on investment, with the average flipper turning a lucrative 122% return on investment. The average home value is $239,361. Although the median appreciation rate is a modest 1.13%, the Stratford area is perfect for real estate investors looking to sell or lease homes as it is definitely a seller’s market. The home vacancy rate is only 7.2% and the homeownership percentage is a robust 79.1%. The average rental price is $1,621, which is well above the nationwide average.
For investors on the lookout for higher-end listings, the Fairfield market is the place to be. With the average home value currently listed at $673,695 and an annual appreciation rate of just under 3%, the potential ROI is promising in this lucrative market. For investors with a portfolio concentrated mainly on rental units, the Fairfield median rent is $2,343—which could yield a great passive revenue stream. With a number of higher education institutions and close proximity to major employers, real estate investors will not have to worry about sustainable demand from homebuyers and tenants alike searching for housing options.
If you are in need of a hard money loan in Connecticut, reach out to Alpha Funding Partners today. We are a nationwide private lender that can lend in the Connecticut market. We have the best rates and leverage and would love to work with you on your next deal!