Arkansas is a state that boasts beautiful natural sceneries and a variety of outdoor activities to keep its residents and visitors entertained. This state is a great place for those who love fishing and hiking activities, and it is also home to big cities like Fayetteville.
Fayetteville has a population of over 93,000. It consists of 24 constituent neighborhoods, making it the second-largest city in Arkansas. Investing in Fayetteville real estate can be lucrative, especially since more than 65% of Fayetteville’s residents are renting a home.
Rental property owners in Fayetteville get to earn an average of $1,360 rental income per month.
While Fayetteville real estate is one of the most expensive in the state of Arkansas, there are several homes that are listed at an affordable price. In fact, the median home value in Fayetteville is only $352,158, which is much lower than the national average.
The most common type of housing in Fayetteville is single-family homes, followed by apartment complexes. Fayetteville’s rental market is dominated by one, two, or no-bedroom apartments.
Some single-family units are also used as rental homes. If you’re a real estate investor planning to take advantage of the lucrative Fayetteville rental market, it’s important to understand the demands for the different property types.
Before buying an investment property in any market, it’s essential to know the drivers of the location’s real estate market. This can help you determine the best local area to invest in, as well as identify the potential demands from renters.
When choosing a Fayetteville neighborhood for investing in rentals, make sure to consider the following factors:
Demand for rentals: Over 65% of Fayetteville’s population are renters. This means that there is a high demand for rentals in this city. However, not all neighborhoods have the same demands.
So when selecting a local market to invest in, make sure to check how many rental properties are there within the area, as well as the drivers that can help increase the demand from tenants.
Essential amenities: A neighborhood that has complete essential amenities has more edge over those that are far from what residents may need. For instance, a neighborhood that is close to schools and supermarkets can attract families with kids.
If you plan to rent to the working class, it’s also great to choose a neighborhood that is easily accessible to and from their workplaces. Other important amenities to look for are medical facilities, recreational facilities, financial institutions, supermarkets, and dining.
Safety: When finding a neighborhood to invest in, you have to check how safe the area is before deciding to buy an investment property in that place. Be sure to check the crime rate within the area and speak to community residents about their experience in this neighborhood.
Why You Should Invest in Fayetteville
As mentioned, Fayetteville is one of the most desirable places to live. There are many reasons why Fayetteville is a great location for investing in rentals, such as the following:
Growing Population and Good Economy
Fayetteville’s population is continuously growing thanks to its thriving economy. In fact, Fayetteville is considered a white-collar city, with more than 87% of its workforce employed in white-collar jobs.
Because of this, people from other places who are looking to build a white-collar career are moving to Fayetteville. In fact, Fayetteville is home to professionals, sales and office workers, teachers, and managers. Its growing population and good economy are two of the reasons why investing in the Fayetteville real estate market is a good idea.
Good Education and Plenty of Job Opportunities
Fayetteville offers quality education and is a known college city. It is home to the University of Arkansas, which is the center for education in the state for more than 150 years. Fayetteville is a city with plenty of college students, and most college graduates prefer to remain in the city because of various job opportunities available to them.
Affordable Housing and High Appreciation Rates
The Fayetteville real estate market is among the expensive markets in Arkansas. However, when compared to other large cities in the country, Fayetteville’s home prices can still be considered affordable.
Its median home value is significantly lower compared to the national average, but it has a steady home appreciation rate which makes this city an attractive place to invest in. In fact, the appreciation rates in Fayetteville have been above average for the past 10 years.
For the last decade, it has a cumulative appreciation rate of 94.80%, which belongs to the top 30% markets with highest appreciation rates nationwide. On average, the annual appreciation rate in Fayetteville is around 6.90%. This means that if you buy an investment property in this city, your asset can grow significantly in value over a few years.
Attractions and Recreational Activities
Aside from its great community and various opportunities, Fayetteville is also a perfect destination for visitors with its beautiful natural surroundings.
Fayetteville is also home to several parks, including Wilson Park and Gulley Park. The city is always buzzing with events and entertainment, such as Farmer’s Market on the Square, Joe Martin Stage race, and Lights of the Ozarks.
In general, Fayetteville offers a good quality of life to its residents. Because of this, Fayetteville’s population continues to grow at a steady pace. This means that there will be plenty of opportunities for real estate investors in the city.
If you’re ready to invest in Fayetteville, get in touch with the experts at Keyrenter Arkansas. We can help find the best property for you, and take care of all Fayetteville property management aspects. Contact us today to begin building your real estate portfolio!