When it comes to housing markets with a larger than normal share of non-owner occupied mortgaged residential property, Southern and Western cities tend to be top of this sector.
According to new data from Lending Tree
, Oklahoma City leads the nation’s major metro areas with non-owner occupied mortgaged properties: 15.4 percent of its housing stock falls into this category. Other major markets with a large percentage of non-owner occupied mortgaged residential properties are Philadelphia (14.6 percent), Memphis (14.6 percent), Miami (14.5 percent), San Francisco (13.9 percent), New Orleans (13.4 percent), Las Vegas (12.9 percent), New York City (12.9 percent), Los Angeles (12.5 percent) and Riverside, Calif. (12.2 percent).
At the other end of the spectrum, Detroit had the lowest percentage with only 5.2 percent, followed by Cleveland with 5.7 percent and Hartford, Conn., with 5.9 percent.
“Southern cities may be attracting investors due to low prices and growing populations,” said Lending Tree Chief Economist Tendayi Kapfidze. “Many residents in Southern cities may not be able to access home ownership due to lower median salaries, creating a ready pool of renters. In the West, the opportunity for rapid price appreciation is likely attracting investors. But high prices also suppress homeownership, creating a pool of renters.”
Kapfidze added Northeastern and Midwestern markets with affordable homes means “the opportunity to be a homeowner is high and less appreciation attracts less investors. The homeownership rate in the top 10 cities is an average 59 percent compared with just 67 percent in the bottom 10. Even Detroit, a city often cited as having a challenging housing market, has a homeownership rate above all the top 10 cities.”