Cities with the highest proportion of non–owner-occupied properties are most likely to be found in the South or West, according to a new analysis from the online lender LendingTree.
“Southern cities may be attracting investors due to low prices and growing populations,” the report notes. Also, some “residents in Southern cities may not be able to access homeownership due to lower median salaries, creating a ready pool of renters.”
The report notes that rapid price appreciation in the West likely is the big pull for investors there. The higher home prices also may be creating a bigger pool of renters.
LendingTree analysts ranked the top 50 metros by the share of non–owner-occupied loans. Non–owner-occupied properties are either vacation homes, investment homes, or second homes.
The following cities had the most non-owner-occupied mortgages:
1. Oklahoma City
- Share of Non–Owner-Occupied Mortgages: 15.4%
- Non–Owner-Occupied Average Loan Size: $193,000
- Owner-Occupied Average Loan Size: $182,000
2. Philadelphia
- Share of Non–Owner-Occupied Mortgages: 14.6%
- Non–Owner-Occupied Average Loan Size: $245,000
- Owner-Occupied Average Loan Size: $225,000
3. Memphis, Tenn.
- Share of Non–Owner-Occupied Mortgages: 14.6%
- Non–Owner-Occupied Average Loan Size: $126,000
- Owner-Occupied Average Loan Size: $192,000
Meanwhile, the cities with the fewest non–owner occupied mortgages were Detroit (the share of non–owner-occupied mortgages there is 5.2%), followed by Cleveland (5.7%) and Hartford, Conn. (5.9%).
Source: LendingTree
