Dothan’s growth leading to high renting prices
DOTHAN, Ala. (WTVY) - The Circle City is growing at a rapid rate and with it comes challenges for new residents to find housing.
A new study conducted by real estate experts at Agent Advice, shows real estate investors are filling that gap and making big bucks doing it.
It all comes down to simple math. Investors are taking advantage of low home prices and using those properties as rentals to make their money back fast.
According to the study, the average home value comes in around $166 thousand, yet, landlords on average are charging around $1550 a month, making one of the quickest returns on investment for qualified cities.
This means money quickly coming back to investors hands and quickly out of consumer pockets.
The main contributor? The growth of the city.
“We have amazing trails here and amazing amenities within the Dothan area that we can offer people from afar,” said Leah Gunn, communications coordinator of Dothan Housing Authority. “Of course, with the lower cost of living compared to the rest of the country, we’re going to continue to see an influx of individuals wanting to move here.”
The need for more housing in the area is driving rental prices up, a big benefit for investors aiming to make back their money quick.
“Your property is worth way more than it was a few years ago,” said Gunn. “With that, it’s wise to make those investments within your property to upkeep your home.”
As Dothan continues to grow physically, pockets are growing financially and more people will struggle to find affordable homes.
“The more that we attract developers, recruit landlords and attribute those units to programs like the housing choice voucher program, we will be able to meet those affordable housing and shortage needs,” said Gunn.
The bottom 10 cities, according to the study, are as follows:
The Dothan Housing Authority has applications for project based vouchers available on their website that could lead to affordable housing, but the waitlist could last months.
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