These Texas Cities Top Ranking of Best Rental Markets for Investors This Fall

Despite tight supply of homes for sale and high costs, some markets are thriving, according to a new ranking from real estate sales and auction company TenX. Notably, tenant demand and rental returns are high.

San Antonio, Fort Worth, and and Dallas stood out on the ranking as three of the top five cities attracting landlord investment, CNBC reports. Texas is experiencing solid growth in home construction and employment, though, the labor shortage intensified by Hurricane Harvey will reduce construction in the rest of the state, propping up rental demand and boosting housing prices.

"If you look at our report probably eight or nine of the top 20 markets in terms of housing performance are in either Texas or Florida," said Rick Sharga, executive vice president at TenX. "The Florida markets will be more directly impacted because Irma hit everything, but even in Texas, a lot of the construction and labor and materials and so forth that's been going to build new properties in Dallas and Fort Worth and San Antonio might get diverted to rebuild Houston, and that could have a noticeable impact on home sales and home starts over the next six to nine months."

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