Top Metros for Home Price Reductions

Real estate investment can be a marathon, not a sprint, and for Cedric, it was a journey of careful planning, calculated risks, and continuous learning. Alongside his wife Bea, Cedric has built a portfolio of four income-producing properties since 2017, evolving his strategy from a bold, sight-unseen purchase to a meticulously planned approach focused on cash flow and long-term appreciation. A Bold Beginning: Learning from a High-Risk First Step Cedric and his wife spent years considering real estate investment, poring over books and resources, before finally taking the plunge in 2017. Their very first transaction was an unconventional one: a tax sale auction. They purchased a property sight unseen, relying only on exterior photos available online. "We decided to hit the button and hit the gas pedal," Cedric recalls, describing the competitive bidding process. They won the auction, but the immediate thought was, "Okay, now what?" The property was in rough shape, requiring significant work. Adding to the challenge, they were living in a different state. After a 14-month process to secure a clear title, they sold the property for a profit of approximately $14,000, making a quick decision not to repeat that specific high-risk method. "It was definitely high risk," Cedric admits, acknowledging they "got lucky" that it worked out. This initial experience, though profitable, solidified their desire for a more traditional and manageable approach. Shifting Gears: Embracing Strategic Financing Following their initial, high-octane purchase, Cedric and his wife pivoted. They decided to leverage their existing knowledge from buying personal residences. Their second, third, and fourth properties, all purchased between January 2020 and February 2025, followed a more conventional path. Initially, they financed properties in their personal name through traditional, big bank lenders and directly with builders, then transferred ownership to their LLC. However, Cedric recognized the inefficiency of this multi-step process. He sought a direct solution, leading him to LendingOne. With LendingOne, Cedric was able to secure a DSCR loan, financing his fourth property entirely under his LLC from start to finish. This streamlined approach allows him to build his portfolio more efficiently. Today, all four of his properties are fully occupied rentals, managed by a dedicated property management company. Navigating Obstacles with Tenants Cedric has faced his share of challenges. The most significant occurred with a tenant in their first conventionally purchased property in 2020. After nine months of smooth sailing, the tenant became consistently late on payments. An eviction process was initiated, but the tenant caught up. However, the issue resurfaced three months later, eventually leading to the tenant moving out. While there was some minor damage, the relatively easy resolution was a "blessing." This experience prompted a shift in their tenant screening process. Cedric now meticulously tracks tenant history and targets individuals with a higher minimum credit score requirement. This adjustment has proven effective, leading to more consistent rent payments and fewer issues. Long-Term Vision to Scale Cedric, who recently retired, has clear long-term goals for his real estate investments. His short-term objective is to reach five properties in the next few years. Beyond that, he aims for the business to become self-sustaining. His strategy involves leveraging the equity from his existing properties as down payments for future acquisitions, aiming to grow his portfolio to at least 10 properties. This methodical expansion is designed to ensure continued cash flow and financial independence. Key Advice for Aspiring and Growing Investors Cedric offers four vital pieces of advice for those looking to get into or grow their real estate investment portfolio: Utilize a property management company: For handling day-to-day operations, rent collection, and eviction processes if needed. Timing is everything: Look to buy when the market is depressed, as he did during the onset of COVID-19 in 2020, which led to significant appreciation. Location, Location, Location: Focus on properties in good school districts (A-rated or 8/10+) and look for at least three-bedroom, two-bathroom layouts. Run the Numbers (Cash Flow is King!): Meticulously calculate all potential income against expenses (mortgage, insurance, HOA fees, property management) to ensure the property generates positive cash flow. He aims for at least a 20% gross profit margin to build cash reserves for repairs and maintain a healthy business bank account. A Smooth Lending Experience: The LendingOne Difference Cedric recounts a notably smooth experience with LendingOne, particularly compared to past interactions with other lenders. He found the process "smoother than I expected it to be," highlighting the ease of online document submission and the efficient communication with his loan officer, Edrony, and underwriter, Pierre. Cedric explained that working with LendingOne was straightforward: "I just went to the website, uploaded... talked with Edrony... supplied additional information... and everything worked out." He praised the entire process from application to closing as "100% fantastic." This positive feedback underscores LendingOne's commitment to efficient and client-focused service.

By and large, renters who remain in their homes longer signal more than just personal preference—they often indicate market stability, constrained supply, and a lower turnover rate. For real estate investors, that can translate into stronger cash flow, lower maintenance costs, and higher tenant reliability over time. According to a recent Redfin report, a third (33.6%) of U.S. renters have lived in the same home for at least five years, up from 28.4% a decade ago. On a regional level, however, the popularity of long-term rentership varies—often shaped by local affordability, supply constraints, and demographic trends. To better understand how renter stability is evolving, LendingOne analyzed Redfin’s historical tenure data to pinpoint the markets with both the largest current share of long-term renters and the most significant growth since 2013. Topline findings Inland California markets like Riverside, Stockton, and Bakersfield have seen long-term renter shares rise by over 15 percentage points since 2013. Midwest metros like Dayton and Grand Rapids are also seeing a rise in long-term rentership, driven by aging populations, affordability pressures, and limited supply. New York and Los Angeles have the highest share of renters staying 5+ years overall—driven by rent control, low turnover, and high ownership barriers that influence renters to stay put. Where long-term rentership is climbing the most In some markets, long-term renting has become the new normal. Specifically, California metros are seeing the biggest gains in long-term rentership due to a combination of housing shortages, rising home prices, and affordability pressures that make it harder for renters to move.  Limited new construction has further contributed to renters staying in place longer. In inland markets especially, these factors are locking tenants into longer stays—even as population and investor interest have grown. Long-term rentership gains popularity in 48 of the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the biggest percentage point jumps in long-term rentership from 2013 to 2023: Riverside, CA: +18.0% Stockton, CA: +16.7% Bakersfield, CA: +16.2% Sacramento, CA: +16.0% Oxnard, CA: +15.1% Fresno, CA: +14.9% Dayton, OH: +14.5% Las Vegas, NV: +13.5% New Orleans, LA: +11.2% Grand Rapids, MI: +11.1% The markets where long-term rentership is already the norm While some markets have seen the largest gains in long-term renters over the past decade, others already have a deeply rooted renter base. In these metros, renters staying five years or longer is the norm. These markets tend to share certain traits: older housing stock, tighter rental supply, and higher barriers to homeownership, whether due to pricing or lending challenges. For real estate investors, these markets may offer even more stability, with long-term tenants helping to ensure predictable income and lower turnover-related costs. However, investors in these markets should proceed with caution. While high-tenure markets offer predictable income and lower turnover, they can also come with drawbacks. Strict rent controls and regulatory hurdles in these areas may limit rent increases, while older housing stock can mean higher maintenance costs. Long-term rentership share in the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the largest share of long-term renters in 2023: New York, NY: 51.1% Los Angeles, CA: 47.8% Stockton, CA: 46.0% Springfield, MA: 43.7% Fresno, CA: 43.1% Riverside, CA: 42.8% New Haven, CT: 42.7% Oxnard, CA: 42.0% Allentown, PA: 40.8% San Francisco, CA: 40.5% Why national renter tenure is on the rise A growing number of renters are staying in place longer—not necessarily because they want to, but because moving has become more difficult. Affordability pressures are a significant driver. Home prices have surged since pre-pandemic, with the typical U.S. home price rising 49% from June 2019 to June 2025, according to LendingOne’s analysis of Zillow Home Value Index data. The result: many households are finding it harder to move, let alone transition into homeownership. Year-over-year shift in home prices across the 50 largest metro area housing markets In some regions, limited rental supply is also keeping turnover low, as tenants face fewer viable options when leases end. Additionally, an aging renter population and shifting lifestyle preferences are contributing to longer stays. Big Picture The rise in long-term rentership reflects a meaningful shift in the structure of the U.S. housing market. For many households, renting is no longer just a temporary phase—it’s a reality shaped by affordability constraints, demographic changes, and lifestyle preferences.  For investors, that shift presents both opportunities and risks. Markets with rising tenure may offer more predictable income, reduced turnover, and steadier occupancy. But they can also require longer-term strategies, especially in places with slower rent growth, tighter regulations, or an aging housing stock.

Real estate investors who locked in properties during the early years of the pandemic were rewarded with strong appreciation and, in many cases, growing rental income. But they weren’t immune to rising fixed costs—especially property taxes. Rapid home price growth during the Pandemic Housing Boom pushed up assessed values in many markets. Depending on location, those tax hikes may now be eating into operating margins and cash flow. To understand where investors are most impacted by property taxes—and where they can find the lowest rates—LendingOne analyzed the latest U.S. Census Bureau data to calculate the effective property tax rate, defined as median property taxes paid as a percentage of median home value, across hundreds of metros. Key Findings Rochester, NY has the highest effective property tax rate in the country at 2.45%, with other high-tax metros including Buffalo, Chicago, and Albany following, each with effective rates above 1.75%. Midwestern and Northeastern metros dominate the top of the list, where lower home values meet higher local tax rates. Florida metros have seen sharp increases in total tax bills, but their effective rates remain lower compared to older high-tax regions. Effective Property Tax Rate Among the largest 100 metros by occupied housing units, these ten had the highest effective property tax rates in 2023: Rochester, NY: 2.45% Chicago-Naperville-Elgin, IL-IN: 1.93% Buffalo-Cheektowaga, NY: 1.91% Albany-Schenectady-Troy, NY: 1.79% Laredo, TX: 1.64% Cleveland-Elyria, OH: 1.62% Syracuse, NY: 1.56% Scranton–Wilkes-Barre, PA: 1.55% Toledo, OH: 1.52% Milwaukee-Waukesha, WI: 1.50% In markets like Rochester and Buffalo, relatively affordable home prices can be appealing to investors—but high effective tax rates mean property taxes take a disproportionately large bite out of net operating income. Effective tax rate vs. tax bill growth: What matters for investors It’s important to distinguish between high effective tax rates and high (or fast-rising) tax bills. Several metros saw their effective property tax rates fall from 2019 to 2023 as home values rose faster than taxes paid. But the actual dollar outlay remains high. Atlantic City, NJ: down from 2.87% to 1.70% East Stroudsburg, PA: down from 2.36% to 1.44% Keene, NH: down from 2.63% to 1.84% Laredo, TX: down from 2.26% to 1.64% Lebanon-Claremont, NH-VT: down from 2.16% to 1.61% Despite the percentage drop, investors in these areas may still be paying more in absolute dollars—especially if they acquired property during the boom years. That’s because the effective tax rate is a ratio of taxes paid to property value—so if home prices surge but tax bills don’t rise at the same pace, the rate can decline while the actual amount owed increases.  For example, an investor who purchased a $250,000 home in 2020 that’s now assessed at $350,000 may face a larger tax bill, even if the effective rate has dropped from 2.2% to 1.8%. In other words, a falling effective tax rate doesn’t always translate to real savings—it can simply reflect rising home values outpacing reassessments. A high effective tax rate means a larger share of a property’s value is lost to taxes each year—an important metric for investors focused on cash flow yield, especially in lower-priced markets. A high or fast-growing tax bill can put pressure on out-of-pocket operating costs, even if the rate isn’t especially high. This is more common in fast-growing Sunbelt metros, where appreciation outpaced reassessments early in the pandemic. For investors, both can impact returns—but effective tax rate is the more stable, structural indicator of how burdensome local taxes really are. Effective tax rates in the largest 50 U.S. metros Florida metros are seeing rising tax burdens—but still lower rates Florida metros like Lakeland, Tampa, and Palm Bay have posted some of the biggest five-year increases in property tax bills, reflecting sharp home price growth and new assessments. But their effective rates remain modest relative to legacy metros. This nuance matters for investors. A market like Tampa may look affordable from a tax rate perspective, but investors entering at today’s prices should still factor in elevated tax bills as part of their underwriting. Median annual property taxes for the largest 40 U.S. metros The highest tax bills remain concentrated in expensive markets While effective tax rates highlight structural tax burdens, the biggest absolute tax bills are still found in high-priced coastal metros. New York-Newark-Jersey City, NY-NJ-PA: $9,615 San Jose-Sunnyvale-Santa Clara, CA: $9,553 Bridgeport-Stamford-Norwalk, CT: $8,840 San Francisco-Oakland-Berkeley, CA: $8,380 Austin-Round Rock-Georgetown, TX: $7,066 These metros aren’t necessarily effective tax rate outliers—but high assessed values push annual property tax payments well above the national average. Big Picture For real estate investors, property taxes are one of the largest recurring expenses—and a key driver of deal-level cash flow. Markets like Rochester, Chicago, and Buffalo have structurally high tax burdens relative to property value, making them especially important to underwrite carefully. Meanwhile, rising assessed values in markets like Florida are pushing up tax bills, even if the rate appears modest. The most successful investors in today’s market are those who go beyond surface-level affordability and dig into the real, local cost of ownership—and that means paying close attention to property taxes.