Harrisburg Investment Property for Sale - 2023 Rental Home Appreciation
The Harrisburg real estate market may not have made the National Association of Realtors 2022 Hidden Gems list, but it could have. Here's why. Harrisburg offers affordability, demand, growth, and a stable economy. The opportunity presented in the Harrisburg market has created a lot of competition that's also driving home values up. Most Harrisburg homes are on the market just five days before they receive an offer.
Real estate investors looking for an affordable market with a lot of potential should consider investing in a Harrisburg rental property.
Harrisburg's Attractive Housing Market
Harrisburg is in Central PA along the shores of the Susquehanna River. It's just 100 miles northwest of Philadelphia and 170 miles southwest of New York City. Aside from its ideal location, Harrisburg is known for its history and vibrant community.
Real estate investors can find nearly every property type in Harrisburg's homes for sale. They include everything from foreclosures to turnkey investment properties. Whether you're looking to invest in a single-family home or a multi-family home, Harrisburg has something for you.
The Harrisburg area is home to many great suburbs for investors to consider. They include Carlisle, Hershey, Lebanon, Middletown, and York.
- Carlisle: Carlisle is located 23 miles southwest of Harrisburg along I-81. It's known for its tree-lined streets, history, and small-town feel. The median listing price in Carlisle is $158/sqft, and the median sales price is $319,000. The median rent is $2,130/month.
- Hershey: Hershey is located 15 miles east of Harrisburg along US-322. It's home to Hershey's Chocolate and is known as a family-friendly community. The median listing price in Hershey is $166/sqft, and the median sales price is $382,300. The median rent is $1,900/month.
- Lebanon: Lebanon is located 33 miles east of Harrisburg along I-81. It's a family-friendly community known for its low crime, low divorce rates, and short commutes. The median listing price in Lebanon is $142/sqft, and the median sales price is $249,900. The median rent is $1,250/month.
- Middletown: Middletown is located 13 miles southeast of Harrisburg via I-83 along the Susquehanna River. It's known for its rich history and excellent schools. The median listing price in Middletown is $136/sqft, and the median sales price is $204,900. The median rent is $1,250/month.
- York: York is located 26 miles south of Harrisburg along I-83. York acted as the first capital of the U.S. because it's where the Articles of Confederation were written. The median listing price in York is $131/sqft, and the median sales price is $239,900. The median rent is $1,270/month.
A few other neighborhoods and suburbs worth noting are Allentown, known for its Pennsylvania Dutch history and gorgeous parks; Camp Hill, known for its annual Plein Air Arts Festival; Lemoyne, the "little town that has it all;" Midtown, a historic neighborhood that's home to the Pennsylvania Governor's Mansion and Broad Street Market; New Cumberland, located between Harrisburg and York; Steelton, home to the first steel mill in the U.S.; and Uptown, a beautiful historic district.
Rental Home Appreciation in Harrisburg
Harrisburg is an affordable real estate market with high demand for rental properties.
According to Realtor, the median listing price in Harrisburg is $120 per square foot with a median sale price of $200,000. Zillow's Home Value Index reports a 14.9% change since last year. The median rent in Harrisburg is $1,640 per month.
Harrisburg's robust rental market generates a lot of demand for rental properties. Nearly half (49%) of households in Harrisburg are occupied by renters, and the city has a vacancy rate of 4.9%. With numbers like these, a Harrisburg rental property has the potential to yield significant returns for real estate investors and property management companies.
Economic Growth in Harrisburg
Harrisburg is the capital of Pennsylvania and the seat of Dauphin County. It's the tenth most populated city in PA, growing at a rate of 1.45% each year.
Harrisburg's primary industries are government, healthcare, and manufacturing. The largest employers are the State of Pennsylvania, Hershey Foods, Highmark Blue Shield, and Tyco Electronics Corp. The Harrisburg area is also the headquarters of Hershey Foods and Rite Aid. These employers provide jobs and stability for the city's economy. In fact, the unemployment rate is just 4.5%.
The Harrisburg real estate market offers homeowners and real estate investors affordability, demand, and a stable economy. A Harrisburg property investment provides a lot of opportunity for anyone looking to increase their cash flow through rental income.
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