Why Invest in Wyoming Real Estate?
With a population just under 600,000, Wyoming is currently rated as the second most sparsely populated state in the U.S. But considering its high rate of economic growth, no income tax, low property taxes, clean air - coupled with low crimes and unemployment rates - the state is currently experiencing a population growth rate of 1.13%, which is ranked 15 amongst all 50 states. Obviously, many people are moving to Wyoming, and they all need a place to call home.
The Equality State’s economy is driven by diverse industries including manufacturing, agriculture, tourism as well as mining and extraction. Tourism generates more than $2 billion in annual revenues, and employs 12% of the state’s labor force. Manufacturing also provides $1.2 billion to the state’s economy. Steady jobs, coupled with a vibrant economy that is attracting a skilled labor force, has made this small state a real estate market worth exploring.
Investment Considerations for Wyoming Real Estate
There are a number of factors to consider, including:
- Tax-friendly for retirees - Wyoming’s retirement taxes are some of the lowest in the country. All forms of retirement incomes are tax-free, including Social Security income and withdrawals from retirement accounts. Private and public pensions are tax-free as well. The state taxes wages at normal rates, while the marginal state tax rate is 0%. This tax-friendliness is attractive to retirees and veterans, and is fueling demand for both home purchases and rental properties.
- Low property taxes - Wyoming’s average property tax rate is well below the national average, and ranks 10 lowest across the country. What’s more, the state’s average effective property tax rate is 0.61%, which is eighth lowest in the country, and well below the national average of 1.19%. State and local sales taxes are also lower than the national average, and there are no estate or inheritance taxes either. When combined, this has helped to create a real estate market that’s more affordable than many other areas in the country.
- Rising home values - The median home value in Wyoming is above the national average, and the state’s homes values have increased by 5.0% over the past year alone. They are expected to grow by another 1.4% in 2019. Wyoming has a 1.3% mortgage delinquency rate, which is lower than the national average of 1.6%.
- Rental market opportunities - Median rent prices in Wyoming are slightly above the national average, and renters make up 26.1% of Wyoming’s population. The state’s rental vacancy rate is 10.83%, which is well above the national average of 5.89%, and 15% of both houses and apartments are unoccupied. Wyoming’s median gross rent increased by 1.69% over the course of the past year, which is lower than the national average.
What are the Best Markets to Invest in Wyoming
Cheyenne is one the leading real estate markets in Wyoming. Even with a population that is slightly above 62,000, the median home value is higher than the national average. Home values have increased by 11.3% over the past year and are expected to rise by 2.2% in 2019. The median rent price in Cheyenne is higher than the national average, and the mortgage delinquency rate is just 1.1%, which is below the national average of 1.6%.
Other real estate markets in Wyoming worth considering are Fox Farm-college, Warren AFB, and Hillsdale. All three areas have lots of local amenities, a low cost of living, low crime rates and vibrant economies, which makes them coveted areas where real estate investors stands a better chance of getting a higher ROI in rental properties.
INVESTimate® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Wyoming; and across the United States and calculate home values RENTestimate for every property in Wyoming. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.