A lot of investors are captivated by real estate because of the advantage of recurring income. While it is an appealing investment, you ought to know the best places to invest in because the market dynamics vary from city to city, depending on the state they are located in.
In-depth research about different factors about a certain city will save you headaches later trying to figure out things after making the investment. This post will help you learn some of the best cities you will need to look into as a real estate investor.
Here are Best Cities for Real Estate Investors to Look Into:
1. Boise, Idaho
Home prices in this city keep on increasing thanks to the supply and demand. It is definitely a suitable location for real estate investors since it has remained on the list of long term real estate investments in the country. Even during the 2020 coronavirus pandemic, the home prices in Boise have remained high.
Job opportunities and population in Boise have grown three-fold the national average. It has an unemployment rate of 3.5% and the cost of conducting business is incredibly low. So there is an opportunity for real estate investors to grow their business. In fact, Forbes ranked it sixth for cities with the highest job growth.
2. Atlanta, Georgia
In the past 10 years, the population in Atlanta has exceeded a 14% growth. The increasing population is one of the reasons why the demand for more housing in the city is equally growing.
Any thriving real estate market has soaring employment opportunities and population, which are all evident in Atlanta. The median rental price per month is $1,500 and there is an expected appreciation of 9.3% in the next three years.
3. Sacramento, California
The median annual rent in Sacramento is $15,720, and the median home value is $358,300. This is one of the factors which make Sacramento appealing for real estate investors, as the price-to-rent ratio is 22.79. In fact, it is the most sought-after city for people moving from the San Fransisco Bay looking for a more affordable place to live in. As a result, 24% of Bay Area residents move to Sacramento.
4. Orlando, Florida
A 3.46% increase in jobs every year has contributed significantly to the thriving economy of Orlando. Rent and population growth have also grown remarkably over the years. The strategic location of Orlando, in the central part of the Sun Belt region, the city is a hotspot for tourists and migrating retirees. In 2019, Forbes ranked Orlando first in their list of the best places to buy a second home.
Up-to-date, the metropolitan area has still been thriving. The job growth rate is at 3.46% while the home value index is $238,900. The year-over-year home price and rent growth rates are 7.5% and 6.78% respectively.
5. Houston, Texas
Houston has a population of around 7 million and a home value index of $205,600. The city has continued to grow, with the population rising up to twice as much as the population rate in the country. In fact, Houston is the fifth largest metro area in the country.
The economic growth rate is always multiplying, as well as the employment rate, as a result of the fact that the city is business-friendly. The year on year rent growth is at 1.92% while the forecasted annual home price growth is 1.6%.
6. Las Vegas, Nevada
The real estate market in Las Vegas is not only stable but also predictable, and this makes it one of the best places to invest in. In 2019, its real estate market was the hottest in the country. The business-friendly environment has propelled the Las Vegas economy forward, which is one of the contributing factors to the low unemployment rate of 3.5%. The population increase is also steady, currently at 2,699,000, and with a diversified economy, the employment rate is high.
Another contributing aspect to the thriving economy of Las Vegas is the no-tax regulations for corporations and individuals. As well, there are no other business-related taxes in the city, which makes it easy to start and grow businesses.
7. Boca Raton, Florida
The Boca Raton real estate market is thriving and the good thing is that it is diverse, so whether you are looking to invest in villas, single-family homes, townhouses, or condos, the opportunities are endless. The median list price is $254,350 while the average days on market for properties is 131. The real estate market trends are healthy and quite attractive, in fact, the property prices in the whole of South Florida are constantly increasing.
8. Cincinnati, Ohio
Cincinnati is one of the most affordable places to invest in real estate with home prices lower than the national average by 25.1%. A swelling job growth rate of 2.31% and a low employment rate of 2,9% makes Cincinnati a target by many real estate investors. Cincinnati’s home value index stands at $169,900 while the gross rent multiplier is at 10.60.
9. Chicago, Illinois
Chicago comes third in the biggest metropolitan areas in the US. The real estate market is stable, the economy is flourishing and the population is massive. Chicago was considered the best in 2018 by Time Out City Index, and over 50% of its inhabitant’s rents. On many occasions, Chicago has been rated the city with the most-balanced economy.
From affordability of the real estate properties in the city to constantly increasing rent prices and $1,761 median rent per month, Chicago is among the top cities for real estate investment.
Whether you are looking to diversify your real estate investments or you are new in the market and looking to make a new investment, you would never run out of options. Depending on your budget, your investment goals, and preferences, the above cities are locations worth looking into.
Real estate investing shouldn’t be a rush decision, research about the area you are about to invest in, and make sure you familiarize yourself with all the important aspects of real estate investment.