Top LocationsThe 5 Hottest Cities in the Midwest Real Estate Market in 2019 by Heba Baker February 17, 2019February 18, 2019 by Heba Baker February 17, 2019February 18, 2019It’s time you start investing in the right place- the Midwest real estate market. If you’re looking to invest your money in fairly priced income properties for a strong return on investment, investing in Midwest real estate is the way to go. Here’s exactly where to get started.Best Cities in the Midwest Real Estate Market 2019Get ready to find good investment opportunities in the Midwest housing market. Using data from Mashvisor’s investment property calculator, we’ve narrowed down your search for Midwest investment properties to five cities. Let’s get right into it.#1. Indianapolis, INMedian Property Price: $204,853Price per Square Foot: $97Price to Rent Ratio: 15Average Days on Market: 89Monthly Traditional Rental Income: $1,135Traditional Cash on Cash Return: 2%Monthly Airbnb Rental Income: $2,007Airbnb Cash on Cash Return: 4%Airbnb Occupancy Rate: 50%As one of Indiana’s wealthiest cities, Indianapolis is definitely a hot market to invest in this year. The low property prices matched with strong rental rates make for high cash on cash return for both rental strategies city-wide. Housing inventory is currently strong making it a buyer’s market. With home values expected to increase by 7 percent towards the end of the year, you’re going to want to invest now. And if you’re an Airbnb investor, you’ll be happy to know a bill was passed back in 2018 protecting short-term rental operators from any new state-wide regulations or bans.Related: 5 Reasons to Invest in the Indianapolis Real Estate Market 2019The Southdale neighborhood in Indianapolis is a great place to start your search for Airbnb rentals (12% average cap rate). Whereas the Mapleton-Fall Creek area is where to invest in real estate for Indianapolis traditional rentals (4% average cap rate).To start your search for Indianapolis investment properties in the Midwest real estate market, click here.#2. Columbus, OHMedian Property Price: $244,933Price per Square Foot: $130Price to Rent Ratio: 16Average Days on Market: 86Monthly Traditional Rental Income: $1,270Traditional Cash on Cash Return: 2%Monthly Airbnb Rental Income: $2,257Airbnb Cash on Cash Return: 4%Airbnb Occupancy Rate: 53%Columbus, OH is one of the hottest emerging real estate markets, not only in the Midwest but in the nation. And you’re definitely going to want to invest in it for 2019. Demand for housing is so strong that, while construction is increasing, inventory still remains low. Forbes reported last year that Columbus was a rare Midwest success story that has begun to grow again. Its success has not stopped and Columbus remains a hot market for investors in 2019, which is why it’s on our list for the best investment location in the Midwest real estate market.Related: Searching for Property in a Low-Inventory Real Estate Market: 6 TipsIf you’re planning on renting out a house on Airbnb in Columbus, make sure you’re licensed and get your permit from the city to avoid violation fees. Although there was talk of capping the number of days you can rent out your investment property, Columbus city officials have pulled back on that idea. There really aren’t any other strict regulations for short-term rentals in Columbus.According to our data, Airbnb rentals perform best in the Edgewood neighborhood (14% average cap rate). For traditional long term rentals, the numbers point to South Linden (5% average cap rate).To start your search for Columbus investment properties in the Midwest real estate market, click here.#3. St. Louis, MOMedian Property Price: $196,146Price per Square Foot: $111Price to Rent Ratio: 16Average Days on Market: 92Monthly Traditional Rental Income: $1,013Traditional Cash on Cash Return: 2%Monthly Airbnb Rental Income: $2,048Airbnb Cash on Cash Return: 5%Airbnb Occupancy Rate: 60%This is a city full of hidden gems in the Midwest real estate market. St. Louis is one of the best places to invest in real estate due to the affordability and stability of the market. Real estate investors just can’t help it, the returns are too good! Renters make up about 32 percent of the market, and this is only expected to increase as net migration of millennials towards affordable housing continues.In 2017, St. Louis was the top home sharing market in Missouri as a result of hosting about 88,000 guests through Airbnb. Now, in 2019, the city continues a good relationship with the company as they struck a deal for Airbnb to collect local taxes on all bookings in the city.The top-performing neighborhood in St. Louis for Airbnb rentals is currently Vandeventer (11% average cap rate). Long term rentals perform well in most neighborhoods, but the best is Cheltenham (9% average cap rate).To start your search for St. Louis investment properties in the Midwest real estate market, click here.#4. Minneapolis, MNMedian Property Price: $382,299Price per Square Foot: $225Price to Rent Ratio: 17Average Days on Market: 61Monthly Traditional Rental Income: $1,868Traditional Cash on Cash Return: 1%Monthly Airbnb Rental Income: $2,568Airbnb Cash on Cash Return: 2%Airbnb Occupancy Rate: 58%Yet another secret haven for real estate investors hidden in the Midwest real estate market is Minneapolis. It has one of the lowest vacancy rates in the entire country, and continues to prove to be a city full of stable and reliable real estate investments. You might not think so from the city-level numbers, but you should never judge a market without looking at it locally.Remember, finding high cap rate neighborhoods is always easy with Mashvisor’s tools, and we’ve found plenty for your Minneapolis investment in 2019. The Minneapolis neighborhood with the highest performing Airbnb rentals is Holland (14% average cap rate).Again whenever Airbnb is brought into the equation, you need to remember to check for any regulations in your city and neighborhood of choice. In Minneapolis, Airbnb hosts need to license their investment properties with the city.Related: Is Airbnb a Good Investment Considering All of the Regulations?Now if you’re planning on renting out your investment property traditionally (long term), we recommend the Bottineau neighborhood (8% average cap rate).To start your search for Minneapolis investment properties in the Midwest real estate market, click here.#5. Kansas City, MOMedian Property Price: $253,528Price to Rent Ratio: 18Average Days on Market: 104Monthly Traditional Rental Income: $1,186Traditional Cash on Cash Return: 1%Monthly Airbnb Rental Income: $2,061Airbnb Cash on Cash Return: 3%Airbnb Occupancy Rate: 53%Kansas City closes off the list for the best cities for investing in the Midwest real estate market 2019. It offers a great deal of opportunity to make passive income and long term equity growth is also likely. Rental rates are increasing in Kansas City and you can still find many affordable listings below the median property price stated above.Being one of the strongest housing markets this year, investing in Kansas City is how to make money in real estate in 2019. Sarritt Point is the top neighborhood for Airbnb rentals (12% average cap rate), whereas North India Mount is the place to invest for traditional long term rentals (7% average cap rate).To start your search for Kansas City investment properties in the Midwest real estate market, click here.Related: 3 Best Cities for Foreign Investors in US Real EstateIf you want to ensure you’re finding the best possible investments in your city of choice, sign up for a free account with Mashvisor and use our Property Finder Tool. Start Your Investment Property Search! START FREE TRIAL Columbus OHIndianapolis INKansas City MOMidwestMinneapolis MNSt. Louis MO 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post How Millennials Are Shaping the Vacation Rental Industry Next Post The Best Tips for Buying Rental Properties That You’ve Ever Heard Related Posts Less Competition Over Bay Area Real Estate: What Does This Mean for Investors? 20 Most Profitable Locations for Traditional Rentals in 2020: Cash on Cash Return Washington State Real Estate Market 2019: Invest in These Cities What Cap Rate for Rental Property Can You Expect in 2018? 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