We’ve all witnessed the craze with real estate properties. Property buyers want bigger, more high-end properties, and kitchen counters bedazzled with marble countertops. Is this what real estate has become all about? Let’s take America’s most expensive zip codes and compare them with affordable real estate markets and properties to find out what works best for you as a property buyer and real estate investor.
To be precise, real estate taste has developed greatly over the years. That includes the relative definition of functionality. In other words, what was considered functional a few decades ago can be described as basic and bland now.
Let’s take you, the property buyer/real estate investor, on a trip around the US real estate market to find what appeals to your taste and needs.
America’s Most Expensive Zip Codes vs. Affordable Real Estate
Assuming that you have your appetite ready for beautiful and remarkable real estate, let’s dive right into it.
America’s Most Expensive Zip Codes and Real Estate Markets
Aspen, CO – 81611
We begin our list with the rocky mountain destination of Colorado. Real estate prices are not shy of skyrocketing. Not to forget the high-end restaurants and boutiques that shape this cold city in Colorado into one of the most expensive zip codes in the US real estate market.
If you’ve ever taken the time to visit Aspen, you’ll see the remarkable and worthy Aspen real estate. Many areas are littered with giant ski houses and vacation home rentals. A vacation home rental or an Airbnb rental would be ideal with Aspen real estate. Here are some stats provided by Mashvisor’s investment property calculator to help you grasp the giant Aspen real estate really is:
- Airbnb rental income: $4,681
- Median property price: $2,008,494
- Average Airbnb cap rate: 1.41%
- Average traditional cap rate: 4.91%
As can be seen, buying an investment property in such a high-end location can be very lucrative as a real estate investment. If you’re going to buy an investment property in Aspen as a rental property, you have the freedom to rent it out as an Airbnb rental or a traditional rental. If you’re interested in vacation rental investing, read this blog post: Vacation Home Rentals: The Future of Real Estate Investing.
Beverley Hills, CA – 90210
The infamous 90210 zip code. Beverly Hills is the home of the wealthy. It’s only befitting that real estate prices are just as large as the people who reside in them. From celebrities to self-made millionaires, the exclusive zip code ranks among the most expensive zip codes in the US real estate market. Here are some stats extracted from Mashvisor’s investment property calculator:
- Airbnb rental income: $3,060
- Traditional rental income: $4,921
- Median property price: $1,880,715
Beverly Hills real estate may be the perfect residence or property for a celebrity, but it is not the best real estate investment. That being said, properties there are inflated due to the concentration of high-end properties and high-profile residents.
Palo Alto, CA – 94306
It’s no surprise that California hosts America’s most expensive zip codes and real estate markets. Palo Alto is a Silicon Valley haven with skyrocketing real estate prices. Also, it’s the home of Stanford University. The Palo Alto real estate market is considered among the top in the country. You can find single-family properties and multi-family properties but at a higher price than you’d anticipate elsewhere. To better grasp the real estate giant that Palo Alto really is, check out these stats:
- Airbnb rental income: $5,075
- Traditional rental income: $4,197
- Median property price: $1,858,607
Atherton, CA – 94027
Atherton is a town littered with stunning real estate in the California countryside. Real estate prices are known to be high and unaffordable even though the town is not the big metropolitan type. According to Mashvisor’s investment property calculator, here are some stats to understand the exclusivity of this real estate market:
- Airbnb rental income: $2,364
- Traditional rental income: $5,405
- Median property price: $1,892,200
With property prices so high, investing in such a saturated real estate market is not worthy of real estate investors’ pursuit of wealth. However, if you have a sustainable income and you’re in the 10th percentile, you’ll enjoy owning real estate and living there.
America’s Most Affordable Real Estate Markets
Rochester, NY
Rochester City real estate is taking the lead in affordable real estate. Located on Lake Ontario in upstate New York, many tourist attractions take the city of Rochester as a home. Additionally, the affordable real estate makes it a great spot to settle down and raise a family, or even buy investment property in New York. To demonstrate the affordability of this unique real estate market, check out these stats derived from Mashvisor’s data:
- Airbnb rental income: $1,941
- Traditional rental income: $1,004
- Median property price: $203,502
- Average Airbnb cap rate: 2.38%
The Rochester real estate market is among the most affordable real estate markets within the US residential real estate market. Moreover, the market is getting more and more investor traffic. To find possible investment properties in Rochester, click here to make use of the 14-day free trial with Mashvisor’s property search tools.
Pittsburg, PA
Pittsburg takes another spot with its affordable real estate market. It was once the industrial capital of the country but now turned into a metropolitan area with a highly diversified demographic. This makes Pittsburg very suitable for real estate investments. If you’re a real estate investor looking for affordable real estate investments, look no further, my friend! Here are some stats to clarify the affordability of Pittsburg real estate:
- Airbnb rental income: $1,773
- Traditional rental income: $1,199
- Median property price: $292,917
- Average Airbnb cap rate: 2.37%
- Average traditional cap rate: 1.32%
The city is home to many real estate investors; there are many associations that encourage real estate investing. With Pittsburg real estate, property buyers are encouraged to buy apartments, condos, and townhouses to use as rental properties. If you’re looking for more information about rental property investing, read this blog post: Top 10 Characteristics of a Profitable Rental Property.
Oklahoma City, Ok
You do not hear of Oklahoma City much when talking about real estate investments. The city is growing, and the economy is the biggest proof of that. With more jobs and more population growth, it only makes sense that the real estate market will bloom along with it. Here are some Oklahoma City real estate stats to prove that Oklahoma City real estate is among the most affordable real estate markets in 2018:
- Airbnb rental income: $1,581
- Traditional rental income: $1,132
- Median property price: $274,084
- Average Airbnb cap rate: 5.12%
- Average traditional cap rate: 3.97%
The local housing market of Oklahoma City is favorable for real estate investments. Real estate investors are avidly investing in rental properties, both Airbnb rentals and traditional rentals. Basically, any rental strategy you choose will bring a major return on investment.
Indianapolis, IN
Last but not least, the city of Indianapolis makes it with our most affordable real estate markets of 2018. The low property prices and economic growth translate into a solid real estate investment market. Accordingly, making money in real estate is the choice of many professionals in Indianapolis. Here are some real estate stats that indicate it:
- Airbnb rental income: $1,986
- Traditional rental income: $1,098
- Median property price: $232,732
- Average Airbnb cap rate: 4.28%
- Average traditional cap rate: 1.9%
To find affordable real estate in Indianapolis’ market, read this blog post: Indianapolis Investment Properties: Why and Where to Find Them in 2018.
Comparing the most expensive zip codes to the most affordable real estate markets can give you a new perspective into affordable real estate. Whether you choose to invest in Aspen or Rochester, just make sure to understand the real estate comps that come along with it. Doing so will give you a major advantage over other property buyers. Don’t hesitate to invest today for tomorrow’s return on investment.
If you have any more insights on the topic, feel free to share them in the comments section below.
