Are you considering moving to another city or looking to invest in real estate? Well, this might not be a bad idea at all. In fact, today’s housing market proves to be conducive to real estate investment. Factors such as job growth and population growth have impacted the economy as a whole and real estate in particular. These factors certainly make for strong real estate investment opportunities. This is because job growth will increase the pool of buyers and encourage new household formation. Population growth, in addition, will increase the demand for housing, as more people will need to secure a home. This is good for all parties: buyers and sellers as well as builders. Accompanied by a thorough research that includes using Mashvisor’s real estate investing tools, we are certain that you will come out happy as either a home owner or a real estate investor.
The three factors to consider when buying investment properties include job growth, population growth, and affordability. Recently, affordability has become of utmost importance, given the increasing prices of homes. Together, these three indicators, if growing, will create prosperous real estate investment opportunities. But where would these opportunities lie? What are the best prospect cities for buying and owning a rental property? What areas are best to own a home in? In many cities of the country, for example, buying a rental property seems to be a more plausible option for people, especially millennials and baby boomers. Importantly, in 2015 37% of the US population was renters. The appreciation of home prices has further incentivized people to opt to rent, which is a great opportunity for all real estate investors.
Related: Buying a Rental Property: Is It a Seller’s or a Buyer’s Market?
In the following section, we provide you with a list of the best cities for investment properties. We recommend that you always target mid-sized metropolitan cities that enjoy increasing population growth. More is explained below.
Orlando Is on the Top of the List of the Best Cities for Investment Properties
Seven of Florida’s cities last year rated among the best cities for investment properties. Orlando, in particular, remains to stand out the most. The increasing number of residents and tourists has made the city as vibrant as ever. The population has been growing at 7.3% over the past three years, reaching 3.3 million residents. Tourists have been coming to Orlando from all 50 states as well as from other countries. The city is attractive for many for its warm climate, beautiful beaches, and world famous amusement parks. Not to neglect that Orlando is home to Walt Disney World (DIS) and Universal Studios Florida (NBCU). Whether you are looking to invest in real estate or own a home, Orlando poses a big potential.
A large influx of young entrepreneurs, retirees, baby boomers, and millennials, and even students are finding Orlando attractive. The lively city along with the growth that it has seen in the job market and in the population size has also been encouraging.
Annual job growth, so to speak, reached 4.4% in 2017. While incomes are growing by about 1% a year, the unemployment rate went down to 4.5%. In fact, Orlando’s employment rate is one of the best in the United States. Everyone is finding a job here, thus creating more demand for real estate.
Related: Worst Places to Invest in Real Estate: Avoid These Cities
Dallas Comes Second among the Best Cities for Investment Properties
As large cities such as New York and Los Angeles are becoming overly crowded, a shift has been apparent towards mid-sized metropolitan cities such as Dallas. Dallas remains a hub for the tech sector and young entrepreneurs who want to unleash their business minds. The city’s robust infrastructure and excellent quality of life have created more demand in the housing market and boosted the real estate market activity. The fact that Dallas is home to Exxon Mobil and Dallas Cowboys has further out shined the city from others.
The city has enjoyed a 6.3% growth over the last three years and a 3.9% job growth in addition to 9% annual home price gains in the past year. With an average home price of $230,000, home prices are almost 4% higher than they were last year and 3% underpriced as compared to historical lows. Prices are forecast to increase by 31% by 2020. If you are looking for tenants with a job in the tech sector in a big city, Dallas is your destination.
Seattle Follows as One of the Best Cities for Investment Properties
One of the best cities for investment properties, although Seattle is already an expensive city, the increasing job and the population growth have promoted the city as one of the best cities for investment properties. Seattle is also a hub for the tech sector, as it hosts many global corporations such as Amazon.
The flourishing economy has further created more jobs, consequently aiding in an increase in income. Incomes are rising by 1% a year, further raising prices. The high-tech high paying jobs and the lack of construction contribute to an increase in the value of real estate, in particular. Although the high paying jobs are altering real estate value, they remain to pay for many of the single-family houses currently being sold. Demand for rentals is also apparent. Given the increasing prices of homes, residents are opting for rentals, which make up 40% of the city’s neighborhoods. Whether you are looking for a real estate property to own or rent, Seattle seems to be one of the best cities for investment properties out there.
Then, Nashville Is Another of the Best Cities for Investment Properties
The growing health care sector in Nashville has aided in increasing employment and income. Nashville, in fact, scores as the hottest real estate market in 2017. Among the fastest growing cities on the list, Nashville has had a 6% population growth over the last three years. Retirees select Nashville for its excellent healthcare, while young entrepreneurs choose Nashville for the vast work opportunities and quality of life the city offers. Demand for both rental housing and homeownership has been apparent and rising.
Income continues to rise by about 1% a year, while unemployment remains as low as 4%. Experts believe that real estate will appreciate by 4.3% in 2017. We recommend that you consider Nashville as a potential city for investment properties before it becomes too expensive.
And the Last of the Best Cities for Investment Properties is Atlanta
Atlanta is the third largest metropolitan in the Southeast. Its population of 5.6 million makes the city the largest in residents in our list, growing at 4.7% for the past couple of years. Higher than the national average, the job growth in Atlanta has been 2.7% since last year. In 2016, over 74,000 jobs were created in business services, healthcare, hotels, and retail. This has created more demand for rental housing.
Related: What You Should Know About Investment Properties in Atlanta
Furthermore, Atlanta scores best to invest in, given the affordability of home prices, the increasing population, and the amenities and attractions. Although home prices have risen over the past years, they remain to be 17% undervalued. Whether you are looking for a property to rent or own, Atlanta is one of the best cities for investment properties that you should further consider.
If you are planning to buy a real estate property in the US housing market, we recommend that you explore the aforementioned best cities for investment properties. As encouraging as the job market looks in all five cities, prices have been steadily increasing. We expect more incremental increase and further recommend that you invest today before you cannot afford it in the future. Assess each and every city from our list of best cities for investment properties, and begin investing today. Rest assured to enjoy positive cash flow gains or a memorable homey experience, if you follow our advice provided to you here. You can learn more about the real estate market by visiting Mashvisor.
