As the real estate market is so wide and diverse, one of the questions that might appear to you, as a real estate investor, is the location. Where is the best real estate investment in the US?
When searching for the best locations to invest in real estate properties, you should consider many elements that need to exist in these locations in order to balance your risks and profits. What you mostly should look at is the population growth, job growth, and property price affordability. If a location meets all these three factors, it means that you have a very good chance of having the best real estate investment opportunity.
So, where are the hottest locations for the best real estate investment in the US right now?
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Best real estate investment: Florida
The Sunshine State made it on the top of the list for having 4 cities ranked as great places to invest in as the call on single family homes is rising. Here we are going to talk about the top three cities that are considered the best real estate investment locations in the US.
The first city for the best real estate investment opportunities in Florida is Orlando. This area is famous for its warm weather, nice beaches, green parks, and many other attractions. You can find fully renovated houses for less than $120,000. Many people are renting instead of buying, and as you expect, that causes rental rates to upraise by approximately 8% this year. Not to mention that property insurance and property taxes are low. Probably that is the very reason why many people choose to retire and buy homes there. Moreover, many others are looking for jobs, while students also want to live in a cheap and joyful area.
Recently Orlando has experienced a rapid growth in both population and jobs. The population has increased by 41% since the year 2000. Moreover, job opportunities are increasing by 4% every year.This is a great indicator that Orlando might be amongst the best real estate investment locations in the US.
The second city in Florida to make it to the list of best real estate investment locations is Tampa. What makes it a great area for investing in real estate is that this city offers some of the best health, financial, and educational services, in addition to other entertainment and touristic attractions. This makes it a great real estate investment location, especially for those real estate investors who are interested in short-term rentals. Moreover, this city’s job growth is peaking fast, and
the local economy is worth of $130 billion. The metro area that has been ranked as one of the top 20 fastest growing in the country. Even though Tampa is known for its high priced real estate properties, this does not mean that you cannot find a rental property for sale at an affordable price. Keep in mind that real estate investment properties in Tampa bring about great positive cash flow as well as cap rate and cash on cash return for their owners. In Tampa real estate investors can choose between long-term rentals and short-term rentals.
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In the third place comes Jacksonville. This area has a population of 1.3 million people, which continues to rise every year. Not to mention that it has grown by 20% in the last 10 years. This location is home for many top companies and has a very good health care system. On top of that, the living cost is below the national average, which makes it an attraction for visitors and others to live in. This makes Jacksonville one of the best real estate investment locations.
Here are some main Jacksonville real estate market statistics:
Median Sales Price: $154,000
Average Household Income: $48,143
Metro Population: 1.5 million
1-Year Job Growth Rate: 3.0%
5-Year Equity Growth Rate: 38.70%
5-Year Population Growth Rate: 9.60%
Best real estate investment: Pennsylvania
Pennsylvania is yet another state with one of the best real estate investment locations in the US.
Pittsburgh is the 22nd largest city in the country, hosting a population of 2.4 million and mostly known for its production of oil and natural gas. “The Steel City” is considered a home to many companies and investors. Its economy mostly depends on education, technologies, robots, health care, and recently film-making.
Maybe that’s why Pittsburgh is one of top 10 housing markets nationwide. This is in addition to affordable real estate property prices that range between $75,000 and $150,000. In recent years, real estate properties have experienced increased appreciation rates as well as better cash on cash return for real estate investors.
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Here are some more precise statistics about Pittsburgh:
Median Sales Price: $137,000
Average Rent Per Month: $1,140
Median Household Income: $36,000
Metro Population: 2.3 million
1-Year Job Growth Rate: 0.27%
5-Year Equity Growth Rate: 20.20%
5-Year Population Growth Rate: -0.63%
Best real estate investment: Alabama
Another state which emerges as an ideal location for the best real estate investment options is Alabama. Read below about the top cities here.
Huntsville and Montgomery
Huntsville is located in the south part of the state. It was established in 1811 and is probably most known for its space industry. Money Magazine has named it as “one of the nation’s most affordable cities”. The city is also known for its army and defense industry, besides space and technologies.
Montgomery, Alabama is known as one of the most important historic cities in the US. What makes this area alive is that it has 8 colleges and a university with more than 20,000 students. This makes it one of the best cities for investing in rental properties.
When real estate investors consider Huntsville and Montgomery, they should keep in mind their low property taxes and high rents. They are most beneficial for landlords and real estate investors who are interested in investing in rental properties.
Here are some statistics on Huntsville and Montgomery:
Current Median Home Price: $136,000
Median Rent Per Month: $995
1-Year Job Growth Rate: 1.10%
5-Year Equity Growth Rate: 4.60%
5-Year Population Growth Rate: 7.30%
When investing in real estate, you have to understand that the real estate market is all about location. Thus, consider the best real estate investment locations in the US based on all statistics that are provided online, and make sure that you take into consideration the type of real estate you want to invest in. If you want to invest in rental properties, then you might want to look for locations that have universities, for instance. So, just make sure you have your investment plans and strategies set and then you may begin looking for the best real estate investment locations.
Mashvisor will be of dispensable help in this endeavor with all the figures that it can provide on hundreds of locations across the US.