With the new year come new plans, new hopes, and new investments. Real estate markets change from year to year, and what could have been a very popular and lucrative investment market in 2017 may not be so popular in 2018, and so on. There is always a market depending on the real estate investment properties you decide to invest in. Depending on what type of real estate property you are looking to invest in, each city has an option for you. Emerging Trends in Real Estate takes a look at the annual real estate industry by focusing on surveys, interviews, and real estate market analysis. Here are some of the best real estate markets to invest in 2018 according to it:
Seattle is just about always on the top of the list of the best US housing markets to invest in, and it is again among the best real estate markets to invest in 2018. This is due to many reasons. One of them is population growth. Seattle’s population growth is twice the national rate. A booming population creates a need for more real estate properties, paving the way for Seattle’s booming and rising real estate market.
With a booming real estate market come higher property prices and more competition. Seattle housing market is definitely a seller’s market. Due to Seattle’s thriving economy, where the expected job growth in Seattle is 41 % compared to the national average of 36%, investors are able to afford the high real estate prices of Seattle real estate. The influx of new residents moving into the city paves the way for more real estate investment rental options, contributing to Seattle’s healthy economy and demanding the need for more real estate investment opportunities.
This trendy city is often overlooked by real estate investors. Austin remains one of the top cities for real estate investors because of its accessibility and affordability. This allows it be one of the best real estate markets to invest in 2018. In comparison to Seattle, Austin’s median home price range is a lot more affordable with a median starter home price starting at around $180,000, making Austin both a buyer’s market and a seller’s market. In Austin, you get a lot of bang for your buck. The affordability index is 148.1, while rent as percentage of household income is 19.9%. This is promising for real estate investors, and shows the current state of the Seattle real estate markets compared to the US housing market.
Austin is also ranked as one of the top green cities, paving the way for more innovative real estate practices. According to Emerging Trends in Real Estate, Austin’s local economy has no shortage of investor interest or available capital, making Austin a very desirable place and one of the best real estate markets to invest in 2018.
Salt Lake City
This beautiful scenic city is a gem for real estate investors. Now is the best time time to consider investing in a beautiful home in the Salt Lake City mountains.The cost of doing business in Salt Lake City is 88% of the national average and new businesses are popping up all around the city, creating job growth, and creating a need for new real estate properties. This makes Salt Lake City one of the best real estate markets to invest in 2018.
The five year disposable income growth for Salt Lake City is 1.7 times the national average, allowing real estate investors to comfortably invest in real estate properties, creating a positive cash flow and allowing investors to get the best return on investment.
This city probably comes as a surprise to many real estate investors, but it makes the list for many reasons. The town is surrounded by major universities, making it a prime location for real estate investors. The quaint town is very affordable for real estate investors, with housing affordability very strong at 173.5 %, meaning that an investor with a median income can afford a house priced at 173 % of the median home price. According to Realtor.com, Raleigh/Durham ranks 11th in the country with a 2.55% increase in home prices and an 8.95 percent increase in home sales for 2017. Although these statistics are for 2017, these trends are expected to continue for 2018. If you are a first time real estate investor, Raleigh/Durham is one of the best real estate markets to invest in 2018.
Dallas is one of the best real estate markets to invest in 2018 for various reasons. This hip trendy city has a very strong affordability index at 153.7, where those with a median income can afford a house that is priced at 173% of the median home price.
In addition, Dallas has ranked 1st in the commercial real estate market. New businesses, strip malls, and shopping centers have all helped Dallas achieve this ranking. Dallas will have whopping 87,000 new residents a year for the next five years, which is a 10.9% growth in population from ages 15-34 years. The boost in Dallas’s population has invited more and more multi-family buildings and multi-family homes to be built, making it a very desirable place for investors and renters alike.
This sunny city isn’t the first place that comes to mind when looking at real estate markets for investments. However, don’t underestimate the beautiful weather and thriving economy that have made Fort Lauderdale one of the best real estate markets to invest in 2018. The creation of new business is high, demanding new commercial real estate buildings.
If you decide to invest in real estate for the new year, check out these top cities for the best real estate markets to invest in 2018. Using an investment property calculator will help you narrow down your search immensely by providing you with a cash on cash return rate, cap rate, and other real estate metrics of return on investment that will optimize your return on your real estate investments. To make your property search easier, check out Mashvisor.com, where you can narrow down hundreds of real estate properties to choose the best real estate markets to invest in 2018.