Top Locations What Are the Best States to Buy Real Estate in 2019? by Hamza Abdul-Samad December 28, 2018February 5, 2019 by Hamza Abdul-Samad December 28, 2018February 5, 2019 When buying a rental property, a real estate investor must consider carefully which state to invest in. States have different rental laws, for instance. Some are landlord-friendly states while others are not. The state’s economy and tourism industry also play a role in making money in real estate. All this being said, what are the best states to buy real estate in 2019? The three best states to buy real estate are Florida, California, and North Carolina. Florida The Sunshine State has consistently been one of the best states to invest in real estate since the ’08 market crash. Buying a rental property in Florida, for traditional or Airbnb investing, will remain a profitable investment in 2019. There are four main reasons why. For starters, Florida’s population, already situated as the third highest, is expected to increase. A lot of this growth is due to Florida’s robust economy. Florida’s economy is currently the fourth largest. It is expected to grow at the third highest rate in 2019. The state is also very affordable for real estate costs and overall cost of living. Finally, the state’s top-notch tourism industry is continuing to shatter new records. This will likely continue in the upcoming year. The combination of these factors places Florida as one of the best states to buy real estate. The best cities to invest in Florida are Orlando and Tampa. Orlando Median Property Price: $318,615 Price Per Square Foot: $172 Traditional Rental Income: $1,559 Cap Rate / Cash on Cash Return: 2% Airbnb Rental Income: $2,379 Cap Rate / Cash on Cash Return: 3% Occupancy Rate: 59% Tampa Median Property Price: $350,435 Price Per Square Foot: $187 Traditional Rental Income: $1,626 Cap Rate / Cash on Cash Return: 2% Airbnb Rental Income: $2,441 Cap Rate / Cash on Cash Return: 4% Occupancy Rate: 52% Both the Orlando and Tampa real estate markets are excellent places for making money in real estate. Despite their median property prices being higher than the $230,000 Florida median, they are inexpensive on the national level. They also have high averages for rental income and return on investment, ensuring positive cash flow real estate. Both cities are also expected to be a buyer’s market. Tourism is a huge factor for their Airbnb markets, particularly in the Orlando real estate market. It’s no wonder both Orlando and Tampa are among the top ten markets to watch for in 2019. See the list here: 10 Best Places to Invest in Real Estate in 2019 California The second of the best states to buy real estate is California. Despite its unaffordability, California remains one of the best states to invest in real estate. The key reason is its profitability. California markets are some of the most income-generating for both traditional and Airbnb investments. The state is generally a seller’s market, which allows sellers to make a high return on investment from a transaction. The Golden State’s renowned tech industry is also a trend expected to continue in 2019. California’s most well-known markets, such as San Francisco and Los Angeles, are no longer the best markets to watch for in 2019. Instead, San Jose, and more affordable markets such as Bakersfield, are taking the spotlight. San Jose Median Property Price: $973,046 Price Per Square Foot: $649 Traditional Rental Income: $3,156 Cap Rate / Cash on Cash Return: 1% Airbnb Rental Income: $4,035 Cap Rate / Cash on Cash Return: 2% Occupancy Rate: 58% Bakersfield Median Property Price: $317,573 Price Per Square Foot: $178 Traditional Rental Income: $1,477 Cap Rate / Cash on Cash Return: 2% Typical of the California housing market, which is among the best states to buy real estate, the San Jose and Bakersfield real estate market have high rental income averages. This provides ample opportunities for positive cash flow real estate. Both cities are among the top markets to keep an eye on in 2019, with San Jose mentioned in the annual PwC report and Bakersfield as the fourth highest in a Trulia report. The San Jose real estate market’s property prices remain high, as is expected of the Californian market. Bakersfield, however, is very affordable for the state. Want to find affordable properties in San Jose and any of the best states to buy real estate? Then click here to try out Mashvisor’s Heatmap Analysis Tool! Related: The Most Affordable Neighborhoods to Buy Property in the Most Expensive Cities North Carolina North Carolina is the final entry on our list of the best states to buy real estate in 2019. While it may be an unexpected candidate for best state to invest in rental property for some, North Carolina rightly belongs on the list. Many of North Carolina’s markets have a very bright forecast heading into 2019. Of the top ten cities to watch by the PwC report, three markets are in the North Carolina real estate market. North Carolina, like Florida, has a high population growth rate. It is 1.14 percent, which is well over the 0.07 national average. North Carolina is also one of the best states to buy real estate due to its affordability and strong economy. The best cities to invest in North Carolina are Raleigh and Charlotte. Related: Top US Markets in 2019: North Carolina Real Estate Market Raleigh Median Property Price: $425,912 Price Per Square Foot: $1,076 Traditional Rental Income: $1,505 Cap Rate / Cash on Cash Return: 1% Airbnb Rental Income: $2,283 Cap Rate / Cash on Cash Return: 3% Occupancy Rate: 59% Charlotte Median Property Price: $377,540 Price Per Square Foot: $181 Traditional Rental Income: $1,465 Cap Rate / Cash on Cash Return: 1% Airbnb Rental Income: $2,292 Cap Rate / Cash on Cash Return: 2% Occupancy Rate: 50% As with many cities in the best states to buy real estate, Raleigh and Charlotte are both affordable and lucrative. Both cities have strong economies, especially in the tech field, which influences high population growth. The two cities are also projected to have high appreciation in 2019 at 4 percent for Charlotte real estate and 3.9 percent for Raleigh real estate, according to a report from Realtor.com. Want to search for properties in the best states to buy real estate? Interested in learning where to invest in real estate in 2019? Click here to start your 14-day free trial with Mashvisor to use our rental property calculator! Start Your Investment Property Search! START FREE TRIAL AirbnbCaliforniaFloridaNorth CarolinaTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post How to Bounce Back After a Few Bad Airbnb Guest Reviews Next Post The Beginner’s Guide to Finding the Best Airbnb Property for Sale Related Posts The Top 15 Cities for Short-Term Rentals for Cap Rate What’s the Deal with Airbnb Joshua Tree? What’s Up with the Long Beach Real Estate Market 2018? 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