Take a look at the fastest growing cities in the US for real estate investors to consider in 2020!
When it comes to choosing the best places to buy rental property, there are a number of metrics and trends that will help real estate investors find these locations. These trends include home prices, home sales, supply and demand, job market growth and unemployment rates, and population growth trends. The best real estate investments are found in cities with a positive mix of these trends. In other words, when doing a housing market analysis, you shouldn’t focus on one factor and ignore the rest. This is because a change in one of these factors can affect the rest as well.
For example, markets with affordable home prices are not always the best places to invest in real estate because they may not have a high demand for rental properties. Moreover, home prices may be falling in some areas due to the fact that the market’s economy and job market are declining. For a real estate investor, this means investment properties in these locations might not be able to generate a high rental income and positive cash flow. Of the above-mentioned trends that help in identifying the best places to invest in real estate, investors must pay attention to the population.
Read The Top 10 Fastest Growing Rental Markets in the US 2022 here.
Why Consider the Fastest Growing Cities in the US for Investing in Real Estate?
Money can’t tell you everything about how great an investment location is. Instead, you should look for cities where people are moving to in great numbers. Of course, we’re talking about the fastest growing cities in the US. When a city becomes popular and its population starts growing rapidly, this generally means the economy and employment rate is booming. The most populated cities typically have better job markets, better pay, and higher individual wealth. In turn, this does wondering in attracting new residents and demand for rental properties. Thus, these locations are considered hot housing markets in 2020.
We’re not saying that you should start looking for rental properties for sale in the largest us cities by population. What we’re saying is that you’ll find lucrative real estate investment opportunities in areas that have been experiencing a growing population over the past years. Research shows that millennials are leaving giant hubs like New York City and San Francisco and looking to live smaller, quieter cities. These up-and-coming markets are where you should start your investment property search. How do real estate investors find such cities? Well, there are a few ways to measure how fast a city is growing:
- Percentage of change year over year
- Percentage of change this decade
- Absolute change in population
To help, Mashvisor already did the research and analysis to provide a list of fastest growing cities in the US. For our analysis, we went with option two from the above. We looked at the most recent data according to the World Population Review to see how much have these cities grown since 2010. Moreover, we took a look at our own real estate data and predictive analytics for these cities to provide you with numbers you need to analyze the market and your potential return on investment. To learn more about Mashvisor and how we’ll help you make faster and smarter real estate investment decisions, click here!
Related: How to Choose a Real Estate Market to Invest In
What are the Fastest Growing Cities in the US in 2020?
#1 Irvine, California
- Population in 2020: 303,956
- Population Growth Rate: 43.12% since 2010
- Median Property Price: $1,036,092
- Price/Square Foot: $504
- Price to Rent Ratio: 26
- Traditional Rental Income: $3,377
- Airbnb Rental Income: $3,806
- Airbnb Occupancy Rate: 57%
#2 Kent, Washington
- Population in 2020: 131,730
- Population Growth Rate: 42.55% since 2010
- Median Property Price: $411,851
- Price/Square Foot: $258
- Price to Rent Ratio: 12
- Traditional Rental Income: $2,758
- Airbnb Rental Income: $2,834
- Airbnb Occupancy Rate: 55%
#3 Fort Myers, Florida
- Population in 2020: 88,732
- Population Growth Rate: 42.43% since 2010
- Median Property Price: $324,634
- Price/Square Foot: $168
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,505
- Airbnb Rental Income: $2,289
- Airbnb Occupancy Rate: 61%
#4 Bend, Oregon
- Population in 2020: 105,418
- Population Growth Rate: 37.55% since 2010
- Median Property Price: $657,227
- Price/Square Foot: $302
- Price to Rent Ratio: 30
- Traditional Rental Income: $1,774
- Airbnb Rental Income: $2,728
- Airbnb Occupancy Rate: 50%
#5 Round Rock, Texas
- Population in 2020: 134,255
- Population Growth Rate: 34.41% since 2010
- Median Property Price: $314,861
- Price/Square Foot: $147
- Price to Rent Ratio: 16
- Traditional Rental Income: $1,680
- Airbnb Rental Income: $2,615
- Airbnb Occupancy Rate: 55%
#6 Seattle, Washington
- Population in 2020: 783,137
- Population Growth Rate: 28.67% since 2010
- Median Property Price: $736,391
- Price/Square Foot: $502
- Price to Rent Ratio: 24
- Traditional Rental Income: $2,535
- Airbnb Rental Income: $2,305
- Airbnb Occupancy Rate: 55%
#7 Austin, Texas
- Population in 2020: 988,218
- Population Growth Rate: 25.03% since 2010
- Median Property Price: $636,014
- Price/Square Foot: $313
- Price to Rent Ratio: 26
- Traditional Rental Income: $2,021
- Airbnb Rental Income: $3,453
- Airbnb Occupancy Rate: 52%
#8 Concord, North Carolina
- Population in 2020: 98,842
- Population Growth Rate: 25.01% since 2010
- Median Property Price: $295,877
- Price/Square Foot: $140
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,410
- Airbnb Rental Income: $2,650
- Airbnb Occupancy Rate: 40%
#9 Denver, Colorado
- Population in 2020: 734,134
- Population Growth Rate: 22.32% since 2010
- Median Property Price: $495,514
- Price/Square Foot: $328
- Price to Rent Ratio: 2
- Traditional Rental Income: $1,910
- Airbnb Rental Income: $2,408
- Airbnb Occupancy Rate: 63%
#10 Miami, Florida
- Population in 2020: 734,134
- Population Growth Rate: 21.76% since 2010
- Median Property Price: $600,784
- Price/Square Foot: $370
- Price to Rent Ratio: 21
- Traditional Rental Income: $2,334
- Airbnb Rental Income: $3,330
- Airbnb Occupancy Rate: 53%
Final Words for Investors
Now that you have a list of fastest growing cities in the US for 2020, you probably have an idea of which market interests you most for real estate investing. However, remember to mind your due diligence and research the other above-mentioned real estate trends in your city of choice. Mashvisor can help you in this step as well. We offer investors a number of real estate investment tools that’ll turn a 3-month investment property search into just 15 minutes!
Related: 5 Best Real Estate Investment Tools for 2020
Among our tools, you’ll find a Real Estate Heatmap that allows you to analyze different areas and neighborhoods in the city according to metrics like listing price, cash on cash return, and occupancy rate. You’ll also find the Property Finder that provides you with a list of the best properties for sale in your market of choice, as well as the Property Marketplace which allows you to find off-market deals. Most importantly, Mashvisor provides a Rental Property Calculator that analyzes the profitability of any property you find whether on the platform or on your own, and whose address you enter.
To start searching for and analyzing homes for sale in the best cities for real estate investment in 2020 using these tools, start your 7-day free trial with Mashvisor now!
