What are some of the hottest real estate markets 2018 in the US? We have compiled a list of some of the hottest real estate markets 2018 in the US based on their performance, property prices, rental rates, and projected returns.
These real estate markets have been performing extremely well, and they are expected to grow even further due to the low unemployment rates, increasing populations, growing economies, and the strong job opportunities. The cities on this list of the hottest real estate markets 2018 all have shown a steady income growth, and home values in them are rising along with their rental prices, making them great choices for a location to buy investment properties.
Related: How to Narrow Down Choices During an Investment Property Search
Hottest Real Estate Markets 2018
1. Dallas, Texas
Dallas investment properties and Texas real estate in general usually are and should be in the back of every investor’s mind. Dallas combined effect of a high population growth (twice the national level), a strong economy of high-tech sectors, and expanding job market has made Dallas real estate investments attractive with excellent opportunities for real estate investors.
In spite of the fact that it is a seller’s market, now is the time for investing in Dallas real estate. Real estate prices are expected to rise in the future, which means that current prices are as affordable as they will get, at least in the medium term. The time is also good to become a landlord in Dallas. Rents are relatively high compared to home prices, bringing good positive returns for real estate investors, especially for single-family homes.
Currently half of Dallas County households are renters. The number of people seeking to rent a property in Dallas will continue to increase as the local population is not enough to cover all newly created job places and as millennials prefer to rent first before buying their own home. This has lead to Dallas being one of the most prominent and hottest real estate markets 2018.
Here are our stats for Dallas real estate market performance:
- Median Property Price: $360,472
- Average Rental Income: $824 Airbnb Rentals | $1,981 Traditional Rentals
- Average Cap Rate: 1.37% Airbnb Rentals | 2.44% Traditional Rentals
- Average Airbnb Occupancy Rate: 30%
- Median Household Income: $63,812
- Real Estate Market Growth Forecast: 4.7%
2. Portland, Oregon
There isn’t much to say about Portland’s real estate market. Portland is one of the hottest real estate markets 2018 in the US for a variety of reasons that apply to most other housing markets on this list. A growing jobs market, affordable home prices, and high rental rates are among the top reasons that make Portland one of the hottest real estate markets 2018.
Here are our stats for Portland’s real estate market performance:
- Median Property Price: $490,674
- Average Rental Income: $1,237 Airbnb Rentals | $2,040 Traditional Rentals
- Average Cap Rate: 1.36% Airbnb Rentals | 2.03% Traditional Rentals
- Average Airbnb Occupancy Rate: 45%
- Median Household Income: $68,676
- Real Estate Market Growth Forecast: 3.7%
Related: 5 Ways to Find an Investment Property
3. Nashville, Tennessee
Nashville has seen a growth in employment in the past year due to a series of construction projects that helped the industry grow. Despite the new construction and increasing home prices, local homes have continued to stay affordable. The population is growing more than double the US rate. Single-family homes are growing the most and would most likely be the optimal choice for investment properties.
The number of closings in 2016 increased by 10%, which explains the low property inventory, which is unusual for this city. Nashville has been listed as the third hottest housing market in the country, after Seattle and Portland, which should comfort those investing in Nashville real estate. If you are considering buying investment properties, watch the mortgage rates carefully as they rose in Nashville post the 2016 presidential election.
Some perks to investing in Nashville real estate include affordable home prices, no personal income tax, high employment rate, and the low cost of living. These reasons led Nashville to make it on this list of the hottest real estate markets 2018.
Here are our stats for Nashville’s real estate market performance:
- Median Property Price: $453,668
- Average Rental Income: $2,963 Airbnb Rentals | $1,833 Traditional Rentals
- Average Cap Rate: 6.14% Airbnb Rentals | 2.85% Traditional Rentals
- Average Airbnb Occupancy Rate: 49%
- Median Household Income: $60,030
- Real Estate Market Growth Forecast: 3.8%
4. Denver, Colorado
One of the best places to invest in real estate is Denver. The city’s real estate doesn’t usually receive a lot of attention, but the market is actually a hidden gem. The year-over-year home value appreciation is 10.7%, which is the 4th highest in the US. The demand for housing does not exceed the supply by a great deal. While there is a lack of property inventory, Denver is seeing some construction of new properties.
Denver’s economy and population are growing. Denver’s population is a highly educated one, consisting of mainly young entrepreneurs and millennials who are moving to the city in search of job opportunities and, you guessed it, rental properties. The latest job growth is occurring in healthcare and universities, which are the new source of employment for the Denver population. There’s been a recent boom in the tech and energy industries, which has created jobs for a large number of people, meaning more tenants for residential investment properties.
For these reasons, Denver is our next pick for the hottest real estate markets 2018 in the US.
Here are our stats for Denver’s real estate market performance:
- Median Property Price: $435,906
- Average Rental Income: $1,679 Airbnb Rentals | $2,117 Traditional Rentals
- Average Cap Rate: 3.13% Airbnb Rentals | 3.08% Traditional Rentals
- Average Airbnb Occupancy Rate: 51%
- Median Household Income: $71,926
- Real Estate Market Growth Forecast: 3%
Related: What’s a Good Cap Rate for Real Estate Investments?
5. Austin, Texas
Real estate investing in Austin just makes sense because of the growing population and popularity of the area. The University and increasing young business population have created a huge demand for housing and a great incentive to own an investment property in this city. The diverse job industries make Austin a favorable location for all generations.
Despite the city’s growth and slightly overpriced homes, Austin’s home prices are still comparatively cheaper than other big cities. Texas, in general, provides advantages as a real estate market because it is a cheaper state, with cheaper land, and building permits are granted more quickly than in other states.
Real estate market analysis showed Austin ranked No. 1 for development, No. 2 for home building, and No. 4 for investing in 2015. While all property types make for good investment properties, single-family homes are the most favored ones. Forbes also reported that Austin was one of the best cities for real estate investing in 2016.
For those reasons, we consider Austin to be one of the hottest real estate markets 2018.
Here are our stats for Austin’s real estate market performance:
- Median Property Price: $469,334
- Average Rental Income: $1,307 Airbnb Rentals | $2,189 Traditional Rentals
- Average Cap Rate: 0.7% Airbnb Rentals | 2.07% Traditional Rentals
- Average Airbnb Occupancy Rate: 25%
- Median Household Income: $71,000
- Real Estate Market Growth Forecast: 3.3%
Bottom Line
These are some of the hottest real estate markets 2018 in the US. If you’re a real estate investor and are looking for your next investment opportunity, these cities offer some of the best opportunities for investing, and they will result in the highest return on investment.
Are you struggling to find good investment properties? Head over to Mashvisor and use our property search tools to find the best investment properties anywhere in the US based on accurate readings and projections.