Along with the economic prosperity that the entire nation is blessed to have comes the skyrocketing real estate prices! If you look closely at each city with a high economic status, the real estate market reacts directly to accommodate that prosperity! With coastal regions like New York, Florida, California, and even Texas witnessing overall growth with industries, commerce, and technology, Midwest real estate rises to the occasion and tries to match significant states in generating a welcoming base for real estate investing!
Why invest in the Midwest?
You have to admit, there is a certain magnetism to living and investing in real estate in the Midwest. Here are some of the reasons to get you enthused about investing in the Midwest real estate market:
Affordability
One can notice the difference when going for a rental property in the Midwest. What $700 a month can get you in California, can get you a whole lot more in Kansas City. Many real estate investors are opting to go for Midwest real estate for that reason. Real estate prices are slowly appreciating while offering a great return on investment. Not to mention the cost of living that cannot be matched by metropolitan cities. If you’re looking to invest in an affordable real estate market for both the tenant and the landlord, then Midwest real estate is a great investment opportunity for you to snatch!
Simpler life and calmer living
Midwest real estate offers real estate investors the chance to invest in a calm place. It makes for the best places to live and raise a family and definitely among the best places to invest in real estate. Along with the simple life, the pressure on people to live a certain way decreases. In other words, expect to have happier tenants by investing in Midwest real estate.
Sustainable economic growth
It’s not your typical metropolitan city but it offers the essentials of jobs, products, and services. When comparing the economy of a city in Ohio to the economy of Miami, you can easily find the winner of that challenge. On the other hand, economic growth is present in the Midwest. Jobs are constantly created and more and more people are joining the real estate investing world by investing in Midwest real estate.
Lower costs than bigger bustling cities
When investing in real state in Midwest real estate, real estate investors find it easier and faster to start making money in real estate. Especially when factoring in the lower costs of real estate properties, taxes, maintenance, and even monthly groceries!
Midwest cities for real estate investing
Now, let’s head to the Midwest real estate market in search of cities favorable for real estate investments.
Kansas City, Missouri
When it comes to looking for the center of the real estate investment market in Missouri, one cannot overlook Kansas City! The city shows great potential for a high return on investment that comes with the constant population growth! The constant migration to Kansas City from nearby cities and towns is noticeable. Additionally, real estate investors are not afraid of investing in the area with regards to the low unemployment rate that Kansas City has managed to maintain. Let’s take a look at Mashvisor’s analytical data of Kansas City!
- Median Property Price: $196,174
- Airbnb Cap Rate: 3.59%
- Traditional Cap Rate: 1.78%
- Airbnb Rental Income: $2,124
- Traditional Rental Income: $1,084
You can easily notice that the Kansas City real estate market is favorable for new investments. Specifically, with an Airbnb cap rate of 3.59%, it makes perfect sense to buy an investment property as a short-term rental!
Looking to invest in Kansas City real estate? Read this blog post to get ahead: Kansas City Real Estate Market 2018: Invest Now! Here’s Why.
Chicago, Illinois
Chicago! The windy city that doesn’t stop even in the coldest of days! With a metro population of 9.5 million, the Chicago real estate market cannot be a sedated one! With job growth to match the economic growth, the city attracts residents year after year.
Accordingly, the Chicago real estate market is one of the most undervalued real estate markets in the country. One only needs to take a look to see the prosperity real estate is witnessing- crane after crate, after crane! And the building of brand new real estate investment properties goes on in Chicago.
Let’s take a look at Mashvisor’s analytical data for the windy city:
- Median Property Price: $446,566
- Airbnb Cap Rate: 1.11%
- Airbnb Rental Income: $2,713
- Traditional Rental Income: $1,955
Looking for Airbnb rentals with no offseason? Read this blog post: 7 Best Airbnb Locations with No Offseason for Real Estate Investing.
Cleveland, Ohio
Cleveland may not be the sexiest city on earth, but it has plenty to offer real estate investors! With plenty of real estate developments taking place in the central district, businesses and life are being brought back to the heart of Cleveland! Factor in all these variables and you’ll arrive at the conclusion that investing in Cleveland real estate is a smart real estate investment decision.
Among the many advantages of investing in Cleveland’s real estate market is its ability to harbor low-risk investments. The main reason for Cleveland’s real estate market being counted among growing Midwest real estate is the high occupancy rates that investment properties share! With a whopping 98% occupancy rate, it’s hard to say no to an investment property with such a steady influx of cash flow!
Let’s take a look at Cleveland’s real estate market statistics through Mashvisor:
- Median Property Price: $173,582
- Airbnb Cap Rate: 3.2%
- Traditional Cap Rate: 1.04%
- Airbnb Rental Income: $2,146
- Traditional Rental Income: $1,060
With affordability lighting up the city of Cleveland, real estate investors are going for both Airbnb rentals and traditional rentals.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Indianapolis, Indiana
Indianapolis is the second largest city in the Midwest with 2 million centered in the metro area! It only makes sense that it made it on the list of the best Midwest real estate markets. Additionally, Indianapolis has become home to 130 tech companies! Buy and hold is the go-to real estate investment strategy that most successful real estate investors go for in the Indianapolis real estate market.
Let’s cut straight to the chase and check out Indianapolis’ real estate data.
- Median Property Price: $228,292
- Airbnb Cap Rate: 4.75%
- Traditional Cap Rate: 2.11%
- Airbnb Rental Income: $2,162
- Traditional Rental Income: $1,146
The ability for real estate investors to invest in a booming real estate market where tech companies are located with such an affordable price is almost a steal! Making money in real estate with Midwest real estate has never been easier with Indianapolis!
Looking to invest in Indianapolis? Read this informative blog post: Indianapolis Investment Properties: Why and Where to Find Them in 2018.
Des Moines, Iowa
The city’s booming economy and growing population are constantly putting Des Moines among the hottest markets in the Midwest real estate market. The most successful real estate investors are expecting this Iowa housing market to keep going upward! Although real estate agents are always going on about the shift from a seller’s market and a buyer’s market, it’s not a possibility for the next few years. Let’s take a look at Des Moines real estate market data derived from Mashvisor’s investment property calculator.
- Median Property Price: $127,571
- Airbnb Cap Rate: 6.39%
- Airbnb Rental Income: $2,030
- Traditional Rental Income: $842
Cincinnati, Ohio
Cincinnati has always been associated with Dayton’s real estate market! It is the home of 10 of the Fortune 500. The real estate market is known for steady real estate appreciation and positive cash flow income properties.
Check out these real estate stats to get the full picture:
- Median Property Price: $248,057
- Airbnb Cap Rate: 3.47%
- Traditional Cap Rate: 1.77%
- Airbnb Rental Income: $1,983
- Traditional Rental Income: $1,172
Final thoughts
Midwest real estate is not a thing of the past! It’s what the future of real estate holds for real estate investors. Tapping into such markets can be lucrative for both the short haul and the long haul! So no hesitation is needed to invest in such markets, just a good real estate investment analysis and you’re set to go and start investing!
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If you have any more insights on the topic, please share them with us in the comments section!
