The Top Southern Cities to Invest In

IT’S ABOUT TIME YOU INVESTED IN SOME SOUTHERN SENSIBILITY . There is something about the South that keeps us coming back. Between the friendliness and the charm, the rich food, the music scene, and everything from the mountains to the beach, it’s a jewel within American culture. We’ve all left the South having indulged in a few too many fried foods (deep-fried Oreos, am I right?), a suit-case full of antiques we never knew we needed, and an accent that we swear we had before.

As rich as the south is, it’s no surprise that it’s also ripe for real estate investing. With many cities growing in popularity, tourism, and capital, it’s time to consider looking into some properties. Here are the top Southern cities to invest in:

DALLAS

Dallas is a real estate market with strong price appreciation. The city features an average home price of $439,095. That number has increased considerably across the last few years ago and is underpriced by 3% compared to the city’s historic average and local incomes. It is estimated that prices will increase 31% by 2020 partially due to a steady level of job growth and and to a 6.2% population growth. Investors can potentially earn nearly 20% return before expenses. Dallas is easily one of the top Southern cities to invest in.

THE NUMBERS:

• City Average Traditional CoC Return: 2.15%
• City Average Airbnb CoC Return: 2.52%
• Median Home Price: $439,095
• Average Traditional Monthly Income: $1,838
• Average Airbnb Monthly Income: $1,754

DALLAS NEIGHBORHOOD #1: City Center District

• Median property sale price: $399,000
• Average Airbnb Rental Income: $2,364
• Average Traditional Rental Income $1,845

DALLAS NEIGHBORHOOD #2: Farmer’s Market District

• Median property sale price: $250,000
• Average Airbnb Rental Income: $3,119
• Average Traditional Rental Income $1,845

Related: The Ultimate Guide To The Airbnb Investment Property

TAMPA

In Tampa, both home prices and population have increased greatly over the last few years. Job growth is about 2.6%. The city’s investors are walking away with approximately 16.4% return thanks to cash flow. As one of the top Southern cities to invest in, Tampa is full of opportunity.

THE NUMBERS:

• City Average Traditional CoC Return: 3.36%
• City Average Airbnb CoC Return: 3.07%
• Median Home Price: $355, 015
• Average Traditional Monthly Income: $1,550
• Average Airbnb Monthly Income: $1,159

TAMPA NEIGHBORHOOD #1: North Hyde Park  

• Median property sale price: $637,500
• Average Airbnb Rental Income: $2,167
• Average Traditional Rental Income $1,438

TAMPA NEIGHBORHOOD #2: Historic Ybor

• Median property sale price: $165,000
• Average Airbnb Rental Income: $2,654
• Average Traditional Rental Income $1,098

Related: Top 5 Alternative Ways to Find An Investment Property

NASHVILLE

Nashville enjoys 9% annual home price growth and 2.7% annual job growth. With 6% three-year population growth it was among the fastest growing cities on the list. As demand grows, homes here are under priced by With these numbers, Nashville is easily one of the top Southern cities to invest in.

THE NUMBERS:

• City Average Traditional CoC Return: 2.35%
• City Average Airbnb CoC Return: 5.68%
• Median Home Price: $535,000
• Average Traditional Monthly Income: $1,81.5
• Average Airbnb Monthly Income: $2,857.48

NASHVILLE NEIGHBORHOOD #1: Acklen Avenue Alliance  

• Median property sale price: $659,900
• Average Airbnb Rental Income: $7,292.70
• Average Traditional Rental Income $1,490

NASHVILLE NEIGHBORHOOD #2: West End Park

• Median property sale price: $499,000
• Average Airbnb Rental Income: $3,270.16
• Average Traditional Rental Income $2,493.69

Related: https://www.mashvisor.com/blog/airbnb-traditional-investment/

CHARLOTTE 

Charlotte has 8% annual home price growth, 2.1% annual job growth and 5.7% three-year population growth. The city’s property prices are undervalued by 11%.

A 2015 study by Home Union revealed the top 10 investment markets for single-family rentals with Charlotte landing itself in first place. Charlotte is also one of the nation’s a major financial city: you might be surprised to know that Charlotte is now the second largest banking city in the country after New York City.

On top of all that, home prices are relatively low and Charlotte is home to more than 8 colleges and universities – making it easy to find tenants. It’s easily one of the top Southern cities to invest in.

• City Average Traditional CoC Return: 6.58%
• City Average Airbnb CoC Return: 10.04%
• Median Home Price: $265,606
• Average Traditional Monthly Income: $1,663
• Average Airbnb Monthly Income: $2,606

CHARLOTTE NEIGHBORHOOD #1: First Ward

• Median property sale price: $372,700
• Average Airbnb Rental Income: $1,829.88
• Average Traditional Rental Income $2,268.96

CHARLOTTE NEIGHBORHOOD #2: Dilworth

• Median property sale price: $450,000
• Average Airbnb Rental Income: $1,695.62
• Average Traditional Rental Income $2,066.96 

ATLANTA

With a population of 5.6 million people, Atlanta is a large city that is projected to keep growing in the coming years, making it one of the top Southern cities to invest in. It has also seen an appreciation in job growth and while home prices increased 8% in 2016, they are still undervalued by about 17%. Investors in the Atlanta market saw a 16.4% return over the past year thanks to nearly even gains in cash flow and price appreciation.

• City Average Traditional CoC Return: 6.58%
• City Average Airbnb CoC Return: 10.04%
• Median Home Price: $422,172
• Average Traditional Monthly Income: $1,855
• Average Airbnb Monthly Income: $1,554

ATLANTA NEIGHBORHOOD #1: Virginia Highland

• Median property sale price: $750,000
• Average Airbnb Rental Income: $2,060
• Average Traditional Rental Income $1,633

ATLANTA NEIGHBORHOOD #2: Midtown

• Median property sale price: $349,900
• Average Airbnb Rental Income: $1,567
• Average Traditional Rental Income $3,954

Related: Top 5 Major Cities for Buy-and-Hold Investment Properties