The question is not why, but WHERE to invest in real estate.
When choosing the location of a rental property, a real estate investor puts a number of factors as criteria based on which he/she will make an investment decision. One investor might only be looking for locations that promise cash flow and an instant profit, while another might be willing to invest in a location that might not be as profitable at the moment, but will be in the long-term future. This is called investing for real estate appreciation, which means that a property’s value will increase the longer a real estate investor holds it, thus, allowing him/her to make profits when selling it in the future.
If this is how you choose to invest in real estate, then you must find locations that have a high potential for appreciation over the long-term. So, without further ado, here are the top 5 cities for property investors to consider when looking for where to invest in real estate for the long-term.
Note: This information is according to NeighborhoodScout data and Mashvisor’s rental property calculator analytics.
Related: Why You Should Consult a Rental Property Calculator First
Where to Invest in Real Estate #5: Tampa, FL
Tampa is part of the larger metropolitan Tampa Bay Area. With a population of 377,165 people, it is the fourth largest metro area in the Southeastern US and the third largest community in the state of Florida. Just like it did in the previous years, the Tampa real estate market claims its spot among the 20 top locations for real estate investing on the PWC annual study!
The city enjoys a strong local economy with a focus on job growth (annual job growth of 2.1% and an unemployment rate of 3.1% – lower than the national average of 3.9%). As a result, qualified employees are moving to Tampa to score good jobs and live there for the long-term.
- Median Property Price: $375,416
- Traditional Rental Income: $1,589
- Airbnb Rental income: $2,288
These numbers are based on Mashvisor’s Rental Property Calculator’s data analytics and projections. To learn more about our product, click here.
Tampa Real Estate Appreciation
For the last ten years, appreciation rates for investment properties in Tampa have been well above the national average. According to NeighborhoodScout data, Tampa real estate properties have a 10-year appreciation rate of 10.55%, which equates to an annual appreciation rate of 1.01%. This rate is higher than 70% of the other cities in the state of Florida!
It should be mentioned that the most common type of real estate properties in Tampa is single-family homes – which are known to appreciate higher and faster than others in the real estate business. Today, investment properties in the city continue to appreciate in value faster than most cities and towns in the U.S housing market.
To start looking for and analyzing the best investment properties in your neighborhood of choice in Tampa, click here!
Where to Invest in Real Estate #4: San Diego, CA
San Diego is a very large coastal city in the state of California, with a population of 1,406,630 people. Looking at the city’s median property price, San Diego real estate is among the most expensive in the nation. The city has a healthy economy and job market, leading to a high demand for rental properties – especially single-family homes – which will obviously raise property prices. Here are some figures regarding the San Diego real estate market as computed by Mashvisor’s rental property calculator:
- Median Property Price: $823,342
- Traditional Rental Income: $2,669
- Airbnb Rental income: $3,625
San Diego Real Estate Appreciation
In the last 10 years, San Diego has experienced an appreciation rate of 29.91%, which is an average of 2.65% annual appreciation rate. According to NeighborhoodScout data, this rate is higher than 50% of the other cities and towns in California, making San Diego a top real estate market for real estate investing. It’s important to mention that real estate experts expect the city’s real estate appreciation to grow more in the near future. Thus, if you’re thinking of buying a San Diego real estate investment property, don’t wait any longer!
To start looking for the best investment properties in San Diego real estate, click here!
Where to Invest in Real Estate #3: Portland, OR
If you already own a rental property in the Portland real estate market, you’ll be happy to hear that the city is one of the top locations for real estate investing! Portland has an especially healthy economy that is expected to grow in the upcoming 10 years. The city’s population of 639,863 continues to grow year after year as millennials are moving there thanks to the job opportunities Portland has to offer. This migration is pushing up the demand for housing and property prices – a sign that you too should buy a Portland real estate investment property!
- Median Property Price: $557,248
- Traditional Rental Income: $2,074
- Airbnb Rental income: $2,405
Portland Real Estate Appreciation
Portland investment properties have appreciated at a rate of 35.27% over the last ten years – an annual appreciation rate of 3.07%. This tells us that if you’re searching for where to invest in real estate for the long-term, you should definitely look further into the Portland real estate market this year.
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Where to Invest in Real Estate #2: Bellevue, WA
Prices of Bellevue investment properties are not only among the most expensive in the state of Washington, Bellevue real estate also is among the most expensive markets in all of America! In fact, it’s a great place for a real estate investor to consider if he/she is considering investing in luxury properties. The city’s population is 141,400 people, making it the fifth largest community in Washington.
Moreover, Bellevue has seen a job growth by 1.7% over the last year – which is expected to further increase over the next ten years. All of these factors made the city one of the top locations for real estate investing.
- Median Property Price: $1,173,424
- Traditional Rental Income: $2,625
- Airbnb Rental income: $2,084
Bellevue Real Estate Appreciation
As mentioned, Bellevue is one of the most expensive cities in the US housing market – and prices keep going up! The 10-year appreciation rate of investment properties in the city is the second highest in the nation at 44.89%! This is an average annual appreciation rate of 3.78% – higher than 80% of the other cities and towns in the state of Washington.
As a result, Bellevue has a track record of being the best place to offer great long-term investments, which is great if you’re a real estate investor looking to buy a home. In fact, the city’s real estate appreciation is so strong that properties still continues to increase in value despite a nationwide downturn in the housing market!
To start looking for the best investment properties in Bellevue real estate, click here!
Where to Invest in Real Estate #1: Austin, TX
Austin is the fourth largest city in the state of Texas with a population of 947,890 people. With this large population comes a strong job market and a thriving economy. Thus, it shouldn’t come as a surprise that it’s among the top locations for real estate investing. Austin real estate properties are more expensive than the other cities in Texas. However, they’re not the most expensive in the US housing market.
Once again, single-family homes are the most popular type of properties in Austin – which, as mentioned, appreciate faster than other types of investment properties. Thus, if you’re looking for where to invest in real estate for the long-term, Austin should definitely be an option to consider!
- Median Property Price: $526,101
- Traditional Rental Income: $1,891
- Airbnb Rental income: $2,754
Austin Real Estate Appreciation
For property investors looking to invest for the long-term, the Austin real estate market has always been a top choice in the US housing market. Over the last 10 years, Austin investment properties have appreciated at a rate of 65.05% – which is an average of 5.14% annual appreciation rate. This is, hands down, the highest real estate appreciation rate in the nation!
To start looking for the best investment properties in Austin real estate, click here!
Where to Invest in Real Estate for Appreciation – Conclusion
So, there you have it: 5 top locations for real estate investing for property investors wishing to enjoy long-term profits. Keep in mind that property prices keep changing with every property added to or removed from the market. Therefore, to fully benefit from real estate appreciation, hurry up and buy a rental property in the market of your choice now!
Interested in finding out cap rates and cash on cash returns of these real estate markets? Sign up with Mashvisor to get full access to the rental property calculator and start analyzing! Furthermore, use the property finder tool to Turn Your Investment Property Search into 15 Minutes with Mashvisor.
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