Top 10 Best Cities to Invest in Real Estate
Investing in Real Estate is usually quite lucrative. When looking into where to invest, it is important that you research the demographics of the region that is of interest to you. Is the population growing or are people moving away? Are jobs being created in this area? Are unemployment rates high or low? These are just some of the macro economic questions that you need to answer.
If the population is growing that means more people are moving into the area and the demand for housing will be on the rise. If people are leaving then perhaps it might not be a great area to buy in as there is a high possibility of higher supply in housing with lower demand.
Job creation and employment rates are also important to factor in. As employment and wealth increases the demand for housing increases. People will move away from areas with little to no job growth to areas where employment can be found.
To help you get a good idea of where to invest your time and effort, we have compiled a list of the top 10 best cities to invest in.
Table of Contents
Best Cities to Invest in Real Estate
1.) Austin, Texas
- Population: 1,018,842
- Median Home Price: $405,000
- Median Household Income: $76,845
- Job Growth (2018): 3.3%
- Unemployment: 2.8%
- #9 in job growth
Austin, Texas is currently a sellers market. Sellers hold bargaining power and demand higher prices.
Austin, TX is a great place to invest in real estate. Job growth rates are high which means unemployment is low and the economy is growing. Along with good job availability, the average household income is $76,845 a year.
With a population of 1,018,842 the demand for both renters as well as people looking to purchase homes is on the increase. Home values are up 4.7% in the last year and are estimated to rise another 4% in the coming year. Investors can worry less about their properties losing value over time.
On the flip side, buyers also benefit in the long run. Their home value is likely to appreciate in the future and they will most likely make a profit when they may decide to sell their home in the future.
2.) Durham, North Carolina
- Population: 284,996
- Median Home Price of Homes Sold: $249,800
- Median Household Income: $63,520
- Job Growth (2018): 1.9%
- Unemployment: 3.7%
- #75 in job growth
Both buyers and sellers hold sway in this market. Supply and demand are about even, but sellers do have a slight edge. This means that the market is primarily a seller’s market but buyer’s do have some leeway. Both sides hold bargaining power concerning properties.
We recommend this city due to the increase in home values and high rental rates. The value of homes has gone up 4.8% in the last year and is predicted to rise another 4.2% which is great for buyers and sellers alike.
Job growth is lower than the unemployment rate, but it has risen compared to the past. Durham is also number 11 when it comes to people who have post secondary education. Almost half of the residents (49.6%), have a college degree.
With higher education rates, it can be assumed that the residents in Durham would have higher paying jobs. This most likely would translate into a higher demand for quality housing. This can also be seen when looking at the rate of delinquency 1% in Durham compared to 1.1% nationwide. Also the median price that properties rent for is $1,550 per month.
3.) Boston, Massachusetts
- Population: 701,984
- Median Home Price of Homes Sold: $670,100
- Median Household Income: $85,916
- Job Growth (2018): 0.9%
- Unemployment: 2.8%
- #84 in job growth
Boston is more of a buyer’s market however home values have gone up 1.4% over the past year. These values are predicted to significantly increase by 4.2% over the next year, which means both buyers and sellers stand to make really good profits.
The median household income is higher than the national average and job growth is on the rise which is a great predictor that the home values will continue to rise as well.
4.) Syracuse, New York
- Population: 140,678
- Median Home Price of Homes Sold: $98,700
- Median Household Income: $57,573
- Job Growth (2018): 1%
- Unemployment: 4.1%
- #178 in job growth
The market is very hot in Syracuse! Home values are up a whopping 7.7% in the last year. Syracuse is one of the best cities to invest in real estate.
Home values are expected to rise another 5.6% in the next year. The median sales price of homes sold is $98,700. In addition, employment growth has risen 1%. This is definitely a growing market.
5.) Orlando, Florida
- Population: 303,933
- Median Home Price of Homes Sold: $267,800
- Median Household Income: $57,721
- Job Growth (2018): 3.7%
- Unemployment: 3.2%
- #6 in job growth
Orlando, Florida is considered a very hot market. Sellers are more likely to benefit from the housing market. The job growth rate is increasing faster than the unemployment rate which is a great sign that the housing market is healthy.
Orlando is number 6 in job growth. Home values have risen by 3.2% in the last year and are expected to rise by 4.4% in the next year.
With consistent growth, you can expect an investment in Orlando to yield great returns.
6.) Atlanta, Georgia
- Population: 510,730
- Median Home Price of Homes Sold: $260,000
- Median Household Income: $66,958
- Job Growth (2018): 2.2%
- Unemployment: 3.7%
- #34 in job growth
Atlanta has the 36th largest population in the United States with 510,730 residents meaning that you are likely to find a buyer in this city.
Home values have risen by 3.3% over the last year and are expected to rise by 4.7% in the next year. This steady increase in home value shows great promise for the housing market.
Houses also sell for extremely high prices so you can expect to receive a great return on your investment.
7.) Phoenix, Arizona
- Population: 1,743,469
- Median Home Price of Homes Sold: $254,300
- Median Household Income: $63,724
- Job Growth (2018): 3.4%
- Unemployment: 4.3%
- #28 in job growth
Phoenix is home to over 1.7 million people. It is #28 in job growth at 3.4% increase. The housing market here is hot!
Phoenix was added to this list due to the outstanding home value increases. Home values have risen by a whopping 7.4% in the last year and are expected to rise by 4.9% in the next year.
8.) Miami, Florida
- Population: 504,439
- Median Home Price of Homes Sold: $335,100
- Median Household Income: $53,045
- Job Growth (2018): 1.9%
- Unemployment: 3.5%
- #54 in job growth
Buyers are more likely to benefit from the housing market, but sellers can also benefit in Miami.
Home value has risen by 1.4% in the last year and is expected to rise by 4.1% in the next year. The significant increase in house value from year to year spells good news for investors.
Miami, Florida also has a large population of 504,439 residents. This means that you will be likely to find more people who are interested in properties.
9.) Nashville, Tennessee
- Population: 685,628
- Median Home Price of Homes Sold: $296,000
- Median Household Income: $66,630
- Job Growth (2018): 3.1%
- Unemployment: 2.7%
- #14 in job growth
Nashville, Tennessee made this list due to the fact that housing prices have risen by 4.5% in the last year and are expected to rise by 4.4% next year.
It is #14 in the nation for job growth at 3.1% compared to unemployment which is only 2.7% and a large population of 685,628. This definitely translates to an increase in demand for more housing and a good opportunity for investors looking to invest.
10.) Provo, Utah
- Population: 116,702
- Median Home Value: $317,105
- Median Household Income: $71,616
- Job Growth (2018): 5.2%
- Unemployment: 2.7%
- #1 in job growth
Sellers are more likely to benefit from this housing market, but buyers can also benefit.
Provo, Utah was put on this list due to the high increase in home value and the city being number one in job growth. This increase in job growth is most likely to lead to an increase in population growth over the next few years.
Home prices have risen by 5.4% in the last year and are expected to rise by 5.0% in the next year. These increases are significant for real estate investors and are amazing for the housing market.
Conclusion
All of these cities have undergone or will undergo significant positive changes in their demographics. More people will likely be moving to these areas due to increased employment opportunities. Thereby increasing the demand for housing. This is good news for any real estate investor.
As an investor it is important to do your due diligence when making the decision to invest in any property. Be sure to consider the above noted information as well as any other factors that may be unique to where you want to invest. Remember research is very important and good luck to you!
About Author
The South Texas Wholesaler
JR Medrano is a real estate investor who specializes in wholesaling inherited homes. He has been wholesaling real estate in the Corpus Christi, TX area for the past 7 years. If you would like some honest advise about wholesaling houses. Feel free to contact him at anytime.
Hello, was trying to determine whether a wholesaler is liable for capital gains taxes in the event that one of the properties purchased is held onto for any period of time; i.e., if the wholesaler cannot for some reason find a buyer quickly. In other words, the wholesaler is considered the owner of the home for a brief or long period, correct? Wholesaling is not considered merely a service, but actually involves ownership of the home at issue? Thank you so much for your advice.
Hi I recommend you read this article about wholesaling here. It should answer all your questions.