Top 10 Best Cities to Invest in Real Estate 2020

Investing money into properties is a big decision. There are costs and risks associated with real estate investing. Here is a list of some of the best cities to invest in real estate because the house values are expected to keep rising.

When looking at what cities to choose, you should look at population. Higher populations can give you a better chance to find a buyer because more residents may be looking for housing.

High job growth is also a good determiner of what cities to look at properties in. You want to invest in cities that have increasing job growth. Job growth and unemployment rates can determine whether people will look at moving to that city for new jobs. The two factors also determine whether people will have jobs, and therefore money, to be in the market for a house or apartment.

Because this decision is so huge, we want to provide you with some suggestions in order to help you decide what cities might give you the best returns on your investments.

Best Cities to Invest in Real Estate

1.) Austin, Texas

Austin, Texas is one of the best cities to invest in real estate
  • 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

The market temperature is VERY HOT. The market in Austin Texas is also considered a seller’s market which means that the sellers hold most of the bargaining power.

Austin, TX is a great place to invest in real estate due to job growth, rates, and home value increases. The job growth rate is higher than the unemployment rate meaning that you can worry less about delinquent payments. Along with good job availability, the average household makes $76,845 dollars a year.

Austin, TX also has 1,018,842 people which mean there are plenty of people in the market for rentals and homes. Home values have gone up 4.7% in the last year and are estimated to go up another 4% percent in the next year. Investors can worry less about their properties losing value over time.

Buyers also benefit because the higher that their house goes in value, the better price that the house can be sold for if the buyer decides to resell.

2.) Durham, North Carolina

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

The market temperature for Durham, North Carolina is warm. This means that the market is primarily a seller’s market but is also a buyer’s market. Both sides hold bargaining power concerning properties.

I recommend this city due 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.

The job growth rate is lower than the unemployment rate, but it has still risen compared to the past. Durham is also number 11 when it comes to people who have an education. Almost half of the residents, 49.6% of residents, have a college degree.

You can assume, with those higher education rates combined with increased job growth, that the residents of Durham have a better chance at finding higher paying jobs because of their degrees.

This reflects in the 1% of payments being delinquent which is lower than the 1.1% delinquency average nationwide. The median price that properties rent for is $1,550/mo.

3.) Boston, Massachusetts

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

The market temperature in Boston is cool meaning that it is more of a buyer’s market. However, house values have gone up 1.4% over the last year which benefits both the buyer and seller. The values are predicted to go up 4.2% over the next year which is a huge increase.

The delinquency rate of mortgage payments in Boston is lower than the national average at 0.8% which means that delinquent payments will be less likely.

The median household income is also higher than the national average and job growth is on the rise which is a great predictor that the home values will also continue to rise as well.

4.) Syracuse, New York

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 meaning that sellers are more likely to benefit from this market. Home values have gone up a whopping 7.7% in the last year making Syracuse one of the best cities to invest in real estate.

Home values are expected to rise 5.6% in the next year. The expected rise in home values may be decreased but it is still extremely high compared to other cities.

The median sales price of homes sold is $98,700. In addition, employment growth has risen 1%, which is a low increase but an increase, nonetheless.

5.) Orlando, Florida

Orlando, Florida best cities to invest in real estate
  • 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 house market. The job growth rate is increasing faster than the unemployment rate which is a great sign that the housing market is healthy.

Due to the increase in job growth, Orlando is now number 6 in job growth. House values also have risen by 3.2% in the last year and are expected to rise by 4.4% in the next year.

With the constant home value growth, you can expect an investment in Orlando to give great returns.

6.) Atlanta, Georgia

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

The house market in Atlanta, Georgia is considered a cool market. This means that the market is not quite a complete buyer’s market, but buyers will benefit more from the house market.

House 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 house value shows great promise for the housing market.

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.

Houses also sell for extremely high prices so you can expect to receive a great return on your investment.

7.) Phoenix, Arizona

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

The house market in Phoenix, Arizona is considered a very hot market. This means that sellers are more likely to benefit from the house market.

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.

Phoenix, Arizona also has a very large population at 1.7 million residents, so you are more likely to find a buyer or tenant.

8.) Miami, Florida

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

The house market in Miami, Florida is considered a cool market. This means that buyers are more likely to benefit from the house market, but sellers can also benefit.

House 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

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

The house market in Nashville, Tennessee is considered a warm market. This means that sellers are more likely to benefit from the house market, but buyers can also benefit.

House prices have risen by 4.5% in the last year and are expected to rise by 4.4% in the next year. That is quite a steady rate of change per year so you shouldn’t expect much change in the future.

Nashville, Tennessee also has a very large population at 685,628 residents which spells good news for investors looking for buyers or renters.

10.) Provo, Utah

Provo, Utah best cities to invest in real estate
  • 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

The house market in Provo, Utah is considered a warm market. This means that sellers are more likely to benefit from the house market, but buyers can also benefit.

Provo, Utah was put on this list due to the high rise increase in home value and due to the city being number one in job growth. The increase in job growth can lead to more people moving to Provo, Utah in order to find jobs.

House prices have risen by 5.4% in the last year and are expected to rise by 5.0% in the next year. The home value increases are also significant and are amazing for the house market.

The Reasons Why These are the Best Cities to Invest in Real Estate

All of these cities have undergone or will undergo significant increases in home value. The increase in home value is good for both the investor and the buyer.

Some of these cities also have significant job growth which will lead new residents into the city and these residents will need new housing. Job growth can also lead more people to be able to afford houses.

Research in-depth about investing in real estate before throwing in your money because investing has many factors to consider.