It’s often said that “real estate is always a good investment,” and it’s true. Real estate never really goes away. Rather, it changes in value or purpose. The old saying that location is everything when buying real estate still rings true today – some people even go so far as to say that location is the only thing. But not all real estate investments are created equal. It’s up to you to do the research and ensure you are investing in good, quality properties that will allow you to profit. No one town or city is created the same when it comes to real estate investing. Knowing the best places to invest in real estate will help you avoid the risks associated with less ideal locations. Cities on the rise typically have lower property costs, and with an impressive job and population growth, it can result in huge profit within a few years of investing. On the other hand, while impressive in job and population growth, some places may just be too expensive to invest in, especially for those just getting started in real estate investing. If you are looking to the best places to invest in real estate, start with the cities listed in this article.
How to Determine if an Area is Good for Real Estate Investing
When looking for an area to invest in, you need to understand the basics of real estate: rental rates, demand and supply, and long-term stability.
Rental Rates
The rule is that the higher it rents now, the better it will rent in the future. This is another reason that location is so important. Rental rates are directly related to the demand for properties in a given area. If a certain area has been popular with renters in the last decade, it will likely continue to be popular ten years from now. Establishing this degree of stability will make it easier for you to predict the future value of your investment.
Demand and Supply
Cities that show high job and population growth will likely be a seller’s market. By investing in properties early in the city’s growth, you can make a huge profit as rents continue to surge. Look for areas where high-demand jobs are starting to open up. If a large company announces a new headquarters or expansion to a city on the rise, this may be an excellent opportunity to invest.
Long Term Stability
Homeownership provides the best long-term investment. In the past five years, home prices in most areas have gone up at least 10%. If you put your money in a certificate of deposit, you’ll probably lose that interest on the money, or at least end up with less than if you put it in real estate.
But investing in real estate doesn’t guarantee success. A lot of factors influence real estate values and make them unpredictable. When you look at an area to invest in, look at it from all angles.
The Best Places to Invest in Real Estate
Based on important data like job growth, population growth, median age, median income, unemployment rate, and average home price, we’ve compiled a list of the ten best places to invest in real estate in the coming years.
- Atlanta, GA
Atlanta is one of the top-ranked cities for investing in real estate because it’s a prime spot for flipping houses. The job market in Atlanta is one of the best in the country, which means that many people can afford to buy homes and flip them for a profit. It also means that there are plenty of people looking to buy homes as investments. Atlanta is also less expensive than many cities in the US. If you’re looking to buy real estate for the cash flow or a long-term investment, this is a great place to invest.
- Charlotte, NC
Charlotte is a great place to invest in real estate because it will be big for the next decade. According to a recent report from the Urban Land Institute, Charlotte is projected to be one of the top ten metropolitan areas for urban population growth over the next dozen years. Charlotte has long been known as a major city for healthcare and education. But its proximity to a massive port and airport makes it an attractive place for people looking to move into the southern half of the United States or out west.
- Dallas, TX
Dallas is another great place to invest in real estate because it’s a prime location for those looking to live somewhere close, but not too close to, the nation’s capital. It also benefits from being located just a few hours’ drive from Austin and San Antonio, which are both booming cities in their own right. The job market is strong here, and the population is relatively large. There are lots of people looking for housing options in Dallas. This is a great option for people looking to buy real estate as an investment or looking for something in the middle of the country.
- Houston, TX
Houston is another great place to invest in real estate due to its job market and cost of living. The job market in Houston is strong as well as pretty diverse, with more than 474 different jobs available. This is a particularly great place for people who don’t want to spend their time as landlords. Many investors are moving into Houston and buying homes that they can rent back out to people who need a home.
- San Diego, CA
San Diego is a relatively small market for real estate investors because it doesn’t have a particularly strong job market. But what it lacks in jobs, it makes up for in the cost of living. The cost of living in San Diego is fairly low and makes this one of the cheaper places to live in the US if you can make ends meet on what’s made renting out your home.
- San Francisco, CA
San Francisco is an excellent city to buy real estate in because it’s a highly sought-after city to live in. It is one of the most expensive cities to live in the US, even with its high cost of living. But it’s also a great place if you want to flip houses. The job market is strong, and more than 80 new jobs are created every day. But it’s not a place where you’re going to be able to buy a house and rent it out for cash flow. It’s better for people who are planning on living there and having the property appreciate in value.
- Seattle, WA
Seattle is one of the best places to buy real estate, according to Zillow.com, because it has more than 65 new jobs created every month and a relatively low cost of living. It’s also a prime location for those who want to live an active and outdoorsy lifestyle. In the distance, the mountains provide a beautiful backdrop for Seattle.
- Tampa, FL
Tampa has the highest rental vacancy rate in the United States and is expected to be one of Florida’s most popular cities to buy real estate due to its low cost of living and a great job market. It’s also one of just six Florida cities with over 100 new jobs created every month. This is another prime option for investors looking to rent out their property to make some cash flow and not worry about whether or not they’re going to be able to sell the home when they need to.
- Virginia Beach, VA
Virginia Beach is another great place for people looking for a small-town vibe within a larger city. It has a very low cost of living and a strong job market. Virginia Beach is a resort town with many active beachgoers, making it an excellent place to live if you’re looking for an active lifestyle. Beach towns are great to invest in because they tap into two markets – retirees and young adults.
- Colorado Springs, CO
Colorado Springs is another great place for people looking to invest in real estate because it offers one of the lowest costs of living in the United States and a strong job market growing and diversified. This is a great option for people who want to live in the country and get away from big cities. Colorado is quickly becoming a very popular state for younger individuals. Places like Denver and Boulder are incredibly high in home and rent, so buyers are looking elsewhere to Colorado Springs. Colorado Springs is also home to Fort Carson, a military base that brings in a ton of new residents who often choose to rent instead of buy.
Summary
When you are getting started in investing in real estate, the best thing you can do for yourself is begin in one of the best places to invest in real estate. While these top cities can change over time, putting yourself in the position to have a few high-profit properties to start off can launch your career in ways that other, slower markets could not. It’s up to you to do your research and find a city that aligns with your own personal goals. Make sure the city you choose has an average home price that is well within your range and will guarantee a high return on investment.
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