If you have ever thought of investing in the real estate industry, now could be the perfect time. Although 2020 has experienced financial challenges, you might make a good profit from renting or selling your property. Read on to find the United States cities for Real Estate investments.
However, it’s crucial to know which homes can give you a good profit when you put them up for sell. The good thing is that you can increase your chances of landing a successful investment if you target highly profitable cities.
In this article, we will highlight United States cities for real estate that provide great opportunities for investors. Keep reading to find more about the right cities for real estate investment.
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Profitable United States cities for Real Estate Investment
The location you choose matters when it comes to purchasing a home for investment. Apart from the location, it’s also crucial to consider other factors when assessing returns or searching for condos for sale in Scottsdale. We will be discussing those factors shortly.
While conducting the research, we evaluated data from Zillow research and Redfin’s Data Center and compiled this list.
Boise, Idaho
Boise is one of the best cities in the U.S. for long-term real estate investment. The demand and supply in this city continue to increase property price. Realtor’s.com housing forecast ranked the Boise housing market at #1 in the United States in 2020.
Realtor based its criteria on the 8.1% annual growth in prices and 0.3% property sales. Boise is expected to be among the largest housing markets in the U.S. in the following years.
Surprisingly, property prices continue to rise despite the COVID-19 pandemic. Affordable 30-year fixed loan rates and tight inventory are driving up the demand, which is increasing property prices in this city.
The housing appreciation rate during Q3 was about 2.45% in this region. This equates to yearly appreciation rate of 11%, making it lucrative for sellers.
Reasons for Investing in Boise Real Estate Market
- 2-3 times job growth than the national average
- Triple population growth than the national average
- 3.2% annual appreciation forecast
- Low cost of conducting business
- 33.5% Low unemployment rate
Salt Lake City, Utah
Salt Lake City is another great town for housing investments. The city provides attractive purchasing prospects for the modern real estate investor. In the last decade, the town’s population has increased by 14%, driving the housing demand in the region.
Salt Lake City is a hotspot for different types of investment properties. The city has also continued to show an increase in employment and population growth, which are signs of a profitable real estate market.
The region is Utah’s economic and capital centre. It’s also among the ten most productive cities in the United States that contribute to GDP yearly. As the town continues to grow, prices of homes are expected to rise in the coming years.
This means investors that want to beat the completion should consider buying properties soon to get good returns.
Reasons for Investing in Boise Real Estate Market
- The city is home to several businesses, including Fortune 500 companies.
- Homes start at $70,000
- 9.3% 3-year appreciation rate
Scottsdale, Arizona
There are few markets in the Southwest United States that are hotter than the Phoenix suburb of Scottsdale. The homes for sale in Scottsdale, Arizona have been on a steady rise over the last 5 years, and as people flock from the ridiculously-expensive major cities in California, home values are expected to continue to increase.
Reasons for Investing in Scottsdale Real Estate Market
- Several major corporations, including PayPal and HonorHealth, have offices in Scottsdale
- The city is very friendly to short-term rentals like Airbnb.
- Lower cost of living compared to California and New York.
Nashville, Tennessee
Nashville is ranked 3rd among the best cities for real estate investment due to its attractive social amenities and job growth rates. Its population growth is estimated to be at 1.2% annually for the next five years.
Although Nashville’s housing market is still growing, investing in the growing real estate market may be a great idea for the years to come. Nashville is also renovating its infrastructure to lure more real estate investors into the city.
Additionally, the town has taken solid steps to attract technology and manufacturing investors to boost its industrial profile that has been dominated by the banking sector for several decades.
However, an active housing market and a high volume of trade are what makes Nashville a solid investment option.
Reasons for Investing in Boise Real Estate Market
- Low unemployment rate than the national average
- International trade boosts its growing population
- Affordable housing real estate
- 10.5% 3-year appreciation rate
- Tax friendly
Austin, Texas
Another great city for investing in the real estate industry is Austin. Its housing market continues to soar with prices doubling since 2010. Austin’s market isn’t as big as it is the 4th largest town in the U.S.
However, its real estate market is sizeable and has established itself as a tech hub for the last five years. It’s also the centre of a big metro area and boasts of having several well-paying tech jobs.
Since it’s a growing city, millennials are expected to drive its economy as they are the largest purchasing force, a trend that may keep rising. This is more attractive to the areas that are close to entertainment spots, shopping centres and other amenities.
Housing market experts think that Austin will keep soaring because its economy is strong. The city isn’t also able to cater for the large number of people moving there due to the scarcity of houses for sale.
Reasons for Investing in Austin Real Estate Market
- It’s the best city for long-term property investment in the U.S. for the last ten years
- Price range for investment properties is $200,000 to $250,000
- Affordable property and increasing rents
- Growing population and a strong economy
Charlotte, North Carolina
The city’s growing housing market has shrunk inventory and in turn, driving up property prices. Also, low interest and unemployment rates have made it possible for investors to find a property they can purchase in Charlotte.
Since March this year, property sales have remained steady with 3,630 houses sold in March alone. As you can see, the city’s housing market isn’t slowing down because it is a lucrative market for investors that either want to invest or rent, purchase to hold or upgrade and flip.
Charlotte has a 2.10% yearly appreciation rate while its housing appreciation rate for Q3 was about 0.52%. This means now is the right time to market your property to potential home buyers before prices decline.
Reasons for Investing in Charlotte Real Estate Market
- 2.3% steady increase in jobs for the last two years (2018 and 2019)
- $53,274 annual median household income
- $252,438 median property price
- Affordable housing
Factors That Indicate a Housing Market is Good for Investors
Several factors make a real estate market profitable, including:
- Absorption rate – The time it takes newly advertised homes to be rented or bought.
- Government planning both on the local and state level and whether the region you want to invest in has many regulations.
- Forecasted growth in housing development and current infrastructure activity plus available building permits.
- Property affordability using the rent to price ratio to determine average rent and property prices.
Wrap Up
Investing in one of the above United States cities for Real Estate can be very lucrative. While the returns can be great, you should conduct thorough research before investing your money in any of the cities or when you are looking for condos for sale in Scottsdale.
