We are in our tenth year of growth since the end of the 2008-2009 financial crisis. Despite a stellar showing in most markets, there are still areas of the country that represent substantial expansion opportunities. These areas present an opportunity for savvy investors to acquire real estate assets with substantial potential for long-term appreciation and stable rental income. We've combed through nationwide property databases so you don't have to - here's our list of the best places to invest in real estate in the United States.
The Dallas Fort-Worth area was the #1 growth market in the country in 2019, up four spots from its 2018 ranking according to PWC’s Emerging Trends in Real Estate report. A combination of strong employment and significant population growth, alongside a relatively low cost of living is responsible for much of DFW's success in the past year. Rental unit demand has increased more than 14% in the past year alone, and despite a significant amount of new construction set to come online, interest in residential and commercial properties remains high, with over 3,000 new listings each week.
Orlando, Florida
The next city on our list, Orlando, Florida, is best known as a tourist destination close to Walt Disney World and Universal. The city is also home to a growing business sector, as the area continues to diversify away from being a primarily tourist-focused destination. Demand for both short-term vacation stays, as well as traditional rental properties, and timeshares continue to increase year over year. Florida has traditionally been a phenomenal place to invest in real estate for new investors, due to the low entry costs and no state income tax.
Charlotte, North Carolina
Charlotte, North Carolina is home to Bank of America, Lowe's, Duke Energy and several other Fortune 500 and 1000 companies. The business-friendly city is among the fastest-growing metro areas in the United States and has been featured on numerous "Best Places to Live" lists.
According to Trulia, the median home sales price in Charlotte has climbed from $208,500 in 2014 to $260,000 as of 2019. Year over year growth for all residential and multifamily properties is 6.1%. This growth, when combined with increased demand for rentals makes Charlotte an excellent place to invest.
Austin, Texas
Austin is known as both the Live Music Capital of the World and Silicon Hills. This dichotomy, between a counter-culture beacon in the heart of Texas, and a destination for high-tech companies around the globe, lends Austin a unique flair not found anywhere else in the South and Southwest. The employment picture in Austin can be summed up in one word: rosy. Not only is it a thriving tourist and cultural destination, but the high-tech industry also contributes to the rapid economic growth of the region.
In June of 2019, Austin hit its highest median home price ever, $407,400. Despite the growth over the last decade, Austin remains affordable compared to similar cities, and commercial and residential property demand is high.
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Tampa, Florida
Our next entry on the list is also in the Sunshine State. Tampa and the St. Petersburg areas have recently emerged as one of the top ten real estate markets in the country. Tampa's combination of affordable living, robust population growth, and an economic sector buoyed by business services, tourism, and the financial service industry has led to explosive growth in real estate values.
The average residential property in Tampa is valued at $136,000, which is the lowest on our list. The low prices in the region make Tampa an affordable city for beginners to try their hand at real estate investing, without the significant capital outlays you would need in bigger cities like Miami, NYC, or the SF Bay Area.
Denver, Colorado
The Mile High City holds a well-deserved place on our list of best real estate investment markets. Denver is one of the youngest cities in the country and is chock full of millennials between 25 and 44, a prime demographic for multifamily and rental properties. Short-term rentals were approved by the city in 2017, offering investors and landlords an alternative revenue stream for their real estate assets. The average home price has gone from roughly $260,000 in 2015 to $427,300 in 2019, with an average increase of 5.4% in the last year alone.
Nashville, Tennessee
Nashville has worldwide acclaim as the Music City, home to some of the best country, folk, and even hip hop musicians on the planet. The city is also being held in increasingly high regard by real estate investors, who are gravitating towards Nashville for a couple of reasons. Top on that list is appreciation potential.
Very few markets have achieved this level of year-over-year growth - Nashville homes increased in value by 8.3% last year and are on track to hit at least 8% in 2019. Every real estate investor loves appreciation! Substantial employment growth, excellent quality of life, and positive population growth all contribute to make Nashville one of the nation's best real estate markets for investors.
Spokane, Washington
The only entry on our list on the West Coast, and in the Pacific Northwest, Spokane is a hidden gem nestled in Eastern Washington State. While the city is still small, with a population of roughly 200,000 people, Spokane's housing market is hotter than its Western Washington neighbor, Seattle. 2018 saw 10% value growth in Spokane - the average home price went from $200k to $220k in a single year.
Most housing stock in Spokane is single-family homes, with about 65% of the homes in the city falling into that category. The multifamily market is growing, and as Spokane's population increases the demand for rentals will increase with it.
Notable Mentions
These are just some of the cities in the US that are primed for exceptional growth. Other notable mentions include Boston, Boise, and Las Vegas. When doing your research, pay close attention to a city's existing and upcoming housing stock, population and job growth, and the city's approach to the rental market. There are plenty of diamonds in the rough out there, you just have to find them.