When it comes to investment opportunities, real estate is one venture that is always smart. However, if you want to make sure that your money goes farther, you’ll want to buy properties in a city on the rise.
Fortunately, even as demographics shift, there are plenty of places in the US where real estate investments are not only going to have a relatively high yield, but they’ll be perfect for long-term returns that will keep your nest egg warm and comfortable.
Today we want to look at the top cities where real estate is booming. If you’re not located near one of them yet, you may want to consider booking a ticket.
Although climate change is bringing stronger hurricanes and flooding, Florida has been dealing with the environment forever. Thus, these challenges are not stopping developers, nor people moving to these key cities. Although the West Coast is where most of the action is, Florida has a lot to offer for investors.
It makes sense why this city would be at the top of the list. When you consider how many people visit Orlando annually, coupled with the fact that the Walt Disney Company continues to grow and dominate the globe, investing here is a no-brainer.
The city continues to grow in jobs and population (roughly 7% annually for both), and home prices are expected to rise at an equal rate.
Although most people think of either Orlando or Miami, Tampa is rapidly becoming a contender for the most popular city in the state. Not only does it face the gulf (and is thus less affected by the weather), but it has seen a 47% rise in home prices over the last several years. Best of all, these trends are not going anywhere soon.
Another Gulf state with a rising population and job growth to match, there are a few critical places where real estate investing will prove fruitful in the coming years. As they say, everything’s bigger in Texas, and that includes the median price of homes.
Although the city still has relatively low prices, that means that it’s the perfect place for investors. Now is the ideal time to buy property, before it starts to go up dramatically. The city is seeing a massive influx of residents each year, and soon the ROI on real estate will climb. Best of all, it has an excellent long-term projection, so you don’t have to worry about overpricing anytime soon.
Houston and Dallas
Like Austin, these cities are seeing an influx of newcomers. However, what makes them ideal for investors is that there is not enough inventory to go around. If you’re smart about where you buy, you could be looking at some strong investment growth in the coming years.
Most people would assume that states like California or Washington would be perfect for real estate investments, but cities like Seattle and LA are seeing skyrocketing prices that could create a bubble. Instead, you want to focus your attention on new areas where sustainable growth is happening. Fortunately, Colorado has a lot of that going on.
Since 2012, rental prices have gone up by more than 34%. On top of that, median home prices have also surged forward to the tune of 43% growth. Colorado has a lot of potential for investors, thanks to a growing population and a sustainable economy.
Like Colorado, this landlocked state is quickly becoming a haven for real estate investments. While coastal cities like Seattle are growing rapidly and feeling the burden of such population expansion, places in Arizona are ripe for newcomers looking for good jobs and a higher quality of living.
At first, you may think that Phoenix would take the top spot for the state, but the reason why Mesa is such a jewel (for now) is that it has one of the lowest property tax rates in the country. This means that investors can earn more money for the long term.
Also, property prices are steadily rising, so you can expect to make a tidy profit. In fact, if you bought a home in 2012, you would be looking at around a 60% return right now.
Although places like Austin and LA get all the attention, Phoenix is rapidly growing, thanks to major companies moving to the desert for low taxes and plenty of room for expansion. Where there is work, there will be people, so buying property in this city is a smart move. However, time will tell if climate change can derail your long-term strategy, so be prepared for that.
Bottom Line – Real Estate is a Diverse Investment Strategy
As this list proves, you can buy property in cities all over the country and make a substantial income on them. While we’re not trying to disparage places like LA and Seattle, the stiff competition means that it will only get harder for new investors to break in. Limited land is great if you already own some of it, but not if you don’t.
These cities show that housing and development are only going to pose new challenges, and people will expand into areas that were not on anyone’s radar before. So, with that in mind, keep a sharp eye out for the next big thing, and you could make a killing.