Best Cities for Real Estate Investment in 2021
Investing is never guarantee. With every move you make, you assume some of the risks. However, by leveraging your assets wisely, you can position yourself for success. Since rates are lower than ever, it’s unlikely you’ll find a better time to jump into the real estate market. Now, there’s only one question left remaining. Where should you put your money?
What Makes a City Rate for Real Estate Investment?
When you decide where you should invest your cash, you need to evaluate each aspect of the move. Otherwise, what may look like a good deal at first glance could eat your shorts by the end of the day. If you are considering a real estate investment, then the following factors are all significant. In regards to market performance, each of them will have an impact.
Factors Affecting Real Estate Investment in Cities
- Job Market: Above all, people will move to a new city if it’s worthwhile. By providing high-paying jobs, some cities are like a beacon for those looking to buy. In those cases, you’ll see a strong influx from all over the country to the area.
- Business Friendliness: How would you like to pay more than half your revenue in taxes? Well, most businesses don’t like to pay those kinds of taxes either. Thus, in recent years, more and more businesses have been relocating to friendlier states. To avoid overpaying on taxes, relocating their headquarters is a small sacrifice to make.
- Population Growth: What drives the housing market more than anything else? If you had asked us, we’d say it was the need for a roof over our head. For that reason, if an area has strong growth, you’ll see a corresponding increase in housing demand.
- Past Performance: What’s the market been like in that area for the last few years? If it has been treating investors well, then those trends are likely to continue. On the other hand, in some instances, it seems as if the tides are changing. Therefore, you can’t always rely on the past to predict the future.
- Housing Inventory: Finally, how many homes are available on the market? As the number of homes increases, the pressure on price begins to shift downward. Once the supply exceeds demand, prices will fall rather rapidly. The converse is also true.
This Year’s Top Cities or Real Estate Investment
Since the beginning of this year, many parts of the economy have undergone major changes. Real estate didn’t escape those effects. However, after the dust settles, the landscape may look a little different. Now, it seems as if a few areas of the country are more popular than ever.
This part of Arizona has been going under the radar for far too long. Although it was quietly gaining steam, now it’s poised to make a breakout move. This year could be the last year to find housing at reasonable prices.
Popular Among AirBnb Owners:
Since properties tend to stay occupied in the area, Scottsdale has become among the most popular markets for new air B&B investors. If you’re looking for a place to park your cash, then it’s hard to go wrong with here. With just a small upfront investment, you will have reliable passive income.
Localized Housing Shortage:
Above all, the lack of housing is creating a strong pressure on the price. Since so many people want to move here, Scottsdale real estate sellers just can’t keep up with demand.
Friendly Business Tax Structure:
Thanks to the lower taxes on businesses, this area has a lower cost of living than the national average. Still, despite that lower cost, it’s an area with plenty to offer. Most of the time, people compare it to other major metropolitan communities such as California.
While Idaho doesn’t always headline the news, it’s becoming one of the countries hottest real estate markets rather quickly. With so many companies relocating to the state, it seems as if their employees are flocking behind them in droves.
Job Growth Nearly 3 Times Higher Than National Average:
Compared to other cities, jobs seem to be cropping up at an unparalleled rate. With so many out of jobs, it’s no wonder why they are moving here.
Very Business Friendly:
Primarily, the laws of the state are very friendly for businesses. Therefore, businesses are moving to the state with reckless abandon. In order to maximize their profits, these corporations are picking up their roots from all over.
Quickly Growing Population:
As a result of all this, more people are moving to Idaho than ever before. Now, it’s only a matter of time until housing prices catch up.
In the heart of Nashville, you’ll find more than the Grand Old Opry. In fact, you’ll find a bustling community just looking for investors. With so many opportunities, it’s hard to deny how beautiful it seems like things are over there.
On average, this area produces more middle-class incomes than most other major metropolitan cities in the country. Plus, on top of that, Nashville has a much lower cost of living than other employment meccas.
Popular Cultural Center:
In addition to the strong job market, you’ve also got plenty of culture to enjoy. In the area, you can experience a broad range of things. Thus, tons of new homeowners are falling in love with the atmosphere.
Charlotte, North Carolina
North Carolina is among the oldest states in the union. Since those early days, it’s had an amazing transformation. Nowadays, it’s a true burgeoning location. Even more than that, the city of Charlotte is growing at an unprecedented pace.
Fastly Appreciating Property Values:
In just the last year, properties have increased by over 5% in value. With such fast appreciation, it won’t be long before most people are priced out of the market. At that point, finding a decent deal for an investment property might be a struggle.
Higher Than Average Median Household Income:
In Charlotte, you’ll find many of the nation’s largest financial centers. At these institutions, you’ll find some of the highest-paid employees in the country. As a result, the median wage in this area is well above the national average.
Suppose you prefer something with a coastal view. If that happened to be the case, then Tampa is going to be the best market to choose. Thanks to their affordably priced properties, it’s easy for new investors to join in the fun.
Currently, It’s a Sellers Market:
Since the beginning of last year, a massive horde of new homeowners has been descending on the city. Thus, most new listings don’t last for long. When they do show up, it’s not unheard of for them to receive multiple offers on the first day.
Of course, how could we end our list without mentioning Dallas, Texas? It’s among the most hyped markets for the upcoming year. Plus, with so many people fleeing California, it seems as if Texas is becoming among the most common places for them to go.
Population on Track to Double Within 15 Years:
Thanks to such a large migration, this city is going to double in population in less than two decades. At that point, it’ll be hard for new home builders to keep up. Thus, we should expect to see a housing crunch at some point within a few years.