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5 Places to Invest in Real Estate

03 07 2017

5 Places to Invest in Real Estate

With single family homes at historically low price points and commercial interest rates still near rock bottom, it’s a great time to consider investing in real estate opportunities. Below, we’ve compiled some places to get a big bang for your buck.

What you won’t find here are big, coastal cities like Boston, San Francisco, New York, and DC. While these are great bets for the luxury market, they have strong competition and are often available only at the highest price points. If you’re searching for an investment property a little more under the radar, here are some real estate markets to consider:

1. Dallas

Powered by tried-and-true economic powerhouses like aerospace and telecom, as well as the industries of tomorrow like healthcare and energy, the city has a strong economy. Equally important: these jobs offer high wages, which means there are plenty of qualified renters/buyers now and likely in the future. The city is booming, and is expected to grow 6.2% in 3 years. With 2016 job gains growing at a similar clip, it’s clear that the economy in Dallas-Fort Worth is strong.

Most importantly, the homes here seem to be undervalued – though not for long. Most are below historic averages, and for now the local income is higher than the average housing price would have you think. While the average house today is just over $200,000, many predict that number will increase 10% every year.

2. Jacksonville

Jackson’s population growth of 5.1% is far outpacing the national average, and there’s no sign that it’ll stop. Why? Strong employment. Jobs grew 4.1% job growth from 2012-2015. Amazon has committed to building two fulfillment centers in the area, which will bring an estimated 2,700 jobs – not to mention jobs that come from other companies antsy to follow the tech giant’s lead).

Add to this that homes today are still undervalued by 8%, and Jacksonville makes for a strong pick.

3. Orlando

Jacksonville isn’t the only Florida city on our list. Head south to hit #3 on our list: Orlando. Boasting a whopping 7.2% 3-year population growth and 4.4% job growth, the numbers here certainly seem magical.

The magic (of Disney, that is) is partially responsible for an additional positive: strong job numbers. Nearby Winter Garden, where many park workers live, has a dwindling vacancy rate, which makes a case for increasing rent in the coming years.

4. Seattle

After a real estate tax hike in Vancouver, Seattle has become the top North American city for Asian homebuyers. They see the West Coast as a strong investment, but don’t want to pay the premium of Southern California. This interest presents an opportunity for those looking for a quick flip. Given the increased interest in the area, pricing for properties may be on the rise.

5. West Palm Beach, Florida

Another city in the Sunshine State, West Palm Beach, enjoys a whopping 11% annual home price growth, which can mean huge returns on investments (pardon our Mar-a-Lago pun). As many are looking for ways to get out of the hubbub of South Beach while still enjoying desirable Florida weather year-round, this area will likely become increasingly popular. The most recent charts show a 4.7% 3-year population growth.

The Bottom Line

Smaller, growing cities can be a good way to build value within the real estate market. Florida, in particular, is enjoying a moment as hot as its summer weather, so venture down south if you’re ready to sign a real estate deal. With plenty of options in the Pacific Northwest and beyond, there’s a great market out there – for just about anyone.

This article is a part of our complete guide to investing in real estate, a comprehensive resource for anyone looking to invest in real estate. Read more here.

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