What Are the Best Cities in the US for Real Estate Investment?
The housing market is incredibly hot at the moment, creating prime opportunities for investors. While interest rates are low, however, housing costs are much more expensive. If you have significant savings to invest in rental properties, here are the best cities in the U.S. for real estate investment.
How Do You Choose a City to Invest In?
To ensure a high return on investment when you buy your property, here are a few criteria you should be looking out for:
Cost of Housing
In areas where home ownership rates are relatively low and housing costs are high, there is a gap for you to fill. Many individuals choose to rent for short or long periods of time, depending on their financial situation, living arrangements, and moving frequency.
Median Rental Rates
You want to choose an area where the median rental rate will at least help you cover the cost of your mortgage payments each month. Ideally, the rental rates will be a little higher so you can begin to turn a profit.
Unemployment Rates
A high unemployment rate indicates economic instability, which means people may be unable to rent due to their finances. Cities with high economic growth mean there are plenty of job opportunities for individuals to meet their basic needs and more.
4 Best Cities in the U.S. for Real Estate Investment
1. Boise, Idaho
According to a report by Millionacres, Boise is the number one place to invest in real estate right now. The home prices and job growth in this city are higher than the national average with low unemployment rates, high home appreciation rates, and an opportunity for rental growth. Furthermore, their economy is quite stable with job opportunities growing in a number of different fields.
2. Tampa, Florida
The economy and population in Tampa continue to rise year after year. In general, the greater Tampa Bay area is rapidly growing—that means places like St. Petersburg and Clearwater will also reap the benefits of higher job opportunities and housing demand.
3. Dallas, Texas
With some of the lowest homeownership rates in the state, many individuals find that renting is much more affordable than buying. With the demand for rental properties increasing by double digits in the past year, you’ll have a great opportunity to fill these needs. Experts also expect the population to double within the next 15 years.
4. Houston, Texas
This booming city is experiencing rapid population growth, endless job opportunities, and a demand for rental units due to high homeownership costs. If you’re looking to flip homes, Houston is an especially good market. Real estate is constantly moving so it’ll be fairly easy for you to exit the market and sell your investment home.
Buy Your First Investment Property Sooner Rather Than Later
Looking to invest in some of the best cities in the U.S. for real estate investment? Champions Mortgage operates in Florida and Texas—two states with great economic growth. If you need a home loan to secure your investment property, let us move you through the process as painlessly as possible.
Call us at 855-853-1522 for more questions!