Real estate can prove an excellent investment opportunity for many. However, investing in the wrong place can be pretty disastrous. To ensure you are investing in the right place, we consulted the experts in the real estate market for the best and most profitable real estate markets of this year. Here are the top picks (not in order);
Some of the most popular markets to invest in real estate include Texas, particularly cities including Austin (of course), Dallas, and Houston. These cities have some of the fastest-growing job markets in the world. In addition, the real estate is surprisingly affordable and the ratio of renters to owners is larger than the national average.
Darren Nix, Founder of Steadily Landlord Insurance Austin Texas
New Hampshire is an ideal place to invest in real estate. The northern half of the State offers year-round recreation opportunities with access to several lakes and mountains. Tourism is the 2nd largest industry which helps to fuel the demand for short-term vacation rentals. The southern part of New Hampshire is more of a bedroom community for the greater Boston area and thus drives demand for long-term rentals.
Like many parts of the country, the NH real estate market has limited housing supply, so that is driving prices up; however, with home values still appreciating, it still represents a great market to invest in with future appreciation potential.
Link Moser is a broker/owner with Experience Homes Group
Well, earlier this year, the LA Times named Fresno, California, the hottest housing market in the nation. Development is booming in the Central Valley as a whole. We’ve seen this firsthand being located near Fresno. We work with developers around the state building out subdivisions. One development we’re working on at the moment is a 6,000 home subdivision in the Central Valley and there are other examples of these across communities in this part of the state.
The reason there’s so much demand is pretty simple. It’s more affordable and there’s more open land to develop compared to the Bay Area. A home buyer can purchase a 3,000 square foot home in Fresno for the same amount as a 500 sq foot studio in San Francisco.
Homeowners really like being within striking distance of big cities, but not necessarily in the heart of the action. The Central Valley fits this description to a T, which is why new neighborhoods are sprouting up across the region.
Scott Ford, President and co-founder at California Builder Services; a full-service consulting and processing firm that specializes in residential real estate development.
Investors who are looking to earn a stable income from their rental investment properties should continue to invest in 2+ bedroom homes in Tier1 metros like NYC, LA and Bay Area. In these areas specifically, there is an equal demand for entire units and individual rooms. It makes a win-win situation for investors wanting zero vacancies in their rental properties.
Also, the housing prices in these markets continue to rise and if the investors decide to sell, they would always earn a decent profit on their properties. Flipping in these areas is not advisable as the prices are very high and the margins might not be high in flipping. But if the investors can wait for a few years, they can always expect to make a decent profit.
Navish Jain is the Founder of CirTru - Rental Housing Marketplace
The industrial market has a greater diversity as compared to any other real estate market. It has the most compelling perks and is an efficient space that comes in all shapes and sizes. Factors like high demand, higher yields and low maintenance make it an ideal place for investors to invest. The long-term benefit opportunities are obviously a perk to them for a number of reasons.
The rental yields are higher, around 6% to 7.5%, which makes industrial spaces a clear choice. Lastly, the risk of market saturation is also low because the risk of oversupply of industrial property is unlikely.
Jeff Johnson, Real Estate Agent and Acquisition Manager of Simple Homebuyers
One of the best real estate markets to invest in is agricultural land. Farmland has been a solid investment option for many years and it still is. You can use the land to build your own farm, or rent it out to someone as well. The only drawback is that in order to manage a farm by yourself, you’ll have to travel back and forth from the city very often, or you may have to entirely shift to your farm.
You can also invest in Agricultural land REITs, which are considered capital intensive investments because of the profit they can return. The government keeps planning for improvements in agricultural areas because of the changing needs, so a rise in value becomes inevitable. This is why agricultural investments are the safest and the most popular.
It’s always a good idea to invest in the commercial real estate market. There are many benefits for investors to dive into this market. Firstly, the income potential is significantly higher than in the residential or rental market. Also, since the commercial properties impact the reputation of the tenants, their goals are aligned with the property owners, so there are fewer issues for them.
The commercial real estate market is in a boom right now and I would recommend investors to fully take advantage of the situation. Due to a growth in e-commerce, the demand for warehouses and industrial spaces has increased, causing prices to skyrocket. Moreover, with hybrid work becoming so popular, there is an increased demand for coworking spaces. These are all opportunities that investors need to get on quickly.
Perry Zheng, CEO & Founder CashFlowPortal.com
With an annual appreciation rate of nearly 20%, Boise holds the 1st position for real estate investment in the U.S. Boise has a high population growth rate, and the job growth here is 2-3 times the national average. The safety and high standard of living in this city lure people from different parts of the country to it. Considering the demand, economy, and other potentials, Boise is certainly one of the best real markets to invest in.
The strong availability of housing stocks coupled with high rental rates has made Dallas a great market to invest in. The diverse economy in this city accommodates people from different income levels and different housing demands. The population of Dallas is expected to double within the next 15 years., which raises the potential even higher.
Dallas also has the lowest homeownership rate in the U.S. As renting is more affordable than buying here, the demand for rental units has gone up by 14% during the last year. The metro area is also growing exponentially. It is expected that around 20,000 new homes will soon take their place in this area. All this information concludes that Dallas is a highly potential market to invest in.
Dino DiNenna, Realtor & Owner Southern Lifestyle Properties