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Is Now A Good Time To Invest In Real Estate?
The real estate investing space is massive, with numerous types of assets to choose from, and a variety of ways to get started. You may have seen the recent boom in real estate all across the country and wondered how you could get involved, especially if you’re not active in real estate currently.
Fortunately, real estate investment funds make it possible for you to invest in real estate markets you don’t live close to in a secure and stable way. Let’s explore some of the greatest cities for investing in real estate, why some may be better than others for your investment portfolio, and how you can get started investing in these desirable markets.
What Makes Real Estate Attractive to Investors?
Let’s examine why real estate is such an attractive investment in the first place.
For starters, real estate has underlying tangible assets that hedge your losses as an investor. Over time, properties typically go up in value, and almost never reach zero value, so there’s far less chance of completely losing your capital than more risky instruments like stocks or options trading.
However, numerous factors can affect the return on your investment when dealing with real estate. That’s why finding a team of real estate experts to rely on is essential. Saint Investment Group is comprised of an expert real estate investment team that thoroughly scrutinizes every property that goes into our funds. We always aim to deliver higher degrees of security for your real estate investment portfolio.
Essential Traits Of A Solid Real Estate Investment
No matter what city you’re considering investing in real estate, some essential traits of a quality location for real estate investment should always be factored in to get the best possible return on your investment. The following key traits should be highly researched and considered:
High Net Migration
Cities with more people moving to than from indicate a strong real estate market with measurable growth. This shows desirability with a distinct trend, and shows a strengthening of the local economy with a growing workforce available.
High Job Growth
When new businesses are being opened and jobs are growing at high rates, this helps ensure strong local real estate market growth. This indicates a quality local economy, and also opens up opportunities for new job availabilities, which also causes a draw for new individuals and families to move into the area.
High Occupancy Rates
Cities where the demand for local housing or commercial space is high in relation to the supply of homes and commercial real estate. This shows that market absorption of new development is balanced, that lease rates will likely continue to increase, and that the area is not being overdeveloped.
Low Tenant Default Rates
When selecting cities to invest in real estate, one of the most critical factors is the tenant default rate, which directly affects how dependable your property’s cash flow will be, how expensive your legal billing is, and how management-intensive. This indicates how successful the local businesses and individuals are, and often shows a good balance of wages paid versus rental market pricing.
10 Best Places to Invest in Real Estate in 2021
Atlanta has some of the most affordable properties for investment. Even better, median rent rates are strong, providing significant cash flow upside for investors. With a rapidly growing economy, including a growing list of Fortune 500 companies, Atlanta has the best to offer real estate investors.
- Median residential rental rate per month: $1,500
- 500 new residents move in daily
- Projected population growth of 2 million by 2030
Ohio has landlord-friendly laws, and it makes an ideal state for owning rental property. A significantly lower cost of living in Columbus draws residents from larger cities while still providing similar income potential, creating a highly stable local economy.
- Unemployment rates of around 4%
- Median home price: $174,109
- Median residential rental rate: $1,250
Home to some of the world’s largest companies, Chicago enjoys strong economic and job growth and rising rent prices. Both the commercial real estate and the residential rental market are huge here, with over 50% of the population renting.
- Median residential rental rate: $1,761
The strong economy in Austin means a low unemployment rate of 2.7%, and with a
growing population. It is now the 11th largest city in the U.S., and 4th largest in the state.
- Median residential rental rate: $1,750.
- In 2021, median home prices increased by 8% year-over-year to $405,093
The second-largest city in Washington, Spokane has a robust array of attractive qualities for a stable real estate market. With over 87 parks, a diverse economy that spans numerous sectors, and reasonable housing costs are driving solid returns on real estate in Spokane for both single-family and rental properties.
- Median residential rental rate: $1,295
As one of the fastest-growing job hubs in the country, Tampa is experiencing an incredible influx of new residents that’s driving growth in the real estate market. Combined with exceptional healthcare, education, and transportation, this city makes a strong consideration for real estate investment.
- Median home price: $250,000
- Median residential rental rate: $1,600
Las Vegas, Nevada
In Las Vegas, the real estate market is booming for both commercial properties and residential. New businesses are opening faster here than the national average, and home values in 2018 saw an astounding 13 percent increase.
- Median residential rental rate: $1,263
If you’re looking for a city where your investment capital will go the furthest, look no further than Birmingham. With a median home price of only $64,840, a strong and diversified economy, and a large population of students, there are great opportunities available.
- Median residential rental rate: $968
- Average rent increase: 3% increase over the previous year
Charlotte, North Carolina
Charlotte, North Carolina has one of the strongest housing markets in the region, with a 5.3% increase in home values over last year and a median home price of $252,438. The economy is strong here as well, with a gain in nonfarm jobs of 2.3% between 2018-2019. All this adds up to healthy rental rates in the city that are seeing solid growth.
- Median residential rental rate: $1,259
- Average rent increase: 6% increase over the previous year
Colorado Springs, Colorado
One area of the country that’s seeing tremendous home value increases each year is Colorado Springs. With an astounding 7.6% home value increase over last year and a 6% increase in rental rates, investment returns can be significant here. The economy is strong as well, with a 5.5% gain in nonfarm jobs from 2017-2018.
- Median home price: $323,194
- Median residential rental rate: $1,191
- Average rent increase: 6% increase over the previous year
How Can I Invest In The Best Cities For Real Estate?
Ready To Invest In Real Estate Across The Country?
When you’re ready to get started investing in the hottest real estate markets across the country, reach out to the seasoned real estate experts at Saint Investment Group. Diversify your portfolio with our team of real estate analysts and enjoy detailed reporting on your real estate investment performance. Saint Investment Group is here to help you start investing—call (323) 483-0291 today to discover how.
President of Saint Investment Group
Nic is a two decade seasoned expert in investing and capital raising, specializing in Real Estate and debt markets. With Saint Investment Group, he leads large-scale distressed asset purchases and innovative syndications for investors.