Real estate has been one of the most reliable investments over the last 10 years. However, not all real estate markets are created equal, and certain cities are much better options.
These are our top 5 cities in the US for buying real estate as an investment.
What Makes a City Suitable for Investment Purposes?
- Cities on this list have a lower cost of living when compared to large cities like those in California and New York. However, the cities on this list retain high living standards.
- Each of the cities on this list are located within tax friendly states, which will provide easier circumstances for those investing in real estate.
- Oddly enough, the housing inventory shortage in each of these cities has caused a very steady increase in the value of homes.
- Each of these cities have the option for short term rental periods, including Airbnb. Also, most of these cities don’t have the control of homeowner associations.
- There is a high influx of good paying jobs in each of the cities on this list, and companies with their headquarters located in these cities are able to take full advantage of business-friendly policies.
- About This City: The real reason that Scottsdale, Arizona sits at the top of this list is because Scottsdale condos for sale are worthwhile investments that will mature in the near future. Scottsdale is a large city in the northeast part of Arizona; its population is over 200,000 people.
- What’s the Housing Market Like? The housing market is exciting in Scottdale; homeowners have seen the price of real estate go up over six percent in the last year, which is why it’s important that you start searching for Scottsdale condos for sale as soon as possible. The median value of a house in this city is over $530,000.
- Predictions for the Future: The median price of a home in this city is over $600,000, which means that homeowners are listing their properties at a much higher price than they are actually worth. That’s much greater than the median list price of homes in this state. If this trend continues, Scottsdale real estate investors will be fortunate to sell or rent homes at a higher price than originally intended.
- Transportation & Education: In this city, most people get around by car. However, there are trolleys and metros that assist residents in commuting to and from work or school. The metro system is connected to the city of Phoenix, and public transportation is available for those commuting to and from the airport. Although there are several public schools in the Scottsdale area, the majority of schooling options are private schools. In fact, there are a total of 111 private schools in comparison to 44 public schools. There’s also a community college, a school of medicine, a seminary, and other higher learning institutions available in Scottsdale. Within the local vicinity, there is also an abundance of office space available. If you are looking to set up an office in Arizona, there is no shortage of affordable office space in Scottsdale.
- About This City: This city is the capital of New Mexico, and it’s located in the center of the state, so it has plenty of southwestern charm. Although Santa Fe is smaller in population when compared to Scottsdale, it still offers tremendous opportunities in the housing market for real estate investors.
- What’s the Housing Market Like? The good news for real estate investors looking to purchase homes in Santa Fe is that the average sale price is slightly lower than the average listing price. On average, it takes investors around two months to sell a house in this city.
- What Life Is Like in Santa Fe: Most people in this city commute by vehicle, including grocery shopping and going to school. The majority of houses in this city are single family homes, and 70 percent of homes are occupied by their owners.
- About This City: The capital city of Tennessee is located near the middle of the state, and it boasts a population that’s around three times the size of Scottsdale. There are a large number of learning institutions and health care centers in this city.
- What’s the Housing Market Like? Real estate investors should know that the average sale price of a house in Nashville is nearly the same as the average listing price. However, houses in this market sell relatively quickly. The typical turnaround time for selling a home is between two weeks and 40 days.
- What It’s Like to Live in Nashville: Even though most residents in Nashville prefer to drive for errands, there are around 50 bus lines and a few transit hubs located throughout the city. Many of the bus lines are near housing complexes. There are over 50 parks located around this city, so there’s a peaceful atmosphere for many residents.
- About This City: Austin is the capital of the state of Texas, and its population is even larger than Nashville’s. The downtown area of Austin has plenty of large high-rise buildings, and it’s the home of the University of Texas System.
- What’s the Housing Market Like? The housing market in this city is more competitive than most of the cities on this list, and the average home in Austin sells for a little more than the listing price. Interestingly, houses sell within three weeks on average in Austin.
- What It’s Like to Live in Austin: Most people in Austin require a car to commute in their daily lives, but there are around 50 bus lines that run throughout the city. This is also a bicycle-friendly city. There are plenty of primary schools within walking distance throughout the city, but high schools are often more remote.
- About This City: Another thriving capital city is located in southwestern Idaho; Boise is located on the Boise River with a population that’s over 200,000 people. The Boise Art Museum is located in the downtown area, and Boise State University is south of downtown.
- What’s the Housing Market Like? The average sale price of homes in Boise has risen over 17 percent in the last year. Homes in this city have been selling for nearly the same price as the listing price on average. Remarkably, the average house in this city sells in around a week.
- What It’s Like to Live in Boise: Although most residents in this city require a car for their commutes, there are a few walkable areas of Boise, including the downtown area, Morris Hill, and a few other neighborhoods. There are plenty of attractions in Boise, including a zoo, notable parks, and cafes.
Finding the right city for real estate investment will help maximize ROI, and these five cities can provide a starter guide to making the best investment for your budget.