Buying a home is probably one of the most costly investments you will ever make as an individual. It is an even harder decision when the economy is experiencing a downturn. The recent outbreak of COVID-19 has no doubt shattered the world of real estate investing.
The effects of the spread have made it such that even experts are finding it hard to predict the impact on the U.S. real estate market. The stock market was the first to take the plunge. However, the U.S. housing market prices remain unchanged even with the decline in the buying and selling of property.
While this recession may not be similar to the one from 2008, experts with experience from the previous recessions note that the housing prices may drop to a certain level. However, the real estate market is set to recover and resume back to normal.
Even with the temporary economic crisis, the long term returns on real estate investing will continue to generate excellent results.
So, where should you invest in long term real estate properties during times of crisis, such as the current one?
Well, first, before you can choose a real estate market to invest, you need to look at a home affordability calculator (click here for the one from Mint) and consider the location. You need to assess its prospects to know if it is ideal. The best location should be an area that is affordable, has a good population growth and enough job opportunities.
If a market does not meet these qualities, then it may not be an excellent investment opportunity. So, which cities across the U.S. offer the best real estate investment opportunities? Keep reading to identify where you should place your money and why these cities are the best.
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1.Orlando, Florida
Orland is one of the best cities to invest in real estate in Florida. Its growing population, great beaches, good economy, and improving quality of life are some of the reasons that make it a secure real estate investment.
The sunshine state has a high demand for single-family homes. However, you can get yourself a suitable renovated property for prices lower than $193,000. Even with houses at such low costs, many home seekers in the region prefer to rent rather than purchase.
As a result, the rental rates have been increasing and will keep on rising throughout 2024. Moreover, the city offers low property taxes and insurance. You do not also pay any state income tax.
The location of the city allows it to enjoy warm weather, making it a hub for tourists seeking pleasures of the numerous entertainment joints, attractions, and amusement parks. The city has a growing population of more than 2.5 million residents seeking to live in a region that offers a high quality of living at a favorable cost.
The employment growth in the city is not slowing down. The city has created more than 45,000 jobs in less than a year. The trend is expected to increase by 3.44 percent annually for the next ten years.
2. Scottsdale, Phoenix
The Scottsdale market in Westside Arizona offers a bright future for real estate investment. The extensive metro area has a booming economy. A study done by Wallethub in 2019 recognizes it as the best job-seekers destination in the U.S.
The unemployment rate in the city is lower than that of the U.S. average of 3.9 percent. It stands at 3.4 percent. The employment growth is projected to increase by 51.2 percent in the next ten years, a rate higher than that of the whole country.
Two primary industries that act as the backbone of the city are tourism and retail trade. With friendly business policies, the town allows numerous companies to thrive. As a result, many people seek to establish their businesses in the region.
Commercial and residential properties are, therefore, always on demand, providing you with excellent investment opportunities.
As tourism is a big money mover in the region, you will find plenty of restaurants, shopping centers, golf courses, and festivals. You can take advantage of the industry and invest in a short term rental such as Airbnb as it is the homeowners association rather than the city or state.
The city is ranked to be one of the top places to live and raise a family. The residents live a high-quality lifestyle with all the necessary amenities, excellent recreational facilities, and good infrastructure. However, the costs of living are lower when you compare to other cities such as New York and California.
Moreover, the property tax of the region is lower than the U.S. average of 1.1 percent, a significant selling point for real estate in the city.
If you happen to be looking to buy or sell in the Scottsdale or Phoenix area, we recommend looking up The Kay-Grant Group. As they are one of the highest-rated in the area and carries an excellent reputation.
3. Huntsville, Alabama
According to Money Magazine, it is one of the most affordable cities to live in the country. USA Today also acknowledges it to be a community that is driving the economic recovery. Huntsville is the fourth largest city in Alabama.
The primary industries that drive its economy are those in defense, space, and technology industries. You can find several fortune 500 companies in the region covering the fields of retail, manufacturing, and service. The largest employers in the city are the Military, Redstone Arsenal with more than 31,000 jobs, and the NASA Marshall Space Flight Center.
The area has a steady job market, with STEM workers getting salaries that are higher than average. In accordance, the population in the region has tremendously grown over the last eight years by 10.35 percent compared to the national population growth of 5.76 percent.
The residents enjoy a low tax rate and highly competitive rent prices. That, together with a positive job market growth, and population make Huntsville one of the best places to purchase a property.
4. Cleveland, Ohio
Located on the southern shores of Lake Erie, Cleveland is one of the largest economic regions in the whole country. Investors can be sure of high cash flow and massive growth in the future when they invest in the city.
With more than 2 million people, the population continues to grow in number with a vast demographic consisting of millennials. Many of these people coming into the city are moving to Downtown Cleveland. It is due to the ten-year renovation and redevelopment of Downtown Cleveland that cost an average $19 billion.
Cleveland is rapidly growing due to its technology and healthcare sector. Young minds are flooding into the city to take up the jobs available in the set industries. With a current median home price of $138,000, it is one of the best places with excellent cash flow and appreciation opportunities.
5. Dallas, Texas
Long since history, Dallas gas remained to be one of the most important cities in the country. It was once a center for oil and cotton industries due to its railroads.
Today, it is one of the most populated cities in the country. The city is very business-friendly due to its low taxes, few business regulations, and low cost of doing business. It is for this reason that numerous companies have chosen to relocate from cities such as Los Angeles and San Francisco.
The number of jobs within the past one year has grown with the city adding and extra 100,200 new jobs. The jobs increase at an annual rate of 2.7 percent, an amount higher than the national average of 1.47 percent.
To meet the increasing number of jobs, the population is also increasing.
The rent in Dallas is more affordable than the national home average, with the price of a three-bedroom single house retailing at $215,000. The home value of property in Dallas increases much faster than any other real estate market.
Bottom Line
Now that you know where to put your money, you can make a wise decision when making any investment. You should note that real estate prices can change rapidly, depending on the economic situation present. Much of it depends on factors that you do not have any control over. A good example is the effects of COVID-19 on the economy.
