The top 7 U.S states for investing in real estate are all very different, but they have one thing in common: high quality of life and low cost of living compared to other parts of America.
Now that we know our first list of the best states for real estate investing, let's dive into why each state made the list:
1. Florida
It's no surprise that Florida landed the number one spot on our list. The state is notorious for its endless sunshine, beautiful beaches, and affordable cost of living. All of these factors make it a popular destination for retirees, vacationers, and young families alike.
Home values in the Sunshine State are on an upward trajectory, gaining 23.9% year-over as a result of population growth and job stability. This has led to more investments by locals who want access or property tax relief for themselves while also providing opportunities others can take advantage if they're looking at buying their first house — or even just renting one out. That being said, there's always going to be some volatility in any real estate market. This past year was no exception when prices fluctuated wildly from month to month. Whether you live somewhere like Tampa Bay where homes sell quickly because demand is high or in Central Florida where it's a little slower-paced, you're bound to find good investment prospects in this top state.
2. Texas
Texas takes the number two spot on our list of best states to invest in real estate. Like Florida, Texas is a popular destination for retirees and families looking for affordable living without sacrificing their quality of life. The state is also known for its business-friendly environment, which has led to job growth and population expansion in recent years.
All of these factors have contributed to an increase in home values across the state. In fact, Texas was one of only seven states where home prices increased by double digits in 2022! And with no state income tax, property taxes that are below the national average, and a cost of living that's nearly 10% lower than the rest of the country, it's no wonder why so many people are flocking to the Lone Star State.
The median home value in Texas is $267,523 and the price has been increasing by 20.5% per year on average over this past one-year period alone! 88 percent of occupied housing units are occupied by renters who pay an average rent close to $500,000 annually - that's 10%. And with population growth at only 1%, you can see why many people want new blood moving into these areas so they don't feel left out or bypassed because their properties aren’t worth what someone else paid for them anymore.
3. Colorado
Colorado is another great state for real estate investing. The state has a booming economy, thanks to its thriving tech industry, and is home to a number of major corporations. This has led to population growth and an influx of new residents in recent years.
The median home value in Colorado is $489,466, and the average rent is $1,880. The state's population is growing by 1.4% per year, which is leading to more demand for housing.
What's more, Colorado has no state income tax, which makes it an attractive destination for people who want to keep more of their earnings. The state also has a property tax rate that is below the national average.
4. North Carolina
North Carolina is another great state for real estate investors. The state has a lot to offer investors, from its stunning mountain scenery and coastline to its growing economy and quality of life. The state has a diverse economy, with a thriving bank industry, agriculture sector, and manufacturing base. This has led to population growth and an influx of new buyers in recent years.
Home values in North Carolina have been on the rise in recent years, thanks in part to population growth and an influx of people moving to the state for its affordable cost of living. In fact, North Carolina is one of only three states where the median home value is still below its pre-recession peak! This makes it a great time to invest in the Tar Heel State, especially if you're looking for bargain properties that have the potential to appreciate in value.
5. Tennessee
Tennessee is another state that's perfect for real estate investors. The state has a lot to offer, including stunning scenery, a growing economy, and a low cost of living.
Home values in Tennessee have been steadily rising in recent years, thanks in part to population growth and an influx of transplants moving to the state for its affordability. In fact, Tennessee is one of only three states where the median home value is still lower than its past peak! This makes it a great time to invest in the Volunteer State, especially if you're looking for bargain properties that have the potential to appreciate in value.
6. Arizona
Arizona is another great state for real estate investors. The state has a lot to offer, from its stunning desert scenery and sunny weather to its growing economy and affordable cost of living.
Home values in Arizona have been on the rise in recent years, thanks in part to population growth. In fact, Arizona is one of only seven states where home prices increased by double digits in 2022! With property taxes that are below the national average and a cost of living that's nearly 10% lower than the rest of the country, it's no wonder why so many people are flocking to the Grand Canyon State.
7. Georgia
Georgia is another top state for real estate investors. The state has a lot to offer, from its stunning coastal scenery and historic cities to its growing economy and quality of life.
Home values in Georgia have been on the rise in recent years, thanks in part to population growth in cities. First, the state has a booming economy thanks to its thriving film and television industry. Second, it offers a low cost of living and high quality of life. Finally, Georgia is one of the few states that still offers tax breaks for investors in the form of the Georgia Investment Tax Credit.
Georgia is a great place to call home, with the median value of homes increasing 22.4% over last year and 88% occupied by tenants! Rents are also on an upward trend - hitting close graduates at 29%. If you're looking for more employment opportunities or just want your paycheck to get you further every month then it might be time to consider relocating south. This beautiful state offers so many things within arm's reach including some amazing outdoor activities waiting around each corner.
There are a ton of reasons to buy property, and you should start looking at them now before prices keep going up. Rents aren't likely ever going back down in these areas again thanks to population growth, which means there will always be an influx of new renters coming into the market each year - not just baby boomers renting their homes out but young professionals as well! Property taxes also dictate how much money goes towards maintaining public services such as schools or infrastructure, so investing early on these investments saves significant amounts over time when they might otherwise need to be spent on repairs later down the line.
These states offer not only a great quality of life but also a variety of opportunities for real estate investors. If you're thinking of investing in rental property, any of these states would be a great place to start!