To be a successful real estate investor, you need to know which location is best for your investment strategy. Though no one single location can offer an investor everything they want in terms of returns on their money and risk-adjusted projected values over time, it's important not only to identify what city or state has potential but also to figure out how much time commitment will go into investing there before making any decisions. In order to do this, you'll need to look at various different markets around the country while also considering various factors such as income levels per capita.
The best cities to invest in real estate right now
When it comes to real estate investing, location is key. You need to make sure you're choosing a location that will offer you the best return on your investment, while also being a place where people actually want to live. That's why we've compiled a list of the best places to invest in real estate in 2022, based on factors like population growth, job prospects, and affordability.
1. Austin, TX
Austin is one of the fastest-growing cities in the country, and it's no surprise that it's also one of the best places to invest in real estate. The city has a strong economy and is home to many young professionals, based on factors like job growth and population density. Additionally, Austin is one of the more affordable cities on this list, making it a great option for investors who are looking to get the most bang for their buck.
2. Charlotte, NC
Charlotte is another city that's experiencing rapid growth, thanks to its strong economy and low cost of living. The city is also a great place to invest in real estate, as it offers a variety of different property types and price points. Charlotte is a great option for investors who are looking for solid returns without breaking the bank.
3. Denver, CO
Denver has been one of the hottest real estate markets in the country for the past few years, and it shows no signs of slowing down. The city has a strong economy and is home to a young, educated population. Additionally, Denver offers a variety of different property types, from single-family homes to condos and apartments.
4. Portland, OR
Portland is another city that's experiencing rapid growth, thanks to its strong economy and low cost of living. The city is also a great place to invest in real estate, as it offers a variety of different property types and price points. Portland is a great option for investors who are looking for solid returns without breaking the bank.
5. Nashville, TN
Nashville is another one of the fastest-growing cities in the country, so it comes as no surprise that it's also one of the best places to invest in real estate. Because of factors like job growth and population density, the city has a strong economy and is home to many young professionals. Additionally, Nashville is one of the more affordable cities on this list, making it a great option for investors who are looking to get the most bang for their buck.
6. Indianapolis
Indianapolis has recently seen a 12.8% increase in single-family home appreciation and a 4% increase in rent. The city is attracting people from high-priced markets like New York City or San Francisco who want affordable housing options with plenty of space.
7. Atlanta
The city of Atlanta has become a hotbed for high-tech and financial service employers (like Groundfloor!) thanks to its business-friendly climate. This trend is helping single-family homes appreciate by more than 13% in just one year.
What makes a real estate market good for investors?
When looking for the right real estate market in which to invest, there are several aspects you'll want to take into account so you can make the right choice for your investing goals. Here are seven factors that can make a real estate market good for investors.
1. Job creation above the national average. If there's unemployment in your area, it'll be easier to find work as an investment property owner or developer.
2. Current and expected future population growth. The number of individuals projected will affect how quickly prices rise up over time.
3. Number of building permits pulled. When new construction projects come online, they create jobs.
4. Government planning on both state and local levels - including whether developers have procreation policies.
5. Rental property taxes. Be sure to look into what the tax laws are in your chosen market. As an investor, you'll be able to deduct a percentage of your rental property's value from your taxes each year.
6. Rental income potential. This goes without saying, but obviously the more money you can make from rental properties, the better.
7. Low crime rates. Not only will this make your property more attractive to potential tenants, but it will also help keep insurance rates down.
These are just a few of the best places to invest in real estate in 2022. When it comes to choosing the right location for your investment, it's important to consider factors like job growth, population density, and affordability. By taking these factors into account, you can make sure you're choosing a location that will offer you the best return on your investment.