Though the real estate market is experiencing some turbulence right now due to the spread of the novel coronavirus, many cities are still known for being awesome places for investing. Below, you can learn a little more about five of the best cities for real estate investing in 2020 and the reasons why people seem to profit more in these locations.
#1 – Mesa, Arizona
If multifamily or rental properties appeal to you, Mesa is the place to be according to Apartment List. Rents here grow faster than anywhere else in the country year over year. The national average annual increase is 1.4%, but in Mesa, Arizona, rents increase about 5% a year, and that trend is expected to continue. As such, if you’re interested in building a single-family rental home, a duplex, or even an apartment building – or if you’re interested in buying an established one – Mesa is a great choice for most investors.
#2 – Detroit, Michigan
Detroit may not be a first choice among many investors, but for those who are just starting out or working with limited funds, it offers some wonderful opportunities. The average home price in Detroit is $34,814 with the average rent sitting at $769, making for a price-to-rent ratio of 3.8. It isn’t the highest ratio, but it certainly can help first-time investors start bringing in profits they can then use to invest in other properties down the line.
#3 – Boston, Massachusetts
Boston is a real estate hotspot, and for good reason. In terms of GDP (gross domestic product) per capita, it ranks sixth in the nation. Boston is also a high-tech area, and it’s home to some of the country’s best schools, too. For these reasons, people flock to the area, but there isn’t enough medium-density housing to suit them. Commercial real estate investors who are interested in taking advantage of this will do well to satisfy the housing needs in the Boston area by building new properties here.
#4 – Nashville, Tennessee
Prior to the coronavirus pandemic, Nashville was a hotspot for new jobs. This trend is expected to pick up right where it left off when the crisis is over, and numerous Americans have plans to relocate to Nashville (or one of its suburbs) when the time is right. Amazon is building a new Operations Center of Excellence in the downtown area, which will add more than 5,000 jobs. Multifamily homes, apartment buildings, single-family new builds, and fix-and-flip projects are all going to be highly profitable as a result.
#5 – Charlotte, North Carolina
More than 1.5% of all the real estate investing that took place in 2019 across the US was centered in Charlotte. Locals know this is because of the city’s commitment to excellence with infrastructure projects like an expansion of the airport, a new bus line, and even a new light rail network, among other additions. The city is new-business friendly and with very low taxes, it’s perfect for many people looking for a new start.
If you are considering a first-time real estate investing project in 2020, any of these five cities is perfect. They’re also great choices for established investors looking to improve their investment portfolio or broaden their investments into new parts of the country.
