Whether you are brand new to real estate investing and looking to make your first purchase or you’re a seasoned investor who wants to branch out into a new market, investing in the right area is crucial for profitability. Below are the best US cities for real estate in 2020 along grouped by investment strategy.
Commercial Growth and Development
Commercial real estate markets in dozens of US cities are expected to thrive throughout 2020, but in a few, real estate experts predict exceptional growth. Atlanta is slated to top the charts with rents rising about 4% between now and 2024, and Boston is also expected to provide significant opportunities for commercial real estate investors due to their significant housing shortage. Finally, a new Apple campus in Austin will employ about 5000 people, and with those people comes the need for not only housing, but also shops, diners, and more.
Multifamily Properties
If you want to invest in multifamily properties, there are several great choices in cities all across the nation. In Orlando, rents climbed 6% in 2019, and that trend is expected to continue. Huntsville, Alabama is also a great place to consider investing in an apartment building; experts say it’s leading the nation in economic recovery with 31,000 military jobs located at Redstone Arsenal and numerous Fortune 500 companies headquartered there. Finally, Cincinnati, Ohio is yet another great option with numerous Fortune 1000 companies, population growth, and strong chances of appreciation.
Fix-and-Flip Investments
If you prefer the excitement of fix-and-flip investing, some of the most popular (and potentially profitable) cities in the nation may surprise you. WalletHub compared 170 cities across a wide variety of indicators ranging from quality of life, local economy, home prices, and more. It found that Sioux Falls, South Dakota was by far the best place to fix and flip a home in the US based on total market potential, renovation and remodeling costs, and quality of life. Missoula, Montana and Rapid City, South Dakota came in second and third, respectively.
New Builds
Last, but most certainly not least, if you’re more inclined to invest in new build homes, it’s important to look for cities where new construction made up a large percentage of the existing housing. In some places, such as New York City, for example, the cost of materials and building simply does not justify new build investing. Conversely, in places Like Austin, Texas and Boise, Idaho, new builds accounted for 7.2% and 5.1% of the existing housing stock, respectively. Other cities with a great potential for new build profitability include Houston, Dallas, Jacksonville, Salt Lake City, and San Antonio.
No matter how you prefer to invest your real estate dollars, location really is everything, and it can have a tremendous impact on your profits. Remember that any real estate venture can be successful in any city if you play it smart, but considering local economies, housing shortages, average incomes, and more can all help you make better decisions in the end.
