Real estate investment has always been considered one of the safest investment avenues. This belief was shaken a decade ago when the US housing market crashed. When the real estate bubble burst, it was a dark time for home sellers (but ideal for home buyers).
However, the current US housing market has become much more stable. For the last decade, steady growth in the economy and more job opportunities have led to steady growth of the housing market.
If you are looking for a safe, long term investment, investing in the real estate industry is your best bet.
But it is important to understand that the real estate industry is dynamic. Some areas are much more desirable investments than others. A few skyrocketing markets might seem like a good short term investment, but they are relatively risky as well. With prices expected to take a steep dive following their sharp ascension.
How to Decide Where to Invest?
Before diving into the housing market, what should you know about a place to decide whether it’s a good investment or not? There are multiple factors you can look into, but the three major factors every home buyer should consider before a real estate investment are:
- Market Swell (Growth)
- The current and prospective job market
Other features may be looked into, depending upon the nature and intention of your investment in the real estate industry. Maybe you want to flip the property or make it a short term investment. You may have a plan to sit on it for a while or want to make it a rental property for a constant cash inflow.
Top Five Cities to Invest in Real Estate in 2019
With these factors in mind, current and future market projections and trends, we have listed the five most desirable cities to invest in when it comes to the real estate industry.
1. Orlando, Florida
One of the steadiest real estate markets, Orlando has been in the top five cities to invest in real estate for the past three years. Some of the key attractions of Florida are its tourism, warm weather all year round, entertainment, a great healthcare system, and no state income tax.
All these factors, combined with low insurance rates and property taxes, have made Florida a major hub for entrepreneurs. This increased job growth by about 4.7%. Orlando is a constantly growing real estate market with the current median house price of $242,000. It is also the ideal city for rental property investment.
2. Dallas/Fort Worth, Texas
Dallas and Fort Worth, side by side cities, joined together as a metroplex, are also a hot real estate market. With weekly listings of around 3000, Dallas is one of the fastest-growing housing markets. It has a diverse economy, making it a hot-spot for people of every income level.
Another fact about Dallas/Fort Worth is that it has one of the lowest home ownership rates in the country. People prefer to rent, thanks to affordable rates. With the median value of a house at $213,300, Dallas is also cheaper than Orlando. The median price drops to $197,100 for Fort Worth.
3. Atlanta, Georgia
With a job growth rate of 2.2% and one of the fastest population growths in the country, this densely populated city is our third choice. Atlanta is Georgia’s capital and economic center. It has seen rapid growth and increased job opportunities, and followed by it, an increased population.
The median house price in Atlanta is $256,500 and the median rent is $1800.
4. Tampa, Florida
Another tourist-filled, beautiful real estate industry to invest in is Tampa. In addition to its warm beaches, it was one of the hottest real estate markets in 2018. It continues to be a safe and smart investment for this year.
Tampa has a 2.7% job growth rate, the median home value of $219,100 and the median rent is $1600.
5. Austin, Texas
Closing the list is Austin. As a tech hub, Austin creates a lot of jobs and attracts a lot of people. It is the 11th most populated city in the country and seeing a steady level of growth thanks to a low cost of living, great education, and job opportunities.
Median home value in Texas is $371,900 and the median rent is $1785.
Three More Affordable Choices
The cities mentioned above are the best investments you can make in the real estate industry this year. However, with a price tag of above $200,000 each, the median houses might be too overpriced for some modest investors. For people looking to invest around $100,000 in real estate, our top three recommendations are:
1. Detroit, Michigan
As the largest city in the state of Michigan and the automotive capital of the world, Detroit is a smart option for potential investors with capital between $100,000 and $150,000. The current median home price is $162,900 which means you can easily find a property for as low as $100,000. Median rent is $1200.
2. Kansas City, Missouri
With a median home value of $107,400 and the median rent of $1000, Kansas City is also considered one of the most affordable cities in the United States. The current job growth rate is 1.4% which is expected to see steady growth.
Job growth and affordability have contributed to the population growth of the city, making it another real estate market worth looking at.
3. Pittsburgh, Pennsylvania
Pittsburgh has seen a significant employment rate growth of 1.7%, thanks mostly to the hospitality and leisure industry. The current housing market stands at a median home price of $145,900 and the median rent is at $1395. As of now, Pittsburgh is one of the hottest real estate markets in the country.
The real estate industry, like any other industry, is constantly evolving. However, it is still one of the safest investments you can make. As a substantial investment, it deserves a more thorough analysis then most micro-investments do. Make sure that you have done your research and that you are making an informed decision.