5 Cities with Exciting Real Estate Prospects
2019 is as good a time as ever to invest in real estate since there’s a booming economy and rising home prices across the nation. As a real estate investor, you’re going to pay lots of attention to the quality of the property: the aesthetic of the home, the size of the land, etc. But you also need to consider where you buy a home. Similar homes in two different states may yield entirely different numbers depending on what the local market trends are.
Here are 5 cities with exciting real estate prospects for 2019 and beyond. These are the cities in which you can purchase the most profitable real estate for low costs.
Orlando, Florida is one of the most exciting places to acquire investment property. Orlando’s population has grown incredibly fast over the last 7 years, about 227% faster than the rest of the United States, and it has a projected employment growth rate of 3.2% for the next ten years. Housing demand looks like it’s going to increase, especially since there’s a large wave of baby boomers who are opting to retire in the city. Because the economy is heavily tourism-based, you could have a lot of success investing in vacation rentals out here.
Even with all the demand, you can still find good homes in good neighborhoods for great prices. Now is a great time to buy property in Orlando, but you should do it soon because land speculation will probably increase greatly over the next couple years.
Austin, Texas was ranked the #1 place to live in 2017 and 2018 by the U.S. News & World Report. Its popularity stems from the vibrant culture that has plenty of music, arts, theatre, and weirdness. Economic growth means rising demand for housing, which makes this city a very promising place to own investment properties.
What’s great about Austin is that the home prices are still relatively low, so it should be easy to pay off your mortgage. If you’re looking for financing, seek out some Austin hard money lenders and purchase a property while the prices are still good.
San Diego, CA
Like Orlando, San Diego is one of those cities that might not be profitable for real estate investors for too much longer, so you should buy an investment property here while it’s still lucrative. Population growth has been steadily rising in San Diego, although not at a rate where it’s jacked up home prices to extremely overpriced numbers (unlike Los Angeles and San Francisco).
Your best bet in San Diego is to buy a building that you can rent out into several apartments. The median housing price is still expensive in San Diego, which means it’ll be more difficult for you to pay off a mortgage. But apartments are incredibly profitable in this city and may give you a faster return on your investment. Use an online rental listing to find, fix, and flip homes that you can refurbish and segment into apartments—you’ll find aplenty. If you do plan to go the apartment route, consider hiring a SoCal property management company to manage your apartment units for you.
The redevelopment of downtown Cleveland has led to a huge influx of residents and businesses—just last summer, 15,000 new residents moved to downtown Cleveland, many of them made up of millennials. But home prices and rent are low, and that’s why you should be quick to jump into this wildly under-appreciated market.
Cleveland’s economy has lots of manufacturing, and that’s why economic growth should remain stable over the next few years. What’s better is that you might be able to purchase some properties at amazing prices that are located in gorgeous neighborhoods.
Kansas City, MO
The fact that Kansas City is one of the most affordable cities in the U.S. alone makes it one of the best cities to invest in a rental property. The downside to the whole “affordability” thing is that you won’t be able to charge as much for rent as you could in cities like San Diego. But the median home price is only $200,000, so you could potentially pay off your mortgage in 15 years or less. That’s a pretty sound investment, especially when you consider that the KC economy continues to grow at a steady pace.
These cities definitely have cultural and economic differences, but what they all have in common is that they offer a lovely and exciting place to live. When you’re scouting homes in these locations, you might just decide you’re going to buy a house for yourself!