These 10 regions have the best real estate prospects for investors
Rent-to-own platform ZeroDown analyzed data on 10 cities that have the best real estate investing prospects in 2021 and beyond by using data from the Emerging Trends in Real Estate 2021 report.
The national housing market has been hotter than ever over the last couple of years, with markets across the country facing housing shortages and price increases that have made it tough for average buyers to compete. A perfect storm of low mortgage interest rates, a nationwide shift to a remote work culture, and other pandemic-related factors, have only added fuel to the fire in most markets. In other words, it’s tough to find the hidden real estate gems for buyers.
That’s especially true for investors, who have to compete with not only each other for the more desirable properties, but also the slews of new buyers who are now in the market for homes. In addition, there have been widespread foreclosure moratoriums, eviction moratoriums, and a severe shortage of new home construction projects that can’t meet demand in most markets. All these events combined result in a recipe for a lack of housing—and a very unusual housing market for all parties involved.
While it may be more difficult to buy investment properties these days, it’s certainly not impossible. In fact, there are certain markets where the real estate prospects are top-notch—and savvy investors should be keeping an eye on them. Curious as to what these markets are? ZeroDown analyzed data on 10 cities that have the best real estate investing prospects in 2021 and beyond by using data from the Emerging Trends in Real Estate 2021 report, compiled by PwC and the Urban Land Institute. The trends in this report are based on interviews and surveys of over 1,600 individuals who work in either real estate advisory, investing, lending, or real estate development. These individuals ranked 80 markets (exhibit 2-1) based on local economic and housing factors, as well as national trends and the effects of COVID-19.
Some of the statistics used to rank the markets (exhibits 2-14 and 2-15) are listed in this story, and use data from the IHS Markit forecast, U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Walk Score, National Association of Home Builders (NAHB)/Wells Fargo, and CoStar. The two indexes used in the data are the walk score and the Housing Opportunity Index. The walk score is calculated by analyzing the walkability of different addresses and the nearest amenities. The Housing Opportunity Index analyzes the share of homes sold that were affordable to individuals earning the median household income in that metro.
These 10 markets offer unique factors, from excellent schools to high walkability scores and other regional perks, that will likely attract residents to them for years to come. If you’re looking for your next big move, you may want to pay close attention to these hidden gems. Here’s what investors should know about the 10 U.S. markets with the best real estate prospects.
#10. Long Island, New York
#9. Boston, Massachusetts
#8. Washington, D.C.–Northern Virginia
#7. Salt Lake City, Utah
#6. Tampa/St. Petersburg, Florida
#5. Charlotte, North Carolina
#4. Dallas/Fort Worth, Texas
#3. Nashville, Tennessee
#2. Austin, Texas
#1. Raleigh-Durham, North Carolina
Source: The Herald News