view of a city with densely spaced buildings

It’s a well-known fact that real estate is all about location, location, location! So, naturally, a very important question for investors comes up – which location, exactly? The truth of the matter is, picking the optimal market to invest in real estate mostly depends on the qualities of each specific location. To assess a particular market’s prospects, your best bet is getting an overview and becoming familiar with the factors that make a city perfect for real estate investing. The qualities of the best cities for real estate investing include:

  • Population – It’s important to be aware of the city’s current population as well as the projected growth numbers.
  • Pricing – The current trends and levels in the average home and rent prices in the city’s market and whether they are affordable or not considering the income levels.
  • Attractions – Consider if there are any attractive features or popular local industries that will draw tourism, permanent occupants, or students into the market.

We examined the trends and looked at data from across the United States to compile this list of the best 5 cities to invest in real estate in 2020.

1. Atlanta, Georgia

Atlanta tops the list of best cities for real estate investing. This city’s population has grown by over 14% in the last 10 years and this increase in population is driving the housing demand. Atlanta is Georgia’s capital and it is a hotspot for all kinds of real estate investments. It has shown promising population and employment growth rates, which are two great signs of a healthy real estate market.

Georgia is one of the 10 states that contribute most to the USA’s GDP on an annual level. And as Atlanta continues to go through an economic boom, the properties across it are also predicted to increase in value in the years to come. This is one of the main reasons why people who are looking to develop a successful career, surrounded by a diverse community, want to beat the competition and invest in this market.

2. Austin, Texas

Austin has made this list thanks to the expected investor demand and its high projected population growth rate of 2.2% over the next 5 years. Being a college town, Austin has a wide range of educated talent and a unique and popular lifestyle, as well as a strong commitment to supporting real estate expansion.

Austin’s housing market has gained a lot of popularity as home values have almost doubled in the last decade. Its housing market is sizable – it is the 11th biggest city in the United States and it has become a popular tech hub in the last 5-6 years.

3. Charlotte, North Carolina

Homebuyers in the Charlotte area have dealt with a constant seller’s market, which has significantly driven up home prices. 2019 was the 5th consecutive year of home price gains in this real estate market. Nevertheless, the record low unemployment rate as well as the low-interest rates are one of the biggest reasons why buyers are still looking for homes in this region.

In March 2020, 3,630 homes were sold in Charlotte, which is a year-over-year increase of 4.9%. Charlotte is a hotspot for investors – whether they want to buy to hold and rent or buy to renovate and flip. This market’s real estate appreciation rate in the latest quarter was 0.52%, which equates to an annual appreciation rate of 2.10%.

4. Boston, Massachusetts

Based on its resilient and strong economic performance, historically, Boston has been a great choice for real estate investments. During the following 5 years, this city is expected to see 1.7% of population growth. The firmest and biggest real estate sectors in Boston are industrial buildings, offices, and multifamily structures. These sectors tend to remain steady thanks to the city’s diverse range of colleges and universities. These facilities attract plenty of talent of all kinds to Boston. But even though affordability still remains an issue, investor demands for this real estate market continue to be understandably strong.

5. Orlando, Florida

Orlando is a strong entertainment and tourism favorite, and thanks to that, it has remained a steady real estate investment market. In this city, investors can choose whether they want to target the holiday or the long-term residential markets. Both of these are good choices and offer strong returns. Orlando’s thriving tourism and real estate market are some of the biggest factors behind its economic stability. Its growing population as well as the increased number of job opportunities translate to more tourism and rental income, which consequently leads to a better economy for the city. Plus, a new rail link from Miami to Orlando is expected to significantly increase tourism flows to the city, thus boosting short-term rental incomes.

Author’s Bio: Alex Capozzolo is the owner of the Brotherly Love Real Estate blog and a content writer for the real estate industry. We buy houses in Philadelphia, PA. Our focus is on helping people through one of the most important investment decisions of their lifetime by seamlessly providing fast, honest, and professional real estate services.

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