7 of the Best Housing Markets That Real Estate Companies Should Be Investing In

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Finding new real estate markets to invest in can be difficult.

With the housing market in constant flux, it seems like most of America's big cities are past the point of being viable investments. Real estate is too expensive in these places, and even if the rental market is great for buyers, the cost of owning a property is too high.

Luckily, there are some under the radar, up-and-coming real estate markets that many real estate companies might not know about. In this post, we will discuss the best housing markets in the US. 

Some are cities that have come upon rough times and others will involve you catching them on the upswing. Being able to identify where a city is in its rise will always give you the upper hand when investing in property. Let's get started.


What to Look For

If you know what you should look for in a city, it will make your life a lot easier as an investor and property owner. Here are some key factors in where you should be investing.


Growth

Growth is an important factor in what you'll be paying now vs. what you'll be earning on your investments. Going for the cities with the largest growth isn't it, though. You've got to look at the current growth and think about whether there will be dozens of other buyers like you thinking the same thing.

Instead of flocking to the cities with the biggest growth, shoot for medium growth. You want this investment to be paying off in 3, 5, and 10 years, not maxing out right after you buy it.


The Job Market

Look at the job market and the jobs that are being added to it soon. Find out if any large, high-paying companies have set up shop or are planning to set up shop in the city. Industry projections will give you a sign as well.

If you can correctly project an incoming industrial boom, then you will see a lot of guaranteed jobs and more money coming into the area. It's great to capitalize on this.


Home Prices

If home prices are already high, you should probably stay away from investing in that city. Similarly, if the vacancy rate is too high, then you could be investing in a property that's to difficult to fill.


Finding the Best Housing Markets In the US

With the cost of living rising in most of the major American markets, many tech-minded young people, artists, and established professionals are flocking to secondary markets. 

That gives you, as the investor, some time to invest in a property and rent it out or flip it. Getting in on a city at the right time will maximize your ability to profit from your investments. Here are 9 of the best markets in the US right now.


1. Orlando, FL

You're going to see Florida pop up on this list more than once. Located in the central part of the sunshine state, Orlando offers a lot in terms of attractions but maintains a relatively low housing cost.

The average house costs just under $250,000 and that's expected to rise in the next few years with more jobs and thus, people coming in. Orlando has all of the important factors that you want to see from an investors point of view. You should make back your money in then some almost immediately.


2. Pittsburgh, PA

As people begin to flock to the middle of the country for the lower cost of living and increasing opportunity, a place like Pittsburgh is going to benefit. Formerly the home of a thriving steel industry, this city is finding a new identity in the research and development world.

The population has actually declined since 2010, but population of millennials has grown rapidly. You can find a home for as little as $140,000, which is expected to rise exponentially in the coming years as more and more people make their move to Pittsburgh.


3. Charleston, SC

The Carolinas, in general, are becoming more attractive to investors, but being one of America's oldest and most preserved major cities, Charleston offers something special. Its 5-year projected population increase is 1.6%, as opposed to a city like NYC, which is only projected at 0.2%.

It's received a lot of publicity from major media outlets, with Forbes calling it one of the 10 best-midsized cities for jobs and US News calling it one of the 50 best places to live in Amerca.

This publicity might have an adverse effect on the investment market, but as Charleston grows, the surrounding areas like Myrtle Beach and Conway will become great options. Check out this helpful blog to read more on the South Carolina housing market.


4. Ogden, UT

The natural beauty that Ogden, Utah provides has made it an intriguing place for many Americans. Currently, housing prices sit at just short of $250,000, but that's expected to grow by 10% by just next year.

Job and population growth are going to follow, with employment projected to jump by more than 5% in the next two years and the overall population, which currently sits at 87,000, to jump by 5% in three years. 


5. Arlington, TX

Somehow, Texas managed to avoid getting hit too hard by the housing market crash of 10 years ago. Arlington, a suburb of Fort Worth, is one of the cities with the most investment potential in all of America.

The current home costs only $235,000 on average, but that's expected to rise by almost 30% in the next three years with the job and population rate expected to rise. Get in on Arlington now before it's too late.


6. Jacksonville, FL

Our other Floridian city is Jacksonville. It's one of those rare cities that has had a steady population growth in the last number of years, rather than a population boom. This makes it continually one of the best cities to invest in.

The cost of living is low in Jacksonville, despite there being four fortune 500 companies there and an incredible health care system (over 20 hospitals in the metro area). It might not be the fastest moneymaker, but investing in Jacksonville will be steady and reliable.


7. Detroit, MI

Detroit has long been the butt of many real estate jokes, with large abandoned Victorian-era homes going for well-below their intended worth. But, that's all changed in the last few years. 

The motor city, which coincidentally makes most of their money from tech, defense, healthcare, and aerospace, has come full circle. Property prices are still low, but spend one day in Detroit and you'll see that its revitalization is in the process of becoming fully realized. 

It's home to a whopping one hundred fortune 500 companies and there are a lot of grants in place incentivizing new companies to open up shop there. You can buy a renovated property there for under $100,000 and charge $800-900 rent for it, which is why it's on this list.


Keep Your Ear to The Ground

The key to finding the best housing markets in America is keeping your ear to the ground. Doing constant research is important, but you should also follow your instincts when it comes to investing in a city.

No one would've seen the turnarounds that Pittsburgh and Detroit have made in the last few years, but those that saw the light are profiting from it. It's never a quick process, but your investments will pay off eventually.

If you found this article helpful, come back and visit us for more interesting posts about finance, investing, and real estate.

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