Is now a good time to get into real estate investing? Should you add to your inventory if you already own property? Or should you hold off for now until the COVID-19 pandemic is under better control and the market turns hot again?
Some areas of the country are seeing great surges in the housing and rental markets while others are seeing a rapid decline in both population growth, economic activity and a stagnant housing market. Currently, here are some of the cities, counties and larger areas of states that are seeing the most growth and seeing property values explode.
Orlando, Florida Leads The Way
The consensus among most real estate experts is that one city you need to get into is the Orlando, FL market. The state has been primarily known as the market for investing in senior community housing over the years, but it’s growing far beyond that today.
Orlando is currently one of Florida’s fastest growing cities where students and newcomers to the corporate workforce are adding to the already high retiree population, and most people love the warm weather year around. Also, there’s no state income tax here, and even property taxes and homeowners insurance are relatively lower than most other states.
The median single family home price here is about $231,000, though more people tend to rent here with average monthly rent around $1,486. So if you’re looking to cash in on the sunshine state, you’re most likely to be successful buying into rental properties.
Scottsdale, Arizona Is Underappreciated
Arizona is one of those states that may be a bit overlooked in the US real estate market as compared to places in Texas, Florida, and in some cases Seattle. But it has some things about it that investors shouldn’t overlook. For one, Scottsdale has one of the highest property appreciation rates in the nation at about 7.85%, and it’s not uncommon to see Scottsdale condos for sale at a price over $700,000.
What’s more is the city has seen economic growth over 3.3% exceeding that of the rest of the state, and the rental market here has been one of the more profitable ones in the US with average traditional rental rates around $3,045 a month.
But the city also has relatively friendly rental regulations and has allowed rental through Airbnb which offers more options for making profits. Scottsdale, while having some expensive properties is still lower in cost than neighboring California, yet the quality of living there is rated just as good if not better.
So if you’re looking in the southwest for a good investment opportunity, you might want to check out Scottsdale condos for sale to flip and sell, or get into investment property buying there.
Charlotte, NC Is Rising
Charlotte is one area of the country where real estate is looking pretty solid right now. Now the COVID-19 pandemic has put home sales on hold a little, but as it dissipates, Charlotte is expected to get rolling again. It’s in an ideal location in the mid east coast and it’s been a growing city where millennials have been coming to live.
Plus its average home prices are at a sweet spot where they’re certainly high enough to be in a prosperity market, yet lower than the extremely high prices in other east coast cities like New York, Boston, Atlanta or Miami. Charlotte has quite a diverse economy too with banking being primarily what it’s known for, but a very strong big tech sector can also be found there, and energy and manufacturing also make up a significant portion of economic activity.
Charlotte has opportunity both for investing in single family homes as well as rental properties depending on which neighborhoods you invest in. Neighborhoods like Southside Park and McAlpine appear to be the strongest areas for rental property investment.
Houston, Texas Is Still Great
Houston has long been one of Texas’s best cities for oil and energy production, and even today investors are still looking here for big profits. The economy is still as strong as ever, and Houston remains the second largest hub of fortune 500 companies at 49 based there, and only New York City has more at 72.
Plus, while Houston has high prices compared to some smaller Texas cities, experts still rank it as an affordable place to live in comparison to the biggest cities in the US. And like Florida, Texas also has no state income tax, and the regulations for setting up rentals through channels like Airbnb are pretty reasonable.
Housing prices have been on the rise with 3-bedroom houses averaging about $175,000, up from about $104,000 back in 2012. But the population there has also been growing which is contributing to more demand in both single family homes as well as apartments. You should definitely get into the market here because as the population continues growing, expect housing prices to grow too.
Columbus, OH Is A Solid Midwest City
Columbus isn’t the most talked about city in the US, but there’s real estate here that should have investors taking a second look at it. The population, while only really growing from people relocating within the state, is still holding fairly steady in growth.
And the economy here is diverse from technology hubs, to pharmaceutical firms, finance and some manufacturing. But even better is that homes have a reputation for selling quickly here, so if you’re a home flipping investor, Columbus is worth looking into. In the rental market, college housing could provide great opportunities since the presence of Ohio State University brings in demand there.
The bottom line is while some cities like San Francisco, New York, Chicago and Baltimore are in a bit of trouble with their markets, cities like Orlando and Scottsdale are silently becoming the new places to go.
It’s important to get data on housing inventory supply, and to have your best investment strategy down for either home renovating or investment property acquisition. But most of these cities have relatively friendly zoning laws, landlord laws, and tax rates.