Best Places to Invest in Real Estate

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The housing market has changed dramatically over the last few years. So it seems like a no-brainer to get in on the trend and invest in real estate with prices going up. But which places should you support? Many factors contribute to the rise or fall of property values, such as population density and unemployment rates, but one factor looms above all else: location.

You can find the best opportunities in areas with strong economic growth prospects and low levels of competition from other investors.

man's handing out a key to another man's hand

Things to Consider Before You Invest

When choosing a location for your real estate investments, there is no one-size-fits-all formula to follow. It will vary from place to place and situation to situation. However, the following factors are important considerations that can help you choose a suitable area:

Job Opportunities: The area’s employment opportunities should be strong enough to support the projected rise in population growth.

Personal Income: The area’s income should be high enough to support the cost of living and purchasing power of potential buyers.

Education Levels: People with higher education levels are more likely to invest in real estate, meaning an area with a high percentage of them is expected to promote economic growth. A high rate of students graduating from high school or college is also a good indicator of future growth.

Housing Density: High housing density leads to investments in one area, leading to increased demand and economic development.

Commercial Activity: Commercial activity means job opportunities, retail sales revenue, and tax revenues for the government. Therefore, areas with high commercial activity are desirable because of the tax base they provide.

Affordability: An area must have enough affordable housing to support growth. The amount of subsidized housing available also matters as these are investments that people with little capital can afford.

Homeownership Rates: Areas with high homeownership rates have less demand for rental properties. Conversely, places where people are likely to rent out their homes, must have strong demand for rental properties.

Tax Rates: A high tax rate means that the government is less likely to invest in infrastructure, making it difficult for people to live there. Places with low or no taxes are more attractive investments since they will yield higher returns due to new infrastructure spending.

Police and Fire Protection: Areas with high crime rates will not be desirable places to invest in real estate, so it is essential to look at the area’s crime statistics before making any decisions. Police and fire departments also provide necessary public services, which makes them desirable investments.

Crime Rates: Areas with a good police presence and low crime rates are desirable places to invest in real estate.

Airport: An area with an airport can be easily reached by people from out of town, which means it has good accessibility to buyers.

Accessibility: Areas that are accessible will have a larger pool of potential buyers, so they tend to have more economic growth than inaccessible areas. This is a good indicator of long-term investment potential.

Convenience to Shopping: Areas with convenient access to downtown areas, malls, and other retailers make them more desirable for people looking for homes. This also leads to economic growth in the form of retail sales revenue and job opportunities.

people looking for places to invest in real estate

Best Places to Invest in Real Estate

With all of the factors considered, the following locations emerge as some of the best places to invest in real estate:

1. New York City – New York City is the most populous city in the U.S., with an estimated population of 8,550,405 people. The key to its economic growth has been job opportunities and strong infrastructure spending, which have helped attract more people to live there. However, high property prices are a hindrance to future growth potential.

2. Tampa – Tampa is a port city located in Hillsborough County, Florida. It has a population of over 3 million and an average household income of $46,000. The low crime rate and high education levels have made it desirable to invest in real estate.

3. Charlotte – Charlotte is the largest city in North Carolina, with a population of 731,424. It has a high concentration of students, a good number of home and commercial properties, and an airport.

4. Riverside – Located in California’s Inland Empire region, Riverside is the second-most populous city with 347,483 residents as of 2010. The low crime rate and educational attainment levels have made it a great place to invest in real estate.

5. New Orleans – New Orleans is the most populous city in Louisiana, with 343,829 as of 2010. The historic architecture and cultural landmarks have made it a major tourist destination, boosting its economic growth potential.

6. Las Vegas – This city’s proximity to Southern California and its low cost of living have made it a desirable place to live for people working in the L.A. area, boosting the city’s population to 583,756 as of 2010. The proximity to mountainous regions has also encouraged the economic growth potential of this area.

7. Austin – Austin is located at the heart of Texas and is home to the University of Texas. It is a high-growth city with a population of 790,390.

8. Jacksonville – Jacksonville is located in Florida and has 821,784 people as of 2010. The low crime rate and coastal location make it very desirable for people who enjoy living near the beach.

9. Denver – As the most populous city in Colorado, it has a population of 600,158. It is the most important economic center in the country’s middle part and has helped attract more people to move there.

10. St. Louis – St. Louis is located at the confluence of the Missouri River and Mississippi River on the border between Illinois and Missouri. It has a population of 308,492 people.