The real estate market today is one of the strongest markets in the US. The rising prices as well as the option for investing and renting out all draw investors to this field. Forecasts for the future are also good and the market does not show any signs of stopping. With this in mind, anyone interested in investing should consider doing so as soon as possible. So, to help out we can offer a list of the hottest cities for real estate investors.
Why is the market booming?
The real estate market in the US is on the rise due to the high demand for housing solutions. However, that is not all. Low-interest rates and affordable mortgages make financing such purchases easy and affordable. In addition, many investing in property are interested in renting out and achieving profit in this way. This income usually offsets the value of the loan making this a sound financial decision. With a future forecast of the continual sellers’ market and the lack of homes, the future seems to be good for real estate investors. So, setting your sights on the right market is becoming very important. One of the biggest concerns is – the right place to invest.
Factors to consider when choosing the right real estate market
The main criteria for choosing are simple. You should be investing in the areas that are able to provide a high return on investment from your property. This means that you should do proper research and make educated and informed decisions. In short, you should seek to buy property in the markets that have:
- High rental occupancy. The first thing you want to do is check the rental property occupancy. High occupancy shows that the area is in demand and that your investment property will be easy to rent out.
- High rentals price in relation to mortgages. You should be able to cover a high percentage of your mortgage from your rental income. The higher the percentage the better.
- Low default rate. You want to invest in the areas where tenants do not break leases and default on their payments. The higher the default rate the higher your risk.
With all this in mind, it is clear that proper research should provide you with relevant results. However, you still want to check this short list of cities for real estate investors to get you started.
The best cities for real estate investors
For any investor, a list like this will be of value. So, at least as the starting point in your research here are the 5 hottest cities for real estate investing in the US.
- Jackson, Mississippi
- Boise, Idaho
- Houston, Texas
- Denver, Colorado
- Dallas, Texas
One of the most prospective markets in Mississippi is Jackson. This is a populace that offers a developer residential and commercial real estate market. The main characteristic of real estate here is the seller’s market which is caused by the low supply of property to offer. This is causing a steady growth in property values. At the same time, this is influencing a high demand for rental property and a rise in lease levels. With many people moving in, real estate is blooming. So, experts at Spyder Moving strongly suggest investing in this area and even exploring some storage options and facilities, and maybe investing in them too.
Boise is at the top of the best places for real estate investment. The dynamic market is making it great for long-term investment in particular. Boise is experiencing a steep rise in the process making it great for investors. This is fueled by the low inventory coupled with a high demand field by low mortgage rates. The steep appreciation of property makes it a great place for long-term investing.
A strong oil and gas industry has made Houston a very strong economy. The need for a large workforce is making the city grow fast with a high need for real estate. This situation is making the city interesting for investment. Relatively low rental prices are not what is interesting about the rental market. The fact that it is a dynamic and active real estate market does. In short, this means that investing and selling a home to get out of the investment is easy and fast without too much loss or waste of time.
With its strong economy and job creation Denver is making the list of cities for real estate investors. The reason is clear. A strong economy and generation of workplaces are driving in people from all over increasing the need for real estate property. The rental prices including the tourist season rentals are on the rise due to such high demand. In all this is generating a high return on investment that is drawing in investors. The city is experiencing redevelopment that will keep the price high.
If you are moving here as an investor keep in mind that the Denver population is on a rise, the appreciation of property is among the highest in the US and a third of the city is for rent. With all this in mind make sure to move here and invest. However, once you decide to settle here make sure to contact a reliable moving company and leave transfer to experts so you can concentrate on your own investment business.
Dallas offers a niche for every income level and has a diverse offering of properties. With its strong economy, the real estate market is on the rise. The demand for real estate and rentals is making Dallas a place with high rental rates in relation to house prices. In addition, the city has a low ownership rate making it perfect for those that are interested in renting out. This means that renting is more affordable than buying property and a great investment.
Do a thorough research
Picking the right market to invest in is not easy. There are many factors to consider and analyze. The trick is to research a lot. However, with a list of the hottest cities for real estate investors, you will have a good starting point to get you on the right track in your own research.