Real estate remains the top choice for investors. The opportunity to earn recurring income from rental properties – with the possibility of earning enough to fully cover the cost of a mortgage – makes investing in real estate a favorable option.
In the past two years, there are many regions of the country that are experiencing extremely high demand for real estate. As a result, the price of homes have risen at a higher rate than average, keeping the housing market in a seller’s market. As a real estate investor, it’s important to understand how to navigate the local markets and take into consideration the factors that can have an effect on your investment property.
Investment Location Considerations
When deciding on where to invest, you want to choose a location that will provide a high return on investment. Aside from considering the location’s population, home prices, and average monthly rent, it’s important to make sure you’re evaluating the entire real estate market of your potential investment.
Additional features to evaluate when deciding on an investment property include:
Locations employment growth and unemployment rates
Population growth and rental occupancy rates
Affordability and cost of living
Top 7 Up-and-Coming Places To Invest
Keeping in mind the above considerations, we’ve narrowed down the top ten up-and-coming locations for 2022-2023 real estate investment properties.
Houston has become one of the top places to invest in real estate in the past few years. The greater Houston area is the fifth largest metropolitan area in Texas, with a population that continues to grow. The Houston real estate market has remained very active, making it easy to not only find renters for an investment property, but also find a buyer if you’re looking to sell.
Orlando is one of the top tourist and entertainment destinations in the country. This also makes it a great investment location since investors can target both long-term residents or vacation markets. Tourism not only betters the economy, but it also translates to more rental income through growing population and opportunities.
Charlotte, North Carolina
In recent years, the Charlotte area has experienced rapid population and job growth, something ideal for real estate investors. As the largest city in North Carolina, it offers peace and comfort from the suburbs, but also combines the amenities of the large city. This makes for a perfect investment location and offers the opportunity to renovate and flip real estate, purchase and hold to rent, or invest in multi-family properties.
Another Texas metro area with a strong real estate market is Dallas. Dallas offers a diverse economy, providing opportunity for individuals at every income level. The low rates of homeownership due to renting being the more affordable option, make for an accessible market for real estate investing.
A second frequently visited tourist destination that is also known for its attractive metropolitan area is Tampa. In the past few years the Tampa real estate market has been growing at a steady pace with prices still on the low end. With tourism remaining high and population increasing in the past few years, there is a strong chance of appreciation for future investment opportunities.
Over the past few years, Denver has seen a large increase in demand for rental properties. Another location where tourism is high, driving strong returns on real estate investments. Denver has seen a lot of growth due to employment opportunities, making it one of the top cities for rental investments.
Although more on the expensive side, the Seattle market has proven to be a top location for real estate investing. Aside from the ideal climate driving the increase in population, rental occupancies have remained high, and Seattle offers a strong economy and diverse population.
Invest in Real Estate While the Market is Hot
Despite the rise in mortgage rates and inflation, real estate investing is still an attractive opportunity. Keep in mind that there will always be real estate markets outside these locations that can provide a return on investment. Regardless of what location you decide for your next investment opportunity, make sure you do your due diligence and properly assess the location.
First Equity Funding can help you assess and identify investment opportunities, ensure quick approval on loans, and provide construction consultancy. Get funded for your next investment project with us and contact us today!