If you’re considering a real estate investment in the coming year, there are a few markets worth investigating further due to anticipated price increases. We looked at data and examined trends from across the US to bring you this list of the 21 best places to invest in real estate in 2022. Here are the best places to invest in real estate and buy rental properties. They all have their own set of qualities and disadvantages, but many of them are less expensive than the national average.
1. Boise, Idaho
Bosie stands at the 1st position for tulum mexico homes for sale investment. It has a record of being one of the best long-term real estate investments in the U.S. The supply and demand dynamics continue to drive home prices up in Boise. The Boise housing market was ranked as the #1 in the U.S., by Realtor.com’s metro level housing forecast for the year 2020. Their main criteria were based on the combined yearly percentage growth in both home sales (0.3%) and prices (8.1%) expected in 2020 among the top 100 largest markets in the country.
Home prices are soaring and breaking records despite the coronavirus pandemic. Persistently tight inventory in the entire Boise Metro Area housing market, coupled with historically low 30-year fixed mortgage rates are keeping the demand high, which in turn is pushing home prices up in this region. Housing prices in Boise have risen sharply as Ada County’s median home sale price exceeds $500,000. The real estate appreciation rate in Boise in the latest quarter was around 4.53%, which equates to an annual appreciation rate of nearly 20%.
2. Dallas, Texas
Dallas is another good place to invest in real estate in 2022. The strong availability of housing stock and high rental rates relative to the house price make it an accessible market to invest in. The Dallas real estate market offers a wide range of investment properties; you just have to find your tenants to rent out the property. Hiring a local property management company can help in finding tenants for your rental property in Dallas.
You should think of investing in Dallas real estate because it has a very diverse economy so there is a niche for people of every income level. It is estimated that 340 people move to Dallas-Fort Worth every day. Dallas has the lowest homeownership rate in the country, with renting more affordable than buying. The demand for rental units has increased 14% over the last year, so it’s the perfect opportunity to invest in Dallas real estate. The Metro area is growing and it’s expected that at least 20000 new homes in this area and Dallas a total of 50000 new single-family homes and 50000 apartments.
3. Houston, Texas
Houston is one of the all-time best places to invest in real estate. This city is the home of the US oil and gas industry and offers perennial employment opportunities. Greater Houston is Texas’ fifth-largest metro region, with over 7 million residents, and its population continues to expand at a rate nearly double that of the rest of the country. It is home to 53 Fortune 1000 businesses, putting it in third place behind New York and Chicago as the most concentrated city.
These strong macroeconomic factors continue to power the Houston housing market. The average home is valued at $412,000. The rental income of $1,550 is relatively low given the property valuations. However, what makes Houston a strong investment destination is that it has a very active real estate market. Volumes of trade are high and housing stock moves fast. This means it is fairly easy to exit investments and find a buyer for your home. You may also take a look at – Top Reasons To Invest in Houston Real Estate.
4. Atlanta, Georgia
Atlanta, GA is also one of the best places to invest in real estate. Atlanta offers attractive buying prospects for savvy rental property investors. The city’s population has grown by over 14 percent in the last decade. This increasing population is driving the housing demand. Should you buy investment properties in the Atlanta Real Estate Market? Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investment. Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market.
Atlanta is Georgia’s capital and economic center. It is considered as one of the 10 most productive states that contribute to the USA’s GDP annually. As the city continues to go through an economic boom, prices of properties in Atlanta are forecasted to increase in the following years. People will want to beat out the competition and purchase soon if they’re looking to develop a successful career, surrounded by a diverse community, especially for today’s youth.
5. Las Vegas, Nevada
How can we miss Las Vegas on our list of best places to invest in real estate? Las Vegas has experienced several booms in its history. And it saw an incredible real estate bust during the Great Recession. Las Vegas’ recovery hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. Throughout 2019, the Las Vegas housing market was the hottest in the United States.
The Las Vegas real estate market is entirely brimming with new businesses. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends for 2021. The new businesses are propping up at a much faster rate than the national average. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices). Now is a great time to invest in Las Vegas rental properties.
6. Orlando, Florida
Orlando, FL is a tourism and entertainment favorite, because of this, it remains a strong real estate investment destination. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns. While improving the Orlando real estate market and flourishing tourism are two of the most important reasons behind Orlando’s economic stability, these two industries have a lot to gain from the successful economy. This expansion is related to the growing population and job opportunities in this city, this translates to more rental income and tourism leading to a better economy for the city.
7. Spokane, Washington
Spokane stands at the 5th position. With a population of only 213,000 people, Spokane is small, but it is a rising real estate hot spot. House prices are relatively cheap compared to much of the country at a median price of around $265,000 that offers fantastic mortgage coverage. Data from Zillow shows that Spokane’s housing market is hotter than Seattle’s for the first time in six years. Spokane homes are selling faster than Seattle homes. For renters in Spokane, the good areas are mostly on the north side (north of Garland street). Perry District is growing faster than many other parts of Spokane. Spokane Valley and Liberty Lake are also desirable neighborhoods and are growing rapidly.
One reason to invest in Spokane real estate now instead of waiting is that prices are appreciating so fast. For example, home values increased by more than 13% in 2019. According to Neighborhoodscout.com, single-family detached homes are the single most common housing type in Spokane, accounting for 65.75% of the city’s housing units. Real estate appreciation rates in Spokane’s have tracked to near the national average over the last ten years, with the annual appreciation rate averaging 0.23% during the period.
8. Tampa, Florida
Tampa, FL is also on the list of best places to invest in real estate in 2022. With a population of more than 4 million, Tampa, FL is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations. There are several economic and development prospects attached to this market and Tampa was described as one of the hottest real estate markets in the US in the past year. There’s a tremendous amount of pent-up demand for entry-level single-family homes in Tampa. The median home value is $251,287 (on Zillow).
The Tampa housing market is growing steadily, prices are still low and properties have a good chance for a strong appreciation in the coming years. Home values have gone up 5.3% over the past year. There is less than 2-month of the available inventory in the entire Tampa metro area – down almost 21.4% over last year. This is one of the key factors in rising home prices. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Anything lower than 5.5 months of inventory is traditionally a sellers’ real estate market.
9. Austin, Texas
Austin, TX is also on our list of best places to invest in real estate. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston. Austin is only the fourth largest city in the state. However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years.
There are tons of high-paying tech jobs moved to Austin in the last couple of years. As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in 2021, and this trend should continue in the coming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin’s economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn’t kept up with the pace of people moving here.
10. Chicago, Illinois
Chicago is also on our list of the best places to invest in real estate. Chicago is the third-largest metropolitan area in the U.S, with almost three million in Chicago and another ten million in the surrounding metro area. Chicago has a large population, a diverse economy, and a stable market. It is home to 32 Fortune 500 companies. It has high private sector employment. And due to several factors, Chicago is one of the best real estate markets for investing in rental properties for sale. Over 50% of the population rents.
The large population of renters means that rental income from a Chicago investment property is far better than you’d see if you invested elsewhere in the country. The average rent for a one-bedroom apartment is roughly a thousand dollars. Two-bedroom apartments in Chicago cost an average of 1300 dollars a month. Rental rates for Chicago rental properties are appreciating more slowly than average, increasing at 0.9 percent a year. This is one-third less than the 1.5 percent rental rate increase in 2019 for the country as a whole. The average house in Chicago sits on the market for 50 to 55 days. However, hot homes can sell in just two weeks.
11. Columbus, Ohio
Columbus is also on the list of the best places to invest in real estate. The residential property in Columbus sells for a median price of $174,109. This means that the rental yield is high. The cost of buying a home is well within the reach of an average household income. The Columbus Ohio housing market is seeing steady growth due to slow population growth. Between 2013 and 2018, property values have increased. In the past year, they increased a whopping 8.4%. There is a great demand for older, renovated homes in established, walkable neighborhoods. The limited supply of family-friendly homes in these areas is driving up their prices.
Buyers should choose their neighborhoods carefully though as the $1,250 rental is not distributed evenly across the city. Some neighborhoods remain economically depressed, and so will attract lower rental incomes and make poor investment choices. You can find great deals in neighborhoods like Franklinton, Near East Side, Olde Towne East, Downtown Columbus, Italian Village, Upper Arlington, North Linden, and Grandview Heights.
12. Lakeland, Florida
Lakeland, FL also enters the list of the best places to invest in real estate in 2022. The Lakeland FL real estate market was ranked fifth among major metro areas in early 2018. In the past year, it moved into the number-one position in the Realtor.com ranking. While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten.
This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better. The median household income in Lakeland, Florida is around $40,000, more than ten thousand dollars below the national average. This creates a strong demand for Lakeland rental homes, especially those that low-income residents can afford.