Real estate investing – What are the best states to invest in real estate
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Finding the best and most suitable places to purchase rental properties could be hard to come by because nobody knows when the next housing bubble will hit. However, the best places to invest in real estate in the US always have three things in common: population growth, job growth, and affordability. When you come across a market that possesses these “triumvirates,” you will be able to find profitable investment opportunities.
So here are the best places where these factors exist, and there you can invest in real estate for equity growth and cash flow.
The sunshine state is experiencing a rise in demand for a single-family home for quite some time now. It is never too late to acquire completely renovated properties in beautiful neighborhoods for under the price range of $157,000.
The most exciting aspect about this is that, in spite of the unbelievable low housing price throughout the state, many home seekers prefer renting instead of buying. As a result, the rental price is skyrocketing like runaway inflation, going up by 7% in 2018, and the trend is likely to continue in 2019. For the second year running, Forbes has listed Orlando as the #1 best place to buy a house.
Statistics for the Orlando market:
- Median sales are $201,000
- Median monthly rent is $1,397
- Median household income is $42,000
- The equity growth rate is 66%
- Population: 2.5 M, with 178% growth rate
- Job growth rate: 4.17% at 1 year
2. Pittsburg, Pennsylvania
Boasting a population of over 2.3 million, Pittsburg is among the 22 largest cities in the nation. The region is known for its oil and gas activities and is home to many corporations as well. The Pittsburg Metro Area is rated as one of the best 10 housing markets for growth and redevelopment. Information from RentRange states that rent for a single-family home went up by 12.6%, plus a 15% average gross yield.
Statistics for Pittsburg estate market:
- Median sales are $141,000
- Median monthly rent is $1,115
- Median household income is $59,000
- Equity growth rate is 21%–6 years
- Population: 2.3 M, with 1,00% growth rate at 5 years
- Job growth rate: 0.68% at 1 year
3. Tampa, Florida
Tampa Bay lie situate on Florida’s west coast and is a densely populated area with 4 million people. Its economy is worth more than $130 billion, and it’s among the 20 fastest growing metros in the US. There are many parts of the metro where investors can buy affordable homes as low as $120,000 and put them for rent at an amount ranging from $1,075 to $1,400. There are more than 400 companies operating in Tampa Bay, with new jobs from Amazon, making it one of the best performing metros in the US.
Statistics for Tampa Bay real estate market:
- Median sales price is at $193,000
- Median monthly rent is $1,400
- Median household income is $44,000
- The equity growth rate is 61%–6 years
- Population: 2.3 M, with 10.85% growth rate at 7 years
- Job growth rate: 2.05% at 1 year
4. Jacksonville, Florida
Jacksonville is a metro area with a population of 1.5 million people that have seen 11.55% increases for the last 7 years. The Jacksonville metro population is growing by 3% every year, including their workforce, as more and more people are finding their way to the area. The reason for the growth is that the region has a highly developed health system while being home to four fortune five hundred companies. Besides, the climate is terrific, and the cost of living is right below the national average, and the business environment is very receptive.
Statistics for Jacksonville real estate market:
- Median sales are $171,000
- Median monthly rent is $1,225
- Median household income is $47,000
- The equity growth rate is 42% for 6 years
- Population: 1.5 M, with 11.55% growth rate at 5 years
- Job growth rate: 3.16% at 1 year
5. Huntsville & Montgomery, Alabama
Huntsville is one of the four largest cities in Alabama, and it’s well known for its rich southern heritage, space, defense and technology industries. The estate market in Huntsville is one of the most affordable in the US. The tax rates in Montgomery and Huntsville are low, and the monthly rent stands at $1,121, that is, 0.74% of the purchase median price. The Huntsville population has seen a steady increase, going up by 8.62% for the last 7 years.
Statistics for Huntsville & Montgomery real estate market:
- The median home sales price is $151,000
- Median monthly rent is $1,121
- Median household income is $58,000
- The equity growth rate is 28% for 6 years
- Population: 455,000, with 8.62% growth rate at 7 years
- Job growth rate: 3.56% at 1
The above five cities represent some of the best places where you can invest in real estate in 2019-2020. The list is not by any means exhaustive, but you can start your real estate investment journey from here. Leave your comments or questions if you have any.
Thanks, and happy investment!