Investing in real estate is a lucrative opportunity for many individuals looking to build wealth and financial stability. When considering where to invest in real estate, it’s important to look at various factors to determine the best cities for investment. Several cities across the United States stand out as top contenders for real estate investment due to factors such as economic growth, population growth, job opportunities, and housing market trends.
Let’s take a look at Benzinga’s picks for the five best cities to invest in real estate.
Best Cities for Real Estate Investing
- Atlanta, Georgia
- Raleigh and Durham, North Carolina
- Dallas-Fort Worth, Texas
- Fayetteville, Arkansas/Missouri
- Greenville-Anderson-Mauldin, South Carolina
| City | Population(millions)/3ygrowth (%) | Median Home price (000’s) | STEM* Industries | Office Businesses** | Goods Industries** | Tourism** |
|---|---|---|---|---|---|---|
| Atlanta, GA | 6.11/2.3% | $380 | 1.7 | 1.0 | 1.0 | 1.0 |
| Raleigh and Durham, NC | 4.72/1.4% | $485 | 1.1 | 1.2 | 1.1 | 1.1 |
| Dallas-Fort Worth, TX | 6.57/2.7% | $372 | 1.2 | 1.2 | 1.0 | 1.0 |
| Fayetteville, Arkansas | 2.69/1.7% | $421 | 0.8 | 1.2 | 0.8 | 1.8 |
| Greenville-Anderson-Mauldin, S.C. | 5.59/3.5% | $330 | 1.2 | 1.2 | 0.8 | 1.0 |
** The industry location quotient measures industry employment concentration by market. This is computed by expressing the metro area’s industry employment as a percentage of the total metro area population and then dividing that by national industry employment to express the result as a percentage of the national total.
Best Cities for Real Estate Investing
The National Association of Realtors generates an annual ranking of the most promising housing markets for the upcoming year. Its comprehensive report for 2023 identifies five cities outlined in the list below as the top real estate markets to watch. Essential investment metrics for each leading real estate market are also detailed in the list. This data encompasses current and projected population growth, average rent prices, average home values and the presence and nature of key industries that either attract tourism or elevate demand.
1. Atlanta, Georgia
Atlanta is placed first on this list of top real estate investments in 2023 due to its strong transaction volume seen over the past few years and 53.7% share of inbound moves.
Atlanta’s unique culture, its urban core that is ripe for renovation and its mixed-use suburban developments have made the city an increasingly interesting place to live, although an increase in land, labor and building costs have put pressure on affordability.
2. Raleigh and Durham, North Carolina
The second choice for 2023 is Raleigh and Durham. There has been especially strong investment activity in suburban office buildings and multifamily structures, as well as in homebuilding.
This key North Carolina metro area has a population growth rate of 2% and a strong supply of educated talent from the University of North Carolina, Duke University and North Carolina State University, in addition to several small colleges. It also boasts the Research Triangle Park, an up-and-coming mecca for tech jobs.
3. Dallas-Fort Worth, Texas
The Dallas-Fort Worth metropolitan area has an impressive expected job growth trajectory of 6.5%, so it earns third position on this list of best cities for real estate investment. By allowing the perimeter of this already-large city to expand, land costs there tend to remain moderate. Also, demand for real estate in Dallas-Fort Worth by resident individuals and investors has yet to wane, and property transactions remain active in the metropolitan area.
4. Fayetteville, Arkansas
Fayetteville takes the fourth spot, demonstrating a Housing Affordability Index (HAI) of 102.2. With 34% of renters being able to afford to buy, the city showcases a favorable housing market. Fayetteville’s expanding job market and educational institutions make it an attractive place for individual residents and investors.
5. Greenville-Anderson-Mauldin, S.C.
Greenville-Anderson-Mauldin secures the fifth position with an HAI of 91. Coupled with 25.5% of renters being able to afford homes, this area is ripe for investment. The city’s diverse economy and growing tech sector make it a strong contender for real estate investment.
Optimal Market for Real Estate Investing
The optimal market to invest in real estate is based on the qualities of a location. To assess a market’s prospects, get an overview of the factors that make a city or market ideal for real estate investing. These include:
- Population: The market’s existing population and projected growth numbers
- Pricing: The current levels and trends in the average rent and home prices in the market and how affordable they are given income levels and market conditions
- Attractions: Popular local industries and attractive features that will draw tourism, students and permanent occupants into the market
Best Real Estate Investment Platforms
Real estate investing may involve buying real estate stocks or using investing platforms to simplify the process. Alternative investment platforms like Crowdstreet and Roofstock give you the option of owning shares of commercial investment property, investing money in a real estate investment trusts (REITs) and more.
Get started by comparing the best investing platforms for real estate.
Invest in Real Estate Today
The top five cities of 2023 are strong real estate investment sites. New real estate investment options mean you can dive into real estate and take a hands-off approach. Take a look at our recommended platforms to add real estate to your investment portfolio.
Frequently Asked Questions
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The most profit in real estate can often be found in prime locations with high demand and in property types that offer strong rental income or potential for appreciation.
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You need to think about the location, population growth, job market and employers when investing in real estate.
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Some excellent cities to buy property include Austin, Texas; Nashville, Tennessee; and Orlando, Florida.
