8 Best Cities to Buy Investment Properties in 2024
Real estate investments are often incredibly lucrative, but you may hear the phrase, “location, location, location.” This is for a good reason: If you invest in a breathtaking home in the city with a good view, you will likely get a better return on your investment. That being said, there are a lot of items to check off of your list when looking for properties:
- Are there good schools nearby?
- Is the property in a safe area?
- Is there enough space for a family?
There may be even more benefits of the property to look for depending on your goals and budget. There are a myriad of cities that offer prime real estate which could potentially offer excellent returns.
1. NASHVILLE, TENNESSEE
Nashville has experienced a slowdown in the housing market recently, but this is a relative term. It is the most populous city in the state and the average household income has grown by 6.6%, so there is a higher potential for cash flow. Demand in the Music City is higher than inventory.
These are some of the reasons to invest in real estate in Nashville:
- Activity in the real estate market
- Growth in property values
- The strength of the local economy
- Immense job growth
- Immense population growth
Perhaps best of all, experts are predicting a 19% growth in house prices in the next year, so this is likely an excellent investment.
2. TAMPA, FLORIDA
If you have a large budget to play with, Tampa, Florida properties might just be your best bet: The average home price is $323,040 and the average rent price is $1970/month. Tampa is growing fast.
You should invest in a Tampa property because of these factors:
- Over the past year, there has been an approximate 27.7% increase in the price of homes
- There has only been a 1.4% increase in the population
- There has been a 39% increase in rental prices
These rates are significantly above the national average, making Tampa, Florida one of the best places to invest in real estate in 2024.
3. AUSTIN, TEXAS
Austin, Texas is an excellent place to live, and a lot of people know it. This is a common haven to relocate to since there is no income tax.
This is why you should invest in real estate in Austin:
- The housing prices have nearly doubled over the past ten years
- It has experienced enormous population growth
- Austin has a 4.2% unemployment rate, which is lower than the national average
This is an excellent place to invest.
4. CHARLOTTE, NORTH CAROLINA
Charlotte is an excellent place to invest in real estate: The market has experienced an incredible 16.4% increase over the past year.
You should invest in real estate in Charlotte due to the following factors:
- Enormous population growth
- Huge job expansion
- 25 colleges and universities
- Affordable housing
If you are looking for an affordable option with a consistent, predictable return, this is likely it.
5. BIRMINGHAM, ALABAMA
You might not consider Birmingham as a place for prime real estate, but it is an excellent option.
This is why:
- The Birmingham real estate market consistently performs highly
- The Birmingham metro is uniquely affordable.
- Birmingham’s recent revitalization has increased its popularity
- The city is a hub for publishing, medical research, banking, construction, and technology job opportunities
- The city is uniquely affordable
If you are looking for an affordable investment that offers a predictable return, Birmingham is likely a great option. It is also an excellent way to support affordable housing.
6. RALEIGH, NORTH CAROLINA
Raleigh is an intellectual hub. Namely, it is a member of the research triangle, which consists of Chapel Hill, Durham, and Raleigh, and it is home to a myriad of jobs and opportunities in the technology sphere. This makes it an attractive place to live for many.
You should invest in real estate in Raleigh for the following reasons:
- Approximately 43% of the population rents instead of buying
- Raleigh has an unemployment rate that is significantly below the national average
- Raleigh has an annual average income that is well above the national average
If you are looking for consistent income from rental investments, Raleigh is likely for you.
7. LAS VEGAS, NEVADA
Perhaps it is no surprise that the famous Sin City is on the list. The appreciation rate on homes here is enormous. That being said, these houses average about $346, 295.
Las Vegas is likely an excellent investment if you are working with a large budget because:
- Home prices have appreciated about 75% over the past five years
- Las Vegas has relatively low vacancy
- Las Vegas has high rent-to-income ratios
- Las Vegas has an increasing number of businesses
- Home prices in Sin City have soared
- A lot of people have been pushed into renting due to the competition locally
- There is a continuous increase in rental demand in Las Vegas, Nevada
In short, this is a good bet whether you are looking for renters or home buyers.
8. DALLAS, TEXAS
Dallas, Texas is an excellent place to invest in real estate. It has experienced enormous population and job growth recently.
You should consider investing in real estate in Dallas due to the following factors:
- Rapid job growth
- Rapid population growth
- It is a relatively affordable city, attracting potential renters and homebuyers
- There is a high median household income
- Dallas is quickly becoming home to large tech companies
In short, you can likely find an affordable investment in or around the city that will probably lead to a good return.
Investing in real estate can be quite lucrative, but it can also be extremely costly. Depending on the budget you are working with, you might want to consider what your goals are: do you want a significant return and have enough to throw your money into something truly special—and expensive— or would you rather opt for a more affordable investment that offers decent housing for a reasonable price to those who are looking for it? One decision isn’t worse than the other, but you will likely yield different results depending on the route you take.