Whether you’re a first time buyer, aspiring landlord or an investor looking to diversify their portfolio, now is the time to buy real estate. Gone are the days of a decade ago when home values plummeted and credit was near impossible to come by.
Real estate has made a small but steady climb out of the depth of the recession, and it’s encouraging more people to buy. Property values are still reasonable in many desirable locations and many want to invest before the housing prices go sky high once again. These are the best cities to own property in 2017.
How to Choose
Booming real estate doesn’t come out of nowhere. The best places to buy rental property generally have three characteristics in common: job growth, population growth and affordability. People are more likely to move to these areas because employment and housing are more accessible. More singles and young families are likely to move out of state than ever before. This young group, known commonly as the Millennial generation, now make up the largest home buying group in the country. This generation is also known to rent longer than previous generations, which is good news for landlords. If you are looking to diversify your portfolio or simply buy a home for yourself, look out for these trends wherever you choose to live.
Florida ranks as one of the hottest places to own property in the U.S. right now, and we’re not talking about the weather. Orlando, Tampa, Jacksonville and Cape Coral are a hot bed for buyers. Orlando boasts a booming tourism industry, while Jacksonville is quickly growing jobs in the bioscience sector. Jacksonville also has a cost of living below the national average. Tampa’s skyrocketing growth rate mean its economy isn’t going to halt anytime soon. Who does Florida attract? Snowbirds, retirees, military families, college students and young people who all seek to live an affordable and fun lifestyle.
Ohio’s population is picking up at a staggering rate as more young people seek affordable housing. Cleveland and Cincinnati are high ranking above the rest of the nation for a few key reasons. When people think of entertainment and culture, they look to cities like New York, Los Angeles, San Francisco, Miami, Chicago or New Orleans. You’re scarce to find a west coaster who could think of a better place to live then their glamorous sunny city, but if you can brave the frigid winters, Cleveland has cultivated a vibrant culture all its own. It brings in billions of dollars every year due to its three major sports teams, but it also brings in revenue through its ten Fortune 500 headquarters. The healthcare industry is also rising which is attracting many who work in that sector.
Chicagoans take pride in their city and one of those reasons may be its surprising affordability. Despite being the third largest city in the U.S., it retains some of the most affordable housing in the nation. Within the city, high demand for rentals mean rent has soared; this is good news for landlords. If you seek to buy, however, home prices are still relatively low. Chicago has strict foreclosure laws, which means that prices haven’t risen past the levels before the real estate crisis. Young people and families across the nation flock to Chicago to live big city life without the exorbitant cost. Not to mention Chicago is the fourth most economically powerful city in the world.
Places to Avoid
The major markets hailing from California and New York are still too high and unaffordable for most. Los Angeles, San Francisco and New York City are among the most expensive and densely populated cities in the country. While the recession took its toll across the nation, investments still hold in these cities and are simply too expensive to be viable investments for most.
Investing in real estate has been more profitable than ever and now is the time to take the leap. Setting up a property management business for success means investing plenty of capital and spending time on strategy. Explore these cities and more to find the best investment for your goals.