Where are the best cities to invest in real estate in 2018?
It’s the big question everyone wants to know. Where are the best cities in America to invest in real estate for 2018? The answer may differ slightly on your personal goals, scenario, and the strategies you are using. There are also a variety of metrics to measure this by. Some look and rank cities by past performance, the returns others have achieved over the previous few years, or price growth. Another option is to look at where the growth is going.
Inc’s Entrepreneurial Opportunity Index measures US cities based on a combination of where housing prices are still the most affordable, and there is the best job growth. These are places where business is strong, and people are probably moving, but which still offer a lot of value for real estate investors, who may be looking for opportunities to flip, lease, and wholesale.
Here is the top 20 to watch if you think these metrics are important, or just want to find somewhere to work and live, and get a lot more property for your money.
- Memphis, TN
- Charlotte, NC
- Nashville, TN
- Kansas City, KS
- Atlanta, GA
- San Francisco, CA
- Detroit, MI
- Tampa, FL
- Austin, TX
- Miami, FL
- Las Vegas, NV
- Denver, CO
- Chicago, IL
- Pittsburgh. PA
- New York, NY
- Boston, MA
- Salt Lake City, UT
- Dallas, TX
- Minneapolis, MN
- Seattle, WA
Some may be surprised to see San Francisco, California on this list. While it may not be cheap by most standards, locals typically have more buying power, and it boasts the second highest rate of advanced jobs growth, only just behind Nashville.
Seattle comes in very low on the list due to slow job growth. Housing costs are also very high there due to Amazon’s tremendous buying and building spree. The new hunt for an Amazon HQ2 could be partially due to this factor.
Of course, jobs and affordability of housing are just two factors. They are very important ones, but investors may want to consider these as well.
- Unemployment rate
- Demand for housing
- Vacancy and occupancy rates
- Diversity of local industry
- Crime rates
- Rent versus house prices
- Direction of rental rates
- Days on market
- Tax rates
While real estate investing is about the numbers, and Warren Buffett says is best when most businesslike, investors don’t have to completely throw out their own preferences either. If you really love a certain area, and its lifestyle, you are going to love talking about it and selling it. You’ll stay interested and engaged longer, and people will see you are being authentic, and feel your passion.
So, maybe even in tandem with the above lists, consider what niches you may want to specialize in and own.
Is it:
- Serving tech workers
- Waterfront property
- Affordable housing
- Ski property
- Mountain property
- Vacation property
- A specific community or building
Where you choose to invest may vary on your timeline and strategy too.
Are you:
- Wholesaling for quick immediate paydays?
- Looking to flex your inner designer with beautiful rehabs?
- Flipping with a 3-6 month turn around time?
- Building a long term rental portfolio and empire?
Does your strategy rely on being able to exit quickly, within the next 1-12 months, do you need a market that will be good for resale in 5-10 years from now, or are you happy holding onto it forever?
Summary
The best places to invest in real estate in 2018 may be a little different to last year, depending on your individual game plan. Check your facts, fundamentals, and the outlook for where you are investing. Pick the places best for you.
