Property is always going to be a hot commodity and a favorite among astute investors.
The USA Property market has remained strong for the last 5 years and looks set to continue this way for the foreseeable future.
Some areas remain more lucrative than others though. We’ve analyzed the top property predictions for 2018 to help you decide where to invest.
These are our top picks for the best places to invest in real estate this year.
Qualities of the Best Places to Invest in Real Estate
When deciding on the investment potential of an area, estate agents look at the following aspects:
Average property price
Number of sales in the area
All of these factors are used to predict the sales growth that is likely to occur in the area. Growth is a good indicator that the value of your property will increase over time.
1. Florida – Tampa, Orlando and Cape Coral
Florida remains one of the best places to invest in real estate. The sunshine state is a popular destination for tourists and permanent tenants alike.
Warm weather, reasonable rentals, employment opportunities and a high quality of life are the main attractions in Florida.
Tampa lays claim to one of the fastest growing economies in the US and is popular with both career seekers and retirees.
Cape Coral was once primarily a vacation destination but has since found favor with baby boomers. As a result, rentals have increased by a huge 26% over the last year.
2. Pennsylvania – Pittsburgh
Pittsburgh boasts the new East Coast headquarters of Google and numerous other tech startups. It is also second only to Hollywood when it comes to film production.
All the above mean that the best properties can attract high rentals for landlords.
However, property prices remain reasonable with a median sale price of only $150 000. Pittsburgh is perfect for astute buyers to gain an almost guaranteed return on their investment.
3. Minnesota – St Cloud
Located along the Mississippi River, St Cloud is a popular destination for water sports enthusiasts and nature lovers.
The town attracts large numbers of students to its fine universities and has a cost of living that is 3 % below the national average. This makes St Cloud a good choice for investors looking for a rental property.
Despite high overall prices around the $172 000 mark, it is still possible to find a low-priced property and refurbish it in an affordable way in order to turn a profit.
St Cloud Siding shows how a simple exterior upgrade can easily increase the value and appearance of a property.
4. Texas – Houston
Houston has no problem when it comes to attracting residents and investors. This vibrant city boasted a 3% increase in sales from 2016.
The metro area recorded the largest growth nationally for 2016 and one of the lowest costs of living around.
On the whole, property prices are sky-high in Houston. That is unless you take advantage of one of the hundreds of pre-foreclosures or bank-owned properties for sale. Investors attract a 40% discount on these sales.
Add to this high rental prices averaging on $1,600 and you have the makings of an ideal investment opportunity.
5. Ohio -Cleveland
Cleveland has seen $19 billion invested in development over the last decade resulting in phenomenal growth for the city.
Ever increasing numbers of young residents are flocking to the metropole to take advantage of these opportunities. As a result, there is a high demand for rental properties in Cleveland.
You can opt for a B neighborhood property at $75 – $80 000 and earn a rental income of up to $1000 per month. With occupancy at 98% throughout the city, you are sure to find a taker.
6. Illinois – Chicago
Chicago is among the most economically influential cities in the world. As such, it is a fast-paced, rapidly growing metropolis.
High property prices are matched by huge rentals but with a little research, you can find a house in a mid-range neighborhood for around $120 000.
With over 50% of the population choosing to rent instead of buy, you are sure to find a tenant.
Chicago can be a tough market but one with rich rewards for the careful investor.
7. Indiana – Indianapolis
According to Forbes, Indianapolis is one of the most liveable cities in the US. Almost 2 million people agree.
The city offers many sports activities, a modern downtown, abundant jobs and great study opportunities.
High demand means high rentals. You can buy a turnkey property with a reliable tenant for under $100 000. This makes Indianapolis the Holy Grail for would-be landlords and one of the best places to invest in real estate.
8. Missouri – Kansas City
Kansas City is considered an inexpensive destination for business. As such, it shows impressive growth in the areas of IT, manufacturing, healthcare and the auto industry.
Thanks to this, the city’s population continues to grow, bringing with it a higher demand for rental properties.
Property prices average on the high side at around $175 000. Here you would do well to shop around for one of the many available pre-foreclosure and bank owned premises. You can pick up one of these for about $100 000.
9. Michigan – Detroit
Detroit is already home to over 100 Fortune 500 companies. Yet it continues to attract big businesses relocating in search of cheaper property rentals.
With this comes a host of employees and families looking for housing.
Purchase prices are in the region of $65 000 in a good neighborhood. Rentals average around $900 per month.
Detroit is full of win-win scenarios for the property investor.
10. Georgia – Atlanta
Atlanta is an appealing city overlooked by the heights of the Appalachian Mountains. It is also the third largest metropolitan area of the Southeast.
With an employment rate that outstrips the national average and over 74 000 new jobs created last year, Atlanta is highly attractive to job seekers.
Add to that a median cost of property that is 28% lower than the average and you have a winning formula for investors.
Need More Advice?
Get in touch with a local real estate agent for more advice on the best places to invest in real estate.
Things can change rapidly in the world of real estate. These professionals will have up to the minute knowledge on how you should proceed with your property investment strategy.
You can look for a reputable agent in the relevant online newspaper classified ads or search online.
Keep reading our USA Today blog for more advice on things you want and need to know about.