While real estate markets are slowing down across much of the country, there are still many cities showing strong promise for real estate investors.
Whether you’re looking for a long-term rental or a short-term vacation rental, a fixer-upper or a turn-key, these are the 5 best U.S. cities to invest in real estate in 2019.
5. Nashville, TN
Affordability, job growth, and a lively tourism industry make Nashville one of the best cities for real estate investment.
The average home price in the Nashville/Davidson/Murfreesboro area is currently a reasonable $288,842, but that number is projected to climb a whopping 27% over the next 3 years [1]. That's great news for investors looking to buy this year.
Job growth projections are strong with an estimated 8,000 jobs coming to Nashville in the next few years [2]. And with the tourism scene, investors can make around $3,452 per month on short-term Airbnb rentals [3].
4. Colorado Springs, CO
With Denver now well overpriced, more of the population is moving to nearby Colorado Springs. In fact, population growth rose 4.1% from 2016 to 2018 in the growing Rocky Mountain town [4].
And corporations are keeping up with this growth. Property owners in Colorado Springs are enjoying year-over-year employment growth, boosting confidence in the local real estate market.
The influx of residents is driving property values up quickly, with a projected increase of more than 10% in the next year alone [4]. So if you’ve been considering investing in Colorado Springs, now is the time to act.
3. Jacksonville, FL
The Jacksonville real estate market is benefiting from a solid 3% growth in both population and employment. And investors in Jacksonville are enjoying a strong 6.8% rental yield [4].
Property taxes may seem high in Florida at first glance, but this is offset by the fact that Florida does not tax personal income. Not paying state income tax on your rental income saves you more than enough to cover the property taxes.
As with the other entries on our list of the best cities to invest in real estate, home values are increasing at a clip of more than 10%, so you need to act quickly if you want to get a good deal.
2. Orlando, FL
5 Floridian cities made GoBankingRate's list of the top 20 Best Cities to Own Investment Properties in 2019 [4]. Orlando has consistently been near the top of that list for the last several years. And it still is!
As with the other entries on this list of best cities for real estate investment, Orlando is benefiting from employment and population growth. Annual job growth is strong at around 3.5%. And the population is growing at an impressive 4.8%.
Yields are still high at 5.7%, property is still affordable at an average home price of $247,550, and home values are projected to increase by an astounding 35% in the next 3 years [1].
1. Arlington, TX
Arlington tops our list of the best cities for real estate investment because of its exceptional performance in population and employment growth, rental yields, and rising home values.
Both population and employment are projected to increase by around 5% over the next two years [1]. But the yields in Arlington are the main draw for investors. With home values around $240,000 and rental rates around $1,500 a month, Arlington investors are seeing an impressive 7.5% rental yield on average [4]. And yes, property values are climbing at above 10%.
With property values rising quickly in these hot U.S. markets, it’s time to start comparing investment properties to find your next investment.
Sources cited: [1] Doughroller [2] PricewaterhouseCoopers [3] Mashvisor [4] GoBankingRates
