Where Americans once dreamed of the hustle and bustle of big city living, many are now seeing the draw of more affordable cities in rural areas.
Recent trends show that the cities with the best housing markets are no longer The Big Apple or LA. Instead, cities like Tampa, FL, and Charlotte, NC, are at the top of the list for hot markets in the United States!
So, why the sudden shift in lifestyle? We took a look at some of the reasons Americans are migrating to less populated areas:
More Affordable Housing
In the more populated cities like NYC or Boston, residents pay a hefty monthly payment for any type of housing.
To put it in perspective, living in New York City costs 129% more than the national average in the United States!
Many big-city dwellers are seeing the perks of living in cities where they can get more “bang for their buck” regarding rent and mortgage costs.
For example, a top housing market right now is Tampa, FL. Even with rent prices on the rise, a 900 sq. ft apartment in Tampa, FL, costs around $1,762 per month. As a comparison, the average cost for a 700 sq. ft apartment in Manhattan, NY, is $4,140.
More Time Outside
Another trend we’re noticing with the most popular US cities is the temperature.
Cities like Tampa, Orlando, and Jacksonville (FL) are sitting at the top of the list for most desirable cities, along with other hotter climates like Phoenix, AZ, and San Antonio, TX. Since the quarantine mandates brought on by the COVID-19 pandemic, many people realize they want to live where there is more to do outdoors!
Along with the lower cost of living, the most desirable cities in the United States right now offer relatively warm temperatures year-round.
More Remote-Friendly Opportunities
Mandatory closures created temporary remote working conditions for a variety of companies.
For some of these companies, temporary remote work became permanent! Remote work has increased significantly since the start of the pandemic, and this shift is expected to double with around 36.2 million Americans working from home by 2025.
With remote work becoming normalized, many workers aren’t required to live in the same city or state as their headquarters, causing more flexibility to live in more affordable locations.
How Does This Impact Investors?
This shift creates more opportunities with fewer financial requirements for a real estate investor (particularly a buy-and-hold investor).
This trend is excellent for starting investors who can’t invest millions in big-city real estate! Since the best areas to invest in real estate are currently more affordable, the barrier of entry is lower.
With these rising cities experiencing an influx of residents and a lack of housing, this creates the perfect opportunity for investors to snag off-market properties from motivated sellers. Additionally, buy-and-hold investors can capitalize on the rising rent prices in these hot locations.
Pro Tip: Try using our Heat Map tool to find hot rental markets within a city!
Which Growing Cities Will You Invest In?
Maybe Americans want more space for their money, or they want to spend more time outdoors.
Regardless of why this trend is happening, rising interest in more affordable cities creates an opportunity for real estate investors to capitalize on.
Want to start browsing off-market properties and investing in one of these hot markets? Try a 7-day PropStream free trial today to enjoy our vast library of REI tools!