The fundamentals of investing in real estate have not changed with time. Perhaps the most popular and important of them all is this; “Real estate is about Location, Location, Location”. We have all heard this before. In fact, many people may not know a thing about investing in real estate, but know that location is the most important thing about investing in real estate. These are the top 5 things we look at when choosing a Real Estate Market (location):
- Population Growth
- Median Income Growth
- Property Value Growth
- Crime
- Job Diversification
At Reilvest we have done extensive research to identify some of the top markets for investing. Here’s a peek at some of the markets that made our top 5 list.
#1 Boise, ID
Why We Like Boise:
- Population growth: 25%
- Income Growth: 54%
- Home Value Growth: 161%
Although apartment rents in Boise have slightly declined this year, they have risen by more than 26% over the past three years. Boise’s metro population is shy of 750,000 and 224,300 within the city limits at most recent measures, growing by 1.56% year over year.
About 289,371 multifamily housing units are in Boise’s market with 43% renter occupation and 4.7% vacancy rates. Average rents were $1,279 as of October 2020, growing 8% year-over-year and well within the budget of the $66,466 median household income.
#2- San Antonio, TX
Why We Like San Antonio:
- Population growth: 35%
- Income Growth: 48%
- Home Value Growth: 153%
It’s true, the Pandemic has impacted the San Antonio apartment market, however, multifamily rent growth in the city still remains stable and above the national average.
San Antonio’s metro population of over 2 million has grown 1.78% in the last year. The 772,512 housing units on the market were most recently 35% renter-occupied with 6.2% vacancy rates. Rents averaged $1,051 this year, with a 2.2% year-over-year change and demand will continue as more coastal residents flock to Texas
#3- Raleigh, NC
Why We Like Raleigh:
- Population growth: 71%
- Income Growth: 48%
- Home Value Growth: 80%
Raleigh/Durham remains relatively stable as positive as new supply continues to lure investors to this top-performing market.
The region’s population of more than 2 million grew by 1.82% year over year and is expected to continue its fast trajectory.
The 1.4% rent growth is closely tied to the 48% income growth over the last 20 years. Median household incomes are $73,654, with a per capita income of $38,760.
#4- Phoenix, AZ
Why We Like Phoenix:
- Population growth: 27%
- Income Growth: 47%
- Home Value Growth: 149%
Phoenix is one of the hottest multifamily markets in the country. Unemployment rose over the lockdown, the vast increase in jobs has kept area housing demand strong.
Rent growth in Phoenix also remains high, having increased 8.1% over the last 12 months.
The icing on the cake is appreciation. Population values have almost tripled in the Past 20 Years, affirming that the Phoenix market will be hot for a long time.
#5- Orlando, FL
Why We Like Orlando:
- Population growth: 54%
- Income Growth: 64%
- Home Value Growth: 167%
The 2.5 million population of Orlando rises every day as retirees, career seekers, and students are all taking advantage of these benefits of higher quality living for an affordable cost.
Orlando’s employment growth is now one of the best in America, with over 45,000 new jobs created in one year. Up to a 35% increase in housing prices is projected by the end of 2021, rent has grown by 3.44% in the past year alone, and the population has grown by 20% since 2010, making Orlando one of the best real estate markets for commercial multifamily real estate.
If you’re ready to start your investing journey, we invite you to join the Reilvest Investor Club today!
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.
