Best US Cities for Real Estate Investment in 2021

Real Estate Investment

The old saying says that there is nothing more important when dealing with real estate than location. In fact, industry experts have long claimed that the three most important things about real estate is “location, location, and location.” If you are considering investing in real estate investment in 2021, there are some cities that you should probably consider.

While it’s easy to think about places like Los Angeles, New York, and other metropolitan areas, there are cities in states that are more tax-friendly, boast a lower cost of living with higher living standards than some metropolis areas.

Scottsdale, AZ

The city of Scottsdale is one of the fastest-growing investment markets in the United States. While a lot of cities boast either a great rental market or a good opportunity to sale a property, Scottsdale offers both. The city is continuing to grow based on the job growth of the area. In fact, Scottsdale was named the best place in America to find a job in both 2018 and 2019.

If you want to purchase a property to generate rental income, Scottsdale boasts some of the best return on investment numbers in the nation. According to studies, Scottsdale’s ROI is around 1.9% with a $3,045 monthly profit.

Finally, the prominence of AirBnB has been a huge plus for people buying homes in Scottsdale. The city encourages AirBnB rentals by implementing very few taxes on AirBnB investors. While there is a maximum occupancy of six people in an AirBnB rental in Scottsdale, that has done very little to keep the city from becoming one of the most popular destination towns in the US.

Austin, TX

Austin, TX has become one of the fastest-growing real estate investment in 2021 in the United States. A survey that was conducted among real estate industry experts showed that 83% of them expect Austin’s real estate market to outperform the national average. That is very good news for potential investors who want to get a quick return ontheir investment.

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The value of real estate investment in 2021 in Austin has increased by 5% since 2019. While that number is impressive enough, the fact that Austin real estate has increased in value by 75% since 2012 is even more staggering. If you’re considering investing in real estate, you don’t want to have to spend years waiting to become profitable, and with an average listing time of 64 days on the market, Austin provides the ability to quickly sell homes.

If you’re not looking to flip and sell, Austin also provides great rental potential. Austin, Texas led the nation in rental increases over the last decade, meaning the potential to earn passive income is stronger in Austin than most other markets. More than half of the rental properties in Austin rent for between $1,000 and $1,500 per month.

Austin, TX and the rest of the central Texas area have become one of the newest hubs for the technology industry. Venture capitalists have recently been flocking to Austin because of this boom in industry, creating the possibility for both rental and resell properties as a means of investment. The presence of the University of Texas also provides a great source of potential rental income, with more than 20,000 students looking for housing.

Charlotte, NC

Even though the median housing price in Charlotte is still slightly above the national average, it is still a much more affordable area to invest in than most metropolitan areas. It is also worth noting that average home prices in Charlotte are expected to remain flat over the course of the next twelve months, meaning that your investment is quite safe, at least in the short-term.

Forbes magazine ranked Charlotte as the seventh best place for business and careers, meaning that the job market is strong. The banking industry has many headquarters in Charlotte meaning that there is an influx of young professionals who are looking for housing. Some studies indicate that millennials prefer renting to buying a home, which means the opportunity to generate consistent, passive income is strong in Charlotte.

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AirBnb indicates that short-term rentals in Charlotte are more profitable than many of the markets available on their website. There is a variety of reasons for that, including the presence of an NFL team, an NBA team, yearly NASCAR races, and other sporting events which lead to millions of people coming into town. The opportunity to generate short-term rental income has made Charlotte one of the most popular cities on the short-term rental website for investors.

Boise, ID

Low mortgage rates compared to a supply that is significantly lower than the demand has made Boise, Idaho one of the most popular real Estate Investment in 2021 markets in the United States. Most homes that go on the market in Boise generate enough buzz that a bidding war breaks out and the final sale price ends up being higher than the original asking price. That is a recipe for success for investors who like to buy and flip properties.

Boise’s leading industry is technology which has made it an attractive destination for young professionals. With reports that 19,000 people a year are migrating to Boise, the possibility to generate rental income is strong. With an unemployment rate that is 1.5% lower than the national average, Boise provides a great opportunity for rental investments.

While many people may not think of Boise as a tourist destination, the success of the city’s Air BnB industry seems to indicate otherwise. In 2018, Air BnB hosts made more than $37 million in 2018 and are forecasted to make even more than that during 2021. The opportunity to make significant money in Boise is there.

Summary

The potential to make money as a real estate investment in 2021 is as strong as it has been in quite some time. While these four markets aren’t the only profitable options in the nation, their combination of population, job forecasts, tax status and potential for short-term rentals make them some of the strongest options you will find going forward.

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