Knowing about the best places to invest in real estate 2021 is a must for moving forward and gaining success this year. Now that we’re firmly in 2021, everyone is hoping for a more normalized and brighter future ahead.
Investing in the best possible manner is one way to ensure that we have valuable and safe assets in hand even when going through a difficult time in the real estate market. We’ve seen how the global economy can come to a screeching halt in a matter of days. So, it’s best to establish something that can help you earn consistent rental income.
Whether you plan on investing in a rental property or you’re interested in flipping properties to sell off, it’s always a good idea to check out the real estate market dynamics in place. With any luck, the monthly income from your rental property will be able to help you live well.
There’s also an inventory shortage, which results in keeping a high buyer demand. With the pandemic, the prices are still going sky-high if we talk about real estate investing. This is the case within most regions in the United States. So, American investors have to sit up and take notice when it comes to considering a real estate property as a rental investment. While many people might not be able to afford buying a home property at present, the best way forward is to invest in a rental so you can also earn income as someone who is a part of the real estate industry.
Fortunately, there are many cities where investing in real estate is a great idea just now. The first step for investors is to choose the best city for ensuring a proper return on the rental. We’ll be looking at these factors, and then, we’ll check out each city from a rental viewpoint.
How to Select the Best City for Investing in Real Estate
No matter where you’re situated in the United States, there are a few basics to remember when you want to invest in real estate businesses. With these principles, you can choose one of the best places to invest in a real estate rental property.
The most important factor to look at is the ROI or return on investment. The top property, of course, should be the one that gives you a high ROI in terms of real estate investing.
If you’re looking to maximize returns as you invest in real estate, think about getting a rental property in a city that provides at least some of these features:
High occupancy in rentals
Check whether there’s a decent amount of available housing stock within the city you’re considering. It’s usually not a good sign if a lot of the housing is vacant while you want to invest in real estate. You want a high enough occupancy in any rental property so that you can be assured of a high demand and a large number of tenants to choose from.
A low rate of tenant default
You don’t want to invest in property that’s located in a city where tenants usually miss their rent payments. Do your research about the best places to invest in a rental property and see whether you can strike a deal that meets all of these criteria.
Once you’ve found a likely place to invest, the wisest plan of action is a swift and logical one. The timing of the real estate market really matters, especially when you have a city with excellent prospects for rental income but not a very large inventory for finding a rental property.
However, it’s not recommended that we take any rash or uninformed decision when it’s time to invest in real estate property. Check out the real estate market there and see if it’s stable, declining, or growing.
Finally, ask yourself what you want from this real estate investing; is your aim for the long-term or short-term gains from the rental? You might want to consult an investment counselor before finalizing your real estate investing decision. A professional will be best suited when it comes to real estate in 2021.
The Top Places for Investing in Real Estate in 2021
We’ll now come to the top options for investing in real estate in 2021. According to national data and trend in the market, here are some of the best places to invest in real estate:
1. Boise, Idaho
According to certain data results, the city of Boise might be at the very highest position for investing in real estate. It has a great record for being among the best real estate investments within the U.S in the long term.
The dynamics of demand and supply are currently driving up home prices within this city. This was based on the criteria we get from a combination of annual percentage growth in prices and home sales during 2020.
Even though the coronavirus pandemic has weakened the spending power of many individuals, home prices are still breaking records to this day. There’s a tight real estate inventory on the housing market within the Metro Area within the city, along with the lowest fixed mortgage rates we’ve seen in 30 years.
All of this is keeping the housing demand quite high. Real estate appreciation was 2.44 percent recently, which means that the property is appreciating at a rate of around 10 percent each year.
When you select Boise as your next place for investing in real estate, you almost guarantee a nice return and profit on your rental property investment.
2. Dallas, Texas
When you’re looking to invest in real estate in 2021, Dallas is also an excellent city to consider for your real estate goals. There’s a lot of housing stock available while the rental rates are high when compared to the property prices.
Overall, the housing and real estate market here is quite accessible. There’s a lot of choice when it comes to real estate investing.
Once you find the right tenants for your investment property, the rental income will soon start rolling in. A property management company might be able to help you out if you’re not sure how to invest in real estate.
Another reason for investing in real estate in Dallas is the diverse economy within it. Here, there's a place for every kind of person no matter what their income level is. This means that more and more people will be moving to the area on a daily basis. The population is expected to be twice as large in a mere 15 years, which means many more tenants for your rental property.
There’s also the fact that Dallas has the lowest rate for home ownership in the whole country. Since renting is more cost-effective than buying, the demand for rental properties has shot up by around 14 percent in the recent past. Make sure to check out renovated 1 bedroom apartments as a start if you want to take an online tour.
3. Houston, Texas
The state of Texas seems to be a hotspot for investing in real estate in 2021. Another example from these is Houston, which is known for being the home of the American gas and oil industry. This means that the employment opportunities are consistent, attracting new tenants and making people want to stay in the area. This makes it one of the best places to invest in when it comes to earning rental income.
On average, housing has a value of around $412,000 for each unit. The rental income is around $1,550, which is on the low side as compared to the property valuation. Still, Houston is a strong decision for investing in real estate due to the active market within the city.
Here, you can see large volumes of trade as well as housing stock moving very fast. As a result, you can safely invest in real estate and still be assured of exiting the real estate market quickly when necessary. You can find buyers for your rental investment property within the fourth-largest city in America, especially since the unemployment rate here is far lower than the national average.
4. Atlanta, Georgia
If you’re thinking about buying mobile homes for sale or some other form of real estate property, Atlanta is among the best places to invest. Here, you have a lot of buying options and a real chance of success in the real estate industry.
The population in the city has increased by more than 14 percent in the past decade, which is constantly pushing up housing demand. Employment rates are also great. So, we have two strong factors when we want to invest in real estate in 2021 in Atlanta, GA.
Atlanta is also the economic and capital center of the state, making it among the top ten states for contributing to the country’s annual GDP. The economic boom in the city of Atlanta is still continuing. Therefore, property prices will probably increase in the foreseeable future.
All of the above are reasons why you want to beat the rush and invest in real estate in Atlanta as soon as possible. You want to purchase quickly in order to start a successful real estate investment career. With the diverse community, rehabbed property options, new residents, and a high appreciation forecast, you’re pretty much set as you invest in real estate.
As a side note, the payment processing company named NCR is relocating to this city. Since it’s a giant in its own right, the relocation is probably going to bring several thousand jobs. This means that not only are there going to be more people around, but that they’ll have the purchasing power to opt for quality rental options. Investing in mobile homes for lease might be another move within this city.
5. Las Vegas, Nevada
Investing in real estate in America means looking at the best places to invest in the real estate market. Las Vegas is definitely one of them, having experienced a lot of booms in the past.
Of course, the city also saw that huge real estate bust around the Great Recession. However, the recovery is well underway and should encourage real estate investors to venture forward.
For those who are savvy while investing in real estate, the market in Las Vegas is relatively predictable and stable. These aren't terms that one usually associates with real estate markets. But the new businesses and positive real estate trends give us a lot of hope.
In fact, the business environment in Las Vegas is much friendlier and quicker than the country’s national average. The home values in this city have the highest gains from one year to another, with a total increase of 13 percent.
Not only is Las Vegas - the highest-populated city in Nevada, but it's also in the top 30 most populated cities in America. It’s also a leading cultural, financial, and commercial center for its state. With its diversified economy, there are always people who come there for health, tech, or other types of interests.
So, if you’re looking for the best places to invest in the real estate market, Las Vegas can be a sound option. You can conduct more research and check if earning a rental income by buying a property in this region is a wise option.
6. Columbus, Ohio
The city of Columbus in Ohio is usually regarded as being among the best property options for investing in real estate. The median price of its residential property is around $174,109. The rental yield of the property, as a result, is quite high.
The lower-than-average cost of purchasing a property is within reach of even those who are in an average income bracket. While this might mean that a rental isn’t the best way to go, purchasing lakefront apartments for selling off in the near future might be a good idea.
The housing market in this city isn’t really increasing very quickly but its growth is steady enough. The population growth is responsible for this show pace but property values have definitely seen an increase in the past decade.
In the years 2019-2020, the housing values have gone up 4.8 percent, which is quite impressive. Keep in mind that there’s high demand for renovated, older homes within walkable and established neighborhoods. Since the family-friendly home is fast becoming a rare commodity, you might want to add that to your real estate portfolio if possible and can invest in a real estate property accordingly.
If you do make a real estate investing decision in this city, it’s smart to check out the neighborhood carefully. The average $1,250 rental property doesn’t represent an even distribution in Columbus. So, you might find certain neighborhoods that are economically depressed. With these, your rental income will be much lower.
To stay on the safe side, go for neighborhoods such as Grandview Heights, North Linden, Italian Village, Downtown Columbus, and Near East Side so you can invest in real estate property that yields higher rental income.
For now, Columbus city boasts a hot seller’s market when it comes to looking at the best places to invest in real estate property. The state of Ohio is also friendly towards landlords. So, even a rental property might be lucrative for those interested in real estate investment businesses. Since the cost of living is fairly low, people are still attracted to the place when they’re searching for a better lifestyle.
Another important factor here is that Columbus has several local colleges. If you play right, you can invest in real estate to cater to the huge student population that’s in search of a rental property for housing each year.
7. Orlando, Florida
The city of Florida in Orlando is a hub for entertainment options and tourist attractions. With so many people flocking to the city on a temporary basis, this place is ripe for some real estate investing making it one of the best places to invest within the real estate industry.
Here, real estate investors will have a choice between targeting the holiday markets and going for a more long-term residential property. The good news is that both of these options have a high chance of decent returns.
Due to the successful real estate market as well as the always-flourishing tourism sector, the state of Orlando has been more or less economically stable in the past.
Of course, the pandemic and lockdown situation might have put a damper on tourism for a while. With vaccines now starting to become available, however, it’s expected that the state will soon be able to pick up and recover from its losses.
Overall, an investor can expect the population of Florida to grow at a fairly rapid pace while job opportunities are always opening up too. All of this means that real estate property rentals will be bringing in more income and tourism will be improving the city’s economy with each passing day.
Keep in mind that it's also the second-fastest growing city within the United States according to Forbes magazine - this is no mean feat. Real estate in the state of Orlando has also proven to be among the best kinds of investment for the long run in the past decade. The real estate property market has appreciated by a whopping 43.67 percent in ten years, making this a strong renter’s market.
8. Spokane, Washington
The population of the city of Spokane is relatively small when compared to other cities on this list. With just 213,000 residents, this region is still a hotspot for an improving real estate market.
Consider the house prices to begin with; they’re fairly cheap when you compare them to property options in most other parts of the country. The median price here is $235,253.
Reliable sources also show real estate investors that the housing market in this city is even better than Seattle’s now. Several areas like the Perry District, Liberty Lake, and Spokane Valley are becoming desirable neighborhoods, making them perfect for renting your property out quickly.
Price appreciation is rapid in Spokane right now. So, it’s best for real estate investors to act as quickly as possible. Home values alone have increased by above 13 percent in the year 2019. The most common type of housing available in this city is a single-family detached home. This makes up around two-thirds of the housing units property available in Spokane.
This city is also a cultural and economic center of its metropolitan area. Its layout and surroundings are beautiful as well. Therefore, we can reasonably expect a lot more people to settle here in the future. There are more than 87 parks and six aquatic centers in deplorable neighborhoods. All in all, it’s a great place to raise a family - and families need to rent or buy homes. With all the trendy revitalized and walkable neighborhoods available, there’s bound to be a desirable property you can hone in on.
Finally, the diversified economy means that real estate investors can have a diverse portfolio as well. They can get high-end properties for tenants who might work in the high-tech sectors. Lower-priced property might be best for catering to those working in industries that pay less, such as agribusiness or forestry. Whether you have a rental property or a single-family home on hand, the real estate returns are bound to be good.
9. Austin, Texas
Yet another spot in Texas that’s a hotspot for real estate investment is the city of Austin. This city has a strong economy, with the housing market gaining a decent amount of traction in the past decade. Homes are valued almost twice as much as they were ten years ago. So, those looking to invest in real estate should take notice.
The real estate market here might not be as large as the one in Houston, Dallas, or San Antonio. The city is also just the fourth-largest within the state. However, its large housing market and huge metro area make it a great place to invest in real estate.
The fact that it's become a tech hub a few years back doesn't hurt either. This achievement means that there are more people coming in to get jobs, which means more people are looking for rentals and homes for sale.
The millennial generation is predicted to be the group with the most buying power in the next few years at least. They'll also be taking up a lot of the high-paying jobs in the tech industry within Austin. It’s best if a real estate investor focuses on what millennials want from housing. This might mean leaning towards modest rentals for small families more than anything else. This also requires devising the right real estate marketing strategies.
However, there’s no limit to what one can do when investing in real estate in Austin. It’s a strong, varied economy that has several amenities in desirable neighborhoods as well as hangout and shopping spots.
There’s also a lack of homes for sale within this city, as supply hasn’t kept up with the growing population and low unemployment rates. As a result, rents are rising and making Austin among the best choices for long-term real estate investment within the United States of America.
10. Chicago, Illinois
Chicago has a massive metropolitan area - the third-largest in the country. This automatically makes it among the best regions for investing in real estate. It’s teeming with people while the stable market and diverse economy are bringing in more as we speak.
The city also boasts over 30 Fortune 500 companies while the private sector employment rate is quite high. These factors and many more make for one of the top real estate markets if you’re looking at rental properties.
Investors have to remember that over half the residents in Chicago rent their homes. This is why the income from your rental investment property in this city will be much higher than most other places in America. Even a one-bedroom apartment can get you around a thousand dollars each month if you’re focused on conducting a real estate business. While the rental rates aren’t appreciating too quickly, they’re high enough to bring you in a tidy income from your real estate efforts.
Those looking to invest in homes for sale will also do well to look at the Chicago real estate market. On average, a house in this city can be sold after being available on the real estate market for just 50 to 55 days. If they’re hot homes, they might be snapped up in less than a fortnight.
Real estate investors can find some excellent single-family homes here, which are fully renovated and promise a high ROI. There are a lot of blue-collar areas to pursue as well, all with high rental rates. The city itself has quite a balanced economy. So, you’re fairly safe while investing in real estate here.
11. Birmingham, Alabama
Another great place to invest in a single-family rental home property is Birmingham in Alabama. The real estate market here is continuing to flourish over the years, with strong property appreciation rates in spite of a nationwide decline within the housing market.
We can note the trend of more people moving to the metropolitan area inside this region. There are some great opportunities to attract them which mean that the 1.2 million population might soon increase as well. While the real estate market might be competitive, it puts the sellers in more power. There are many more buyers around, so even aspiring homeowners will have to rent for at least some time and get the real estate benefits.
Another reason to invest in a rental property is the existence of many university and college campuses in Birmingham. School renters are usually easy to please and always in search of good housing. There’s a diversified yet strong economy as well. So, it shouldn’t be a problem to enter the real estate market and find decent tenants.
Real estate is quite affordable in this region - though nothing near what an average college student can afford. As a result, we can see the high average rents for apartments going up in the near future. For now, all this makes Birmingham a friendly real estate market for sellers.
The Takeaway
If you’re a real estate investor situated in the United States of America, luck is on your side at the moment. This price of housing is going up sharply - even more rapidly than the inflation rate.
As a result, renters will probably choose to stay in their current situation for a longer time. Those looking for a starter home might go for renting a property since they can’t afford a down payment.
The single-family rental is an excellent idea for investing right now. But it’s also best to consider one of the best places to invest in real estate 2021. Renters are flocking to the suburbs. So, check out such areas in at least one of the cities we’ve talked about above. You’ll have affordable, flexible options that will meet the requirements of your tenants along with bringing a tidy income.
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