The best cities for real estate investors are places where the demand for rental housing is high and the employment rate is at its highest level. When the job market is booming, the housing market is at an all time high. These cities are also attractive places for first-time homebuyers, renters, and young families.
Raleigh, North Carolina
The unemployment rate in Raleigh, North Carolina, is low in comparison to other U.S. cities. According to the Bureau of Labor Statistics, the unemployment rate in Raleigh, North Carolina, as of November 2012 is 7.2%. Raleigh’s unemployment rate is lower than the national unemployment rate, which is 7.8% as of December 2012, as per Bureau of Labor Statistics. Raleigh is a popular college town and vacation destination. The city attracts thousands of new renters every year, which keeps its rental-occupancy rate at 95% and higher. According to Neighborhoodscouts.com, Raleigh’s home ownership vacancy rate is currently at 7.09%. More real estate investors purchase single family detached homes in comparison to other types of homes, and the median list price for single family homes in Raleigh is currently $205,000, as indicated by trulia.com.
San Jose, California
San Jose, California attracts some of the wealthiest people in the world. With its median list price for homes at $1,852,125, as per trulia.com, San Jose is an attractive spot for real estate investments. The city’s unemployment rate is 7.8%, according to the Bureau of Labor Statistics, and the job market in San Jose is on an upward trend. Most of the residents in San Jose, California are renters, which also makes for a popular city for real estate investors. As home prices continue to appreciate in value, now is an excellent time for real estate investors to purchase rental homes in San Jose.
Austin, Texas
Austin, Texas also has a strong job market. Austin’s unemployment rate is significantly lower than the national unemployment rate. As of November 2012, the Bureau of Labor Statistics reports that the unemployment rate in Austin, Texas is currently 4.9%. With low unemployment rates and a high increase in job growth, Austin ranks one of the best places for real estate investments. According to trulia.com, the median sales price for homes in Austin is currently $120,000. Trulia.com also reports that the sales prices for homes in Austin have appreciated by 47.7% over the past 5 years.
Tucson, Arizona
Real estate investors will also benefit from the price appreciations of homes in Tucson, Arizona. Housing prices in Tucson are low in comparison to other homes in the state, and the city is an excellent market for individuals who intend to convert these homes to rental properties. According to trulia.com, the median sales price for home in Tucson is currently $131,639. The unemployment rate in Tucson as of November 2012 is 6.6%, which is also lower than the national U.S. unemployment rate.
Fort Worth, Texas
Homes are being sold at a fast rate in Fort Worth, Texas. The job market is high, and the unemployment rate is low. The Bureau of Labor Statistics reports the unemployment rate for Fort Worth, Texas is 5.8%, which is much lower than the national unemployment rate. Fort Worth is an attractive city for real estate investors, since the list prices for homes are low and rental rates are high. Currently, the average list price for homes is $227,098.
Resources:
- 1,000 Places to See in the United States and Canada Before You Die, updated ed.
- Strategic Relocation–North American Guide to Safe Places, 3rd Edition
- America’s Best Low-Tax Retirement Towns, 3rd Edition: Where to Move to, and From, to Slash Your Taxes in Retirement! (America’s Best Low-Tax Retirement Towns: Where to Move to from to)
Real Estate Recommendations from Amazon:
- Texas Real Estate
- Hiking the NC Real Estate Trail: From Classroom to Trailhead. A Field Guide for the Newly Licensed Real Estate Agent
- California Real Estate Principles
- Real Estate Loopholes: Secrets of Successful Real Estate Investing
- Texas Instruments BA Real Estate Financial Calculator
This article was written by Rachel Oda in coordination with Todd Mumford on behalf of Property Target. If you’re looking for real estate websites, make sure to check them out and see what they can do for you!
Image by Doug Kerr at Flickr
It’s nice to hear that. What could be the possible reason why it increase all of the sudden? Is it because of real estate demands?