Every real estate investor knows that location is key to experiencing success in real estate investing. Your hometown or local real estate market is not necessarily the best choice. Therefore, it is only logical for property investors to familiarize themselves with the best real estate markets for buying rental property.
Some property investors only focus on the target income property before making a purchase. For example, they would look at its type, age, size, and physical characteristics such as whether or not it comes with a yard or a swimming pool. Although these factors have some degree of importance, they should always come second to the location of the income property. No matter how profitable your income property may be, it won’t bring you a good return on investment if it’s in a bad location!
The best real estate markets for buying rental property often have three features in common: job (employment) growth, population growth, and affordability. These socio-economic factors can affect the overall financial health of an income property and its continued success. Thus, when property investors find a market that has all three socio-economic factors, they’ll most likely be able to find a better income property that generates a good return on investment.
There are several cities across the United States where the above-mentioned factors exist today. Below, we dive into 10 of the best real estate markets in the US for buying rental property in 2018 and explain what makes them great places to invest in real estate.
Note: These real estate markets are not listed in any particular order.
Buying Rental Property in Orlando, FL
Orlando real estate is one of the best places for buying rental property in the entire State of Florida. In fact, Forbes ranked the city as the 3rd best investment location in the United States!
Orlando is home to 3.3 million residents, and despite the low housing prices, many choose to rent instead of buying rental property. As a result, rental rates are shooting up (grew by 3.4% in the last 12 months), which is great for property investors!
The city is known for its warm climate, beautiful beaches, world-famous amusement parks, and attractions which it the ultimate tourists destination. With over 60 million people visiting the city, Orlando real estate is a top location not only for traditional but also Airbnb investment properties.
Orlando Real Estate Market Statistics
- Median Home Price: $188,000
- Median Monthly Rent: $1,360
Click here to search for the best investment properties in Orlando.
Buying Rental Property in Tampa, FL
Tampa Bay is a heavily populated metropolitan area, with a population of over 4 million residents. The city is ranked as one of the top 20 fastest growing in the US, and it remains a great tourist destination, making it a great marker for short-term investment properties.
Tampa also has a strong local economy with a strong focus on job growth in areas of financial services and healthcare. In addition, despite the high priced homes, property investors can still find affordable homes for even as low as $90,000! These reasons make the city one of the top markets for buying rental property.
Tampa Real Estate Market Statistics
- Median Home Price: $136,000
- Median Monthly Rent: $995
Click here to search for the best investment properties in Tampa.
Buying Rental Property in Jacksonville, FL
Jacksonville is one of the best real estate markets for buying rental property right now thanks to a low cost of living, a wonderful climate, and a business friendly environment. The median home price in Jacksonville is 23% less than the national average, and can be rent for 25% more than the national average!
Over the last 10 years, Jacksonville has grown by 20%, as 1.3 million people are currently living in the city, and more continue to come every year. In addition, Forbes ranked it #3 of the best cities in the US for jobs, with the workforce growing at a consistent rate with the population as well.
Jacksonville Real Estate Market Statistics
- Median Home Price: $154,000
- Median Monthly Rent: $1,050
Click here to search for the best investment properties in Jacksonville.
Buying Rental Property in Houston, TX
Although Houston real estate will stay in a recovery mode from Hurricane Harvey in 2018, real estate experts believe the housing market is already on a significant rising trend. Houston is considered more affordable than many other US markets.
Thanks to the low prices of investment properties and lower mortgage rates, many people are moving to Houston from more expensive cities such as New York and San Francisco, leading to an increased demand for buying rental property.
Houston Real Estate Market Statistics
- Median Home Price: $150,000
- Median Monthly Rent: $1,425
Click here to search for the best investment properties in Houston.
Buying Rental Property in Austin, TX
2017 was a great year for Austin real estate, and this positive trend is expected to continue in 2018. The local economy is thriving in Austin, with employment rates rising and job growth rates expected to reach 3.6%. Accordingly, more people are moving to the city, and experts project a population growth of 2.8% over the next 5 years. This is another incentive for buying rental property in Austin real estate.
According to the real estate research team at Zillow, home prices in the Austin real estate market are expected to rise by 3% in 2018, yet, investment properties in Austin are still considered affordable!
Austin Real Estate Market Statistics
- Median Home Price: $465,000
- Median Monthly Rent: $2,190
Click here to search for the best investment properties in Austin.
Buying Rental Property in Las Vegas, NV
Realtor.com named Las Vegas the number one real estate market to look forward to in 2018! The economy of the city is expected to grow by 8.7% in 2018, with more people moving there for many reasons, but the main one being the city’s still striking home affordability and the low interest rates. Moreover, job growth rates are rising to 2.7%.
Moreover, an average of 43 million people visits Las Vegas, making it one of the hottest tourist destinations in the country. Therefore, it’s one of the best real estate markets for property investors who are investing in Airbnb rentals.
Las Vegas Real Estate Market Statistics
- Median Home Price: $235,000
- Median Monthly Rent: $1,395
Click here to search for the best investment properties in Las Vegas.
Buying Rental Property in Cleveland, OH
Cleveland is one of the strongest real estate markets in the nation. It is a fast-growing market as millennials are moving to the city to take advantage of the available job opportunities. With a workforce of over 2 million people, Cleveland is the 12th largest economic region in the nation.
Moreover, it’s not hard to buy investment properties for as low as $70,000 and turn that into $800 a month. Not to mention, occupancy rates are at an astounding 98%, and home sales are up 12% year over year! These make the city a great place for buying rental property.
Cleveland Real Estate Market Statistics
- Median Home Price: $122,000
- Median Monthly Rent: $1,140
Click here to search for the best investment properties in Cleveland.
Buying Rental Property in Columbus, OH
Columbus also offers great opportunities for buying rental property, especially for those who are looking for an affordable income property. A real estate investor can buy a fully renovated income property for less than $100,000.
Job growth in Columbus is also one of the best in the country with an increase of 2.35% between 2016 and 2017 – a trend which will continue to grow in 2018 with all the recognition that Columbus real estate is receiving. Accompanying this job growth is, of course, the increase in population. Columbus population has grown over 7% over the last 5 years (59% faster than the national average). Furthermore, Forbes named Columbus as one of the top 10 cities in the US to relocate to!
Columbus Real Estate Market Statistics
- Median Home Price: $93,000
- Median Monthly Rent: $1,000
Click here to search for the best investment properties in Columbus.
Buying Rental Property in Nashville, TN
Nashville’s employment rate has seen a growth in the past year thanks to a series of construction projects which helped the city’s economy. Despite the increasing home prices, local income properties have remained affordable. In addition, the population is growing more than double the US rate! For these reasons, Nashville real estate made it on this list of the best real estate markets of 2018.
Nashville Real Estate Market Statistics
- Median Home Price: $289,900
- Median Monthly Rent: $1,750
Click here to search for the best investment properties in Nashville.
Buying Rental Property in Atlanta, GA
Atlanta is the third-largest metropolitan region in the Southeast, attracting families from all over the southern United States as well as the Midwest. Last year, 74,500 new jobs were created in Atlanta – an annual growth rate of 2.85%, which is higher than the national average of 2.35%. With this job growth, the population also grew close to 4%, which is a good sign for property investors buying rental property in Atlanta.
Atlanta Real Estate Market Statistics
- Median Home Price: $152,000
- Median Monthly Rent: $1,240
Click here to search for the best investment properties in Atlanta.
Buying Rental Property in 2018 – Conclusion
These are the best 10 real estate markets of 2018 in the United States. So, property investors looking for buying rental property should consider searching in one of these cities as they offer the best opportunities for investing which result in a higher return on investment.
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