Wondering where to look for the best real estate investment? Looking back at 2017, you might be thinking that the next year looks bleak for anyone looking to invest in real estate.
Despite the tragic natural disasters that have swept across the nation, affecting some of the best real estate markets as well as the shortage of affordable housing and the uncertainty of tax regulations, real estate experts are looking positively on the upcoming US housing market.
Recent real estate market analysis of multiple interviews and surveys with real estate investors and other real estate experts showed that the top three cities for the best real estate investments are Seattle, Austin, and Salt Lake City.
The Cities for the Best Real Estate Investments
Seattle, Washington
Seattle has found its way to the top of the cities for the best real estate investments. Many factors contributed to this result including the fact that the city boasts a population growth rate that is twice the national rate. Seattle is projected to gain a massive 29,000 residents a year for the next five years. With population growth comes a demand for housing in the city, a desired trend in the best real estate markets.
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Population growth can usually be attributed to growing job opportunities which Seattle has been seeing over the past year. With a young, educated, and tech-savvy workforce attracted to higher-than-average salaries, it’s no wonder Seattle is post to eight of the Fortune Five Hundred companies (Costco, Microsoft, Amazon, Paccar, Starbucks, Nordstrom, Expeditors International of Washington, and Weyerhaeuser).
Other factors that pushed Seattle into the top rank of the best real estate investments include the fact that residents find the city to have high walk-ability to beautiful, green parks and great outdoor activities which is why foreign travelers choose it as a top destination.
It seems Seattle has all the major factors that would entice any real estate investor to its properties. What it all boils down to, however, is what the numbers show: how much money a real estate investor can make from a Seattle rental property. Seattle is experiencing low inventory along with higher prices making it a top US housing market for the best real estate investments.
Mashvisor can perform investment property analysis for you, showing you the possible returns on investment properties in a certain city. If we take a look at the data on Seattle, we find that it corresponds with being an overall great place for the best real estate investments.
Median Property Sale Price: $625,511 with 1,729 avg./sq. ft.
Cash on Cash Return (Traditional): 1.93%
Cash on Cash Return (Airbnb): 2.56%
Rental Income (Traditional): $2,126
Rental Income (Airbnb): $2,052
While real estate market analysis shows that all property sectors are looking positive in Seattle for the US housing market, the best for real estate investment will be industrial and single-family housing.
Related: Your Next Investment: Airbnb Seattle
Austin, Texas
The properties in the city of Austin ranked second in the best real estate investments. Austin is expected to experience a population growth of 2.8%, which is above the national average rate. 42,000 new residents are expected to flood into the city every year for five years adding to the population.
Austin’s economy is referred to as a start-up economy due to the fact that 11.5% of the firms in the city have been formed in the past three years. This shows a positive outlook in trends for the economy as well as job growth. Along with new companies popping up, headquarters of major booming companies such as Facebook, Google, Dell, and IBM are located there.
Take advantage of Austin’s booming real estate market. Click here to find a rental property.
The cultural scene of Austin is always attracting new, young residents as well as travelers due to one of the largest annual music festivals in the nation. It has a high ranking in popular outdoor activities. Austin has a great university culture, always bringing in younger residents. The city is also one of the top green cities.
The investment property analysis from Mashvisor shows that Austin deserves its high ranking in the best real estate investments.
Median Property Sale Price: $526,042 with 2,145 avg./sq. ft.
Cash on Cash Return (Traditional): 1.87%
Cash on Cash Return (Airbnb): 1.26%
Rental Income (Traditional): $2,087
Rental Income (Airbnb): $1,378
The top ranking type of property for the best real estate investments is expected to be multi-family and single-family housing in the city of Austin.
Related: Here Are the Best Neighborhoods When Investing in Austin Real Estate
Salt Lake City, Utah
The third city found to have the best real estate investments is Salt Lake City. While there is no direct estimation of significantly high population growth for the next year, there is an ease with which new, prominent businesses are being created in the city. 11.1% of the firms have been created in the last three years. This projects a steady growth in job opportunity which will naturally lead to a rise in the city’s population.
Residents of Salt Lake City find convenience in accessible transportation as well as good connectivity with airports. Travelers (with a high volume of international travelers) look towards the outdoor activities and vibrant culture of the city.
Click here to find an investment property in Salt Lake City.
Looking to the real estate market analysis from Mashvisor, you can see what you can profit from investing in real estate in Salt Lake City. With help from the investment property calculator, you can see for yourself why Salt Lake City comes in third for the cities with the best real estate investments.
Median Property Sale Price: $445,644 with 1,990 avg./sq. ft.
Cash on Cash Return (Traditional): 1.74%
Cash on Cash Return (Airbnb): 2.35%
Rental Income (Traditional): $1,295
Rental Income (Airbnb): $1,220
It is predicted that the best form of investment property for this city is multi-family and single-family properties as well as office properties.
If you’re thinking about investing in real estate in the US housing market, you’ll find the best real estate investments in the three cities of Seattle, Austin, and Salt Lake City. While the numbers speak for themselves, each city has many factors that will play a role in gaining you the greatest return on your investment.
Related: How Does the US Housing Market Forecast Look for the Second Half of 2017?