It’s true, there are so many locations with the potential to make money in real estate this year. But why settle for any old location that will simply make you money? Why not invest in one of the best cities for real estate investment 2018?
If you’re looking for part 1 of the list of the best cities for real estate investment 2018, click here.
Best Cities for Real Estate Investment 2018: Chicago, IL
The Chicago real estate market 2018 is a seller’s market. However, it’s not labeled as a “hot” seller’s market. That simply means there is still room for real estate buyers to get a good deal in this real estate market. The Median Property Price is $446,995, which is high. Luckily, there are some Chicago neighborhoods where a real estate investor can find investment properties priced below $230,000. But act fast, as Chicago real estate will experience an appreciation of approximately 5.2% this year.
A Chicago investment property is lucky to be in a location that has one of the most important characteristics of the best places to invest in real estate– a diversified economy. The city has more than 400 major corporate headquarters, 36 of which are in the Fortune 500. This not only is one reason for the high performance of the current housing market but also why the Chicago real estate market forecasts are so positive. Any possible hit the economy could take in the future would be mitigated by the diversification.
Chicago made it onto this list as well for the best places to invest in real estate based on cap rate!
Because of the booming economy, Chicago real estate benefits from population growth. As a real estate investor, you’d be happy to know that out of that large population, 56.8% are tenants of rental properties.
Chicago Real Estate Market 2018 Stats
Note: All of the real estate stats on this list are provided by Mashvisor’s investment calculator. Want similar info for other real estate markets? Sign up for Mashvisor to get ahold of our tools.
Airbnb Rental Income: $1,714
Airbnb Cash on Cash Return and Cap Rate: 0.59%
Traditional Rental Income: $1,866
Traditional Cash on Cash Return and Cap Rate: 0.71%
Check out top performing investment properties here.
Other Interesting Facts Chicago Real Estate Investors Should Know
Job Growth Rate (1 Year): 0.7%
Unemployment Rate: 4.5%
Population Growth Rate (5 Year): 0.45%
Equity Growth Rate (5 Year): 18%
Cost of Living Index: 77.1
Start looking for Chicago real estate right now. Click here to get started.
Best Cities for Real Estate Investment 2018: Kansas City, MO
Naturally, one of the most affordable cities in the US deserves a spot on this list for the best cities for real estate investment 2018: Kansas City. What aids the affordability of the Kansas City real estate market is the fact that it’s a buyer’s market. The Median Property Price is $203,705, much lower than that of the last entry on this list. Proof of the affordability of a Kansas City investment property lies in the fact that the price of so many investment properties falls below $121,000.
Still, even as an affordable city, 47.3% of the population are tenants of rental properties. They’ll largely contribute to the positive cash flow you’ll get as a landlord here. On top of the monthly cash flow, you’ll benefit from a modest real estate appreciation of 3.4% this year.
Want more options for affordable investment properties? Take a look at this list.
The reason we are so focused on the affordability factor of this real estate market? Well, it’s because people are more inclined to move to such cities. This is true especially when they are major centers for booming job markets like the Kansas City real estate market 2018. You’ll enjoy increasing rental property demand as more and more people move here to seek cheap living and job opportunities.
Kansas City Real Estate Market 2018 Stats
Airbnb Rental Income: $803
Airbnb Cash on Cash Return and Cap Rate: 1.15%
Traditional Rental Income: $1,088
Traditional Cash on Cash Return and Cap Rate: 1.76%
Check out top performing investment properties here.
Other Interesting Facts Kansas City Real Estate Investors Should Know
Job Growth Rate (1 Year): 1.3%
Unemployment Rate: 3.9%
Population Growth Rate (5 Year): 4.5%
Equity Growth Rate (5 Year): 16.5%
Cost of Living Index: 66.36
Start looking for Kansas City real estate right now. Click here to get started.
Best Cities for Real Estate Investment 2018: Atlanta, GA
The Atlanta real estate market 2018 is the first “neutral” market to make it onto the list of the best cities for real estate investment 2018. Even so, the Median Property Price is still up there at $465,824. Still, a pretty high percentage of investment properties fall under $250,000. And property prices will slow in growth, with only 3.3% real estate appreciation forecasted for this year.
Did you know Atlanta, GA is one of the cities to invest in real estate for the highest returns? Take a look at the complete list here.
The Atlanta real estate market 2018 is home to major industrial giants like Home Depot, UPS, and Coca-Cola. On top of the corporations in the city, Atlanta is also becoming the #1 real estate market for corporate relocation. That spells out one thing: the demand on Atlanta investment property (residential and commercial real estate) will continue to rise steadily thanks to a consistent addition of new jobs. With 60.1% of the population still renting, you can be sure to benefit from this kind of growth.
Atlanta Real Estate Market 2018 Stats
Airbnb Rental Income: $1,882
Airbnb Cash on Cash Return and Cap Rate: 2.39%
Traditional Rental Income: $1,793
Traditional Cash on Cash Return and Cap Rate: 1.82%
Check out the top performing investment properties here.
Other Interesting Facts Atlanta Real Estate Investors Should Know
Job Growth Rate (1 Year): 2.9%
Unemployment Rate: 4.5%
Population Growth Rate (5 Year): 9.2%
Equity Growth Rate (5 Year): 53.8%
Cost of Living Index: 72.64
Start looking for Atlanta real estate right now. Click here to get started.
Best Cities for Real Estate Investment 2018: Houston, TX
The final of our best cities for real estate investment 2018 is probably a surprise to no one. The Houston real estate market is pretty well-known for offering great investment opportunities. It’s a city that offers stable, low risk investments with cash flow that real estate investors can rely on.
The Median Property Price here is $421,159, which is high considering it’s a buyer’s market. Still, rental properties can be bought for a price lower than $125,000 in Houston. The positive cash flow is thanks to the 57.4% of tenants in the location.
Whether you’re looking at Houston’s title for the second largest concentration of Fortune 1000 companies in the nation or for having the largest medical center in the world, the city is a great economical center where an investment property is sure to prosper.
Houston Real Estate Market 2018 Stats
Airbnb Rental Income: $1,990
Airbnb Cash on Cash Return and Cap Rate: 1.41%
Traditional Rental Income: $1,819
Traditional Cash on Cash Return and Cap Rate: 1.34%
Check out the top performing investment properties here.
Other Interesting Facts Houston Real Estate Investors Should Know
Job Growth Rate (1 Year): 0.5%
Unemployment Rate: 4.5%
Population Growth Rate (5 Year): 14%
Equity Growth Rate (5 Year): 44.2%
Cost of Living Index: 63.04
Start looking for Houston real estate right now. Click here to get started.
Narrowing down thousands of cities to 8 of the best cities for real estate investment was our job. Now, it’s time for you to make the next real estate investing move. Which of these cities will you choose for your next investment property? Share with us in the comments down below.
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