10 Best Places to Buy Real Estate in 2022

If you are thinking about starting or expanding your real estate portfolio, check out our list of the ten best places to buy real estate in 2022.

Despite COVID-19 defying every economic prediction, the real estate sector showed surprising resilience. What many Americans feared would be a long and devastating economic downturn did not happen. Instead, the economy, along with the real estate industry, bounced back after one year. Productivity has already exceeded pre-COVID-19 levels, and experts are projecting that jobs would recover to 2019 levels by next year.

Because of the pandemic, the property sector may have changed forever. The need for flexibility and convenience made certain assets obsolete:

Remote work means lower demand for offices
Online shopping means lower demand for retail properties
Entire families staying home means higher demand for spacious single-family houses and home improvement

This list is based on Emerging Trends in Real Estate 2022 undertaken by PwC and the Urban Land Institute (ULI). This is the 43rd edition of one of the most highly regarded forecast reports in the real estate industry. It provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues. Their study covers the entire US and Canada, but this blog post only included the best places to buy real estate in the US. You can read the full report here.

In addition to breaking down the information from the report, we included key statistics from Mashvisor’s database and other top resources.

The Top 10 Best Places to Buy Real Estate in 2022

Here are the best places for real estate investing in 2022

Nashville, TN
Raleigh/Durham, NC
Phoenix, AZ
Austin, TX
Tampa/St. Petersburg, FL
Charlotte, NC
Dallas/Fort Worth, TX
Atlanta, GA
Seattle, WA
Boston, MA

10th: Boston, MA

Last year, Boston placed 9th in the best places to buy real estate and was the only one of the eight gateway markets that placed among the top 20. This year, it is one of the two expensive coastal markets to make it to the top 10.

Along with other gateway markets, Boston bore the brunt of out-migration from its dense, expensive commercial business district (CBD) during the pandemic, bringing about a severe downturn in its local economy. This is because the local economy is heavily skewed towards the knowledge sector and remote-friendly jobs. Also, the market is so expensive that even though many of its workforces are generally higher paid, they still cannot afford homeownership in Boston.

So why did Boston land in the top 10 for best real estate investment markets? The city has leveraged its region’s world-class concentration of higher education to become a world leader in life sciences.

The National Institute of Health (NIH) provides a critical stream of funding that supports research to drive the industry forward and is highly concentrated in Boston. The NIH in Boston accounts for 25% of all grant dollars among the top 10 recipient geographies and about 10% of all funding in the United States overall.

Boston also boasts one of the highest asking rents for laboratories but maintains a high occupancy rate. The city accounts for more than half of the national development pipeline underway as of the second half of 2021.

Boston Real Estate Investing Statistics

Median Property Price: $1,183,407
Price per Square Foot: $976
Price to Rent Ratio: 34 (high)
Traditional Rental Income: $2,931
Traditional Cash on Cash Return: 1.04%
Top Boston Neighborhood for Real Estate Investing: Downtown Crossing (4.36% Traditional COC Return)
Type of Market: Balanced Market
Real Estate 2022 Forecast Property Value Appreciation: 15%

Other Boston Real Estate Market 2022 Rankings

#2 in Availability of Debt and Equity Capital
#3 in Investor Demand
#9 in Local Public and Private Investment
#14 in Local Economy
#16 in Development/Redevelopment Opportunities
#34 in Homebuilding Prospects

9th: Seattle, WA

Seattle–along with the other seven most expensive coastal markets–used to dominate the best places to buy real estate lists in the early 2010s. However, after topping PwC’s “Overall Real Estate Prospects” survey in 2018, the city did not return to the top 10 again until this year.

In the Emerging Trends report, the PwC categorized Seattle as one of the Establishments for having been one of the nation’s economic leaders. They then categorized it further into the Multitalented Producers subgroup for being more diverse than the other large and economically varied cities.

Why is Seattle in the top 10 best real estate markets for investors in 2022? The city is known for producing a wide range of goods and services, from airplanes to software. Because of this, it has always had diversity in its population and will continue to attract more people from different backgrounds who also happen to be the best talents.

Seattle also has a rich history of entrepreneurship, for being the birthplace of some of the biggest brands in the country and the world:

Boeing
Paccar
Amazon
Microsoft
Weyerhaeuser
Starbucks
Nordstrom
Costco

Some of the significant projects underway this year include a major redevelopment of the central waterfront and expansion of the convention center. Headquarters projects for Microsoft and Amazon are ongoing as well.

Seattle Real Estate Investing Statistics

Median Property Price: $742,852
Price per Square Foot: $568
Price to Rent Ratio: 24 (high)
Traditional Rental Income: $2,529
Traditional Cash on Cash Return: 1.96%
Top Seattle Neighborhood for Real Estate Investing: Denny Triangle (4.47% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 18%

Other Seattle Real Estate 2022 Rankings

#10 in Availability of Debt and Equity Capital
#11 in Local Economy
#12 in Homebuilding Prospects
#12 in Development/Redevelopment Opportunities
#13 in Local Public and Private Investment
#14 in Investor Demand

Seattle Multifamily Market 2022 Outlook

68% recommend investing in a multifamily property
23% recommend holding (neither buying nor selling)
9% recommend selling your multifamily property investment

8th: Atlanta, GA

Atlanta is a longtime survey favorite and has consistently ranked in the top 20 for best places to buy real estate. PwC categorized the city in the Magnet group, which are migration destinations for both people and companies. These markets are growing more quickly than the US average in terms of both population and jobs.

They then further categorized it into the Super Sun Belt subgroup, which are large and diverse cities that are still affordable. Their powerhouse economies have attracted a wide range of businesses.

The reason why Atlanta is in the top 10 best investments for 2022 is that it saw a population growth of over 5% since 2018. These migrants require new housing, services, and workplaces. According to an expert, the low cost of land, climate, and available jobs made the market attractive. These factors are why there has been an influx of people moving to Atlanta.

The increase in population as well as the lifting of COVID-19 lockdown restrictions early this year boosted Atlanta’s productivity. By 2021, the metro’s GDP rose by 8.2% and is expected to increase further by at least 3.3%.

Atlanta Real Estate Investing Statistics

Median Property Price: $567,210
Price per Square Foot: $424
Price to Rent Ratio: 20 (medium)
Traditional Rental Income: $2,370
Traditional Cash on Cash Return: 2.50%
Top Atlanta Neighborhood for Real Estate Investing: Berkeley Park (4.08% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 18.1%

Other Atlanta Real Estate 2022 Rankings

#7 in Development/Redevelopment Opportunities
#9 in Homebuilding Prospects
#12 in Availability of Debt and Equity Capital
#12 in Local Economy
#13 in Investor Demand
#24 in Local Public and Private Investment

Atlanta Multifamily Market 2022 Outlook

48% recommend investing in a multifamily property
23% recommend holding (neither buying nor selling)
30% recommend selling your multifamily property investment

7th: Dallas/Fort Worth, TX

Last year, the Dallas/Fort Worth market ranked 4th in the best places to buy real estate list and is also a longtime survey favorite. Just like Atlanta, these cities are grouped into the Super Sun Belt Magnet group for their booming population and for remaining affordable despite being a large and diverse market.

According to Byron Carlock, PwC’s US Real Estate Leader, even though Dallas/Fort Worth has been knocked from its previous top spot by smaller upstart markets, this is not a signal that the cities have lost their ground. Around 375 people are moving into the area each day, so there is no doubt that Dallas/Fort Worth will continue to be one of the country’s top real estate markets in 2022 in terms of everything from construction to investment.

However, Dallas/Fort Worth still has work to do on the issues of quality of life, particularly healthcare, education, and diversity. There also seem to be concern about changes in the real estate business brought about by everything from COVID-19 to climate change.

Dallas Real Estate Investing Statistics

Median Property Price: $568,793
Price per Square Foot: $285
Price to Rent Ratio: 22 (high)
Traditional Rental Income: $2,149
Traditional Cash on Cash Return: 1.49%
Top Dallas Neighborhood for Real Estate Investing: Near East (3.93% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 21.19%

Fort Worth Real Estate Investing Statistics

Median Property Price: $417,200
Price per Square Foot: $207
Price to Rent Ratio: 19 (medium)
Traditional Cash on Cash Return: 2.16%
Top Fort Worth Neighborhood for Real Estate Investing: West Morningside (5.19% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 21.19%

Other Dallas/Fort Worth Real Estate 2022 Rankings

#4 in Homebuilding Prospects
#4 in Availability of Debt and Equity Capital
#4 in Local Economy
#6 in Development/Redevelopment Opportunities
#8 in Local Public and Private Investment
#9 in Investor Demand

6th: Charlotte, NC

Charlotte dropped one spot from #5 in last year’s best places to buy real estate list. As part of the Magnet cities, Charlotte’s demographics are skewed toward faster economic growth prospects with higher proportions of millennials (28%) and gen-Xers (25%). As for the older age group, seniors and retirees comprise only 15% of the city population.

PwC further categorized Charlotte into the 18-Hour Cities subgroup for fairing relatively well during the pandemic recession, a testament to the city’s enduring appeal. Although it is growing less affordable over time, partly due to price pressures from transplants from more expensive cities, Charlotte continues to attract in-migration. This is due to the lifestyle, workforce quality, and development opportunities that the city offers.

The city of Charlotte has been the focus of new construction, such as the Vantage South End, a 635,000-square-foot mixed-use development, and the 23-story Design Center Tower. Both of these projects have been under construction in the hot South End neighborhood. When these projects are completed, the 2022 real estate market in Charlotte may grow even more.

Experts say that employers will continue to leave gateway markets for fast-growing secondary metro areas like Charlotte. Not only does the city feature low costs and less regulation, but also the pandemic has led skilled workers to move here. As talent is migrating toward cities like Charlotte, employers are heading to the same destination in chase of these talents.

Charlotte Real Estate Investing Statistics

Median Property Price: $562,529
Price per Square Foot: $315
Price to Rent Ratio: 23 (high)
Traditional Rental Income: $1,998
Traditional Cash on Cash Return: 1.95%
Top Charlotte Neighborhood for Real Estate Investing: Chantilly (3.5% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 6.10%

Other Charlotte Real Estate 2022 Rankings

#4 in Investor Demand
#4 in Development/Redevelopment Opportunities
#4 in Local Public and Private Investment
#5 in Availability of Debt and Equity Capital
#7 in Homebuilding Prospects
#8 in Local Economy

Charlotte Multifamily Market 2022 Outlook

71% recommend investing in a multifamily property
24% recommend holding (neither buying nor selling)
5% recommend selling your multifamily property investment

5th: Tampa/St. Petersburg, FL

The Tampa/St. Petersburg market moved up one spot from last year’s best places to buy real estate list. Just like Atlanta and Dallas/Fort Worth, this area is categorized into the Super Sun Belt subgroup under the Magnet group, meaning they had more people migrating into the area, making it a boon for the local real estate market. Super Sun Belt cities are also described as large and diverse metro areas that attract a wide range of businesses.

IHS Markit estimates that by the end of 2022, the population in the Tampa/St. Petersburg area would grow to 3.29 million (up 1%), with the following population distribution:

27% are 0-24 years old
26% are 25-44 years old
26% are 45-64 years old
21% are 65 years old and over

As Tampa’s population grows steadily, so will its 2022 housing market. The median home price may not be as low as before, but they remain to have a good chance of increasing in value in the coming years.

Tampa Real Estate Investing Statistics

Median Property Price: $580,094
Price per Square Foot: $314
Price to Rent Ratio: 24 (high)
Traditional Rental Income: $2,056
Traditional Cash on Cash Return: 2.75%
Top Tampa Neighborhood for Real Estate Investing: Old West Tampa (3.75% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 23.7%

St. Petersburg Real Estate Investing Statistics

Median Property Price: $651,582
Price per Square Foot: $360
Price to Rent Ratio: 35 (high)
Traditional Rental Income: $1,553
Traditional Cash on Cash Return: 1.94%
Top St. Petersburg Neighborhood for Real Estate Investing: Boca Ciega Bay
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 23.7%

Other Tampa/St. Petersburg Real Estate 2022 Rankings

#1 in Development/Redevelopment Opportunities
#2 in Homebuilding Prospects
#3 in Local Public and Private Investment
#6 in Availability of Debt and Equity Capital
#7 in Local Economy
#11 in Investor Demand

Tampa/St. Petersburg Multifamily Market 2022 Outlook

57% recommend investing in a multifamily property
24% recommend holding (neither buying nor selling)
19% recommend selling your multifamily property investment

4th: Austin, TX

Last year, Austin placed two ranks higher in the best places to buy real estate list. Despite this, PwC moved Austin to the new Supernovas subgroup, which was named as such because of how these cities exploded into prominence.

Austin has long been among the most popular cities for investors and builders alike, after first breaking into the top 10 for PwC’s markets to watch in 2009. But the area continues to power forward with the fastest growth of any metro area in the United States, despite pushing the upper limits of a medium-sized city.

Austin is also one of the markets to watch for the life sciences industry, which has taken the spotlight his year. The city boasts the following feats:

Strong demographic growth
High concentration of science, technology, engineering, and mathematics (STEM) degrees
Steadily increasing access to funding

These factors will surely affect Austin’s real estate trends in 2022 in a positive way.

Austin Real Estate Investing Statistics

Median Property Price: $777,600
Price per Square Foot: $428
Price to Rent Ratio: 30 (high)
Traditional Rental Income: $2,133
Traditional Cash on Cash Return: 0.87%
Top Austin Neighborhood for Real Estate Investing: Chestnut (2.34% Traditional Cash on Cash Return)
Type of Market: Buyer’s Market
Real Estate 2022 Forecast Property Value Appreciation: 21.5%

Other Austin Real Estate 2022 Rankings

#1 in Availability of Debt and Equity Capital
#1 in Local Economy
#2 in Investor Demand
#5 in Homebuilding Prospects
#9 in Development/Redevelopment Opportunities
#16 in Local Public and Private Investment

Austin Multifamily Market 2022 Outlook

62% recommend investing in a multifamily property
23% recommend holding (neither buying nor selling)
15% recommend selling your multifamily property investment

3rd: Phoenix, AZ

Phoenix cracked the top 10 best places to buy real estate list for the first time in at least a decade. As a Super Sun Belt Magnet city, it is described as large and diverse but still affordable, forming a powerhouse economy that attracts a wide range of businesses. Despite its size, it remains to be one of the fastest-growing markets in the country. Its economic performance has also been solid through thick and thin this year.

Home prices in Metro Phoenix are still going up late into this year, and experts’ real estate projections for 2022 for this area include at least a 23.8% increase in property values. Homebuyers might face this steep hurdle by September of next year. As of November 2021, the typical price of homes in the area reached $649,260, a 25.4% increase from the same month last year.

Economists say that once interest rates start rising, homebuyers in Phoenix will have an even harder time trying to buy homes while still affording an education and other living expenses. Even though interest rates are low now, the acceleration in home prices rising has already become an issue for homebuyers.

If they still have not found a home in their price range before interest rates go back up, the demand will go down, and eventually, the prices in Phoenix will decrease, too.

Phoenix Real Estate Investing Statistics

Median Property Price: $649,260
Price per Square Foot: $607
Price to Rent Ratio: 28 (high)
Traditional Rental Income: $1,904
Traditional Cash on Cash Return: 1.97%
Top Phoenix Neighborhood for Real Estate Investing: Estrella (2.8% Traditional Cash on Cash Return)
Type of Market: Seller’s Market
Real Estate 2022 Forecast Property Value Appreciation: 23.8%

Other Phoenix Real Estate 2022 Rankings

#3 in Homebuilding Prospects
#5 in Development/Redevelopment Opportunities
#5 in Local Economy
#7 in Local Public and Private Investment
#10 in Investor Demand
#11 in Availability of Debt and Equity Capital

Phoenix Multifamily Market 2022 Outlook

59% recommend investing in a multifamily property
18% recommend holding (neither buying nor selling)
23% recommend selling your multifamily property investment

2nd: Raleigh/Durham, NC

Raleigh/Durham topped the best places to buy real estate in 2021. This year, PwC re-categorized it as a Supernova, along with Austin and other cities. As a Supernova market, Raleigh/Durham is considered to be an affordable smaller area that has 1 to 2 million residents. But its defining attribute is its tremendous and sustained population and job growth, which is well above national averages.

Over the past two years, the number of residents in Raleigh/Durham has grown by an average of 3.6%, more than four times the US population growth of 0.8% over the same period. Despite its relatively modest size, this market has above-average levels of economic diversity and white-collar employment. These factors explain its strong investor appeal and should help it sustain further growth in the years ahead.

Raleigh Real Estate Investing Statistics

Median Property Price: $545,249
Price per Square Foot: $281
Price to Rent Ratio: 27 (high)
Traditional Rental Income: $1,707
Traditional Cash on Cash Return: 1.96%
Top Raleigh Neighborhood for Real Estate Investing: Central (3.21% Traditional Cash on Cash Return)
Type of Market: Balanced Market
Real Estate 2022 Forecast Property Value Appreciation: 15.2%

Durham Real Estate Investing Statistics

Median Property Price: $567,656
Price per Square Foot: $360
Price to Rent Ratio: 33 (high)
Traditional Rental Income: $1,427
Traditional Cash on Cash Return: 1.51%
Top Durham Neighborhood for Real Estate Investing: Lakewood Park (5.58% Traditional Cash on Cash Return)
Type of Market: Buyer’s Market
Real Estate 2022 Forecast Property Value Appreciation: 15.4%

Other Raleigh/Durham Real Estate 2022 Rankings

#1 in Homebuilding Prospect
#2 in Local Public and Private Investment
#3 in Development/Redevelopment Opportunities
#3 in Local Economy
#5 in Investor Demand
#7 in Availability of Debt and Equity Capital

Raleigh/Durham Multifamily Market 2022 Outlook

79% recommend investing in a multifamily property
13% recommend holding (neither buying nor selling)
7% recommend selling your multifamily property investments

1st: Nashville, TN

Last year’s #3 in the best places to buy real estate list, Nashville jumped up to the top, becoming the best place to invest in property for 2022. It was re-categorized by PwC into the Supernova Magnet group for exploding in popularity especially among the Hispanic population. Their growing numbers have been driving the city’s housing market.

Nashville is the hottest real estate market in the US this year for having the fastest-selling houses (less than 10 days from listing). Despite this, the number of houses for sale is still greater than the number of closings as of October 2021, which is why Realtor.com states that the city is in a buyer’s market.

According to realtors, Nashville has seen a record number of homebuyers from out of state due to its cheaper taxes and more flexible COVID-19 restrictions. Because of this, real estate investors can expect further growth in this housing market. The housing inventory continues to stay low across the metro area of Nashville. At the end of October 2021, there were 5,260 units for sale (60% of which were single-family homes), a decrease of 29.46% year-on-year.

Nashville’s quality of life and relative affordability compared to the rest of the country make it a great place to live in. This has attracted property investors who are looking to generate rental income.

Nashville Real Estate Investing Statistics

Median Property Price: $543,275
Price per Square Foot: $339
Price to Rent Ratio: 24 (high)
Traditional Rental Income: $1,849
Traditional Cash on Cash Return: 2.11%
Top Nashville Neighborhood for Real Estate Investing: Hillsboro West End (6.23% Traditional Cash on Cash Return)
Type of Market: Buyer’s Market
Real Estate 2022 Forecast Property Value Appreciation: 16.3%

Other Nashville Real Estate 2022 Rankings

#1 in Investor Demand
#2 in Development/Redevelopment Opportunities
#2 in Local Economy
#3 in Availability of Debt and Equity Capital
#5 in Local Public and Private Investments
#21 in Homebuilding Prospects

Nashville Multifamily Market 2022 Outlook

67% recommend investing in a multifamily property
15% recommend holding (neither buying nor selling)
19% recommend selling your multifamily property investment

Conclusion

Because the impact of the COVID-19 pandemic turned out to be less than what the real estate industry expected, 2022 is a great time to invest. You can start with the 10 best places to buy real estate mentioned in this blog post. There is already a tremendous shift in global institutional investor allocations from other industries to this sector. Based on the Emerging Trends report, Investment prospects have increased as follows:

3.39 out of 5 in 2021 to 3.75 out of 5 in 2022 for single-family housing
3.39 out of 5 in 2021 to 3.65 out of 5 in 2022 for multifamily housing

Not only have prospects increased from last year, but the outlook looks much healthier now than they were before the pandemic. Investment volumes are also returning to pre-pandemic levels as constructions of new buildings are resuming. Experts noted a dramatic reversal in market conditions from a year ago.

The resilience of the property sector, on top of generally disciplined lending, building, and investing during the last year, helped sustain liquidity in the capital markets through the year. Along with the strong economic forecast, the industry is more confident for 2022.

With the record-breaking demand for single-family and multifamily housings and inventory that struggles to keep pace, rents and home prices are pushed to record levels. So if you are planning to buy a residential property to rent out, you may have to deal with higher upfront costs, though your investment will start paying you back within a few years.

Start Your Investment Portfolio With the Help of Mashvisor

While PwC’s Emerging Trends report has guided the real estate industry for several years now, you do not need to wait for the annual publication to discover the best places to buy real estate. Mashvisor’s Property Analysis Report feature provides real-time information on which neighborhoods are lucrative for rental investment depending on your strategy. Click here to learn more about how we can help you make faster and smarter investment decisions.

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