So we’ve put together a list of the best places to invest in real estate, and where there’s a noticeable influx of Millennials. These are cities where demand for housing and rental properties is increasing, and where we’ve seen the most equity gains as well as appreciation. Take a look at these opportunities!
Best Places to Invest in Real Estate for Millennials: Austin, Texas
Texas has earned its place among the best places to invest in real estate. And the number one city attracting Millennials in Texas? Austin. The city is growing at every scale, and its economy is diverse. The tourism, art, technology, and business industries are all creating thousands of job opportunities and driving Millennials and young families to the city. So where’s the opportunity for the investor? The increasing demand for housing and the rental market in the city.
There’s also great opportunity in investing in Airbnb Austin, where an investor may achieve high ROI. The average rental income per month for an Airbnb rental is $3,525. However, like many real estate markets in the country, Austin real estate suffers from low inventory. And many are blaming Airbnb for snatching homes from the city’s residents to be rented out for tourists. At the same time, the city is undergoing mass construction and development in real estate. This may improve the shortage in inventory.
In general, Austin is a very solid real estate market that an investor cannot really go wrong with. Below are two of the city’s top neighborhoods. Make sure to check these out as well as others on Mashvisor to optimize your investment.
Related: Texas Real Estate Investing: The Best Areas
West University
Located in central Austin, West University is known for its proximity to the University of Texas at Austin. Demand for this neighborhood is very high due to the large number of students residing there. So if you are considering Austin, this is definitely a place to start.
- Median Home Price: $239,700
- Airbnb Occupancy Rate: 37.15%
- Cash on Cash Return
- Airbnb: 11.01%
- Traditional: 3.98%
- Average Rental Income/mo
- Airbnb: $2,987
- Traditional: $1,659
Downtown
Downtown is among the most affordable and most prevalent Austin neighborhoods. It is known as the neighborhood that doesn’t slow down – a business hub by day and a nightlife delight by night.
- Median Home Price: $379,900
- Airbnb Occupancy Rate: 48.53%
- Cash on Cash Return
- Airbnb: 7.65%
- Traditional: 2.95%
- Average Rental Income/mo
- Airbnb: $4,035
- Traditional: $2,345
Best Places to Invest in Real Estate for Millennials: Denver, Colorado
Denver has also become a one of the best places to invest in real estate over the past few years. Home values in Denver have appreciated by 10% in 2016 and are forecasted to see further increase to that number in 2017. Demand for housing has seen a strong increase in demand for several reasons… the economy, Millennials, and Airbnb. Denver’s tech, energy, healthcare industries, as well as universities have all been thriving. This is creating a source of employment for the Denver population, and an opportunity for real estate investors. The more people that are working and moving into Denver, the better Denver real estate will do.
Another factor in the equation in Airbnb Denver. Denver’s just passed a law which legalizes renting short-term rentals for a period less than thirty days, something that was previously outlawed. This new legislation has made Airbnb Denver all the more appealing for investors.
Related: 6 Reasons to Invest in Denver Real Estate
Central Business District (CBD)
Also known as Downtown Denver, Central Business District is as the name implies, the financial and commercial center in the city. But that’s not the only thing the neighborhood’s known for. It’s also the entertainment center, and a fine area for shopping as well as dining. There’s practically everything in CBD, and if something’s not there, it’s a nearby shuttle ride away! The neighborhood has seen strong housing growth, and remains among the most profitable and most affordable for investment in Denver.
- Median Home Price: $392,000
- Airbnb Occupancy Rate: 72.06%
- Cash on Cash Return
- Airbnb: 6.63%
- Traditional: 5.23%
- Average Rental Income/mo
- Airbnb: $2,828
- Traditional: $2,336
Civic Center
Civic Center is located in the south of the Central Business District. But while CBD is a better traditional investment, Civic Center is the most ideal Airbnb neighborhood in Denver. Its central location, in addition to its several cultural, arts, and green areas (Civic Center Park), make it an adored part of the city by tourists.
- Median Home Price: $485,000
- Airbnb Occupancy Rate: 73.24%
- Cash on Cash Return
- Airbnb: 6.33%
- Traditional: 4.56%
- Average Rental Income/mo
- Airbnb: $2,918
- Traditional: $2,350
Best Places to Invest in Real Estate for Millennials: Portland, Oregon
Portland real estate is yet another seller’s market on our best places to invest in real estate list. Portland’s been experiencing expansion in its economy, which is in turn increasing migration, and ultimately demand for housing. It is also a top Millennial destination for 2017.
The median home price for Portland real estate is $524,000 which is cheaper than many markets in the West such as San Francisco and Seattle, but is also above others around the nation like Cleveland and Sacramento. So while the prices aren’t as soaring as many top cities in the US, it’s still facing an affordability problem.
Check out Portland’s top real estate market neighborhoods to realize the opportunity in investing in Portland real estate.
East End
East End is a neighborhood situated at the eastern part of the city. It’s well known for its restaurants as well as trendy shops. The neighborhood is an ideal Airbnb investment as it is popular among tourists who pay a visit to the city.
- Median Home Price: $499,000
- Airbnb Occupancy Rate: 56.1%
- Cash on Cash Return
- Airbnb: 5.7%
- Traditional: 1.5%
- Average Rental Income/mo
- Airbnb: $3,820
- Traditional: $1,930
Downtown
Located in the very center of Portland, Downtown is a great Airbnb investment. Tourists choose it because, well, it’s in downtown – where everything’s within reach! The neighborhood’s known for its convenient public transportation system, as well as its restaurants and shopping experiences.
- Median Home Price: $459,000
- Airbnb Occupancy Rate: 54.9%
- Cash on Cash Return
- Airbnb: 5.7%
- Traditional: 1.5%
- Average Rental Income/mo
- Airbnb: $3,610
- Traditional: $1,700
Best Places to Invest in Real Estate for Millennials: Boston, Massachusetts
Boston real estate is currently among the hottest markets in the nation and is one of the best places to invest in real estate. Total home prices, equity gains, as well as appreciation have significantly increased for Boston real estate, which has made it a very attractive market for investors and buyers alike. The city is as great Airbnb investment as it is traditional. The influx of students, Millennials, as well as tourists, keeps demand high for the rental market.
The Boston real estate market is a sellers’ market, and one that suffers from serious shortage of inventory and a limited supply. Still, Boston is expecting a great year in 2017. After all, the city will always remain a hub for technology, education, business, and tourism.
Related: Boston Real Estate Investing
Allston
Allston’s got a little bit of everything. From artsy cafés and trendy bars, to business centers and startups, you’ll find college students and young entrepreneurs living side by side. The high concentration of Harvard and Boston university students, as well as up and coming Millennials make Allston an excellent traditional rental investment. The neighborhood’s got an extremely convenient location which makes it popular among Bostonians and tourists alike. And while a better traditional investment, Allston is almost as an equally great Airbnb investment.
- Median Home Price: $439,900
- Airbnb Occupancy Rate: 47.38%
- Cash on Cash Return
- Airbnb: 8.44%
- Traditional: 3.56%
- Average Rental Income/month
- Airbnb: $4,040
- Traditional: $2,250
Fenway/Kenmore
Officially recognized as Fenway/Kenmore, the neighborhood is known for its cultural and sports attractions. Fenway Park, the Museum of Fine Arts, Symphony Hall, among other destinations, are in the heart of the neighborhood. This makes it a very popular destination among tourists and a great Airbnb investment. If there’s a Boston Red Sox game, expect high occupancy rates for Airbnb rentals in Fenway as thousands of cheering fans take over the area. Additionally, the neighborhood is surrounded by a large number of colleges and universities, which makes not only Airbnb, but traditional investing a good idea.
Fenway
- Median Home Price: $445,000
- Airbnb Occupancy Rate: 56.53%
- Cash on Cash Return
- Airbnb: 5.94%
- Traditional: 3.09%
- Average Rental Income/month
- Airbnb: $3,317
- Traditional: $2,191
Kenmore
- Median Home Price: $938,000
- Airbnb Occupancy Rate: 48.75%
- Cash on Cash Return
- Airbnb: 3.91%
- Traditional: 2.1%
- Average Rental Income/month
- Airbnb: $4,337
- Traditional: $3,046
Best Places to Invest in Real Estate for Millennials: Dallas, Texas
Also among best places to invest in real estate is Dallas. The city’s diverse economy is thriving and is causing the creation of a wealth of job opportunities. The result? Thousands of people moving into the city, most of which are Millennials. In fact, of the 1,200 people who move to Texas every day, around half go to Dallas–Fort Worth Metroplex – the biggest inland metropolitan area in the nation. At the moment, there are 25,000 single-family homes and 35,000 apartments under construction in Dallas. As the Dallas real estate market is expanding, property prices are expected to continue to rise, and construction is also expected to increase.
And here are Dallas’ top two real estate investing neighborhoods.
Near East
Close to many of the cities amenities, Near East is considered an ideal neighborhood. Our data shows promising investment opportunities, specifically for traditional investment.
- Median Home Price: $237,000
- Airbnb Occupancy Rate: 45.42%
- Cash on Cash Return
- Airbnb: 2.92%
- Traditional: 10.19%
- Average Rental Income/mo
- Airbnb: $1,633
- Traditional: $3,20
North Dallas
North Dallas consists of numerous communities and smaller neighborhoods that are considered the wealthiest parts of Dallas. It is said to be among the top areas for investment in rental property.
- Median Home Price: $804,950
- Airbnb Occupancy Rate: 22.125%
- Cash on Cash Return
- Airbnb:4.81%
- Traditional:3.49%
- Average Rental Income/mo
- Airbnb: $3,802
- Traditional: $3,252
Other top cities that are on the best places to invest in real estate for Millennials include Seattle, Minneapolis, Washington D.C., Raleigh, Charleston, Jacksonville, Salt Lake City, among others. For more information on these cities and specific neighborhoods and listings, use Mashvisor. Simply search for the desired city and neighborhood and then browse thousands of properties. You can view information on CoC return, cap and occupancy rates, rental income, and much more. Our interactive investment property calculator will help you decide where you can make the most returns.