Which are the best cities for finding safe investments in the US realestate market?
When investing in real estate, there are two criteria that real estate investors usually base their search on: profitable investments and safe investments.
Generally, in real estate investing when an investment property has a very high potential for profits, it will also have a high-risk rate. However, if you’re looking for safe investments that might not reap you the highest rewards but that are guaranteed to generate profits, even if in small amounts, without risking losing your money, then there are certain aspects that you should keep an eye on while searching for your next investment property.
Typically, when assessing a real estate market for investing to determine its level of risk and find safe investments in it, these are the main factors that you should account for:
- The market’s population growth
- Job growth (employment/unemployment rates)
- Home price growth
These three factors can help you find safe investments by indicating whether a real estate market is growing or shrinking and whether it’s developing fast enough to guarantee that your investment property will have high demand for it and that you will be able to rent it out without facing any difficulties.
Note: To learn more about all aspects of real estate investing, continue reading our blog.
Cities where the population is growing rapidly and people are finding jobs easily indicate that there is an increasing number of people who are moving into the city, have jobs, and are looking for a place to live. Additionally, paying attention to tourism developments and attractions, seasonal events, and transportation means can all help you determine the optimal rental strategy for the market (long-term vs. short-term rentals).
In this article, we have combined our data with the data gathered by Forbes and Local Market Monitor to give you a list of the top 10 cities for safe investments in the US real estate market.
This list of the top 10 cities for safe investments will include cities where the population, jobs, and home prices are all growing, and where property prices are not too high and are considered affordable according to Mashvisor’s data.
These are the markets where you can find safe investments that have decent returns and lower levels of risk.
Top 10 Cities for Safe Investments
Orlando, Florida
Mashvisor’s stats for Orlando, Florida:
- Median home price: $297,008
- Median traditional rental rate: $1,594
- Median Airbnb rental rate: $1,385
- Average traditional cap rate: 1.84%
- Average Airbnb cap rate: 0.76%
- Average Airbnb occupancy rate: 56%
Additional stats for Orlando, Florida:
- 3-year population growth: 7.6%
- 2-year job growth: 7.1%
- 1-year home price growth: 9%
- 3-year price growth forecast: 35%
Provo, Utah
Mashvisor’s stats for Provo, Utah:
- Median home price: $335,000
- Median traditional rental rate: $1,280
- Median Airbnb rental rate: $1,195
- Average traditional cap rate: 1.5%
- Average Airbnb cap rate: 1.29%
- Average Airbnb occupancy rate: 29.75%
Additional stats for Provo, Utah:
- 3-year population growth: 7.2%
- 2-year job growth: 6.7%
- 1-year home price growth: 10%
- 3-year price growth forecast: 31%
Jacksonville, Florida
Mashvisor’s stats for Jacksonville, Florida:
- Median home price: $225,282
- Median traditional rental rate: $1,149
- Median Airbnb rental rate: $1,376
- Average traditional cap rate: 2.11%
- Average Airbnb cap rate: 0.91%
- Average Airbnb occupancy rate: 43%
Additional stats for Jacksonville, Florida:
- 3-year population growth: 5.9%
- 2-year job growth: 6.1%
- 1-year home price growth: 8%
- 3-year price growth forecast: 20%
Raleigh, North Carolina
Mashvisor’s stats for Raleigh, North Carolina:
- Median home price: $363,374
- Median traditional rental rate: $1,539
- Median Airbnb rental rate: $1,693
- Average traditional cap rate: 1.9%
- Average Airbnb cap rate: 2.54%
- Average Airbnb occupancy rate: 55%
Note: To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Additional stats for Raleigh, North Carolina:
- 3-year population growth: 4.9%
- 2-year job growth: 5.8%
- 1-year home price growth: 8%
- 3-year price growth forecast: 26%
Ogden, Utah
Mashvisor’s stats for Ogden, Utah:
- Median home price: $190,042
- Median traditional rental rate: $1,037
- Median Airbnb rental rate: $339
- Average traditional cap rate: 2.46%
- Average Airbnb cap rate: 0.7%
- Average Airbnb occupancy rate: 15.9%
Note: Airbnb/short-term rentals in Ogden are illegal in most areas, with a few neighborhoods such as Downtown and East Central being the exceptions.
Additional stats for Ogden, Utah:
- 3-year population growth: 5.1%
- 2-year job growth: 5.7%
- 1-year home price growth: 10%
- 3-year price growth forecast: 29%
Nashville, Tennessee
Mashvisor’s stats for Nashville, Tennessee:
- Median home price: $448,734
- Median traditional rental rate: $1,880
- Median Airbnb rental rate: $2,201
- Average traditional cap rate: 2.23%
- Average Airbnb cap rate: 3.24%
- Average Airbnb occupancy rate: 51.7%
Additional stats for Nashville, Tennessee:
- 3-year population growth: 6.1%
- 2-year job growth: 5.5%
- 1-year home price growth: 10%
- 3-year price growth forecast: 27%
Atlanta, Georgia
Mashvisor’s stats for Atlanta, Georgia:
- Median home price: $403,753
- Median traditional rental rate: $1,990
- Median Airbnb rental rate: $1,575
- Average traditional cap rate: 1.86%
- Average Airbnb cap rate: 0.77%
- Average Airbnb occupancy rate: 40.9%
Note: The average cap rate in Atlanta is, in fact, lower according to Mashvisor’s data due to the areas of Ansley Park and Sherwood Forest being outliers (property prices in these neighborhoods are much higher than the city’s averages).
Additional stats for Atlanta, Georgia:
- 3-year population growth: 4.9%
- 2-year job growth: 5.1%
- 1-year home price growth: 8%
- 3-year price growth forecast: 24%
Springfield, Missouri
Mashvisor’s stats for Springfield, Missouri:
- Median home price: $96,950
- Median traditional rental rate: $810
- Median Airbnb rental rate: N/A
- Average traditional cap rate: 3.42%
- Average Airbnb cap rate: N/A
- Average Airbnb occupancy rate: N/A
Note: Airbnb/short-term rentals are illegal in Springfield, Missouri.
Additional stats for Springfield, Missouri:
- 3-year population growth: 2.3%
- 2-year job growth: 5.1%
- 1-year home price growth: 5%
- 3-year price growth forecast: 14%
Fort Worth, Texas
Mashvisor’s stats for Fort Worth, Texas:
- Median home price: $315,874
- Median traditional rental rate: $1,558
- Median Airbnb rental rate: $1,377
- Average traditional cap rate: 1.02%
- Average Airbnb cap rate: 0.22%
- Average Airbnb occupancy rate: 47%
Note: While the median property price in Fort Worth, Texas, is considered affordable, you should steer away from investing in the neighborhood of Crestline Area due to property prices being way above the city’s average (with a median price of $1,162,500).
Additional stats for Fort Worth, Texas:
- 3-year population growth: 5.6%
- 2-year job growth: 5%
- 1-year home price growth: 11%
- 3-year price growth forecast: 26%
Sacramento, California
Mashvisor’s stats for Sacramento, California:
- Median home price: $340,866
- Median traditional rental rate: $1,433
- Median Airbnb rental rate: $1,148
- Average traditional cap rate: 1.71%
- Average Airbnb cap rate: 0.17%
- Average Airbnb occupancy rate: 37%
Note: Airbnb/short-term rentals are illegal in many areas in Sacramento, including Del Paso Heights, North Pointe, and River Gardens.
Additional stats for Sacramento, California:
- 3-year population growth: 3.7%
- 2-year job growth: 4.8%
- 1-year home price growth: 10%
- 3-year price growth forecast: 33%
Bottom Line
These 10 cities are the best markets for you to start searching for safe investments and opportunities in the US real estate market.
Keep in mind that these different cities and states all have different laws and regulations when it comes to Airbnb and short-term rentals. So, in order for you to find safe investments and avoid any unexpected risks, do your research and consult a legal advisor before investing in any rental property for the purpose of renting it out on Airbnb.
Finally, if you’d like to gain access to real estate analytics for every market, neighborhood, and investment property, make sure to sign up for Mashvisor and start using the numerous tools and features that can help you make safe investments in real estate with the least amount of time and effort.