Ever since 1871, the United States has reserved its position of being the world’s largest economy, boasting a GDP that has witnessed continuous growth since the middle of 2009. According to advanced estimates of United States GDP from the Bureau of Economic Analysis (BEA), real GDP grew an annual rate of 2.3% last year. The growth that the US has experienced on a national level can be attributed to the economic growth of the individual states. And if we take a closer look at the local environments, we can see that one city in almost every state surpasses the nation in economic growth.
Such economic growth can be a strong indicator of up-and-coming locations for business and real estate investors. Actually, knowing which cities have the fastest growing economies give investors an idea of where to invest and which cities to avoid. These cities thrive as they expand (even through hard economic times) while others struggle. As a result, they’re considered some of the best places to invest in real estate. So, if you’re looking for the best housing markets in the US, keep reading this list of the fastest growing economies 2020.
The US Economy During COVID-19 at a Glance
The Bureau of Economic Analysis provides some of the most closely watched economic statistics that produce a comprehensive picture of the US economy. According to their advanced estimates, the real GDP decreased in all 50 states and the District of Columbia at an annual rate of 32.9% in the 2nd quarter of 2020. Of course, this decline in GPD can be attributed to the COIVD-19 pandemic and the stay-at-home orders which were issued to reduce the spread of the virus. With businesses work remotely and consumers canceled, restricted, or redirected their spending, this led to rapid shifts in economic activity. However, the BEA states that the full economic impact of COVID-19 can’t be measured in the GDP estimate for the 2nd quarter of 2020. The reason for this is that impacts are, in general, embedded in source data and can’t be separately identified.
Related: The Impact of COVID-19 on Real Estate Investors
Despite the pandemic and its effects on the US housing market as a whole, some cities are already showing signs of recovery. As stay-at-home orders have been lifted in May and June in many parts of the county, people are starting to spend again. The latest statistics from the Bureau of Economic Analysis show that consumer spending increased by 5.6% in June. Real estate agents have also reported an increase in activity in the market, with people now feeling more confident about listing their homes for sale – especially in cities with fastest growing economies.
Cities with Fastest Growing Economies in 2020
Historically, the real estate sector has actually helped pull the country out of recessions in the past. Therefore, as the market is starting to recover, now is a great time to buy rental property. The main question, though, is where to invest in real estate. Of course, cities that already have weak economic foundations were hit the hardest from the effect of COIVD-19. Accordingly, these markets may have a hard time recovering. Therefore, you’ll find the best real estate investments in cities that already have the strongest economies. Such cities might have experienced small dips due to the pandemic, but will likely be quick to recover.
Related: US Real Estate Market Recovery Underway Amid COVID-19
So, which cities have the fastest growing economies in the US? Below is a list of the 10 large cities with the best economies in 2020 according to WalletHub’s ranking. The company compared 515 cities of varying population sizes based on two dimensions: 1) socio-demographics and 2) jobs & economy. These two dimensions were then evaluated using relevant metrics including population growth, unemployment rate decrease, growth in GDP per capita, and others. But we’re not only listing these cities, we’re also providing real estate data for each market. Mashvisor’s data and analytics show how profitable rental properties for sale are and why you should invest in them in the following cities.
To learn more about us and how we’ll help you make faster & smarter real estate investment decisions, click here.
#1 Austin Real Estate Market
- Median Property Price: $667,671
- Price/Square Foot: $324
- Average Days on Market: 78
- Price to Rent Ratio: 26
- Traditional Rental Income: $2,131
- Airbnb Rental Income: $3,236
- Average Airbnb Daily Rate: $240
- Airbnb Occupancy Rate: 51%
Read all about the Austin real estate market 2020 here.
#2 Miami Real Estate Market
- Median Property Price: $602,255
- Price/Square Foot: $380
- Average Days on Market: 199
- Price to Rent Ratio: 20
- Traditional Rental Income: $2,553
- Airbnb Rental Income: $2,851
- Average Airbnb Daily Rate: $227
- Airbnb Occupancy Rate: 49%
Read all about the Miami real estate market 2020 here.
#3 Seattle Real Estate Market
- Median Property Price: $787,942
- Price/Square Foot: $538
- Average Days on Market: 52
- Price to Rent Ratio: 27
- Traditional Rental Income: $2,399
- Airbnb Rental Income: $2,464
- Average Airbnb Daily Rate: $151
- Airbnb Occupancy Rate: 51%
Read all about the Seattle real estate market 2020 here.
#4 Henderson Real Estate Market
- Median Property Price: $574,283
- Price/Square Foot: $227
- Average Days on Market: 74
- Price to Rent Ratio: 30
- Traditional Rental Income: $1,571
- Airbnb Rental Income: $2,908
- Average Airbnb Daily Rate: $196
- Airbnb Occupancy Rate: 57%
#5 Denver Real Estate Market
- Median Property Price: $534,888
- Price/Square Foot: $343
- Average Days on Market: 46
- Price to Rent Ratio: 23
- Traditional Rental Income: $1,959
- Airbnb Rental Income: $2,677
- Average Airbnb Daily Rate: $152
- Airbnb Occupancy Rate: 60%
Read all about the Denver real estate market 2020 here.
#6 Oakland Real Estate Market
- Median Property Price: $826,412
- Price/Square Foot: $573
- Average Days on Market: 66
- Price to Rent Ratio: 24
- Traditional Rental Income: $2,841
- Airbnb Rental Income: $3,267
- Average Airbnb Daily Rate: $148
- Airbnb Occupancy Rate: 61%
#7 Fort Worth Real Estate Market
- Median Property Price: $305,150
- Price/Square Foot: $144
- Average Days on Market: 40
- Price to Rent Ratio: 15
- Traditional Rental Income: $1,628
- Airbnb Rental Income: $2,703
- Average Airbnb Daily Rate: $138
- Airbnb Occupancy Rate: 56%
#8 Atlanta Real Estate Market
- Median Property Price: $453,950
- Price/Square Foot: $508
- Average Days on Market: 79
- Price to Rent Ratio: 19
- Traditional Rental Income: $2,011
- Airbnb Rental Income: $2,024
- Average Airbnb Daily Rate: $161
- Airbnb Occupancy Rate: 40%
Read all about the Atlanta real estate market 2020 here.
#9 Charlotte Real Estate Market
- Median Property Price: $426,797
- Price/Square Foot: $208
- Average Days on Market: 71
- Price to Rent Ratio: 23
- Traditional Rental Income: $1,539
- Airbnb Rental Income: $2,172
- Average Airbnb Daily Rate: $124
- Airbnb Occupancy Rate: 50%
Read all about the Charlotte real estate market 2020 here.
#10 Tampa Real Estate Market
- Median Property Price: $489,729
- Price/Square Foot: $238
- Average Days on Market: 83
- Price to Rent Ratio: 23
- Traditional Rental Income: $1,767
- Airbnb Rental Income: $2,456
- Average Airbnb Daily Rate: $125
- Airbnb Occupancy Rate: 51%
Read all about the Tampa real estate market 2020 here.
Final Words for Investors
Now that you know the cities with the fastest growing economies in the US, you should now mind your due diligence to research each market. Learn about each market’s real estate trends for 2020 and moving forward into 2021 to decide if it’s a good location for you to invest in. Ask yourself in which city do house prices match with your budget? Where are rental prices growing? Where can you find a strong demand for rental properties? Which is your preferred rental strategy (traditional or Airbnb)? Answering these questions is vital, especially for beginners in rental property investing, to help find the best cities that match your investment strategy.
Check out this complete guide on How to Choose a Real Estate Market to Invest In.
Once you’re ready to start searching for an investment property for sale in your city of choice, Mashvisor’s real estate investment tools will help you. Our Property Finder is the ultimate tool to find the best properties for sale across a number of cities at the same time. Just enter your budget and criteria and let the tool do the search for you. Then, you can use our Real Estate Heatmap to identify the best neighborhoods within a city for investing in real estate based on listing price, rental income, and other metrics. After finding properties for sale in a good neighborhood, use the Rental Property Calculator to analyze their performance and get an accurate ROI estimate including cash flow, cap rate, cash on cash return, and more! Learn more about our tools here.
With Mashvisor’s tools, you can find lucrative investment opportunities in the best cities to invest in real estate with the fastest growing economies in a matter of minutes! So what are you waiting for? Start your 7-day free trial with Mashvisor now and give our tools a try!