The everchanging world of real estate forces real estate investors and homebuyers to constantly keep looking for the next best thing. What once was a growing and appreciating market has now become a mature one. In any case of real estate investing, seeking the best return on investment is the key determinant. Whether you’re a real estate investor or not, you will find great value in knowing the fastest appreciating real estate markets.
Without further ado:
The 5 fastest appreciating real estate markets
Tampa, FL
Since the early days, Florida has been a destination for the wealthy and the elite. If you manage to have a property in Florida or can afford to travel there, then you are among the wealthy. Nowadays, the city of Tampa and its real estate market still offer continuous growth both economically and socially. Looking at real estate investment data provided by Mashvisor, it doesn’t take much to figure out that many types of real estate investments can grow and even thrive in Florida’s humid yet sunny atmosphere. For real estate investors, investing in single-family rental properties or multi-family properties in Florida real estate is a lucrative option. Moreover, many investors are choosing to rent their properties short-term.
This real estate data can demonstrate Tampa’s growing real estate economy:
- Median Airbnb rental income: $2,288
- Median traditional rental income: $1,589
- Median property price: $375,416
- Average Airbnb cap rate: 3.21%
- Average traditional cap rate: 1.57%
Bellevue, WA
For those who are unaware, Bellevue is located across Lake Washington from Seattle. Real estate prices and rents are skyrocketing. While this may be a mimicking act by property owners to replicate Seattle real estate, it certainly made it through the fastest appreciating real estate markets. More and more people are choosing to migrate to Bellevue. The weather is moderate and there is plenty to go around. Moreover, the city makes the perfect combination of an ethnic mash-up and cultural density that make for a metropolitan feel. For real estate investors looking for a guide on how to make money in real estate, look no further, Bellevue is your final destination.
Here, you’ll find some real estate figures to demonstrate the strength of Bellevue’s real estate market and why it’s among the best places to buy an investment property:
- Median Airbnb rental income: $2,084
- Median traditional rental income: $2,625
- Median property price: $1,173,424
Another major attraction of Bellevue real estate is the constantly appreciating asset value. Real estate investors are constantly looking for real estate appreciation and Bellevue brings it on a silver platter.
Austin, TX
It’s no surprise that Austin resides with the fastest appreciating real estate markets. With its cultural diversity and history, tourism thrives along with the real estate market within it. Be that as it may, both traditional and Airbnb rental strategies are implemented by real estate investors in the city, and they both work beautifully for those entrepreneurs.
Accordingly, Austin real estate is the perfect example of real estate appreciation. Here are some figures to back that up:
- Median Airbnb rental income: $2,754
- Median traditional rental income: $1,891
- Median property price: $526,101
- Average Airbnb cap rate: 1.46%
- Average traditional cap rate: 0.58%
With Austin’s median Airbnb rental income, real estate investors are opting for Airbnb rentals and making use of the additional income.
San Diego, CA
The San Diego real estate market makes for the perfect example of the effects of real estate appreciation. Accordingly, through the rising prices, one can see how the low interest rates, low unemployment, and job growth boosted San Diego’s real estate market to be among the fastest appreciating real estate markets.
Of course, the housing market has surpassed predictions due to the steadily rising demand and slightly decreasing supply. A simple case of supply and demand.
To grasp the effect of the housing boom on San Diego, these stats will clarify:
- Median Airbnb rental income: $3,625
- Median traditional rental income: $2,669
- Median property price: $823,342
- Average Airbnb cap rate: 1.8%
- Average traditional cap rate: 1.18%
Portland, OR
In the Portland real estate market, homebuyers and real estate investors weren’t strangers to bidding wars. The supply of properties is decreasing while the sales are showing signs of increasing. Specifically, Portland’s real estate market is what’s best known as a seller’s market. It all contributes to transforming it to be grouped with the fastest appreciating real estate markets.
These stats can show you why property investors and homebuyers have put the Portland real estate market among the top locations for real estate investing:
- Median Airbnb rental income: $2,405
- Median traditional rental income: $2,074
- Median property price: $557,248
- Average Airbnb cap rate: 0.8%
- Average traditional cap rate: 0.89%
You can find what you’re looking for within Portland’s real estate market no matter what your purpose is.
In any case, any of the fastest appreciating real estate markets can be one of the best places to buy an investment property. With tourism numbers steadily growing and the alternative lodging industry rising along with it, real estate investors are encouraged to invest in them.
How to ensure the right investment in any of the fastest appreciating real estate markets
For any buyer, whether a homebuyer or a real estate investor, making use of a real estate market analysis is a must! To be exact, real estate investors are using an investment property calculator to conduct a thorough and precise one. In addition to that, with Mashvisor’s investment property calculator, you can find out all the variables that make for a successful investment property, both in the short run and the long run.
Not to forget, a real estate market analysis will tell you the real market value of any potential property. This is a very valuable tool for the buyer and the seller. Additionally, you can learn and compare cash on cash return, occupancy rate, and the cap rate for any listed property. To make use of the 14-day free trial with Mashvisor, click here.
Last but not least, keep in mind that identifying a lucrative market opportunity in the US real estate market is your duty as a property buyer and real estate investor. These are the fastest appreciating real estate markets. However, even though many of them would make for great investments, carefully studying and analysis is always a must to ensure you’re making money in real estate.
Lastly, if you have any more suggestions to add atop of the list of the fastest appreciating real estate markets, please leave a comment in the comments section below.