If you’re thinking of getting into the real estate investing market, you need to plan for the long haul if you want to get maximum profits. To set your plan, there are a number of factors to consider, namely, where should you buy an investment property. While the US housing market as a whole is doing well, some cities are performing better than others and are expected to stay strong in the future. In this blog, we explore which cities offer the best real estate investments for 2019 that are worth investing in right now.
As you read over our list, you’ll notice a few recurring themes in these cities. We’ve done the research to find the cities that have the following characteristics which real estate investors look for in a good housing market for buying rental properties:
- Rising working age population
- Increasing developments
- Growing population
- Growing economy
- Low unemployment rates
- Local restrictions on new construction
- Reasonable purchase prices
We’ve also analyzed Mashvisor’s traditional and Airbnb data to provide information about each city’s median property price, price/square foot, rental income, price-to-rent ratio, average days on the market, and Airbnb occupancy rate. Knowing all of this helps real estate investors not only find the best places to invest in real estate but also make smart investment decisions regarding their rental properties. To learn more about our product, click here.
Now, here are the top cities in the US housing market where you’ll find the best real estate investments in 2019 (in no particular order).
#1 Orlando, FL
Most cities in the Sunshine State are good locations for buying rental properties, but Orlando definitely tops the list of best cities to invest in Florida in 2019. Located in Florida’s Sun Belt region, Orlando is known for its warm climate, beautiful beaches, world-famous amusement parks, and attractions. It’s close enough to other big cities but far enough to attract families and renters.
Despite the fact that the city has some of the lowest housing prices statewide, many residents still choose to rent instead of buying a house. Indeed, the demand for Orlando single-family home rentals has been on the rise for quite some time. As a result, this has caused rental rates to skyrocket and they are expected to keep increasing in 2019. According to ApartmentList, rents in Orlando have an annual growth of 4.4% (the US average is only 1.5%).
Plus, the Orlando real estate market has potential to grow in the coming years. With a growing population of over 2.5 million residents, Orlando is fueled by job seekers, baby boomer retirees, and students who want to live in a city that offers a high quality of living at a reasonable cost. In addition, home values are increasing with no sign of slowing down since inventory levels are still down. You can see why you’ll find the best real estate investments in Orlando.
Orlando Real Estate Market Stats
- Median Property Price: $320,194
- Price/Square Foot: $169
- Price-to-Rent Ratio: 17
- Days on the Market: 88
- Traditional Rental Income: $1,603
- Airbnb Rental Income: $2,363
- Airbnb Occupancy Rate: 61%
#2 Tampa, FL
Another popular city in Florida, Tampa remains a hot tourism market and one of the best cities to buy real estate. The Greater Tampa Bay housing market is densely populated with a growing population of over 3 million people. Tampa, St. Petersburg, and Clearwater are the major cities in this area, with Tampa real estate being the best choice for investors as it made the PwC’s list of markets to watch in 2019.
Tampa enjoys a strong economy, supported by four Fortune 500 companies that are creating new jobs. In fact, the annual job growth rate in this city is 2.05% and its unemployment rate is 3.4%. Another reason why real estate investors should consider buying rental properties in Tampa is that it’s one of the cities with the fastest annual rental growth, according to RealPage. Other headlines where the Tampa real estate market made an appearance in include Business Insider’s best US cities for finding a job and Forbes’s fastest-growing cities! This shows you that Tampa surely has the best real estate investments to offer.
For more information, read our 2019 Tampa Real Estate Market Forecast.
Tampa Real Estate Market Stats
- Median Property Price: $356,794
- Price/Square Foot: $185
- Price-to-Rent Ratio: 19
- Days on the Market: 85
- Traditional Rental Income: $1,589
- Airbnb Rental Income: $2,605
- Airbnb Occupancy Rate: 54%
#3 Columbus, OH
If you didn’t think the Columbus real estate market would make the list, think again! Columbus is the capital of and the largest city in the state of Ohio. It has truly transformed itself and recently emerged as one of the nation’s most technologically sophisticated cities. It’s also home to the Battelle Memorial Institute, the world’s largest private research and development foundation, and Ohio State University, the 3rd largest university campus in the US. For a real estate investor, this tells you that the city has a thriving economy.
Columbus offers some of the best real estate investments for 2019, especially for those looking for affordable rental properties for sale that will generate strong rental income and positive cash flow. On top of that, Columbus’ metro population has grown by 9% over the last seven years – faster than the national average of 5.29%. You can use our Property Finder to find lucrative investment properties in Columbus that match your criteria in a matter of minutes!
Columbus Real Estate Market Stats
- Median Property Price: $225,307
- Price/Square Foot: $132
- Price-to-Rent Ratio: 16
- Days on the Market: 78
- Traditional Rental Income: $1,167
- Airbnb Rental Income: $2,156
- Airbnb Occupancy Rate: 55%
#4 St. Louis, MO
If you’re looking to invest in rental properties for long-term appreciation and income potential, you’ll find what you’re looking for in St. Louis. Home to more than 2.8 million people, the city has a stable economy and a growing technology hub. The St. Louis real estate market is popular among investors also due to its affordability. While home prices continue to rise in most major cities in the US housing market, St. Louis is not one of them.
Moreover, a study by LendingTree found that St. Louis is a competitive market for home buyers with an average down payment of 15%. For residents, this is very high which is why they settle for renting. In fact, renters make up 32% of the housing market which is a favorable factor for real estate investors. Plus, this percentage is expected to increase as young millennials are moving to St. Louis for its affordable housing market. This strong demand for rental properties means you’ll find the best real estate investments for 2019 here.
St. Louis Real Estate Market Stats
- Median Property Price: $239,267
- Price/Square Foot: $120
- Price-to-Rent Ratio: 18
- Days on the Market: 87
- Traditional Rental Income: $1,093
- Airbnb Rental Income: $2,064
- Airbnb Occupancy Rate: 55%
Start looking for and analyzing the best real estate investments with Mashvisor’s Investment Property Calculator. Start out your 14-day free trial with Mashvisor now to see for yourself!
#5 Atlanta, GA
A list of the best places to invest in real estate is incomplete if it doesn’t include Atlanta. For decades, the Atlanta real estate market has experienced rapid growth. The city’s strong job market and labor participation keep attracting families from all over the country. In fact, Redfin named Atlanta one of the top 10 metro areas where people are moving to and USA Today ranked it among the fastest-growing housing markets.
As any real estate investor can expect, the rental demand in Atlanta is and will continue to be strong. According to ApartmentList, the year-over-year rent growth in the city is in line with the national average at 1.5% which is not bad. Therefore, if you’re looking for the best real estate investments in the US housing market, you won’t go wrong with Atlanta rental properties for sale.
Atlanta Real Estate Market Stats
- Median Property Price: $417,684
- Price/Square Foot: $467
- Price-to-Rent Ratio: 18
- Days on the Market: 75
- Traditional Rental Income: $1,967
- Airbnb Rental Income: $2,643
- Airbnb Occupancy Rate: 47%
#6 Indianapolis, IN
Interested in investing in the Midwest real estate market? Be sure to add Indianapolis to the list of cities to consider! With over 2.1 million residents, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the nation. According to Forbes, the city has poured billions of dollars into revitalization and is among the best downtowns and most livable cities in the US. Indianapolis also has a strong, diverse job market in addition to great schools and universities.
As for housing costs and the annual cost of living in Indianapolis, they are well under the national average. However, the price-to-rent ratio in the city indicates that it’s more affordable for residents to rent than own their homes. All of these factors tell us that Indianapolis offers some of the best real estate investments for 2019 and that now is a good time to own a rental property here!
Here are 5 Reasons to Invest in the Indianapolis Real Estate Market 2019.
Indianapolis Real Estate Market Stats
- Median Property Price: $214,446
- Price/Square Foot: $100
- Price-to-Rent Ratio: 16
- Days on the Market: 90
- Traditional Rental Income: $1,118
- Airbnb Rental Income: $2,024
- Airbnb Occupancy Rate: 50%
#7 Pittsburgh, PA
Next up on our list of where to find the best real estate investments for 2019 in the US is Pittsburgh. Known as “The City of Bridges”, Pittsburgh has a population of over 2.3 million people making it the 22nd largest in the nation. With this massive population comes a stable economy that thrives on healthcare, education, technology, robotics, financial services, and oil and natural gas production. Moreover, Pittsburgh has been crowned the title of “best city for jobs” among the 50 largest metros by Glassdoor.
Pittsburgh’s livability and strong job market are attracting many to live in the city. However, according to the Beracha, Hardin & Johnson Buy vs. Rent Index, the city is expected to experience downward demand for ownership. The fact that residents prefer renting over buying is also good news for real estate investors of rental properties and it’s why we believe Pittsburgh is one of the best cities to invest in real estate this year.
Pittsburgh Real Estate Market Stats
- Median Property Price: $238,934
- Price/Square Foot: $71
- Price-to-Rent Ratio: 17
- Days on the Market: 101
- Traditional Rental Income: $1,201
- Airbnb Rental Income: $2,194
- Airbnb Occupancy Rate: 54%
#8 Raleigh, NC
The final city on our list of where to buy investment properties in 2019 is Raleigh. Historically, Raleigh has had a balanced housing market which provided real estate investors with safety and stability for years. As in St. Louis, home prices in Raleigh are not expecting a major increase. That is only one reason why it offers some of the best real estate investments as investors can snag rental properties for sale at lower prices.
Other reasons to invest in Raleigh real estate are its strong job market and diverse economy. Major US companies like IBM, GlaxoSmithKline and Cisco Systems call Raleigh home and employ thousands of young professionals. In addition, the Raleigh real estate market is benefiting from the universities in the region which attract students from all over the country. This population growth combined with affordable home prices makes Raleigh especially profitable for real estate investors looking to invest in multi-family properties.
If this is something you’re interested in, then read our guide on How Can You Find the Best Multi Family Homes for Sale to Invest In?
Raleigh Real Estate Market Stats
- Median Property Price: $417,521
- Price/Square Foot: $172
- Price-to-Rent Ratio: 24
- Days on the Market: 85
- Traditional Rental Income: $1,467
- Airbnb Rental Income: $2,353
- Airbnb Occupancy Rate: 61%
The Bottom Line
If you’re thinking about buying an investment property to rent out in the US housing market in 2019, you’ll find the best real estate investments in these cities. You can go to our real estate investment blog to find a detailed housing market analysis of each city and where to find profitable rental properties for sale. Or, if you’re ready to start your property search, click here to analyze and compare the best investment properties in your city and neighborhood of choice!