Real estate continues to be an asset that investors want in on and when the market is favorable, you can make recurrent income off rentals. Be sure to invest in long-term research and try to time the market to help you act fast and wisely and maximize your investment return.
The United States remains a hot seller’s real estate market as annual price growth has reached record highs. Anticipate a bidding war if you are looking for a new property this year. Rental demand continues to increase in 2022, and Zillow expects a 14.9% price increase in home prices in the next 12 months. Inventory is tight and it can be difficult to find a deal that fits your investment criteria.
When searching for a place to buy a rental property it is important to purchase a property with low tenant default rate, high rental occupancy, and high rentals relative to your mortgage repayments to ensure investment returns.
If you are considering a real estate investment, there are several markets that we recommend. The real estate market is hot across the majority of the United States but this list shows 5 cities that are continuously growing and have the potential to be great investments.
- Boise, Idaho: As the capital city of Idaho, Boise has seen strong and consistent population growth in recent years. With job growth being 2-3 times the national average and a lower cost of doing business, Boise is one of our top places to invest in property in 2022. Despite high appreciation, home prices are expected to hold as the market continues to stay strong.
- Atlanta, Georgia: As one of the top rental markets in the United States, Atlanta is filled with newly rehabbed properties and is home to multiple Fortune 500 companies. Atlanta is expected to have 2 million more residents by 2030 making it a growing economy that property investors could benefit from. The city has grown in population by 14% in the last decade driving the housing demand.
- Orlando, Florida: Home of Disney World, Universal Studios, and countless other tourist destinations, Orlando joins our list as one of the hottest real estate markets in the United States. With over 60% of the Orlando population renting, and strong economic and job growth consistently it’s easy to see why Florida’s largest inland city is one of the best places to invest in 2022.
- Austin, Texas: Austin’s low unemployment rate of less than 3% and consistently growing population make it a great location for real estate investing. The city’s strong economy and history of being one of the best long-term real estate investments in the country over the last 10 years help it stand out from others. The Austin housing market is on fire with home values almost doubling since 2010.
- Birmingham, Alabama: Home to several colleges and universities, Birmingham has a large need for student rental housing. The city’s strong and diversified economy has surprisingly affordable real estate and is number #5 on our list of where to invest in 2022. Single-family rentals dominate the rental market in Birmingham and are considered one of the least competitive real estate markets in the country.
It’s important to make an informed decision when purchasing a rental property. Consulting with an investment counselor will help you get your questions answered and ensure you invest in the best real estate markets for your needs. All markets have their benefits and negatives so do your research and consult a professional, so you are in the best place possible to make the maximum investment return.