The housing market has increasing momentum with specific markets hotter than others. While some cities may be experiencing a housing bubble– or a run-up in housing prices fueled by demand and speculation, most experts agree that U.S. real estate is not currently experiencing a bubble. As property sales continue to reach new heights, it is more important than ever to look for markets expected to be fast-growing and dynamic. Each market has its unique strengths and weaknesses, and as U.S. cities continue to expand, investors and homebuyers must compare and analyze to find the best opportunity for possible.
Michigan – Despite the intense impact that the housing crash had on home prices in Detroit and Michigan, this state is now getting back to pre-recession prices, with prices rapidly increasing during the past few years, according to the Detroit Free Press. Within the state, median home prices are very affordable, while inventory is low with houses listed for approximately 28 days before they’re sold.
Grand Rapids, Michigan, in particular, is a top leading market within this state and in the country. Grand Rapids has a low vacancy rate–ranked 16th overall, while its employment growth has remained strong with a 2.5 percent increase year-over-year. The median home price is extremely affordable at $164,000, and a full two-thirds of the city own their homes.
Tennessee – Otherwise known as the Volunteer State, Tennessee is home to two leading real estate markets: Nashville and Memphis. Music City, or capital of Tennessee, Nashville is an art Deco-inspired neighborhood that is always looking for some fun; a fact not so surprising once you know that 23% of this city’s households are under 35 years old. This city also has the most substantial job growth in the country with 3.1 percent year-over-year.
Memphis continually offers value and growth, with the opportunity to invest without overpaying. Remember to pay attention to supply against demand, affordability, rent trends, and market dips, and you can find a top investment opportunity in the “home” of rock’n’roll.
Texas – The lone star state has no shortage of leading real estate markets with cities such as, El Paso, Austin, Houston, San Antonio and more, making multiple real estate market lists. Austin, TX has an educated workforce, an enviable quality of life, and a low cost of living. Commerical real estate is especially hot in this city. Whereas, cities like Houston and Dallas have seen substantial rental growth in the B and C class product. El Paso, on the other hand, is a top market for the single and social young, with 24% of residents single and a median age of 33. Not to mention a lot of major employers and an affordable market (average price of homes is $187,000). San Antonio offers a unique combination of a relaxing oasis and a bustling city. Homeowners make up two-thirds of the city’s population at 65%. In 2017 alone, job growth rose 2.2 percent, and homeownership increased significantly. This is expected to continue with homeownership outpacing renting.
Ohio – According to Engelo Rumora of List’n Sell Realty, Cincinnati has the potential for market appreciation, as well as a higher cash flow than other markets. This area has had steady population growth, while costs of living remain affordable. This third-largest city in the state of Ohio has continually seen an increase in home sale prices–up 4 percent year-over-year. Its no wonder why 63% of the city’s population own their homes.