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Where To Buy: Location Spotting

The Best Places to Buy Rental Property in the Year 2017 [September 2017 Update!]

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Learn > Where to Buy: Location Spotting > The Best Places to Buy Rental Property in the Year 2017 [September 2017 Update!]

Published: September 15th, 2017

The Best Places to Buy Rental Property in the Year 2017

The best places to buy rental property often have three things in common: job growth, population growth and affordability. When you find a market that has all three of these factors, you’ll probably be able to find good investment opportunities.

There are several cities across the United States where these factors exist today — places where you can buy high cash flow rental property while prices are still low (around $100,000 in many cases), and watch your equity grow.

In this article you’ll learn about 14 of these “best-buy” real estate markets for the year 2017. Find out what makes them great places to invest and why.


TABLE OF CONTENTS

Click to to read by section.


The Best Places to Buy Rental Property in 2017: Orlando

#1: Orlando, Florida

The demand for single family homes has been on the rise in the Sunshine State for quite some time. Still, it’s possible to acquire fully renovated properties in good Florida neighborhoods for under $120,000. Plus, you can rent them for upwards of 1% of the purchase price.

What’s even more interesting is that, despite these incredibly low housing prices statewide, many home seekers are choosing to rent instead of buy. As you can imagine, this is causing rental rates to skyrocket (approximately 8% just this year)!

And on top of great cash flow, values are on an upswing in these areas with no sign of slowing down. They are nowhere near their 2006 highs and inventory levels are still way down because builders just can’t make a profit at these price points.

Property taxes and insurance are low, plus there’s no state income tax. Add warm weather and exceptional health care, and you can see why many of the 10,000 baby boomers retiring every day are moving to Florida.

Orlando is one of the best places to buy rental property in the state of Florida in 2017. Located in Florida’s “sun belt” region, the area is known for its warm climate, beautiful beaches, world famous amusement parks, entertainment, and attractions.

With a combined population of 3.3 million residents, the Orlando real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost.

Orlando Market Statistics

  • Median Sales Price: $188,000
  • Median Rent Per Month: $1,360
  • Median Household Income: $42,000
  • Population: 2.4 M
  • 1-Year Job Growth Rate: 4.20%
  • 5-Year Equity Growth Rate: 66.40%
  • 5-Year Population Growth: 14.20%
  • Unemployment Rate: 4.5%

Orlando Florida Real Estate Market Trends & Statistics for 2017 Infographic

Orlando Market Quick Facts

  1. Metro Orlando is the 4th largest metro area in the country, and it’s also the 16th fastest growing metro in the nation.
  2. Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourism destination in the country.
  3. The population in Orlando has grown 41% since the year 2000. To date Metro Orlando houses over 2.3 million residents.
  4. Rents grew by 3.4% in the last 12 months, which is higher than the national and state levels.
  5. Employment is likely to grow 4.2% a year through 2017, according to Moody’s.
  6. Foreclosure laws have helped keep home prices significantly below their last peak, but rates are rising.
  7. Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year.
  8. Orlando Medical City boasts a $7.6 billion economic impact and will create 30,000 jobs.

 

Conclusion: Top 3 Reasons to Invest in Orlando in 2017

As mentioned, most of the best real estate investment markets have three factors in common: job growth, population growth and affordability. Orlando is no exception…

Job Growth: Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year. Moody’s also predicts employment to grow at rate of 4.2% a year through 2017.

Population Growth: Orlando’s population has grown 41% since the year 2000, and is expected to grow an additional 1.5% in 2017. (This means the demand for housing is likely to increase.)

Affordability: In Orlando it is still possible to purchase fully renovated properties in good Florida neighborhoods for less than $120,000.



Best Real Estate Markets 2017: Tampa, Florida

#2: Tampa, Florida

Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area (second only to Miami), with a population of more than 4 million people. Major cities in this area include St. Petersburg, Largo, Clearwater, New Port Richey, Holiday and Tampa.

The local economy is worth of $130 billion and the metro area has been ranked as one of the top 20 fastest growing in the country. Tampa also has a strong local economy with a strong focus on job growth in areas such as financial services and healthcare.

The Greater Tampa Bay area is consistently ranked among the top 20 fastest growing metro areas in the country and with billions of dollars of residential, commercial and infrastructure investment underway, it is one of the engines of the Florida economy. In 2015 alone, the Metro Tampa area added 44,300 private, new jobs to the community, giving it the fastest growth in the state and one of the fastest in the country.

More than 19 firms with annual revenues of more $1 billion are headquartered here and it is home to four Fortune 500 companies. Tampa has a very diversified economy with financial services, healthcare, research, education, tourism/retirement and military bases all making significant contributions to jobs and growth.

Tampa Market Statistics

  • Median Sales Price: $136,000
  • Median Rent Per Month: $995
  • Median Household Income: $43,514
  • Metro Population: 3.0 M
  • 1-Year Job Growth Rate: 2.10%
  • 5-Year Equity Growth Rate: 4.60%
  • 5-Year Population Growth: 8.70%
  • Unemployment Rate: 4.60%

Tampa Real Estate Market Trends & Statistics 2017-2018 Infographic

Tampa Market Quick Facts

  1. Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest growing metros in the United States.
  2. An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $90,000 and turn around to rent them for $950 a month to $1250 a month.
  3. According to the U.S. Bureau of Labor Statistics Tampa-St. Petersburg gained 12.76 private-sector jobs per day from a total of 1,084,400 in September 2006 to 1,131,000 in September 2016.
  4. The area has numerous strong Fortune 500 companies including Publix Super Markets Inc., Jabil Circuit Inc., and WellCare Health Plans, Inc.
  5. Tampa remains a fantastic tourism market. It’s a popular option for retirees as well, providing for many short-term rental opportunities.

 

Conclusion: Top 3 Reasons to Invest in Tampa in 2017

As you’ve learned, when a real estate market has job growth, population growth and affordability, you’ll likely be able to find good investment opportunities. We believe Tampa is one of the best places to invest in real estate in 2017 because it has all three.

Job Growth: In 2015, the Metro Tampa area added 44,300 private, new jobs to the community, giving it the fastest growth in the state and one of the fastest in the country.

Population Growth: Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest growing metros in the United States.

Affordability: An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $90,000 and turn around to rent them for $950 a month to $1250 a month.


Best Real Estate Markets 2017: Jacksonville, Florida

#3: Jacksonville, Florida

In the past 10 years, the Jacksonville metro area has grown by a whopping 20%. To date there are 1.3 million people living in this area, and more continue come every year. In fact, Tampa’s population has been steadily increasing at a rate of 2% per year, and their workforce is expanding at twice the national average.

There are many reasons for this growth. For starters, Jacksonville is also the only Florida city that is home to four Fortune 500 companies. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community. Additionally, 13 of Forbes Global 500 have operations in Jacksonville.

With a cost of living below the national average, wonderful climate and business-friendly environment, we believe Jacksonville is one of the best real estate investment markets in the country right now.

 

Jacksonville Market Statistics

  • Median Sales Price: $154,000
  • Median Household Income: $48,143
  • Metro Population: 1.5 M
  • 1-Year Job Growth Rate: 3.0%
  • 5-Year Equity Growth Rate: 38.70%
  • 5-Year Population Growth: 9.60%
  • Unemployment Rate: 4.6%

Jacksonville Real Estate Market Trends & Statistics Infographic 2017-2018

Jacksonville Market Quick Facts

  1. The population in Jacksonville has grown 24.1% in population since 2000, which is higher than Miami’s 16.4% and Tampa’s 19.8%.
  2. Future job growth in Jacksonville is predicted to be 39.21% over the next 10 years.
  3. In Jacksonville, the median home price is about $153,400, which is 23% less than the national average.
  4. A typical $100,000 home will rent for 20.31% more than the national average.
  5. The expansion of the Panama Canal is helping to bring jobs into the Tampa area ports. This is likely to lead to even more population growth.
  6. The Jacksonville metro also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.

 

Conclusion: Top 3 Reasons to Invest in Jacksonville in 2017?

There are three main reasons that Jacksonville made our list of the best places to invest in property: job growth, population growth and affordability.

Job Growth: Forbes also ranked Jacksonville #3 on their list of best cities in the U.S. for jobs. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.

Population Growth: The population in Jacksonville has grown 24% since the year 2000, and continues to grow by an average 2% annually. Future job growth over the next ten years is predicted to be 39.21%.

Affordability: In Jacksonville, the median home price is about $153,400, which is 23% less than the national average. A typical $100,000 home will also rent for 20.31% more than the national average. These factors show us that there’s a strong opportunity for cash flow in the Jacksonville metro.


View R.E.A.L. Turnkey Income Properties for Sale in Today’s Best Markets >>


Best Real Estate Markets 2017: Cape Coral

#4: Cape Coral, Florida

Known as the “Boaters Paradise” of Florida, Cape Coral is a fantastic area to acquire rental property, for both cash flow today, and a strong chance of appreciation in the future.

What’s interesting about this area is that before now, Cape Coral was primarily a vacation destination. As a result, it was one of the hardest hit cities in the country during the real estate downturn of 2008. Values plummeted.

Our team at Real Wealth Network was concerned about that and the possibility of it happening again in the next downturn. But our research showed that many baby boomers who are retiring today are choosing to live in vacation-like communities for a resort-style retirement.

What were once just vacation homes are now becoming primary residences. Plus, values haven’t come back yet in Cape Coral, so it’s still a very affordable vacation-style destination. With 10,000 baby boomers retiring every day, and not all in a position to buy, it’s no wonder rents in Cape Coral are on the rise.

As a result, Cape Coral rents have increased by more than 26% over the last 12-months. And the baby boomer population continues to be one of the fastest growing rental groups in the nation.

This could be because they are not as intrigued with home ownership after the last crash, or they don’t want to deal with home maintenance, or maybe they just can’t qualify for a loan but want to retire in an affordable resort community.

Cape Coral Market Statistics

  • Median Sales Price: $217,000
  • Median Rental Price Per Month: $1,650
  • Median Household Income: $51,000
  • Metro Population: 722,000
  • 1-Year Job Growth Rate: 2.44%
  • 5-Year Equity Growth Rate: 81%
  • 5-Year Population Growth: 17%
  • Unemployment Rate: 4.8%

Cape Coral Real Estate Market Trends & Statistics 2017-2018

Cape Coral Market Quick Facts

  1. Rent in Cape Coral for single-family homes grew 25.4% in the fourth quarter of 2015. This is about double the rate of the second largest urban area. It’s a faster rate of growth than big cities such as San Francisco and Dallas as well.
  2. The average 3-bedroom home in Cape Coral rents for about $1,500 a month. In 2014, that figure stood at $830.
  3. Cape Coral rents have increased by more than 26% over the last 12-months. And the baby boomer population continues to be one of the fastest growing rental groups in the nation.

 

Conclusion: Top 3 Reasons to Invest Cape Coral in 2017

Job Growth: Money Magazine ranked Cape Coral as the #1 city for startups in 2015.

Population Growth: Forbes ranked Cape Coral as the 10th fastest growing city in the nation. And MarketWatch ranked it as the #2 city in the U.S. where retirees are moving.

Affordability: Home prices in Cape Coral still haven’t bounced back from the Great Recession of 2008, so it’s still a very affordable vacation-style destination. Brand new homes cost around $200,000, and rent for more than $1,500 a month.


Best Real Estate Markets 2017: Pittsburgh

#5: Pittsburgh, Pennsylvania

With a population of over 2.4 million, the Pittsburgh Metro area is the 22nd largest in the nation. The “Burgh” is known as “The City of Bridges” for its 446 bridges, and “The Steel City” for its former steel manufacturing base.

It’s the home of several large corporations that help to keep its moderate and growing economy stable including PNC Financial Services and Federated Investors. Its economy thrives on healthcare, education, technology, robotics, financial services, glass, and more recently film production (The Dark Knight Rises was recently filmed downtown).

The region is also known for oil and natural gas production and is headquarters to major global financial institutions including PNC Financial Services (the nation’s fifth largest bank), Federated Investors and the regional headquarters of BNY Mellon.

It is ranked as one of the top 12 places to invest by the Pittsburgh Post Gazette. It’s also one of the top 10 housing markets for redevelopment and growth. Plus, according to RentRange rents for single-family homes rose 12.6 percent and the average gross yield was over 15 percent! That’s of course why why we believe Pittsburgh is one of the best places to buy rental homes this year.

Pittsburgh Market Statistics

  • Median Sales Price: $137,000
  • Median Rent Per Month: $1,140
  • Median Household Income: $36,000
  • Metro Population: 2.3 M
  • 1-Year Job Growth Rate: 0.27%
  • 5-Year Equity Growth Rate: 20.20%
  • 5-Year Population Growth: -0.63%
  • Unemployment Rate: 4.70%

Pittsburgh Real Estate Market Trends & Statistics Infographic 2017-2018

Pittsburgh Market Quick Facts

  1. The median sale price of a home in Pittsburgh remains low at only $150,000. However, numerous pockets exist with prices at $75,000 to $100,000 as well.
  2. Median rent per month is over $1200 a month as well, providing an opportunity for a sizable and quick return. In some areas, a 2-bedroom home rents for $1554.
  3. More so, the area is seeing steady growth in home value, allowing users to take full advantage of equity sooner. As of November of 2016, the year-over-year rise was 2%.
  4. Pittsburgh is home to 15 Fortune 500 companies.
  5. Business Times ranks Pittsburgh as the #1 top city to relocate to & Zillow ranked it in the top 10 best housing markets in the nation.

 

Conclusion: Top 3 Reasons to Invest Pittsburgh in 2017

Job Growth: Billions of dollars have been invested into improving Pittsburgh’s downtown and it now boasts the East Coast headquarters for Google, along with many other high tech startups. Pittsburgh is also 2nd to Hollywood in film making.

Population Growth: With a population of over 2.4 million, the Pittsburgh Metro area is the 22nd largest in the nation.

Affordability: The median sale price of a home in Pittsburgh remains low at only $150,000. It’s also still possible to find single family homes for only $75,000 to $100,000. The average home also rents for more than $1200 a month, and up to $1554 in some areas. These are great signs for real estate investors who are looking for a quick and sizable ROI.


 

Best Real Estate Markets 2017: Tampa, Florida: Huntsville & Montgomery, Alabama

#6: Huntsville & Montgomery, Alabama

Huntsville is the fourth-largest city in Alabama, located in the northern part of the state. Founded in 1811, Huntsville is known for its rich Southern heritage and a legacy of space missions. Huntsville actually earned the nickname “The Rocket City” during the 1960s when the Saturn V rocket was developed at Marshall Space Flight Center; this made it possible for Neil Armstrong and Buzz Aldrin to later walk on the moon.

Today, Huntsville is one of the most well known cities in the Southeast part of the country. USA today touted Huntsville as “one of the top communities leading the economic recovery,” while Money magazine named it “one of the nation’s most affordable cities.”

Huntsville is well known for it’s technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center are the next largest employers. The city is also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail and service industries to the area.

Montgomery, Alabama was one of 20 nominees for Best Historic City in the nation in USA Today. Eight colleges and universities in the city, with enrollment totaling more than 20,000 students. The average monthly rent in Montgomery is $818, which is lower than the U.S.

In Montgomery there are approximately 45,651 housing units that are owner-occupied. About 70.1% of owners and 45.9% of renters pay less than 30% of their income toward housing expenses, a measure of affordability. Owners make up 49.6% of housing units. 37.1% of the housing units

Montgomery and Huntsville enjoy lower tax rates and high rents, which increase ROI. And since the average home price is approximately $125,000, these areas won’t break your bank account either.

Renters also take up about 38% of these markets. With the steady job market and population, this allows investors with quality homes to attract solid, long-term tenants. The average home price is approximately $125,000. With distressed homes selling at a 44% discount, this is a great environment for flipping or a buy and hold strategy.

Huntsville & Montgomery Market Statistics

  • Current Median Home Price: $136,000
  • Median Rent Per Month: $995
  • Population: 500,000
  • 1-Year Job Growth Rate: 1.10%
  • 5-Year Equity Growth Rate: 4.60%
  • 5-Year Population Growth: 7.30%
  • Unemployment Rate: 5.10%

Huntsville Real Estate Market Trends & Statistics 2017-2018

Huntsville & Montgomery Market Quick Facts

  1. Huntsville is home to several prestigious Southern universities, including Alabama A&M University, Oakwood University and the University of Alabama in Huntsville.
  2. The U.S. Space & Rocket Center, Alabama’s top paid tourist attraction and the earth’s largest space museum, is also located in Huntsville.
  3. Huntsville is well known for it’s technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center are the next largest employers.
  4. Both cities are also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail and service industries to the area.
  5. Huntsville continues to lead the growth in Alabama, according to new Census estimates released today, adding more than 10,000 residents since 2010. That’s more than any other city in the state.
  6. Huntsville enjoys lower tax rates and high rents, which increase ROI. And since the average home price is approximately $125,000, these areas won’t break your bank account either.

 

Conclusion: Top 3 Reasons to Invest Huntsville & Montgomery in 2017

Job Growth: Huntsville is well known for it’s technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center are the next largest employers. The city is also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail and service industries to the area.

Population Growth: Huntsville continues to lead the growth in Alabama, according to new Census estimates released today, adding more than 10,000 residents since 2010. That’s more than any other city in the state.

Affordability: Montgomery and Huntsville enjoy lower tax rates and high rents, which increase ROI. And since the average home price is approximately $125,000, these areas won’t break your bank account either.


View R.E.A.L. Turnkey Income Properties for Sale in Today’s Best Markets >>


Best Real Estate Markets 2017: Houston

#7: Houston, Texas

When then-President of the Republic of Texas, Sam Houston, incorporated the City of Houston in 1837, the prevailing industry was railroad construction. A lot has changed since then, but the city’s passion for modes of transportation has not. Hint: Houston is the home of NASA’s Mission Control and a lot of oil money.

With 5.5 million residents and a population growth of 15% since 2000, Houston offers unending opportunities for jobs, housing, entertainment, and outdoor activities. Home prices in Houston continue to climb, despite the recent decline in gas prices.

Houston is a stable, landlord friendly market that offers both cash flow and equity growth. And you can STILL acquire properties well below their replacement value.

As Americans continue to follow jobs and are moving to less expensive areas, including Houston. As a result, rental demand in those metros is increasing steadily. These are great signs for investors.

Houston Market Statistics

  • Current Median Home Price: $150,000
  • Median Rent Per Month: $1,425
  • Metro Population: 6.8 M
  • 1-Year Job Growth Rate: 0.50%
  • 5-Year Equity Growth Rate: 44.20%
  • 5-Year Population Growth: 14.0%
  • Unemployment Rate: 5.3%

Houston Real Estate Market Trends & Statistics 2017-2018

Houston Market Quick Facts

    1. There were 6,004 pending sales in March, a whopping 30% increase from last year!
    2. Home prices were up 9.5% from last year according to CoreLogic
    3. Inventory remains tight at a 2.8-month supply
    4. Houston leads the nation in new home construction, yet there is still not enough inventory to meet demand. Therefore, we believe prices will continue to rise this year and next.
    5. Population and job growth are making rental property in demand here. The area has seen population growth of about 15% since 2000.
    6. The median rent per month here is $1,600, with numerous opportunities to see significantly larger rents.
    7. Though the median listing price for a home in Houston stands at $392,674, the area has over 1475 pre-foreclosures, bank-owned properties, and auctions, allowing for a sizable discount of as much as 40%.
    8. The oil industry had been the largest employer for many years, but jobs are much more diversified today.

 

Conclusion: Top 3 Reasons to Invest in Houston in 2017

Job Growth: It’s currently at, or near the top for job growth in the U.S and the cost of living is well below the national average.

Population Growth: The metro Houston area experienced the largest population growth in the nation, adding more than 159,000 residents, according to the U.S. Census Bureau. Since 2000 Houston has seen population growth of about 15% since the year 2000.

Affordability: Although the median listing price for homes in Houston stands at $392,674, the area has over 1475 pre-foreclosures, bank-owned properties, and auctions, allowing for a sizable discount for investors – as much as 40% in many cases. Plus, the median rent per month in Houston is $1,600, and in many neighborhoods it’s possible to get significantly larger rents.


Best Real Estate Markets 2017: Cleveland

#8: Cleveland, Ohio

Cleveland is one of the strongest markets in the nation, offering investors high cash flow and future growth. With a workforce of over 2 million people, Cleveland has the 12th largest economic region in the nation.

The number of people moving to downtown Cleveland is also gone up 32% from 1990 to 2000—the largest population increase of any Midwest city (including Chicago) and far above the regional average (7.7 percent), according to Brookings.

And the pace is picking up, with an all time high of 12,500 moving downtown just last summer, mostly comprised of the coveted Millennials (ages 18-34). This demographic shift is referred to as the “brain gain,” since there’s been a 139% rise in the number of young residents with bachelor’s degrees.

Why? Downtown Cleveland has experienced a renaissance over the past 5 years, with an estimated 19 billion in development completed or planned since 2010. Occupancy rates are at an astonishing 98% and home sales are up 12% year over year.

Bonus: you can buy still buy properties at a fraction of their mid-2000 prices in good B neighborhoods for $70,000 -85,000 that rent for $800-$1000/month.

Cleveland Market Statistics

  • Median Household Income: $51,000
  • Current Median Home Price: $122,000
  • Median Rent Per Month: $1,140
  • Metro Population: 2.1 M
  • 1-Year Job Growth Rate: 1.20%
  • 5-Year Equity Growth Rate: 15.10%
  • 5-Year Population Growth: -1.00%
  • Unemployment Rate: 5.5%

Cleveland Real Estate Market Trends & Statistics 2017-2018

Cleveland Market Quick Facts

  1. Fastest growing healthcare economy in U.S. (and home to world renowned Cleveland Clinic).
  2. Nation’s first Global Center for Health and Innovation as well as a new medical convention center.
  3. 10 Fortune 500 company headquarters (Goodyear Tire, Cliffs, Natural Resources, Firstenergy, Sherwin Williams, Eaton Corporation, Travel Centers of America, Aleris, Parker Hannifin, Progressive Insurance, KeyCorp).
  4. Has the 2nd largest live theater district in the U.S., second only to New York City
    Home to three major sport teams that bring billions of dollars to the area every year.
  5. It’s easy to buy B neighborhood properties for as low as $70,000 and turn that into $800 a month. Properties remain well below mid-2000 prices in most areas.

Conclusion: Top 3 Reasons to Invest in Cleveland in 2017

Job Growth: Cleveland has a fast-growing healthcare and tech sector. Millennials are moving into the area at a rapid pace to take advantage of the job opportunities available at Cleveland companies, including The Cleveland Clinic, Eaton Corporation, and Key Corp.
Population Growth: The number of people moving to downtown Cleveland is also gone up 32% from 1990 to 2000—the largest population increase of any Midwest city (including Chicago) and far above the regional average (7.7 percent), according to Brookings. And the pace is picking up, with an all time high of 12,500 moving downtown just last summer, mostly comprised of the coveted Millennials (ages 18-34).
Affordability: In Cleveland it’s still possible to purchase single family homes at a fraction of their mid-2000 prices. For example, in good B neighborhoods homes sell for $70,000 -85,000 and rent for $800-$1000/month. This means there’s a good opportunity for cash flow and appreciation in this market. And that’s great news for real estate investors in 2017.


Best Real Estate Markets 2017: Cincinnati & Dayton

#9: Cincinnati & Dayton, Ohio

Cincinnati is a unique and historic city located on the Ohio River. Winston Churchill once said that “Cincinnati is the most beautiful of the inland cities of the union.” It seems like a lot of people today agree with Mr. Churchill…

With a population of 2.1 million, Cincinnati is part of the 24th largest U.S. metropolitan area and it is growing fast! Both Cincinnati and neighboring city, Dayton, are rapidly coming together in a rush of housing, retail and commercial development across Warren and Butler counties.

According to the Brookings institution, the Cincinnati/Dayton area is among the nations 25 fastest developing regions. Yet the cost of living and the cost of housing are still well below the national average, making this an affordable and attractive place to live.

Cincinnati has also become a popular destination for new and relocating corporate headquarters, including 10 Fortune 500 companies and 17 Fortune 1000 companies.

All of these are good signs for investors that are looking to invest in cash flow property with a strong chance of appreciation.

 

Cincinnati Market Statistics

  • Metro Population: 2.1 M
  • Median Household Income: $51,000
  • Current Median Home Price: $143,000
  • Median Rent Per Month: $1,250
  • 1-Year Job Growth Rate: 2.0%
  • 5-Year Equity Growth Rate: 17.0%
  • 5-Year Population Growth: 2.40%
  • Unemployment Rate: 4.7%

Cincinnati Real Estate Market Trends & Statistics Infographic 2017-2018

Cincinnati Market Quick Facts

  1. The area is among the nation’s 25 fastest developing regions and since 1990 the county’s population has increased by 14%.
  2. A $350 million retail complex is set to open in October.
  3. Cincinnati/Dayton is the country’s 4th largest inland hub.
  4. The area is 4th in the US in new facilities – including GE Aviation’s new 420,000 square-foot Class A office campus and a new 80,000 sq ft Proton Therapy Center for cancer research.
  5. Cincinnati has also completed a $160 Million dollar campus expansion.
  6. Cincinnati was named as one of the 10 Hottest Housing Markets for Millennials in 2016 – The Street

Conclusion: Top 3 Reasons To Invest in Cincinnati in 2017

Job Growth: The Cincinnati metro area is ranked has the 4th largest number of new facilities in the U.S. – including GE Aviation’s new 420,000 square-foot Class A office campus and a new 80,000 sq ft Proton Therapy Center for cancer research.

Population Growth: The area is among the nation’s 25 fastest developing regions and since 1990 the county’s population has increased by 14%. With a cost of living that is 8.2% below the national average, this trend will likely continue.

Affordability: In Cincinnati it’s still possible to purchase fully renovated cash flow properties in good neighborhoods for $80,000 to $140,000.


View R.E.A.L. Turnkey Income Properties for Sale in Today’s Best Markets >>


Best Real Estate Markets 2017: Chicago

#10: Chicago, Illinois

Known for its towering skyscrapers and Fortune 500 companies, the Windy City is one of the few remaining U.S. markets where you can still find great investment opportunities.

Real estate prices have soared within Chicago’s city limits, causing people to move out of the city and into the suburbs. As a result, prices in some of these neighborhoods prices have increased by 14%+ this past year alone. Yet property in the area is still undervalued…You can purchase fully renovated rental homes from $80,000 to $150,000 that you rent for 1.2% of the purchase price!

All of these factors indicate that Chicago is great news for investors looking to buy income property with high cash flow and strong potential for appreciation.

Good news for investors: Chicago is one of the last markets where housing prices have not yet risen past their 2006 levels, simply due to the state’s tough foreclosure laws. Savvy investors are taking advantage of the situation and are still able to acquire income property at bargain prices.

 

Chicago Market Statistics

  • Current Median Home Price: $252,000
  • Median Rent Per Month: $1550
  • 1-Year Appreciation Rate: 8.4%
  • 3-Year Appreciation Rate: 30.9%
  • Unemployment Rate: 6.6%
  • 1-Year Job Growth Rate: 1.8%
  • Population: 9,500,000
  • Median Household Income: $61,598

 

Chicago Market Quick Facts

  1. Chicago is the 3rd largest city in the United States and the 4th most economically powerful city in the world.
  2. It’s still possible to find homes for sale in mid-level markets in the range of $120,000 to $160,000. The median sale price for a home here is $252,000.
  3. In some neighborhoods you can still purchase fully renovated rental homes for as low as $80,000 to $150,000 that you rent for 1.2% of the purchase price!
  4. The median rent in the Chicago metro area is over $1550 per month.
  5. 57% of the population rents, which is 24% higher than the national average.
  6. 83% of Chicagoans live in a home for 1 year or more.
  7. Chicago is home to 30 Fortune 500 companies and boasts a $500 billion GDP, which is more than that of Norway and Belgium combined!

 

Conclusion: Top 3 Reasons to Invest in Chicago in 2017

Job Growth: Chicago is the 3rd largest city in the United States and the 4th most economically powerful city in the world. There are 30 Fortune 500 companies headquartered in the metro area, which boast a $500 billion GDP. This is more than that of Norway and Belgium combined! These factors indicate a strong

Population Growth: Real estate prices have soared within Chicago’s city limits, causing people to move out of the city and into the suburbs. As a result, prices in some of these neighborhoods prices have increased by 14%+ this past year alone.

Affordability: Chicago is one of the last markets where housing prices have not yet risen past their 2006 levels, simply due to the state’s tough foreclosure laws. The median sale price for a home in Chicago is $252,000, but it’s still possible to find homes for sale in mid-level neighborhoods between $120,000 and $160,000. The median rent in the Chicago metro area is also over $1550 per month. This means there are great opportunities for cash flow in Chicago, and a strong chance of appreciation too.


 

Best Real Estate Markets 2017: Indianapolis

#11: Indianapolis, Indiana

With a metro area of nearly 2 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. The city has poured billions of dollars into revitalization and now ranks among the best downtowns and most livable cities, according to Forbes.

Housing costs and the annual cost of living in Indianapolis are also well under the national average. Indy also has a strong, diverse job market, great schools and universities, and plenty of sports attractions. What do all of these factors tell us about the real estate market potential in Indianapolis? Let’s just say it’s a good time to become a Indianapolis landlord.

Bonus: you can purchase turn-key properties for only $60,000 – $120,000. (Turn-key means the properties are fully renovated to like-new condition, leased to a quality tenant, and excellent property management in place).

Indianapolis Market Statistics

  • Current Median Home Price: $146,900
  • Median Rent Per Month:
  • 1-Year Appreciation Rate: 5.5%
  • 3-Year Appreciation Rate: 20.4%
  • Unemployment Rate: 5.0%
  • 1-Year Job Growth Rate: 1.6%
  • Population: 836,609
  • Population Growth Rate (Since 1989): 36%
  • Median Household Income: $39,015

 

Indianapolis Market Quick Facts

  1. 3 Fortune 500 Companies have their headquarters in Indianapolis.
  2. 7 high-tech “Certified Technology Parks” with tax incentives to start-ups.
  3. Major distribution hub including Fedex, Celadon Trucking, Amazon, Target.
  4. Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors evaluated in the study: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.

Conclusion: Why Invest in Indianapolis in 2017?

Job Growth: Indianapolis is one of the fastest growing hubs for technology, bioscience and Fortune 500 companies in the nation. In fact, Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors evaluated in the study: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.

Population Growth: With a metro area of nearly 2 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. Since 1989 the Indy’s population has grown over 36%, and continues to grow at a rate of 1% annually.

Affordability: Indianapolis is among the few U.S. cities where you can purchase turn-key properties for only $60,000 to $120,000.


Best Real Estate Markets 2017: Kansas City

#12: Kansas City, Missouri

Kansas City, widely known for its sports, art and culture, is also of the most affordable cities in the U.S. Since 2000, the population in the metro area has increased by 10.85%, totalling 2.34 million people.

More so, the area’s gross regional product grew 2.9% in 2014, which is higher than the national average of 2.2%. Kansas City has become an important sector for healthcare, IT, manufacturing, and the auto industry, addition some 10,000 jobs on average year-after-year. This economic and population growth is impressive.

Good news for investors: In recent years, many Americans have been following companies/jobs to “less expensive” cities, including Kansas. The result: these affordable markets are seeing a steady increase in rental demand. This means it’s a very good time to be a Kansas City landlord.

Kansas City Market Statistics

  • Current Median Home Price: $163,300
  • 1-Year Appreciation Rate: 6.7%
  • 3-Year Appreciation Rate: 21.3%
  • Unemployment Rate: 4.4%
  • 1-Year Job Growth Rate: 1.4%
  • Population: 473,008
  • Median Household Income: $56,740

 

Kansas City Market Quick Facts

  1. Kansas City has become one of the hottest spots for renters, which in turn has increased demand for more available homes and apartments for rent.
  2. There is a large number of affordable homes on the market including pre-foreclosure and bank-owned properties priced around $100,000 to $120,000. The average list price here is $187,000.
  3. Average monthly rent sits around $793 a month. The median household income here is about $56,740.
  4. Employment is predicted to continue to increase 1.4% in 2017.

 

Conclusion: Why Invest in Kansas City in 2017?

Job Growth: Kansas City has become an important sector for healthcare, IT, manufacturing, and the auto industry, adding approximately 10,000 jobs annually. This economic and population growth is impressive.

Population Growth: In recent years, many Americans have been following companies/jobs to “less expensive” cities, including Kansas City. In fact, since 2000, the population in KC has increased by 10.85%, totalling 2.34 million people.

Affordability:The The average list price in Kansas City is $187,000. However, the metro area has a large number of affordable homes on the market, including pre-foreclosure and bank-owned properties priced between $100,000 to $120,000. The average monthly rent sits around $793 a month.


View R.E.A.L. Turnkey Income Properties for Sale in Today’s Best Markets >>


Best Real Estate Markets 2017: Detroit

#13: Detroit, Michigan

Detroit, the largest city in the state of Michigan, is recognized as the automotive capital of the world, which has earned it the nickname “Motor City.” The metro area is home to General Motors, Ford Motor Company, Chrysler (“The Big 3” major automotive companies in the U.S. and Canada), which offer a wide-range of jobs and invest billions of dollars into the city’s infrastructure.

Detroit is also home to 100 Fortune 500 companies, including Penske Automotive, Quicken Loans, Kellogg, Whirlpool, and Walmart.

Despite its longstanding nickname, several of Detroit’s fastest growing industries are in sectors as diverse as healthcare, defense, aerospace, IT and logistics.

Billionaire Dan Gilbert (the chairman and founder of Rock Ventures and Quicken Loans Inc, as well as the majority owner of the National Basketball Association’s Cleveland Cavaliers, the American Hockey League’s Cleveland Monsters, the Arena Football League’s Cleveland Gladiators and the NBA Developmental League’s Canton Charge) has moved numerous companies to Detroit, investing over $1.6 Billion in the Detroit area.

Major Attractions include Detroit Tigers, Detroit Lions, Detroit Red Wings, Wayne State University, University of Michigan, Beaumont Hospital,Fox Theater and new bridge to Canada being built.

Our Real Wealth vetting team took a trip out to Detroit last month to see what’s happening there and to find out why investors are jumping back into that market. We were shocked at what we found! Downtown Detroit is being totally revitalized with billions of dollars of real estate and construction activity. Plus, many of the dilapidated foreclosures were torn down.

We found an excellent team in Detroit who finds discounted properties, fixes them to like-new condition and offers ongoing properties management. Somehow they are able to keep the price points down for a fully turnkey property to under $80,000, and in some cases as low as $50,000. Gross yields are closer to 16%! This is why we believe Detroit is one of the best places to invest in rental property this year.

 

Detroit Market Statistics

  • Median Home Price: $65,000
  • Median Rent Per Month: $900
  • Population: 688,701
  • Median Household Income: $50,502

 

Detroit Market Quick Facts

  1. Detroit is also home to 100 Fortune 500 companies, including Penske Automotive, Quicken Loans, Kellogg, Whirlpool, and Walmart.
  2. Despite its longstanding nickname, several of Detroit’s fastest growing industries are in sectors as diverse as healthcare, defense, aerospace, IT and logistics.
  3. The Michigan Business Development Program provides grants, loans, and other economic assistance to businesses.
  4. Michigan has a flat 6% corporate income tax, which is the lowest in the nation.
  5. Personal income tax is also among the lowest in the nation at 4.25%.
  6. Michigan also has a lower cost of living than any other Midwestern state.
  7. Since 2010, more than 45,000 automotive manufacturing jobs have been added to the Detroit Metro, which is more than any other area in the nation.

 

Conclusion: Why Invest in Detroit in 2017?

Job Growth: According to the U.S. Bureau of Labor Statistics, the employment rate in Detroit increased by 2% between September 2015 and September 2016. During the same period, the national job count increased by only 1.7%.

Population Growth: People follow been following companies/jobs to “less expensive” cities. For example, Billionaire Dan Gilbert (the chairman and founder of Rock Ventures and Quicken Loans Inc, as well as the majority owner of the National Basketball Association’s Cleveland Cavaliers, the American Hockey League’s Cleveland Monsters, the Arena Football League’s Cleveland Gladiators and the NBA Developmental League’s Canton Charge) has moved numerous companies to Detroit, investing over $1.6 Billion in the Detroit area.

Affordability: In Detroit you can purchase a fully renovated rental property in good B neighborhoods for only $65,000, and rent them for about $900/month. Plus, these properties used to sell for over $100,000 so there’s a good chance values will increase as well.


Best Real Estate Markets 2017: Atlanta, GA - Jackson Street Bridge in Atlanta, Georgia
#14: Atlanta, Georgia

Located in low foothills of the Appalachian Mountains, Atlanta is the third largest metropolitan region in the Southeast, behind the Greater Washington and South Florida areas.

For decades the Atlanta metro area experienced rapid growth, which attracted families from all over the Southern United States as well as the Midwest. The population grew close to 4% annually, to match the demand of new jobs – many of them in the high-paying sectors, including manufacturing. Today, Atlanta’s growth has slowed a bit, but not entirely.

Atlanta Market Statistics

  • Median Home Price: $174,000.00
  • Median Rent Per Month: $1,335.00
  • Population: 447,841
  • Median Household Income: $60,219

Atlanta Market Quick Facts

    1. ATTOM Data Solutions released its first-quarter 2017 Single Family Rental Market report. The data giant analyzed returns on single-family rentals in a total of 375 U.S. counties and more than 6,000 zip codes. Atlanta, Georgia is at the top of their list!
    2. Between January 2016 and January 2017, 3 bedroom single family homes in the Atlanta metro appreciated by a median 8.57%. This is 2.32% higher than the national average of 6.25%.
    3. During the same period, rents for 3 bedroom single family homes in Atlanta appreciated by an average 4.11%.
    4. Between July 2015 and July 2016, Atlanta’s population grew by 1.72% versus 0.80% nationally.
    5. In the last year, 74,500 new jobs were created in Atlanta – an annual growth rate of 2.85%. This is a higher rate than the national average of 2.35%.

Conclusion: Why Invest in Atlanta in 2017?

Job Growth: In the last year, 74,500 new jobs were created in Atlanta – an annual growth rate of 2.85%. This is a higher rate than the national average of 2.35%.

Population Growth: Between July 2015 and July 2016, Atlanta’s population grew by 1.72% versus 0.80% nationally.

Affordability: In January 2017 the median purchase price of 3 bedroom single family homes in the Atlanta area was $152,000.00. This is 18.72% lower than the national average for 3 bedroom homes.

And this is great news for real estate investors in 2017.

To learn more about each of these markets, schedule a strategy session today. It’s 100% complimentary! 🙂

Author

Jessica Conflitti

Jessica Conflitti

Jessica manages content creation, PPC and SEO for Real Wealth Network. She joined our team part-time in August of 2015 and quickly moved to a full-time position to write for the blog and to oversee our independent researchers and analysts that help keep RWN on the cutting edge of investor education. In her free time, Jessica enjoys writing music, baking, meditating, and spending time with her friends and family.