Investing in real estate is still a popular investment method for people all over the world. It provides many benefits, such as diversifying your portfolio, acting as a steady source of income, providing tax benefits and many others.
This could be choosing to buy and sell houses as is, rent out your property or even use online real estate platforms to micro-invest. While there are many parts of real estate investing, few are as important as the location of the home or building you are investing in.
Once you have secured a loan, either from a bank, a lender like Turning Point Lending, or another means, you can really start thinking about where you are going to put this money. You want your investment to be in a city that is experiencing growth, has a strong job market and a real estate market that is conducive to your goals. In an effort to help, this blog post is going to go over a few of the best and a few of the worst places to invest in real estate in 2021 across the USA.
Best: Frisco, Texas
A big part of choosing a great place for a real estate investment is population growth. The cities are on the way up and attracting more people, which is generally favorable for home and rent prices. One of the fastest growing cities in the entire country is Frisco, Texas. Since 2010, the Dallas suburb has grown by over 70%.
In addition to that, the city also has strong household income, and is seeing a decent increase in job growth, as well. It is a popular bedroom community for those working in Dallas, and is in a convenient place, but maintains a more quiet and relaxed lifestyle for families. The city also has many sporting venues and parks to enjoy, as well.
Worst: Detroit, Michigan
On the other hand, cities with a decreasing population are not generally somewhere that you want to set up shop as a real estate investor. Many cities are experiencing population decline across the USA, but few more so than Detroit. The city that once had over 1.8 million people living in it, is now down to under 675,000. A shrinking population can be stressful for real estate investors and lead to a lot of uncertainty.
It’s population has gone down each of the last several decades, often by around 10% or more each decade. The economy has also struggled mightily, incomes are low and poverty is unfortunately quite rampant throughout the city. Crime is also a struggle throughout the city.
Best: Nashville, Tennessee
Another thing to look for in a good market for real estate is strong job growth. Where there are jobs, there will be people. Because of this, Nashville is another great place to consider investing in real estate. The job market is growing steadily, thanks to both the music industry and healthcare industry, which both employ many people. The unemployment rate is also quite low.
Add to that a great climate, and a lot of fun things to do and check out, there is no surprise why the city is becoming a popular place for investors. The labor force shows no signs of slowing down, and the city will likely continue to be a hotspot when it comes to real estate investments.
Worst: Cleveland, Ohio
A struggling job market can often push people away from a city. That is unfortunately what is happening in Cleveland, which makes it a less-than-ideal place to invest in real estate. The unemployment and poverty rates are both high, and the incomes are lagging behind many other cities across the country.
These have contributed to a declining population, as have the violent crime rates which are much higher than in many other cities. While there is a lot to do and see in Cleveland, the low incomes and poverty rates hurt the potential of your real estate investments.
We hope this article has been able to help you learn some of the best and worst places to invest in real estate throughout 2021. Of course, there are hundreds of other cities you could invest in, but be sure to do your research before choosing one for your best chance of success.