A quick overview
If you’re looking to get your foot in the real estate door, or add another good property investment to your portfolio, you’ll need to choose the location of the property wisely. To help you do that we’ve compiled a list of 10 of the best places to invest in real estate in 2022.
10 Best Places to Invest in Real Estate in 2022
As the old real estate phrase goes… location, location, location. The phrase was coined by Harold Samuel way back in 1944 in the UK, when he founded Land Securities, and it remains true to this day. Real estate investing is largely about finding the right location for the best deals. Whether you’re a first-time investor looking to start your real estate journey, or a seasoned investor looking for the next best deal, if you’re buying a property in 2022, you’ll need to know which places are the best for this. So, we’ve put together a list of the top 10 spots where you should consider investing in real estate this year, and why.
1. Boise, Idaho
First up, we’ve got Boise, Idaho. According to Isabelle Emond a real estate broker and the owner of RE/MAX Ocean Surf and Sun, Boise “attracts more people to invest in the city, making it worth your investment in the long-term,”. In fact, Boise has a record for being one of the best long-term real estate investment locations in the country.
Real estate appreciation in Boise has risen by about 24% year-on-year and Ada County’s average house prices now surpass the $500,000 mark. This, alongside the all-time low mortgage rates, has led to a high demand for property in Boise and in turn added fuel to the fire of the real estate market.
There is a lively urban scene in the city, which attracts many people to Boise. The unemployment rate is a low 3.5%, which bodes well for rental real estate and gives the city a flourishing market. The population size and job growth of Boise triple the average across the country, which shows the strength of the economy in this city.
2. Charlotte, North Carolina
Charlotte was ranked in the U.S. News & World Report as one of the best places to live in the US in 2019, and it is a great location to invest in real estate, particularly rental real estate, this year. With the rapid expansion of the metropolitan area of Charlotte comes more jobs and this has led to 5 years in a row of house price growth. About 3,630 homes were sold in March in Charlotte, which is a year-over-year increase of 4.9%.
One of the major drawcards for real estate investors in Charlotte is the affordable property options, with typical home value sitting at $367,231 according to Zillow, and the annual increase in home values is sitting at 26.9%. Apartments in Charlotte have an average rent of $1,259, which is a 6% rise from rent prices in 2021, according to Rent Cafe.
Right now, Charlotte is a seller’s market, with lower inventory and house prices sitting at a high. The city has long been known as a financial epicenter, and in the last 3 years 4 Fortune 1000 companies have set up shop in this city. Which makes it one of the most bustling real estate markets in the US, particularly in the rental real estate sector.
3. Dallas-Fort Worth, Texas
This lively area of Texas offers real estate investors a host of opportunities in 2022. Home prices in this area are expected to increase by 21.2% over the course of the year, and rent growth is rapid. The rental prices in Dallas are high in relation to the price of houses, offering many opportunities for real estate investors. Properties in this area sit, on average, between 5% and 15% below market and so there is a big demand for homes. According to Zillow, the average home in Dallas costs around $302,809.
The economy is diverse, so there are opportunities for different income levels and various ways to invest in real estate. Dallas has a very high demand for rental properties, and the lowest rate of homeownership in the entire country. This makes the area a prime spot for real estate investors who are looking for a rental property.
4. Phoenix, Arizona
Phoenix is one of the fastest growing economies in the US and as such, the city has quickly become a strong competitor in the real estate market. Phoenix offers real estate investors more affordable properties than some of the other high-cost areas in the US. Home values in Phoenix have increased by 29.5% over the last year, with the typical home value sitting at $404,005, according to Zillow.
Phoenix is currently a seller’s market, and the city boasts a lower cost of living with a strong influx of new residents. According to Local Market Monitor, the average monthly rent is $1,301. The pandemic didn’t even slow house price growth in Phoenix, as the city continued to experience an uptick in house prices thanks to various factors, one of which is the great living conditions that the city offers.
5. Atlanta, Georgia
With 16 Fortune 500 companies sitting in Atlanta, the city’s economic diversity has been a pillar of strength through the pandemic. Not only has the market here seen record house price growth, but it also has a build-to-rent trend starting up. Over the last 10 years, Atlanta’s population has increased by 14% and this has served to create a larger demand in the housing market.
Whether you’re looking for a fix and flip project or a rental property, Atlanta offers real estate investors some good opportunities and these are only increasing as 500 more people move to Atlanta every single day. Real estate in this city starts at around $70,000 and the median monthly rental amount is $1,500. According to Zillow, a typical house in Atlanta will cost around $395,088 and house values have risen by 18.9% over the last year.
6. Nashville, Tennessee
Over the last 10 years, Nashville has experienced a population increase of 21%, and the city recently topped the list of highest economic growth in a metro area in the US, for 2021. Thousands of new jobs have been created in the city from the likes of Amazon and Oracle setting up shop in Nashville and further expanding. Opportunity is rife in the city for both employment and real estate investment deals.
The Zillow Home Value Index for Nashville shows that the typical house is sold for around $420,553. Home values in the city have risen by 28.3% over the last year between February 2021 and 2022, and according to Greater Nashville Realtors, houses are spending on average just 29 days on the market before they’re sold. According to Zumper, the median rent for a 3-bedroom house in Nashville, is $1,985 per month.
7. Austin, Texas
In 2021 Austin made the top of the Yahoo Finance list of hottest housing markets. Austin’s housing market offers relative affordability and homes in this city are half as expensive as the other major metros in the US. Apple, Amazon, and PayPal, along with many other tech companies have offices in Austin, and this coupled with other thriving industries such as pharmaceuticals, means that Austin’s economy is diverse and booming.
According to the Zillow home value index, the typical home value in Austin is currently $655,862 and this has risen by a whopping 40.9% between February 2021 and February 2022. In Austin, the average number of days that a home sits on the market before being sold is 22. The most affordable neighborhood for purchasing property is West University, according to Realtor.com, where the median listing price is $322,000. Austin is therefore an ideal location for real estate investors who are looking for new opportunities.
8. Raleigh/Durham, North Carolina
This area is near 3 tier-1 universities and attracts huge companies in the life sciences sphere. The population growth in the area is high and the economy is solid. Durham was one of the few locations considered a good place to invest in property after the 2008 financial crash, and it continues to be a good place to invest.
About 52% of Durham residents rent their homes, giving rental real estate investors a lot of opportunities in the area. The average rent for an apartment in Durham is $1,181 per month, and in Raleigh it’s $1,755 for a 3-bedroom house, according to Zumper. The Zillow home value index puts Raleigh’s typical house price at $423,838, with an increase of 31.6% over the last year. While Durham is currently a seller’s market, which is known for being one the of best long-term real estate investment places in the country.
9. Salt Lake City, Utah
The U.S. News and World Report ranked Salt Lake City as the 10th best place to live in the US. The capital of Utah is well known for its outdoor activities like skiing and hiking. The population of Salt Lake City is growing steadily and it is one of the fastest recovering cities from the devastating impacts of the pandemic. The city is dubbed “Silicon Slopes” with the rise in its technology sector.
The area currently has the lowest vacancy rates that it has seen in some 2 decades, and between October 2020 and 2021, rental rates increase by 18%. According to Zillow’s house value index, the typical home value in Salt Lake City is $597,350 at the moment, which is an increase of 23.7% over the last 12 months. The growth in home value for 2022 is expected to be around 8.5%, making this city a prime spot for real estate investing.
10. Tampa, Florida
Tampa is not only a booming metro in the US, but it is also a popular tourist destination. Which means that the economy in Tampa is strong and the demand for rental properties is high. Single-family homes that are at the entry level are currently experiencing a huge rise in demand. Property prices in Tampa are low and house price values have gone up 31.5% over the last year, with plenty of room for further growth.
The median rent in Tampa is around $1,600, while the typical home value, according to Zillow, is $374,697. The cost of living in Tampa is 5% lower than the national average, which makes this city a prime place for real estate investing as investors can buy properties at lower rates and rent these to one of the many new Tampa residents, to generate monthly income.
Final thoughts
When looking for a good location for real estate investing, it’s important to consider the following factors about the area: employment, population growth (both current and future), real estate development, government planning, housing affordability and prices, and vacancy rates. All of these will have a strong impact on your real estate investment, so they are important to take into account. Finding the right place to buy a property can be daunting, but with these considerations in mind, you’re well on your way to making a more informed real estate decision.