The Best Real Estate Markets To Invest In For Rental Properties

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The US real estate market is red hot right now and anyone with the funds or access to credit should seriously consider getting in on the action. Investing in rental real estate is one of the most fundamental ways to build wealth and with interest rates at historic lows and sale prices continuing to rise in many places across the country, now is the perfect time to buy and hold an investment property. Here is a look at some of the most exciting markets for rental investors.

1. Orlando, Florida

Orlando, Florida

With mild weather, a growing economy, and no sales tax, Orlando, Fl is one of the hottest rental real estate markets of 2021. The secrets to Orlando’s in-demand housing market have to do with its rapid population growth, the constant influx of tourism, and a stable economy. With a population of 2.5 million increasing at a rate of 2.4%, Orlando has the second-fastest growth rate of the top 30 major cities in the US.

Plus, Orlando not only has a booming tourist economy thanks to Disney World – but it is also a hub for industries like technology, aerospace, and manufacturing. This means that investors not only benefit from the millions of vacationers who flock to the city each year, they also have a stable population of locals to depend on in the slow season. This means the investment possibilities in Orlando are endless and you can find a market for anything from luxury timeshares to single-family homes. The typical home value in Orlando is around $285,000 and property values have increased by nearly 50% over the past decade, making it one of the most exciting real estate markets in the country.

2. Charlotte, North Carolina

Charlotte, North Carolina

Charlotte, NC is another prime real estate market for those in search of high quality of life, low unemployment, and affordable living. It’s the largest city in North Carolina and ranks 5th in the US for population growth, increasing by around 1.74% each year. More and more people are moving to Charlotte because it offers great weather, a robust economy, unique local culture, and tons of entertainment options.

It’s the second-largest financial center in the US and the home of Fortune 500 companies like Bank of America, Lowes, and Honeywell. Plus, residents have a wide variety of entertainment options at their disposal, from pro sports teams to museums to a downtown full of amazing restaurants and boutiques.

The typical home price in Charlotte is $295,926, with values increasing by 9.9% year over year, making it one of the best real estate markets for investors in 2021. Investors will find a wide range of opportunities, from luxury estates to modest single-family homes, and the city is consistently rated one of the best cities for renters due to its low cost of living and variety of employment opportunities. So, investors will benefit from the constant influx of professional tenants and homebuyers who continue to gravitate toward the city each year.

3. Dallas, Texas

Dallas is another solid market for rental real estate investors right now. The city has the advantage of a healthy economy, a growing population, and a big city lifestyle without all the hassles of other urban centers. There are around 1.3 million people in the city of Dallas and more than 7.5 million in the entire Dallas-Fort Worth metropolitan area. It’s one of the fastest-growing cities in the US and experts believe that the population will grow by nearly 18% by 2029.

Dallas benefits from a significant population of millennials who are drawn by the city’s employment opportunities and metropolitan atmosphere. However, there are also plenty of older adults and retirees in the sprawling suburbs around the city, giving investors a diverse population to tap into.

The primary industries in Dallas are construction, food manufacturing, IT services, logistics, and telecommunications, giving the city a stable and quickly growing economy, The typical value of a home in Dallas is just over $254,000, with prices continuing to rise and its housing market is expected to outperform the national home-value-growth average in 2021. Dallas is quickly becoming an attractive alternative for those fleeing from more expensive cities like New York and San Francisco and offers a variety of opportunities for investors.

4. Boise, Idaho

Boise, Idaho

 Although often overlooked, Boise, ID’s housing market holds the record for the best long-term real estate investments in the US. A surge in demand and a limited supply of inventory has made Boise one of the hottest real estate markets in the country and this trend is expected to continue throughout the next decade. The “City of Trees” is the second-fastest-growing metropolitan area in the US, with a population increasing at a rate of 3.24% in 2020. 

Boise has become a popular destination for renters because it offers a small-town charm with big-city conveniences and plenty of opportunities for outdoor recreation like skiing, hiking, and boating. Plus, it offers a business-friendly environment with low taxes and a robust economy. There are several Fortune 500 companies headquartered in Boise, offering a variety of employment opportunities to families and young people flocking to the area. The typical value of a home in Boise, ID is around $465,000. Prices have increased by over 33% last year, making it one of the top areas in the country in terms of year-over-year growth.

Final Thoughts

These are just a few of the best real estate markets to invest in. With housing prices across the US continuing to increase in many areas, there is no better time to get started as an investor or expand your existing portfolio. For those who are willing to do the research, there is no shortage of investment opportunities available.