5 Housing Markets for Real Estate Investors to Keep Their Eye On
When the bottom fell out of the housing market in 2008, home values tanked across the board, in nearly every metropolitan area in the country. Low real estate prices did create a boon for investors, who envisioned a brighter future for the real estate market, and bought houses at bargain prices, and either flipped them or hung on to them until better times arrived. Better times have come – there list of markets still in trouble is far shorter than the list of those that aren’t, and it is shrinking all the time.
This means good things for the economy, but presents a challenge to those investors looking for great deals. Fortunately, there are some cities where there are some serious deals to be had – where population is growing, and home prices are low, but rising.
Forbes studied the US housing market, and revealed the top 20 markets for investors for 2015. Here are the top five to watch:
1. Austin, Texas
Austin is an up-and-coming city, with a burgeoning art, food and music scene. People are increasingly relocating here for the weather, the wide-open spaces, the cool indie culture and . . . the affordable housing. The numbers bear this out; the average home price in Austin is $261,923 – one of the highest on Forbe’s list – but the annual price growth is also one of the highest at 12 percent. Throw in an annual population growth of 8.9 percent, and you have makings of a real estate growth hot spot in the near future.
2. Provo, Utah
Provo isn’t as well-known as, say, Austin, or even Salt Lake City, but it is becoming increasingly popular thanks to its exquisite mountain scenery and its reputation for being clean, pleasant and a great place to raise kids. The average home price in Provo is $211,273, with an annual price growth of 6% and an annual population growth of 6.2 percent, making is a city to watch for investment.
3. Houston, Texas
Houston has always been a popular city. However it did take a hit during the housing market crash. The city is slowly on the upswing, making this a great time to invest. The average home price in Houston is $214,049, with a high annual price growth (12 percent), and an annual population growth of 6.2 percent.
4. Orlando, Fla.
Orlando may most famously be home to Mickey, but what many are just discovering is that it is also a great city for families to live, with pleasant, quiet suburbs and affordable housing. The average home price: $187,568, and rising at 9 percent annually, and the population is growing at a modest rate of 6 percent year over year. But the statistic that should really pique the attention of investors is the job rate, which has an annual increase of 9 percent.
5. Dallas, Texas
Texas seems to be the state to watch, with yet a third city cracking Forbe’s list of top 5 cities for investment. This sprawling metropolis has space for all, an independent spirit, and an average home price of $197,159 with an impressive annual price growth of 10%. The population here is growing at 5.9 percent annually, which means demand is steadily climbing – and that is what all investors are after, right?