Where Are the Best Cities for Real Estate Investment?
Due to the explosion in real estate prices in recent years, more and more people are trying to diversify their investments by expanding into real estate. But not all real estate is a sound investment; those looking for the best value have to weigh property prices against taxes, vacancy rates, insurance, and the list goes on.
That’s why Policygenius, an online insurance marketplace, has compiled a list of the best places to look for investors based on their attractive climate for investors.
Using data from Zillow and the US Census Bureau, Policygenius analyzed the top 600 metro areas across six metrics to find the most attractive cities to invest in. Categories include: Home Value, Home Appreciation, Effective Property Tax Rate, Home Rent Value Ratio, Rental Vacancy Rate, and Rent to Income Ratio.
The top 10 cities found by Policygenius are as follows:
- Population of more than 60,000 people and part of a large metropolitan area that includes Warren and Boardman and is home to about 540,000
- Both Cleveland and Pittsburgh are within easy driving distance
- “A former steel town, Youngstown has seen a renaissance in recent years, including the launch of the Youngstown Business Incubator”
- According to the report, low home prices combined with high appreciation and low rental vacancy rates make Youngstown a good prospect
- Michigan’s largest city
- Population of just under 640,000 and part of a metropolitan area of around 4.3 million people.
- Home to the “Big Three” of American auto companies, as well as Quicken Loans, Ally Financial and DTE Energy
- In 2021, Apple announced it would open its first Developer Academy in the city
- According to the report, Detroit boasts of low home prices and very high home appreciation, which together “make it a breeze to get on the ground floor of this exciting American success story.”
3.Spring Hill, Fla
- The hotel is located 40 miles from Tampa in “an unincorporated area that is part of the metropolitan area that includes Tampa, St. Petersburg and Clearwater.”
- Described as “a busy suburb…which attracts people for its affordability and central location”
- Home values in the area are under $250,000 and home appreciation is approximately 85%
- Population of nearly 112,000, the ninth largest city in Colorado
- Home of the first steel mill powered largely by solar energy
- Includes a “Riverwalk” that runs along the Arkansas River, plus a wealth of “Galleries, Museums, and Public Spaces.”
- The home’s appreciation rate is 80%.
- Just over 207,000 residents in a larger metropolitan area of 1.2 million people
- Formerly a manufacturing center, now “one of the largest banking centers in the United States
- Lively downtown combined with low real estate prices and a high rental price ratio
6. Cleveland, Ohio
- Population of just over 370,000 in a larger metropolitan area of over 2 million people
- Powerful technology hub: “The federally funded Cleveland Innovation District was established in 2021 to increase funding for health research jobs”
- Average home value under $100,000 and a home appreciation of nearly 100%
7. Colorado Springs, Colorado
- The city is currently experiencing “a housing boom as people move to the city from Denver and other states for its clean air, mild weather and great quality of life.”
- Almost 500,000 inhabitants and a diverse economy, including defense companies and technology companies
- Property values are close to $428,000, but “a high rate of appreciation and a low vacancy rate make Colorado Springs a great option for real estate investors.”
8. Lehigh Acres, Fla
- Described as “a rapidly growing suburb east of Fort Myers”
- Low rental vacancy rate and “relatively low apartment prices, typical of the area”
9. Palm Bay, Fla
- Largest city in Brevard County
- Home for almost 120,000 people
- Part of the ‘Space Coast’: The city ‘has a diversified economy that includes the aerospace and defense industries’
- Low rental vacancy rate
10. Phoenix, Arizona
- Fifth largest city in the USA
- One of the fastest growing economies in the country
- Strong housing market
- Home value increase rate of 81%
To view a comprehensive list of Policygenius results, click here.