Up and Coming Cities for Real Estate Investing
Up and coming cities to live and invest in real estate are diverse and scattered across the United States. Though each city has its own unique reasons for becoming a place to look out for in the near future, there are many common factors that link them all such as a booming real estate market, affordability, and rapid job growth.
Local Market Monitor, a North Carolina-based information organization that tracks home costs and monetary components in more than 300 lodging markets, screened the 100 biggest Metropolitan Statistical Area and Divisions (topographical assignments utilized by the U.S. Statistics Bureau to depict a center city and its encompassing rural areas), all with populaces of no less than 600,000, for qualities that make for good real estate investing ventures.
Up and Coming Cities:
Home to a rapidly growing technology and business development known as the Research Triangle, one of the most up and coming cities, Raleigh-Durham, North Carolina beats out competing technology regions like the San Francisco Bay are with its reasonably priced housing market.
In a national ranking of top cities for high tech companies, Raleigh-Durham jumped from number 16 to number 9 – which shows the impact that high-tech has had on the local economy. This impact has attracted investors of all kinds to the city, the most notable being the Abu Dhabi Investment Authority, who bought two hotels at North Hills for nearly $103 million.
Though the city is growing rapidly in terms of companies – there is currently 300,000 square feet of office space under construction – the construction of single family homes has struggled to catch up. Inventory levels are down 40 percent from the same period 4 years ago – which can be tied to projects geared to supply the demand for business growth. But with a higher demand for single family homes, coupled with rising house prices tempting owners to finally sell, be prepared to see the number of properties on the market gradually rise.
San Antonio TX
Another one of the well known up and coming cities, San Antonio comes with a healthy economy and a growing population; especially made up of millennials. In fact, San Antonio saw the biggest jump in millennials of all U.S metro areas between 2010 and 2013, which makes sense when you realize that San Antonio in one of the most affordable cities in Texas. Even with rising prices, demand is still high.
In January of this year alone, residential sales rose 6.6 percent from the same period last year, with 1,534 homes sold. Home prices in San Antonio have risen pretty consistently over the past few years, the amount of houses listed at less than $200,000 fell from 59.2 percent to 55.7 percent. Though the average city price still remains cheaper at $224,527, than the state average of $239,819.
Again though, because of such high demand, inventory levels remain low; stuck right now at about a 4-month supply. But supply is expected to grow as homebuilders increase the pace of construction to meet demand. Big-city attractions along with unique Texas locales, makes San Antonio one of the better up and coming cities to look out for.
Furthermore, Texas is the state with the second-most noteworthy number of urban communities on the Best Buy list, three: San Antonio (No. 3), where homes normal $201,000; Dallas (No. 6), where home costs normal $211,000; and Austin (No. 7), $281,000.
Memphis, TN is one of the up and coming cities that is expected to be great for millennials. Though home prices rose 11 percent over last year, and are expected to keep rising, the market still remains highly affordable with the average home price at $155,134.
Along with low housing costs, there are several other incentives – most conducted by the city of Memphis itself, to help bring in people, especially millennials, and help boost the slow moving market.
There are efforts being made throughout the city to expand jobs at places such as St. Jude Children’s Research Hospital. There are plans in place to develop more condos and apartments downtown; and the Greater Memphis Chamber even recently hosted a party in New York for millennials, hoping to encourage more of them to move to Memphis. This metropolitan area is famous for its music scene; a mix of blues, jazz and rock, plus Elvis’ Graceland mansion and a growing food scene makes Memphis one of the more interesting up and coming cities out there.