If you're considering investing in real estate that can realize an excellent return on investment, knowing where to buy is key.
Despite rising mortgage rates and housing costs across the nation, there are some cities where home values are showing promising signs. So if you're ready to make a real estate investment, here are the best cities to buy property now that will pay off big time when you are ready to sell years later.
Raleigh and Charlotte, North Carolina
Cities like Raliegh and Charlotte have a relatively low cost of living. According to PayScale, the cost of living in Raliegh is 4% lower than the national average, while the cost of living in Charlotte is 2% lower than the national average.
In addition to the lower cost of living, both cities also have healthy job markets that are attractive to investors, which means Raliegh and Charlotte could see a surge in activity in 2024.
Boise, Idaho
Boise has a home appreciation rate of 218% and an average yearly growth of 12% over the past decade. Additionally, the value of homes in the city is expected to grow at least 2% over the next two years. Coupled with Boise's increasing job market and the high demand for homes, the city is a great place for real estate investment, per Yahoo Finance, citing Tricoli of the Tricoli Team.
Athens, Georgia
Over the past year, home sales have been declining, with the sales of previously owned homes dropping to a 13-year low in October. However, the housing market in Athens has seen a good rally, with home sales climbing 7.6% from August to September 2023. At least 30% of all homes sold during that period were also purchased for over the asking price, according to Rocket Mortgage.
Las Vegas, Nevada
The city of Las Vegas is known for its thriving real estate and job market and growing population. Coupled with a 6.3% year-over-year increase in the city's median home pricing, Las Vegas is a great place for real estate investments, especially for investors planning on putting their property up for rent.
"Las Vegas's diverse economy, driven by sectors like health, technology and entertainment, contributes to its stability and growth," Tricoli told the outlet. "As a top tourist destination, it provides a reliable source of rental income. With its combination of factors, Las Vegas emerges as one of the best places to invest in real estate for long-term returns."
Waco, Texas
Located in the heart of Texas, Waco's real estate industry has seen a recent boom, with home values appreciating by 96% over the past five years. In the last year alone, the values of homes in the city appreciated by 30%. This makes the city a great place for rental properties. Investors can also expect a healthy gross rental yield of 55%.
