More and more real estate investors are starting to turn away from "Gateway" cities such as New York, Washington, D.C. and Chicago. They are now picking up interest in secondary and tertiary cities like Austin, Charlotte and Nashville.
According to finance.yahoo.com, PricewaterhouseCoopers and the Urban Land institute conducted a survey involving 1,500 real estate industry professionals as to which city is more feasible to have an investment. The list was topped by Dallas / Forthworth, followed by Austin, Charlotte, Seattle and Atlanta, placing second to fifth, respectively.
Manhattan wasn't able to reach at least the top 10 cities and landed on 15th spot for two years in a row. Brooklyn has experienced major cool- down despite of its "hip" image making it sit on 21st spot just above Indianapolis but below San Antonio.
The data analyzed for the list was "based on a combination of sentiment scores for investment, development, and homebuilding."
Based on the report of PricewaterhouseCoopers and the Urban Land institute, Mitchell Roschelle, the PwC real estate advisory leader, said "It's a job creation story. Jobs chase the people. As employment rises, more people come, more jobs come, so it's really a good cycle. Employment growth, particularly from smaller companies, is what's making secondary and tertiary cities more appealing than higher-cost, larger markets."
There were several surprises on the real estate market list as some of the cities are not even known as a hot spot for real estate investment. One example is Nashville, which is able to land a place on the top 10 when it was never known as investor's top choices in real estate investments.
Some of the well- known cities for real estate investments barely made it to the tops 10. The report says "Washington, D.C., Boston, and Chicago failed to make the survey's top 10 while San Francisco and Los Angeles came in at No. 8 and No. 10, respectively."
What can you say about these turn of events in real estate investment industry? Sound it in the comments!
