The Best Cities for Buying Property
Finding the best places to invest in buying property is as much an art as a science. Sure, you can and need to look at the hard data like housing prices, average yearly increase, favorable legislation, etc. However, sometimes there’s just a feel that you need to have about when a market is going to grow. If you’ve already researched all the tough questions and are now looking for help with that gut instinct, below are some of the best places for buying property — as told to you by investment experts.
The Best Places for Buying Property in the U.S.
Before investing, remember that it’s not just about where you invest. It’s also about how. You need to ask yourself how much risk you are willing to take on. There may be mature markets where you can get a steady 4%/year increase without much risk. However, there are definitely also places that have high risk (both in pricing volatility and personal safety) but simultaneously have the potential to double your investment in two or three years.
Jersey City, NJ
In 2016, Curbed.com hosted its annual “Best NYC Neighborhood To Live In” cup, and it actually ended up being a neighborhood not even in New York City! Jersey City, the perennial butt of many jokes over the years, has really come into its own. I spoke with Jeff VanNote and Zack Evans of TheNextBK.com about the area:
“Right now, we are really witnessing Jersey City and more specifically, Jersey City Heights, burgeoning into the next, best Brooklyn.” says VanNote. Jersey City, by square mileage, is the size of Manhattan, so there are many unique and individual areas and markets within the larger whole.
“Hoboken, NJ has become Brooklyn’s equivalent to Williamsburg. It has peaked, and the property values have soared to incredible heights. For those that got priced out of WB, they moved to Bushwick in Brooklyn. What we’re seeing now is that all the artists and others getting priced out are moving to Jersey City Heights.” Mr. Evans explained. “Right now, the single family home market under $400,000 is really exploding. With the Heights, you have easy access to both tunnels to NYC, lightrails, PATH trains, highways, bus hubs and even jitney cabs to get around in. Plus you have the gorgeous skyline of Manhattan!”
Austin has been spoken a lot about in the last decade or two. They have a particular, laid back funky vibe that is still purely Texas, but doesn’t necessarily come with the baggage that other, very red state areas of Texas have. Carson Alexander, a NYC real estate agent at CarsonSellsNYC.com is an Austin native and is looking to invest personally in the area this year or next year. “Austin has been a boomtown for a while now and hasn’t peaked yet,” he explains. “I go there every few months and there’s another new building or another new something. Smart investors are looking at Austin and the surrounding areas for new transplants from primary (NYC, LA), secondary (SF) and even tertiary (Chicago) markets. In each of these markets, a 40-45 minute commute to work is standard. So with Austin offering a slew of housing options in that radius, it is becoming very attractive. From those other markets, the housing market is a bargain, the cost of living is a bargain and the commute is a bargain.”
“Also, it is a big college town so there is always an influx of renters. Right now, because of this, duplexes are the smart buy. You can still find them in ‘up and coming’ areas for $300,000-$350,000. Austin also appeals to many markets like the tech industry, music, art and law. They keep widening the highways to account for all the new transplants, but they can’t keep up!”
Much of Florida was devastated by the financial and housing crash. A full ten years on now and Florida has become one of the best places to invest in. Last year, seven cities in Florida made the “Best Cities to Invest In” by Forbes Magazine. This year, four cities in Florida still remained on the list. Topping that list is Jacksonville.
Right now the job market in Jacksonville is thriving and most salaries are above the national average. The Navy has just ordered eight new combat ships, which will bring thousands of jobs to the Naval Station Mayport. Additionally, financial firms like Ernst & Young are doubling down on their presence in the area, also bringing more jobs. With the influx of these jobs, the rental market is booming. While there’s not a lot of multi-family properties, the single family home is ideal for buy-and-hold properties.
According to Mashvisor.com, Jacksonville is experiencing constant population growth of 2.2%-3% and has workforce growth twice the national average. Traditional rentals earn approximately $1160 for a one bedroom and Airbnb can get you $840. Also, the expected real estate appreciation is 7.5% for one year and a whopping 20.2% for three years, which is one of the best returns on investment you can get!
Have you had huge success buying property in different cities or states? Let us know in the comments below!