According to many surveys, the US real estate market industry presents a very lucrative opportunity for investors. This is mainly pegged onto the projections of persistent growth in population and income levels against inadequate housing across many cities. Since the housing crisis of 2009, the US real estate market has experienced steady rise for three consecutive years, and it is expected that things will get even much better in the years to come. However, most investors are still skeptical on putting their money into the industry, and this begs the question; what are the hottest real estate markets for investors?
Despite the promise of great wealth, which lies in the real estate market, there is always no sure path to success. Proper research and analysis of the markets need to be made for informed decision-making. The following are some of the best real estate markets for investors in the United States:
Dallas is one of the hottest spots for real estate investments, with North Texas hitting an almost all-time high. In September 2015, many home sellers were earning higher revenues than the asking price. Analysts say the shortage of residential property in North Texas is causing prices to soar, presenting better returns for investors. In Dallas, home sellers can receive up to 20 percent unleveraged return on real estate investments.
The average housing prices has been on the increase, with about 4.1 percent increase from the same period last year. Besides, it is one of the three real estate markets in Florida where significant growth is expected in the future. Miami has over the years registered a remarkable 18.6 annual return for real estate investments, and there is no doubt this trend would extend into the future.
Although it did not receive a lot of attention during the bubble in the housing sector, Atlanta has been experiencing slow tumble. The most interesting thing about the market is that even with an almost 38 percent fall, the prices of houses has remained quite reasonable. The average rent is considered affordable, and this has kept the market afloat even in times when investors in other markets are feeling the heat. Besides, this trend may convince many people to buy homes, an added advantage to home sellers.
Since 2011, Atlanta recorded its highest returns in June 2015. Compared to the previous year, the number of homes sold increased by about 15.8 percent. The prices of residential property have been slowly recovering and it is expected the trend will make the market more favorable to many investors beyond 2015.
Las Vegas is among the areas that suffered greatly from the debacle in the housing sector. However, the attractive weather and gambling among other activities thriving the area have ensured huge returns on the value of real estate investments. The rental rates are steady, earning investors an estimated 15.3 percent annual return.
Despite the quick recovery of Miami’s real estate market, its neighbor, Tampa has remained on the receiving end for some time. The area experiences constant cash flow and the houses are also quite affordable, with prices staggering at about $103,000. Rentals are also affordably priced, creating a better stage for many people to buy or rent property. This is good news to investors because of the projected stability in housing prices.
With an impressive appreciation of almost 9 percent in property values within a year, 2015 has been a great year for home sellers in Austin, Texas. In fact, even prices of rentals have not been on the low. The Austin Metro area has experienced incredible growth in the value of property, pushing the annual returns on investments to about 15.6 percent. Expectations of further appreciation in home values and continuous cash flow is likely to generate greater returns for investors.
Detroit has not been able to recover fully from the impacts of the crash in the housing industry. However, analysts say sales have been soaring since the previous year. As the risk of foreclosures diminished, home prices scaled higher. In fact, it is now one of the US real estate markets that investors should pay close attention to for better returns.
Generally, many real estate markets across the United States are slowly becoming hot spots for investors mainly because of the projected economic growth and population increase, creating the need the for more housing facilities.