There is no denying that the Coronavirus pandemic has affected many, especially those who seek to invest in real estate.

However, many real estate investors have started to think that maybe next year could be a better time for them to invest in real estate. In this article, we will focus on the top ten best places to invest in real estate in the United States for growth, and the market statistics involved. 

Most of the information will be based on the ‘PwC’s Emerging Trends in Real Estate 2021: the US and Canada report.’ You can access the complete report here. 

Best Places to Invest in Real Estate 2021

Let’s go through the top 10 best places to invest in real estate in 2021 in the United States, even during this pandemic. Whether you’re investing in 2 bedroom apartments for rent or any other apartments, this article will help you.

Durham/Raleigh, North Carolina

Before COVID-19, the Durham/Raleigh real estate markets were ranked highly as far as real estate prospects were concerned. Even during the pandemic, the region remains among the best places to invest in real estate, especially if you want growth in revenue. 

The report labels Durham/Raleigh as a real estate ‘Magnet City‘ where businesses and people have been migrating since COVID-19 struck. The location attracts people because of its local job opportunities, general way of life, and culture. 

Newcomers also go to Durham/Raleigh because of the location’s cheaper homes for sale. In addition, the Raleigh and Durham real estate markets present a higher price-to-rent ratio. Residents in the location prefer renting to buying a home. The population of renters in Raleigh stands at 51%. The population for Durham is about 53%. This consists of mainly single family people. 

When it comes to the economy’s general health, the Durham/Raleigh market was ranked at #3 in the report. Although the general United States is suffering from unemployment, the rate in this region is 6.2%. This is lower than the national average of 7.9%. There is no argument that Durham/Raleigh are among the best cities to invest for real estate investors in North Carolina. 

Raleigh Real Estate Statistics:

• Price to rent ratio: 27
• Price for every sq.ft.: $197
• Medium property price: $477,440
• Traditional rent income: $1485
• Forecasted appreciation in real estate for 2021: 7%
• Traditional cash on return: 2.2%
• Top neighborhood for real estate investment: Northeast Raleigh

Durham Real Estate Market Statistics:

• Price to rent ratio: 22
• Medium Property price: $377,133
• Price per sq.ft.: $209
• Rent income: $1413
• Traditional cash return: 2.5%
• Top neighborhood for real estate investment: Scarsdale village
• Forecasted appreciation for 2021; 6.9%

Austin, Texas

Austin has managed to withstand the coronavirus period because it doesn’t depend majorly on the hospitality and leisure industries. Since these areas were amongst the most hit by the pandemic, economies that continue to rely on them suffer greatly. Austin ranks highly on the list of the best places to invest in thanks to its diverse economy. SO whether you are a criminal defense lawyer or a housekeeper, there is plenty of opportunities here for you. For instance, in the report, Austin ranked #1 for the local economy. The city also records one of the lowest unemployment rates.

The report points out the Austin real estate market as a ‘Boom Market.‘ These are locations that when you invest in real estate, your property will keep appreciating and will be in high demand. Additionally, Austin homes for lease and for sale remain some of the most affordable in the country. This has forced people to migrate from areas such as California during this pandemic period. Still, the population of locals remains high, at about 56%. This population growth contributes to the city being among the best places to invest in real estate.

Signs show that the rental property owners are set to enjoy the high rental income, and good occupancy rates as in-migration keep rental demand high. In most, it’s a single family that in-migrates, compared to larger ones.

Apart from Austin having a high cash flow, it also has several Fortune 500 companies making it one of the best places to invest in real estate.

Austin Real Estate Statistics

• Median price: $631,959
• Price to rent ratio: 26
• Price for every sq.ft^.: $326
• Rent income: $2036
• Traditional return on cash: 1.6%
• The forecasted appreciation rate for 2021: 7.7%
• Top neighborhood for investing in real estate: West University

Nashville, Tennessee

In the report, the Nashville real estate market is hailed as the ‘New Boomtown.’ It also ranks highly as one of the best places to invest in real estate in the United States. Nashville is an 18-hour city that has continuously attracted new residents, even during this COVID-19 period. It has drawn in a large number of smart young workers, which has allowed the city to recover greatly from the loss of jobs witnessed when the year started.

The unemployment in the city dropped to a record 5.9%, which is lower than the national average. The city was ranked at number 4 for the stability of the local economy. If you’re looking to buy a rental property in Nashville, you should be aware that the renter population is 48% of the city, consisting of people that are searching for ‘renovated 1 bedroom apartments near me’ in particular. Population growth is responsible for the city being among the best places to invest in real estate. The high demand for rentals has driven up cash on cash return and exceptional monthly income.

Nashville real estate statistics:

• Price to rent ratio: 25
• Medium property price: $481,706
• Cash on cash return: 2.6%
• The forecasted appreciation rate for 2021: 7.2%
• Top neighborhood for investing in real estate: Trinity Hills

Fort Worth/Dallas, Texas

The Fort Worth/Dallas housing market has climbed the ranks from number six in 2020 to 4th in 2021. Together with Nashville, the region is also referred to as a ‘New Boomtown’. The housing market here falls under the ‘Super Sun Belt magnet Cities.‘ Locations are referred to as so due to their ability to offer affordable environments for businesses and residents. The area also has a lower cost of living. They also offer thriving economies that support a wide range of businesses. Worth/Dallas ranked #2 as a result of its thriving local economy. 

The two locations also present positive population and job growth in the future, with estimation putting the numbers at a 28% growth until 2025. At the moment, however, the rate of unemployment is very high compared to other major cities on our list. 

Fort Worth/Dallas earns a spot among the best places to invest in real estate thanks to the growing job market and having a diverse economy. The renter population is also high in these two locations: Fort Worth’s real estate housing market is 44% while that for the Dallas real estate housing market is 59%. Dallas is among the best places to invest especially when you’re looking for revenue growth in your investments. Let’s look at Dallas Fort Worth statistics: 

Dallas Real Estate Statistic:

• The ratio of price to rent: 21
• Cash on cash return: 1.9%
• Home price for each sq.ft.: $227
• Median price: $490,477
• Rent income: $1966
• The forecasted appreciation rate for 2021: 6.1%
• Top Dallas investment neighborhood: Reunion District

Fort Worth Real Estate Statistics:

• The ration of price to rent: 16
• Cash on cash return: 2.7%
• Price for each sq.ft.: $152
• Median price: $324,337
• Rent income: $1,655
• The forecasted appreciation rate for 2021: 7.3%
• Top Dallas real estate investing neighborhood: Village Creek

Charlotte, North Carolina

This is another entry into our list from North Carolina. The city is among the largest city there. The Charlotte real estate market ranks at #5 on our list. The city is also referred to as the ‘New Boomtown’ as people keep migrating to this location even during this pandemic period. 

The city also ranks highly when it comes to the success of the local economy. The unemployment results for the city stood at 8.1% as of September 2020. However, this is higher than the national average of 7.9%. If you are looking for real estate investments anywhere, Charlotte, North Carolina, you should focus on the developing job market. The renter population of Charlotte stands at 48%. Charlotte is among the best cities to invest in for real estate investors. 

Charlotte Real Estate Statistics:

• Ration of price to rent: 23
• Cash on cash return: 2.4%
• Price for each sq.ft.: $219
• Median property price: $435,448
• Rental income: $1,561
• The forecasted real estate appreciation rate for 2021: 7.7%
• Top Dallas real estate investment neighborhood: Lakewood

St.Petersburg/Tampa, Florida

St.Petersburg/Tampa, Florida are also among the best places to invest. The two cities rank at number 6 on the best places to invest in real estate. They are also a ‘Boom market’ that has highly benefited from many people migrating there due to COVID-19. St.Petersburg/Tampa, Florida are also classified as ‘Super Sun Belt Magnet’ cities. 

The report ranked St.Petersburg/Tampa, Florida, at #11 for the local economic prospects. Unemployment here has been on the decline since April 2020. The rate stood at 6.9% as of September 2020. This is lower than the national average. Job growth is one of the reasons why St.Petersburg/Tampa is among the best places to invest in real estate. 

Tampa records one of the largest renter populations standing at 54%. In most, it’s a single family that in-migrates compared to larger ones. Invest in real estate in St.Petersburg to take advantage of the 43% renter population. These two are the best cities to invest in for real estate investors in Florida. Las Vegas investors will like it here since they will have the same cash flow and home values. 

Tampa Real Estate Investing Statistics:

• Ration of price to rent: 24
• Cash on cash return: 2.5%
• Price for each sq.ft.: $254
• Median property price: $516,442
• Rental income: $1,768
• Seller’s market
• The forecasted appreciation rate for 2021: 8.0%
• Top Dallas real estate investment neighborhood: Northeast

St. Petersburg Real Estate Investing Statistics:

• Ration of price to rent 24
• Cash on cash return: 2.3%
• Price for each sq.ft.: $336
• Median property price: $537,210
• Rental income: $1,902
• The forecasted appreciation rate for 2021: 8.6%
• Top Dallas real estate investment neighborhood: Bartlett Park

Salt Lake City, Utah

It’s by surprise that Salt Lake City has managed to make it to the list of the best places to invest in real estate. 

This region has been a destination, especially for those leaving Las Vegas. whether before or during the pandemic. Being an 18-hour city, it’s called a ‘Magnet.’

The report ranked the city’s economy at #13. The city also boosted the lowest unemployment rates of all the cities on the list, which stood at 5.4%. This is lower than the national average. There is a high in-migration into the city due to the high employment opportunities being witnessed there. The job growth contributes to Salt Lake city being among the best places to invest in real estate. In most it’s a single family that in-migrates compared to larger ones. 

Since almost 53% of the city’s population live in rentals, real estate investment would find renters within a very short period. The population growth of renters contributes to the city being among the best places to invest in real estate. 

This is among the best cities to invest in real estate. 

Salt Lake City Real Estate Investing Statistics:

• Ration of price to rent: 33
• Cash on cash return: 1.6%
• Home purchase price for each sq.ft.: $288
• Median home price: $562,222
• Rent income: $1,426
• The forecasted appreciation rate for 2021: 7.3%

Washington DC, Northern VA

You might be surprised to find Washington DC among the best places to invest in real estate in the United States. The Washington DC suburban/metropolitan area ranks at position #8. Even though the city is no longer popular as far as the general population is concerned, experts believe the impact of the pandemic won’t be permanent.

It’s a sure bet that the Washington area will remain among the most influential areas for real estate investing in the US. The area has many fortune 500 companies making it the best place to invest in real estate. It also has a high cash flow. 

When it comes to grouping, the DC area is an ‘Establishment.’ This is due to the city’s impact on the country and its influence on real estate. 

As for the economy, Washington ranks at #6. The unemployment rate in the city has severally shown signs of improvement since May. However, it maintained a steady rate of 8.8% for several months now. Job growth has contributed to Washington DC being among the best places to invest in real estate. 

You should buy rental properties in Washington DC because the city has a very high renter population of 61%. The population growth of renters is responsible for the city being among the best places to invest in real estate. If you’re an investor in Las Vegas, you’ll still like it here since this environment has the same home values and cash flow. 

Washington DC Real Estate Investing 

• Ration of price to rent: 23
• Cash on cash return: 2.8%
• Price for each sq.ft.: $577
• Median home price: $711,007
• Rent income: $2,596
• The forecasted appreciation rate for 2021: 6.3%

Boston, Massachusetts

The Boston area is another unique ‘Establishment’ that makes it the best place to invest in real estate. Boston itself is among the largest cities in the US. Although the city is currently experiencing an out-migration due to the pandemic, it’s expected to gain a good footing as a popular property investment in the future. 

The city is categorized as a ‘Multi Talented Metro area.’ Boston is considered an economically diverse area and a leader in different sectors, including healthcare, finance, education, and biotech. 

This area is the only ‘Multi Talented Metro Area’ in our list of the best places to invest in real estate. Although it’s an expensive area to buy a home or do business, the Boston area is expected to experience tremendous growth. Thanks to the top universities and excellent leadership, the city will keep on attracting residents. 

The report ranked the city at #9 as far as the local economy is concerned. The city has, however, struggled with an unemployment rate of 11%. It’s now gaining momentum in the right direction. The job growth contributes to Boston being among the best places to invest in real estate. 

Boston has one of the highest renter populations on our list. If you have an investment rental property in Boston, you’re likely to experience a low vacancy rate and a high demand. If you move across the neighborhood, you’re likely to come across a single family. For those who have ever invested in Las Vegas, you’ll like it here since you’ll get a similar cash flow and home values. 

Boston Real Estate Investment Statistics:

• Ration of price to rent: 32
• Cash on cash return: 1.6%
• Home prices for each sq.ft.: $787
• Median home prices: $1,040,905
• Rent income: $2,714
• The forecasted appreciation rate for 2021: 6.9%
• Top neighborhood for real estate investment: Mission Hill

Long Island, New York

New York is not just the most popular and largest city in the world but also the whole world. With this, it becomes hard to miss at least one region of the state from the list. The long Island region has been growing for a long time now and is now one of the top places to invest in real estate. This region falls under the ‘Establishment’ category. 

The report places the Island at #15 under the local economy category. The unemployment rate of the city continues to drop over time. It stood at 9.5% in September. The job growth puts Long Island among the best places to invest in real estate.

Long Island Real Estate Investing Statistics:

• Ration of price to rent: 35
• Cash on cash return: 1.2%
• Price for each sq.ft.: $618
• Median price: $1,185,517
• Rent income: $2,789
• Seller’s market
• The forecasted appreciation rate for 2021: 5.6%Top neighborhood for real estate investment: Arverne

Conclusion

Since there is no crash in the housing market, 2021 is still a good time for you to invest in real estate. You can start looking for an investment property to buy in any of the housing markets we highlighted above. It would be wise to invest in rentals that target a single family due to their high demand.

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