The 5 Best Real Estate Markets for Investors in 2024
With the start of the new year, many real estate investors are looking for ways to expand their portfolios and decide the right markets to enter in the year ahead. While there are a lot of factors that can impact this decision, there are a few markets that look particularly appealing for investors this year.
When evaluating the market, here are some key metrics that we considered: population growth, economic growth, vacancy rates, affordability of houses, employment stability, state income taxes, crime ratings, lifestyle ratings, price-to-rent rations, and maintenance costs. With those factors in mind, here are 5 of the best real estate markets for investors in 2024.
1. Raleigh-Durham, NC
Raleigh-Durham and the research triangle is an area that’s seen tremendous growth in recent years. In addition, it has high-quality universities that attract a lot of talent to the area and result in a somewhat transient population with above-average rental rates.
Despite the growth, housing in the area is still relatively affordable, the area boosts strong economic growth, and the job market is growing. Despite growth in the private sector, there are lots of university and government jobs in the area, which brings stability to the market.
The thriving rental markets, growing economy and population, and below-average house prices make Raleigh-Durham, North Carolina a good option for single-family and multi-family properties in 2024.
2. Dallas/Fort Worth, TX
The Dallas/Fort Worth area has consistently stood out in recent years as a place for investors looking for residential units. It’s a business-friendly area that’s centrally located. The two main factors that stand out to us about Dallas are the affordability of homes in the area and the rapid growth in the area. For investors, this means that you can affordably enter the market and feel confident that rental demand is there and growing.
3. Cleveland, OH
Cleveland is a city that isn’t usually included in the list of top markets, but there are a few reasons we think investors should consider it. It’s one of a few Rust Belt cities that are in the process of rejuvenation. Cleveland was hit hard by the housing crisis of 2008 but has slowly recovered. As a result, the area offers many of the perks of a big city while also having a low cost of living. The median home price in August of 2023 was $120,000. While there’s some uncertainty about how much Cleveland will continue to recover and grow, Cleveland nevertheless offers investors a chance to affordably enter the market and, hopefully, see above-average home and rental appreciation.
4. Houston, TX
Houston is consistently on this list because of its rapid growth. The metro area continues to grow at almost twice the national rate. Despite this growth and the steady demand for housing, home prices remain below the national average. The rapid growth, affordable entry point, business-friendly environment, and economic growth in the Houston area make this a great choice for buy-and-hold investors in 2024.
5. Atlanta, GA
Similarly, Atlanta has seen strong economic and population growth in recent years. Numerous corporate relocations to the area have led to a strong demand for housing, particularly rental units. Like other sunbelt cities, it’s also attracted people relocating to more mild climates. Housing prices are still affordable in the area and the business-friendly environment has led to a string of corporate hubs in the region.
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While these cities are all good bets for purchasing residential rentals in 2024, Landlords need to pick markets that fit them best. For example, we always encourage Landlords to manage their rentals themselves whenever possible.
This means that markets with strong fundamentals that are close enough to manage yourself are a good option. Or, if you can’t do that, consider markets where you have connections and contacts to help with your property. Do plenty of research, with a particular focus on areas with affordable properties, good price-to-rent ratios, signs of growth, and steady rental demand.
Emily Koelsch, ezLandlordForms Contributing Writer
Emily Koelsch is a freelance writer and blogger, who primarily writes about business, real estate, and technology.