With smart real estate investment strategies, you can see a high return on investment (ROI) in any city or state. However, it’s generally advised to avoid states or cities that have strict rent control policies, poor community development, extremely high crime rates, or steady population decline. There are tons of cities to choose from in America alone for investing, so how does one narrow it down? Whether you’re a beginner investor or want to diversify your investment portfolio, you may want to consider some underrated gems or cities with major growth potential. Remember, investing isn’t just about current profits, but your future returns as well. This guide will cover some of the most promising investment cities for now and the future.
Providence, Rhode Island
While Providence is the capital and most populated city in Rhode Island, the entire state is usually overlooked when it comes to real estate investing due to its small size. While small it is, with a population hovering just under 200,000 for the entire city, it’s a great location to start or expand a real estate portfolio. Not only is it a popular tourist spot, especially during autumn, its economy is booming. The finance technology (fintech) industry has made quite a home in this small Rhode Island city, and there are no signs of leaving; job growth and opportunities are plentiful, making it a great spot for young professionals or families. Further, the city is in the middle of some major urban hubs, like Boston, only an hour away by train. Three hours will even get you to New York City! On average, a home sells for less than $300,000, so there’s a decent low price point for investors to dip their feet in.
Las Cruces, New Mexico
Some real estate investors advise to stay away from New Mexico, as the crime rate may drive away many potential tenants. However, there are some hidden gems in New Mexico with lower crime rates and great opportunities for ROI, including Las Cruces. This city has plenty to do for families and kids, with wonderful historic learning opportunities. The crime rate is much lower than the state’s average as a bonus. Las Cruces home prices have jumped over 12% in the past year, indicating a high demand. While it’s the second biggest city in the entire state, it has smaller town charm combined with access to larger city amenities. The population is steadily growing per year, too. Investors may not want to miss out on the promise of New Mexico’s growth.
Cincinnati, Ohio
Most investors overlook the promise of the midwest outside of Chicago. There are plenty of large, affordable cities in Ohio, including Cincinnati. Situated on the border of Kentucky and Ohio, Cincinnati is a sports town with diverse culture, gorgeous rolling hills, delicious local foods, and scenic riverfront views. There are plenty of things to do for people of all walks of life, from theme parks to its infamous zoo and tons of sports arenas. On the real estate front, Cincinnati is a highly affordable city, with the average home price of just under $250,000. The community has seen major revitalization, along with a strong economy and plenty of job growth.
Greenville, South Carolina
When most people picture South Carolina, they imagine Myrtle Beach or Charleston. Greenville is only the third most populated city in the state, but it has tons of investment promise. It’s often ranks high on lists of best places to live. Investors will see a lot of families and retirees as tenants, as it’s also a major retirement destination. There is a growing economy, particularly in the foodservice industry, drawing young professionals and foodies alike. Its proximity to large city resources like Charlotte while maintaining a smaller town family-friendly feeling makes it one of the fastest growing cities in the whole state! The real estate market is competitive and hot, with the average home price around $300,000.
Boise, Idaho
There is plenty of real estate promise in Idaho. Many investors pass on Boise due to its rurality, making it a prime location for some exclusive, promising ROI. Boise is the most populated city in Idaho, also serving as its capital city. With tons of family-friendly parks, museums, and natural wonders, it’s a wonderful place for young people to settle without the hustle and bustle of larger cities. It has seen a major population growth in recent years due to its revitalization efforts and rising economy. The average home price is a little steeper, at around $475,000 to $500,000, but you’ll see plenty of diverse tenants for quick and easy ROI. The city also has an attractive property and income tax rate.
Conclusion
If you’re looking to start or expand your real estate investment portfolio, you may want to look past the common recommendations for bigger ROI. Look at cities with steady population growth, revitalizing communities, and economic booms. Cities with industrial or technological expansion may be worth looking into. Family- and investor-friendly tax policies are also important factors to look for. A lower home price entry point can be a great benefit, too.