13 Best Cities To Invest In Real Estate In 2021

On May 5, 2021

Investing in real estate isn’t a one-size-fits-all approach. When you decide to add real estate investments to your portfolio, you need to decide where to invest. The location can make or break your investment. Whether you want to invest in the cheapest place to buy a home or the place with the highest monthly rents, knowing where you’ll make the most money is important.

Did you know you don’t have to invest in your own city or state? Today the internet and popularity of real estate marketplaces make it easy to invest in homes halfway across the country that you’ve never seen.

So, where should you invest your money? Check out our list of the 13 best cities to invest in real estate in 2021.

1. Atlanta, Georgia
Atlanta has a population of 506,000 with a 43.5% rate of homeownership. Atlanta has had an incredible business growth rate in the last few years, with some of the hottest tech giants setting up camp there. Today, Atlanta’s average home price is $313,000, which is on the higher end, but the rental market is large in this city, giving investors an incredible return on their investment.

2. Dallas, Texas
Dallas has a very diverse economy and population, making it an excellent place for real estate investors to start their portfolios. Dallas has a large population of 1.3 million people, and this year, it’s estimated that hundreds of people move here a day, many of which come from California.

Rental demand in Dallas is high, and the average home value is around $247,000. Dallas is a low-cost place to live, bringing many people to the area, although the warm, southern weather doesn’t hurt either.

3. Houston, Texas
With a population of 2.3 million, there’s quite a pool of renters to advertise to as an investor. Houston is a popular area for your business professionals and entrepreneurs, which is excellent in today’s economy. So many businesses going remote – business professionals can live anywhere, including beautiful Houston, TX.

Houston has always had a low unemployment rate which is great for real estate investors as there’s less worry about vacancies.

4. Las Vegas, Nevada
Las Vegas isn’t just a city for tourism. It’s also a great place to invest. Real estate investors can take advantage of the booming economy and affordable houses. Surprisingly, Vegas only has a population of 650,000, but it’s constantly attracting more people with its booming economy and variety of businesses in the area.

This year, Vegas has had an incredible increase in its property values, so while it may cost more to buy a home in Vegas, you can ride the wave as homes continue to appreciate. Today, they’re worth an average of $314,000.

5. Tampa, Florida
Florida has always been a hot area to invest in, but Tampa, Florida, has recently topped the charts. With its affordable homes average of around $286,000 and a population of almost 400,000, Tampa is a beautiful place to invest.

Unlike other surrounding cities known for retirees and tourism, Tampa has many Fortune 500 businesses in its quarters, bringing in young families and couples, many of who rent at least for the first few years they are there.

6. Columbus, Ohio
Columbus, Ohio, is one of the most affordable places to invest on our list. It’s also an area of tremendous business growth in the last year, making now a great time to jump at the chance of investing in this bustling town.

Today, Columbus is home to almost 900,000 people, and the average home is worth $193,000. That makes it incredibly affordable to start investing here, especially when you buy a turnkey property and already have tenants in place.
7. Orlando, Florida
Known for Disney World and all things tourism, Orlando is a great place to invest in real estate. Orlando’s population has increased tremendously in recent years, with a population of 287,000 today. Its average home value is around $278,000, which is still affordable for middle-class families to purchase for an investment.

Orlando has had tremendous job growth in recent years, primarily because of its incredible tourism industry. Professionals in hospitality can find numerous job opportunities in this hot yet beautiful southern state.

8. Charlotte, North Carolina
Charlotte has had a few consecutive years of a seller’s market, making it hard for buyers to find homes and driving up values. As an investor, that’s what you want to see. While you may not have gotten in while prices were low, there’s still time for them to appreciate, giving you more bang for your buck.

Homes in Charlotte average around $287,000 with a population of 885,000. Charlotte is often known as an entrepreneur’s dream come true as millions of entrepreneurs have moved to Charlotte to chase their dreams. If you could live anywhere and do your job from home, you’d probably pick this beautiful city too.

9. Colorado Springs, CO
It may not be Denver, but Colorado Springs has a lot to offer investors. Its home prices have appreciated fast through the years, leaving the average home price around $363,900 today.

Colorado Springs has a population of around 478,000, and its rent prices are high compared to many other cities. This area has experienced tremendous job growth over the years and is one of the hottest places to buy investment properties today.

10. Phoenix, Arizona
Phoenix is a well-populated city with a population of about 1.7 million people. Its real estate prices have increased in recent years, leaving the average cost around $314,000, but the large population gives investors a large pool of renters to choose from.

Phoenix has gorgeous weather, a low cost of living, and continually appreciating home values giving investors an incredible return on their investment.

11. Jacksonville, Florida
Jacksonville isn’t the first city most people think about when talking about investing in Florida, but it’s an affordable and profitable place to invest. Today, they have around 911,000 people living there, and homes sell for an average of $218,000.

If there’s one thing that stands out about Jacksonville, it’s the healthcare system, which means it draws in plenty of healthcare professionals or people who need the healthcare system and a place to live, which if you invest there, you can provide the home they need.

12. Sacramento, California
Sacramento is a higher-priced city, but the return on your investment is high. Sacramento is one of the more affordable cities in the state. With many people working remotely today, families are flocking to the Sacramento area in the hopes of getting a financial break.

Today, Sacramento has a population of around 513,000 people, and the average home sells for $410,000. As more people relocate to Sacramento, it’s a great time for investors to jump on board and provide for the home renters’ needs.

13. Indianapolis, Indiana
Indianapolis is just outside of Chicago and is another bustling city for investors to buy real estate. Indianapolis has a population of 876,000 people, and the average home sells for $174,000, making it an affordable place for first-time investors to start their portfolio.

Indianapolis is home to many Fortune 500 companies, and more are looking to call it their home base as well. As an investor, you can jump in on the excitement while prices are still low.

Why Location Is Important For Real Estate Investments
Choosing the type of home you’ll invest in is essential, but the location is almost more important than the type of home.

You’ve likely heard the saying ‘location, location, location,’ that’s how important it is to focus on. Finding a location to invest that is affordable enough to invest in yet has a large enough rental pool always to have your home filled is essential.

Think about your target audience before choosing where you will invest. For example, if you want to buy a large single-family home with four bedrooms to rent out, you need to invest in an area where there is a demand for single-family homes. Not only do you need an area with the right type of real estate, but you should also look at:

The crime rate
School ratings
Amenities
Access to transportation and highways
Adequate employment opportunities

Knowing your target audience and what the area offers will help you determine the right place to invest.

Here’s the one thing many people don’t realize. You don’t have to invest in your city. You don’t have to invest in your state either. In fact, many investors make more money investing in long-distance locations because they can buy more affordable homes than they could buy in their high-cost area.

If you can get more bang for your buck across the country, do it. Working with a real estate platform, like Roofstock Marketplace, you’ll get matched with property management services that handle all the legwork for you. All you have to do is fund the investment and collect your monthly rent check, and you’re on…