Traditionally speaking, real estate market has always been a reliable way for people to store and grow their wealth. Even with the recent shocks to the global markets we experienced back in 2008, attributed in part to questionable practices in the real estate and mortgage lending sectors.
The fact is, land is not an infinite resource, and demand will continue to grow as long as populations and economies grow and so the trend will continue upwards for the foreseeable future. Even for those engaging in news trading, where current events motivate their investment decisions, there’s the possibility to make substantial profits in this industry. Should you be looking to diversify your portfolio into real estate in 2018, here’s a quick look at some of the cities likely to give you healthy returns, in no particular order.
1. San Francisco, California
The city that plays host to the Silicon Valley has been a consistent high-performer in the field of real estate. Rental and commercial properties in the tech capital of the world remain high and show no signs of slowing down as the city continues to boom. The high rent averages, currently at $4,400 per month, are by no means unsustainable as the highly skilled work forces that work in the region earn salaries that are significantly higher than national averages. It’s as safe a bet as you’ll find anywhere.
2. Orlando, Florida
Orlando has a long history of strong real estate performance, being a favorite tourism and entertainment hub in the region. These will always have a sizable market and ready pool of investors waiting to get in on the action. The average rental rates stand at $1,599 per month. It’s an attractive option in 2018, especially for investors with an appetite for holiday markets and long-term residential developments, as these continue to consistently post returns well above national averages.
3. Atlanta, Georgia
This is one of the surest bets out here right now, based on solid economics and population projections. As one of the most productive states in the entire country, GDP wise, Georgia continues to enjoy a consistent boom period that shows no signs of slowing down any time soon. The capital city and economic center of the state, Atlanta, reflects this reality as its population has grown by 14 percent over the last decade as people come in to seek opportunity. All these people need places to work, play, and live, so real estate investors are in for some promising opportunities for the foreseeable future. With an average rental rate of $1,500 per month right now, time is of the essence here as quickly appreciating prices might soon price real estate developments out of the reach of small and medium-scale investors.
4. Dallas, Texas
Dallas is currently a very attractive investment destination, with over 3,000 units being listed every week. The high availability of housing stock combined with the relatively high rental rates (currently averaging $1,800 per month) mean that it’s a very accessible market at the moment, though you might have to put in some extra effort to attract tenants to your holdings. That’s what property managers are for, anyway, so don’t sweat it.
The Dallas region reports some of the lowest homeownership rates in the entire country, with most people choosing to rent rather than buy properties outright. This rate of rental demand is set to continue trending upwards, having experienced a 14 percent uptick last year alone. It’s the perfect time to set your sights further down south.
5. Spokane, Washington
Should you be in search of a less glamorous and underestimated investment destination, then Spokane should be just the thing for you. The city’s current population stands at a modest 213,000 but this takes nothing away from its potential as a real estate hot spot. The strength of Spokane as a real estate destination lies in its relatively affordable housing prices as well as the exceptional mortgage conditions residents enjoy in the area.
You’ll find 65.75 percent of the houses in the city are single-family detached homes, with rent averaging out at $1,250 per month. Appreciation on the property has consistently tracked with national averages. Spokane might not be a meteor in terms of performance, but it can be a sure thing for the investor with eyes on the long-term prize.