15 Booming Real Estate Markets That Are Trending In 2018
Topic:
The real estate market is heating up. Of course, some markets are hotter than others and have been seeing sales surge in recent months.
Plenty of metropolitan areas in North America are reaching new heights in property sales and are on the verge of popping before your very eyes. Below, 15 members of Forbes Real Estate Council share what cities are currently worth considering for a real estate investment.
1. Downtown Los Angeles
Downtown Los Angeles used to be unsafe, but in the past three years, the city has taken huge steps to make it safer. There are guards patrolling the streets on bicycles. With the Olympics coming to Los Angeles in 2028, tech companies moving to LA because of price rise in the Bay Area and shortage of space in other parts of LA, the gentrification of DTLA is inevitable. – Nikhil Choudhary, Zenith Engineers Inc
2. Austin, Texas
Austin has a relative low cost of living, educated workforce and enviable quality of life. With over 2 million residents and people flocking, Austin has a critical mass to withstand the test of time and, along with it, some serious mojo. Commercial real estate is on fire. Those who allow extra time for approvals, and room for property taxes, should be well positioned for the future. – Stephen Clark, Clark Investment Group
3. Houston And Dallas
Houston and Dallas are both seeing rental growth in B and C class product. However, available inventory of investment properties is limited at the moment — and that’s all the more reason to have your alerts set and be on your local brokers’ mailing lists. – Caroline Kane, CKR Property Management, LLC
4. Miami
Foreign buyers have dropped $7.5 billion on homes in the U.S. costing over $1 million, with 40% of those purchases in Miami, Los Angeles, and Manhattan, according to The Real Deal. A whopping 25% of the total was in Miami, the reason being Miami’s tax advantage and, most importantly, the price per square foot, which is substantially lower than average. I would advise considering South Florida. – Gabriel Souza, Ictus Group at Decorus Realty
5. Phoenix
We continue to find opportunities to acquire properties in the Southwest that are underperforming not due to location or the economy, but lack of engaged owners and managers. Arizona continues to attract new residents and companies seeking lower taxes and a friendlier business climate than in the Midwest or on the East and West Coasts. – Brion Crum, Caliber:The Wealth Development Company
6. Atlanta
Atlanta is a great market to invest in. It is home to many large corporations such as Coca Cola, Delta and the Home Depot (and hopefully the second headquarters for Amazon) so it has a great deal of potential investors with a great renter profile — they have great jobs and are willing to pay more for rent. The cost of living in the city is also low, so your money goes much further for you. – Ali Jamal, Stablegold Hospitality
7. Memphis, Tennessee
Memphis, Tennessee has consistently offered value and growth. There are viable investments in most U.S. cities. What is important is not overpaying. Look at the numbers, be sure you can make money even if the market doesn’t grow or dips a little temporarily. Know your fundamentals, including demand versus supply, level of affordability, rent trends and availability of mortgage credit. – Kent Clothier, Real Estate Worldwide
8. Chicago
Chicago is ranked No. 1 on many real estate investor lists. Recently rated the most affordable of the large metropolitan cities, Chicago is known as a global business center. Investors looking to lower risk are smart to consider the diversity of industries that safeguard the Midwest from the large economic swings in housing cost cycles felt on the coast. This makes Chicago a popular choice. – Linda Liberatore, Secure Pay One – My Landlord Helper
9. Washington, D.C. Metro Area
The D.C. metro area is poised for growth in 2018, having added more than one million square feet of office space last year. Affordable city neighborhoods like Petworth, Mt. Pleasant and Deanwood (which was named one of the 10 hottest neighborhoods in the U.S.) are areas to watch, as well. – Bobby Montagne, Walnut Street Finance
10. Seattle
There is arguably no better place on Earth growing faster than Seattle, Washington. This will be the next New York, simply because land is now becoming scarce, and the city can’t keep up with the large growth it has seen in the last few years. This leaves builders with only one choice: Build up. At that point, land becomes much more valuable. – Lucas Pinto, Lucas Pinto Real Estate Group, LLC
11. Long Island City, Queens, New York
Long Island City in Queens has been named the fastest growing neighborhood in the country thanks to its proximity to Manhattan, transportation options and abundance of new residential projects. It is a 24/7 work, live, play neighborhood that will continue to increase in value. There’s even buzz that LIC is in the running for Amazon’s new headquarters, which has shed even more of a national spotlight on this once heavily industrial zone. – Elizabeth Ann Stribling-Kivlan, stribling.com
12. Minneapolis/St. Paul
I shouldn’t tell you this, because we invest there, but Minneapolis/St. Paul is probably the best kept secret in all of real estate and the country. With one of the lowest vacancy rates for apartments in the entire U.S., the headquarters of 18 Fortune 500 companies and positive job growth in growing industries like healthcare and technology, the Twin Cities are a hidden gem. – Brian Milovich, Calvera Partners
13. Boise, Idaho
My son’s a Boise State Mechanical Engineering student. I’ve spent time getting to know the city, the university, its economy, employment base, its housing, its development, some of its leaders and its people. It reminds me of Seattle, the market where I live, 20 years ago. It’s poised for a huge boom. It’s all about tech companies there that are fed by Boise State, another tech powerhouse on the rise. – Kevin Hawkins, WAV Group, Inc.
14. Cincinnati
Cincinnati has seen a steady growth in population and numerous areas within close proximity to the downtown have been gentrified. The cost of living is super affordable and the city in itself is just beautiful. I see the potential for appreciation in this area, with a cash flow that is higher than any other market. – Engelo Rumora, List’n Sell Realty
15. Toronto
Investing in real estate in Toronto has represented the greatest return with the least risk over the last 20 years. The city has become one of the top world-class cities over the last several years, and the demand to live there is what sustains the demand and values of real estate. – Allan Rankin, Re/Max Royal Properties Realty Ltd. Brokerage
Author
Multifamily values have declined 20-30% since 2022. They are likely to get a boost when the Fed starts cutting interest rates. Once that happens, it may be too late to get in. Don’t wait and risk missing a potentially significant multifamily market upswing opportunity.
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