14 Up-and-Coming Real Estate Locations To Watch

In major global cities, the real estate market is caught in a high-demand, low-supply cycle. That’s why many real estate investors are looking in other areas to diversify their property portfolios.

There are a few factors to consider when looking for the best areas to invest in, such as affordability and population growth. To help you choose a promising location, we asked a panel of Forbes Real Estate Council members to name their picks for up-and-coming real estate investment locations. See below why they believe fellow real estate investors should keep their eye on these areas in the near future.

1. Toronto, Ontario 

With steady growth and high demand for rental inventory, Toronto is a great place for real estate investments. According to the 2019 Global Liveability Index, Toronto is ranked seventh in the list of the most livable and competitive cities in the world. It has also earned top rankings for stability, culture, education and infrastructure. – Michelle Risi, Royal LePage Connect Realty

2. Mount Airy, North Carolina (Mayberry)

While many assumed the next generation wouldn’t even want to own their own homes, let alone something out of the urban core, new data shows the opposite is playing out. Millennials want space for their growing families and they will head out to the outer suburbs or even satellite small towns if that’s what it takes to get it. Many will need to rent first and won’t wait to move until they can buy. – Craig Cheatham, The Realty Alliance

3. Sacramento, California 

While San Francisco reigns supreme as a tech hub, the high cost of rent is forcing people to look elsewhere to plant themselves. Sacramento, a close neighbor of San Francisco, offers more affordable rent and a lower cost of living. As tech continues to boom in the region and draw in more tech workers, real estate investors should absolutely keep Sacramento top of mind. – Nathaniel Kunes, AppFolio Inc.

4. Las Vegas 

The Las Vegas economy is still diversifying with the city offering some of the most favorable tax laws in the country and the cost of living is still relatively low compared to the rest of the country. Local regulations are business and investor-friendly and there is still lots of room for growth. There is raw, undeveloped land still available and there are many industries where the market is not yet saturated. – Catherine Kuo, Elite Homes | Christie’s International Real Estate

5. Twin Cities, Minnesota 

The Twin Cities of Minneapolis and St. Paul continue to be the best-kept secret in real estate, though word is getting out. With 18 Fortune 500 companies, a diverse economy, light rail transit and a booming downtown construction pipeline, the Twin Cities continue to be a bright spot in the Midwest. – Brian Milovich, Calvera Partners

6. New York City 

Believe it or not, there are still deals to be had in NYC! Look for any new development or resale that has a real estate tax abatement with more than five years remaining as those savings add up fast. Look to Upper Manhattan. Harlem, Washington Heights, Inwood, etc. are all still growth markets that offer great value. These areas are still growing their retail and commercial base! – Stephen Glen Kliegerman, Halstead Property Development Marketing.

7. The Sunbelt States 

The Sunbelt states, which include Arizona, New Mexico and Texas, all have shown significant and steady growth at reasonable prices. There are a lot of opportunities for new construction since supply has yet to meet demand and also great opportunities for investors looking to maximize a 1031 exchange. They’ll see their money really go much further, especially when compared to the coastal cities. – Alex Vasquez, Rhino Realty Property Management

8. Second-Tier Southeastern Cities 

Having transplanted from California to Nashville, I strongly believe the future is in second-tier southeastern markets. Low to no taxes, accessibility, cost of living, etc. outweigh the grind of living in a major city. With more and more companies setting-up hubs outside of major cities and in the southeast, I think millennials will keep moving. – Meg Epstein, Ca South Development

9. San Antonio, Texas 

Austin, Texas has been super hot for real estate investing for the last decade, so many prices have become bloated. Many investors are now putting their money to work south of Austin in San Antonio and people are moving there because prices are lower. Certain neighborhoods have an emerging foodie and bar scene, which can be a catalyst for more newcomers to move to the area. – Zachary Maurais, Sunroom

10. Western Open Land 

The homebuilder sentiment index is at 76 on a national level and 84 in the western region of the United States. What does this mean? With 50 being a neutral outlook, builders and developers are extremely optimistic about housing, particularly in the west. When homebuilders are optimistic, they buy land. Landowners in the west will be met with builders motivated to purchase. – Ben Harris, Harris Investments LLC

11. Kansas City, Missouri 

Investors should keep their eye on Kansas City over the next 5 to 10 years. When Google launched Google Fiber, they invested a billion dollars in Kansas City as the first city for its roll out. Considering Google’s stature as the analytics leader of the world, huge technology jobs are coming to this area, bringing a very young population and a diversified economy. – Ari Rastegar, Rastegar Property Company

12. States With ADU Demand 

States continue to pass rent control legislation but to help on the supply side, they have also been pushing alternative dwelling units (ADUs). Where a normal single-family neighborhood used to sit can now become a neighborhood of duplexes. Garages, two-story homes, backyard or an empty driveway are all being built or converted to housing units to accommodate demand. This trend will continue. – Joseph Edgar, TenantCloud

13. Gloucester County, New Jersey 

For the most inspired growing area, look to Gloucester County in South Jersey! Located close to the city and the shore, we have green spaces, room to breathe, wineries, a quaint downtown and bike paths. It’s all here, and that’s why world-class Rowan University is growing. A new 1,000-bed, state-of-the-art hospital is opening, too. – Nancy Kowalik, Nancy Kowalik Real Estate Group

14. Detroit 

One city I find interesting is Detroit. They were once booming with a music scene and automobile industry, but they lost a lot of that and real estate value went with it. A lot of moves are now being made to reinvigorate the area and it has the bones to be a major flourishing city again. It would be a long-term investment, but the prices are so reasonable, it would be worth it. – Bill Lyons, Griffin Funding