Investing in real estate in the US: best cities to invest in 2023
Investing in US real estate remains attractive to foreign investors. Find out more about the features of the current real estate market in the United States, how to choose the best places to invest in real estate and the top best cities in the United States for investment in 2023
Despite significant fluctuations in the housing market in the United States in recent years, real estate investment remains an attractive investment option, because renting out housing is a good form of passive income. However, in order to get the maximum profit, it is necessary to choose the best place to invest, taking into account the peculiarities of the American market.
In which cities of the country is it better to buy housing in 2023? Investing in real estate in the USA is discussed in detail below.
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Features of the modern real estate market in the USA
In 2023, US mortgage interest rates have risen sharply, but the housing market is still in demand from investors. Most often, citizens of Canada, Mexico, China, India and Great Britain buy real estate in the country.
During the pandemic, potential home buyers in the United States were paying record prices for homes. Remote workers who were interested in buying real estate also boosted the market. As a result, as of 2023, the range of housing on the American market has decreased sharply. Therefore, the majority of potential buyers will now prefer to rent real estate, and therefore the demand for family homes will increase in the coming years.
However, before buying, it is important to do your research and choose the best places to invest in real estate in 2023. Understanding the local factors that may affect your investment is critical.
How to choose the best places to invest in real estate?
It doesn't matter where in the world you plan to invest in real estate for rent. The general principles of choosing a place remain unchanged - the main thing is to choose cities with a high investment return, for this, pay attention to the following characteristics:
● rental property occupancy rate – check what percentage of rental housing in the city is vacant;
● does the rent exceed the mortgage expenses – the more of your mortgage you can cover with the rent, the better;
● what is the level of debt among tenants in the city - few people will want to buy real estate in an area where tenants often do not pay for housing.
Top 7 US Cities for Real Estate Investing in 2023
If you are planning to invest in real estate in the USA, here are a few cities that we advise you to pay attention to:
● Boise, Idaho
Boise, the capital of Idaho, is becoming an increasingly popular destination for real estate investors due to the following conditions:
- High Property Value Growth: The Boise real estate market has shown significant home value growth over the past 10 years, with a home appreciation rate of 217.86% and an average annual growth rate of 12.26%.
- Steady job market development: Boise's economy is booming, with industries such as technology, health care and education particularly thriving. The development of the labor market attracts new residents, and therefore the prices of rental properties are increasing.
- Affordable Housing Prices: Compared to other major US cities, Boise offers more affordable housing options.
- Growing regional population: Boise's population is steadily growing as people are drawn to the city's high quality and affordability of living, as well as opportunities for outdoor recreation. Such population growth stimulates the demand for housing, which leads to an increase in real estate values.
- Boise has a stable real estate market with a steady rate of housing appreciation.
The average price of a house is 528.9 thousand US dollars;
Increase in real estate value compared to 2022 – 7.62%;
Time to Sell: On average, homes in Boise sell in 62 days.
● Houston, Texas
Houston is one of the best places in the US to invest in real estate, as it is the center of the country's oil and gas industry and offers good employment opportunities. Greater Houston is the fifth largest metropolitan area in Texas with more than 7.2 million residents and continues to grow. Forty-one Fortune 1000 companies are headquartered in the Houston area.
Factors that make the Houston real estate market attractive for investment:
- Affordable Housing – Compared to other major cities, housing prices in Houston are quite affordable.
- In connection with the growth of the population, the demand for rental housing also increases.
- Tax benefits: Texas has no income tax, making it an attractive place to do business.
- Robust real estate market – Houston has a strong real estate market, with home values steadily increasing.
The average price of a house is 340.1 thousand US dollars;
Increase in real estate value compared to 2022 – 3.1%;
Time to Sell: On average, homes in Boise sell in 59 days.
● Dallas, Texas
Dallas is another good place to invest in real estate in 2023, as it is one of the fastest growing cities in the United States and has a successful economy.
Dallas is a great place to invest in real estate due to its strong job market, affordable housing, growing population, diverse real estate market and favorable business environment. Whether you are looking to invest in residential or commercial real estate, Dallas has something for everyone.
Why choose Dallas?
- Affordable housing prices compared to other major US cities.
- Strong labor market - Dallas has low unemployment and job growth.
- The population is steadily growing - according to estimates, it will increase by 1.5 million people over the next 10 years. This population growth, combined with a strong labor market, is likely to increase demand for both residential and commercial real estate.
- A diverse real estate market: the city has many single-family homes, townhouses and apartments, as well as office buildings, shopping centers and industrial facilities.
On average, homes in Dallas, Texas take 62 days to sell.
The average price of a house is 424.9 thousand US dollars;
Increase in real estate value compared to 2022 – 7.6%;
Time to Sell: On average, homes in Boise sell in 62 days.
● Las Vegas, Nevada
Throughout the pandemic, the Las Vegas housing market has been one of the hottest in the United States.
Las Vegas is a city that is known for its vibrant entertainment life, luxurious casinos and world-class restaurants. However, it is not only a great place to visit, but also a good city to invest in real estate, as here:
- High rental demand: given the city's strong job market and population growth, the city is in high demand for rental properties.
- Affordable housing: Compared to other major cities in the United States, real estate prices in Las Vegas are lower.
- Population growth - Las Vegas is one of the fastest growing US cities.
- Strong labor market: the most developed industries are tourism, construction and technology. The city has a strong economy and low unemployment, which is beneficial for real estate investors.
- Developed infrastructure in the city - new transport systems, business parks and residential buildings are being built here.
- Tourist Center - Las Vegas is one of the most popular tourist destinations in the world, attracting millions of visitors every year.
- Tax Benefits – Nevada is one of the few states in the United States that does not have a state income tax, making it an attractive location for real estate investors.
The average price of a house is 425,000 USD;
Increase in real estate value compared to 2022 – 6.3%;
Time to Sell: On average, homes in Boise sell in 61 days.
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● Atlanta, Georgia
Atlanta is a city that is considered one of the best places to invest in real estate, because it is the capital and economic center of Georgia, a state that is among the 10 regions that generate the annual GDP of the United States.
Why should you consider investing in Atlanta?
- Low cost of living – Compared to other major cities, Atlanta has a relatively low cost of living, making it an attractive location for both renters and investors. The city also has a large number of young professionals, which means there is a high demand for affordable housing.
- The population of Atlanta is steadily growing, because many young professionals and families are coming to the city.
- Diverse Culture – The city is home to a large number of cultural events, festivals and attractions, making it a great place to live and invest.
- Accessibility – Atlanta is centrally located in the Southeast and is easily accessible by air, road and rail.
- Strong real estate market with high demand for housing.
The average price of the house is 399.9 thousand US dollars;
Increase in real estate value compared to 2022 – 6.3%;
Time to Sell: On average, homes in Boise sell in 73 days.
● Orlando, Florida
Orlando is a favorite for tourism and entertainment, so it remains a good destination for real estate investment. With its warm weather, vibrant economy and world-renowned attractions, Orlando offers a number of compelling reasons to invest in its real estate market:
- Orlando's job market is one of the fastest growing in the US. The aerospace industry and modeling have gained special development here. It attracts a highly educated and skilled workforce, which drives demand for both residential and commercial real estate.
- Affordable cost of living: Compared to other major US cities, Orlando offers a relatively low cost of living, making it an attractive destination for families and retirees.
- Highly developed tourism industry: Orlando is home to some of the world's most famous theme parks, including Disney World, Universal Studios and SeaWorld.
The average price of a house is 362,000 USD;
Increase in real estate value compared to 2022 – 9.7%;
Time to Sell: On average, homes in Boise sell in 72 days.
● Tampa, Florida
Tampa, Florida is also on the list of the best places to invest in real estate because here:
- Strong economy: The most developed industries in the Tampa Bay area are IT, healthcare and finance. New businesses are constantly opening in the region and new jobs are being created, which increases the demand for housing.
- Affordable cost of living: Compared to other US cities, Tampa has a relatively low cost of living.
- A thriving tourism industry: Tampa is home to several popular tourist destinations, including Busch Gardens and the Florida Aquarium.
- Good location: Tampa is located on the coast of the Gulf of Mexico, near several beautiful beaches - Clearwater Beach and St. Pete Beach.
- Investment Opportunities – Both residential and commercial real estate can be purchased in Tampa, with many properties available for purchase, including single-family homes, townhomes, and condos. In addition, there are also opportunities to invest in commercial real estate.
The average price of a house is 395,000 USD;
Increase in real estate value compared to 2022 – 8.2%;
Time to Sell: On average, homes in Boise sell in 70 days.
If you plan to invest in real estate, be sure to assess all the risks of future investment. Also analyze what kind of income you would like to receive - short-term capital gain or long-term maintenance. In order to choose the best option for investments and get help with the preparation of documents, consult a highly qualified lawyer.
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