In order to build substantial wealth, you need to invest your money. Although it’s entirely possible to invest in stocks, investing in real estate can offer an exponential return.
Before you get started, though, you’ll need to know which cities are best when looking to invest in a rental property in 2022. Not quite sure about the best cities to invest in real estate?
Let’s take a look at some of the most notable.
1. Chicago, Illinois
Chicago is one of the largest housing markets in the United States.
It’s also home to hundreds of major companies, giving the city a notably strong foundation for its economy. Chicago is also known for its diversity in terms of housing prices.
Regardless of your budget, you should be able to find something that is within your price range. For those who are looking for a specific region of the city to invest in, the neighborhoods near the downtown area are often ideal. As the downtown segment of the city expands, surrounding houses will experience a sharp increase in value.
It’s also worth noting that this is one of the best locations for short-term rentals. As one of the major tourist attractions in the United States, Chicago is a place where many people vacation for food, culture, and sports.
2. Washington, D.C.
It’s no secret that the pandemic caused housing prices across the entire country to spike. Washington D.C. was one of the regions that experienced the largest increase in home value. Although the market has recently cooled off, this doesn’t mean that home prices will begin to fall.
It simply means that the continued growth will be slowed. As one of the most unique areas of the country, this city will continue to attract investors in the future. This will inevitably drive housing prices (and, therefore, rent prices) even higher, making it highly recommended that you act quickly if you’re looking to get involved in this market.
As with many other areas of the country, the construction of new housing often cannot keep up with the demand.
3. Detroit, Michigan
People tend to have the wrong idea of Detroit.
Some investors forego this option entirely due to the misguided belief that the entire city is just a landscape of impoverished neighborhoods. However, this couldn’t be further from the truth.
Like all major cities, Detroit does have areas that need improvement. It also has billions of dollars in funding actively being ported into the construction of new housing. The prices of homes in this area are also notably low compared to many other regions in the United States.
Since the value of all real estate will increase long-term, this is a great way to find an entrance into the market, even if you plan to be a long-distance landlord.
4. Austin, Texas
For those who are unaware, the city is poised to become one of the major tech capitals within the United States.
More specifically, heavy hitters like Dell Technologies and Oracle are laying the foundation for similar firms to plant their roots. Given enough time, it wouldn’t be unlikely for Austin to rival Silicon Valley in terms of productivity and opportunity.
Since this scenario is still at least a few years away, now is the ideal time to invest. It’s also important to consider that the University of Texas is one of the most popular colleges in the entire country. Combined with its remarkable art/music scene, it isn’t difficult to see why people are flocking to the city.
5. Los Angeles, California
This answer shouldn’t come as a surprise. Los Angeles, California will always be one of the largest entertainment capitals in the entire world.
Due to the sheer volume of people who live in Los Angeles, it’s one of the best places to invest in real estate. You also have a diverse range of rental property options to choose from given how diverse the city is.
Although the prices in Los Angeles are much higher than in other areas of the country, so is the general cost of housing. This means that you can charge a substantial amount in rental payments each month and shouldn’t encounter any issues when looking for good tenants. Under the right circumstances, you could even end up receiving exponentially more in rental payments compared to the cost of your mortgage.
6. Boise, Idaho
For some, this might seem like an interesting suggestion when it comes to rental property options. However, Boise is one of the most notable capitals for housing and universities that you can choose from in the country. The relaxed atmosphere of the city has established an easy-going lifestyle that many people travel across the US to experience.
In turn, this has caused the prices of local homes to skyrocket. As you might assume, this creates an ideal scenario for investors who are looking to generate a substantial return on their financial contribution. Like the other cities on this list, Boise currently has a shortage of supply when it comes to housing.
This means that prices will continue to climb for the foreseeable future.
Knowing Where to Invest in a Rental Property Is Crucial
Investing is a fickle path to navigate without the proper resources at your disposal, Be sure to consider this guide when looking to invest in a rental property within the United States. It can be the driving factor that determines if your investment delivers on sound financial returns.
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