Are you thinking about becoming a real estate investor? Maybe you’re experienced and looking for a new market to move in too. We’ve compiled the list below to showcase the best cities in the US to invest in real estate. The list and rankings have been created by using a custom a ranking system based on data collected from government organizations, job market stability (military, large technology companies, and government agencies), median incomes, population fluctuations, urban development programs, and other factors like housing availability that are key to real estate investing.
The Best Cities in the USA for Real Estate Investing
Let’s count them down…
15) Atlanta, Georgia
With numerous urban development projects, a large population, solid government employment, and stable corporations, plus an expected 6% growth in IT jobs in the near future, Atlanta is promising if you’re looking to start flipping houses or build a rental portfolio. The city features a strong amount of white collar jobs and easy access to the world due to the world-class airport making it a desirable location for end-buyers. That is why they’ve made the number 15 spot.
14) Philadelphia, Pennsylvania
The home of the cheesesteak, soft pretzels, and the Liberty Bell – these aren’t only reasons to love Philly. They’re also a current hotspot for real investing. At number 14 on our list, they have a large population, a solid amount of government employers and military bases, meaning there will always be a need for housing. If you look through the city and suburbs you’ll find numerous areas with houses and condos prime for rehabbing and rebuilding making it a perfect city for real estate investing opportunities. This is an especially attractive market if you don’t have access to a ton of capital since many up and coming neighborhoods still have very low purchase prices.
13) Baltimore, Maryland
From an incredible inner-harbor which boasts fine dining and a world-class aquarium, to the renown Old Bay Seasoning company, Baltimore comes in as the 13th best city to run a real estate investing business in. The city has a lot of wealth and with the revitalization efforts to bring people back in, they’re looking for new homes with modern amenities. Purchases prices within the city can be very low, but be wary of what drives the price point, as some areas are still considered overly risky for an investor. On the plus side, Baltimore is also home to tech giants and government contractors that give it a stable force of white-collar workers moving in and looking for homes.
12) San Antonio, Texas
The Alamo city, Mission city, and River city – when you have this endearing nicknames, it’s clear people love the city. San Antonio has a fast-growing population, and in fact, it has one of the largest populations in the country with a median income of over $50,000 and has both military bases and government offices. All of this means there is a consistent flow of homeowners coming in because of job stability, making it the 12th best US city for real estate investing.
11) Dallas, Texas
Dallas is one of the largest and fastest-growing cities in the USA. It thrives on technology companies and has a significant amount of urban renewal projects. There’s also never a shortage of things to do, including sporting events, theatre, and music, fine dining, and giant county fairs. With a high median income and a stable job market, they rank number 11 on the list.
10) Seattle, Washington
Seattle has almost everything we looked for when choosing the best cities for real estate investing. They have huge tech companies like Microsoft and Amazon. You’ll find a lot of wealth and a huge population, and a ton of innovation and modern amenities. With a median household income coming in over $78,000, the city has a demand for updated housing, with a particular focus on smart home features and conveniences. This is why they made the number 10 spot on our list.
9) Boston, Massachusetts
We all know of Boston for its American history, sports teams, and stadiums, but Boston also has some of the most prestigious schools in the country. It is also one of the largest and wealthiest populations, and the city has numerous urban renewal projects. There’s no shortage of older houses in both established and up and coming neighborhoods, making Boston another excellent city for purchasing investment properties that need repairs. As an investor, there is plenty of opportunity in one of America’s most historic cities.
8) New York City, New York
The Big Apple might surprise you as a prime opportunity when searching for cities to enter real estate investments, but it is not a place to overlook. Whether it is in the city or the outlying areas, you’ll find a ton of opportunities to buy properties for light rehab and resale, full renovations, rentals, or even condo conversions and mixed use. The opportunities arise from fires, infestations, outdated structures that need replacing or any number of reasons. With huge amounts of technology, government jobs, defense contractors being based there, and a median household income over $200,000+, it is a stable market that still has plenty of opportunities.
7) Chicago, Illinois
The Windy City is in the top 10 cities for real estate investing for numerous reasons. Forget the news reports about low amounts of jobs and high crime, when you look at actual city data you’ll see that Chicago has a military base and defense contractors. Both of these mean stable jobs and people who need somewhere to live. Chicago is a top city for federal employment which means stability in buyers and renters, and they have urban investments going on to revitalize major parts of the city. When you combine that with older homes and properties that need to be rehabbed or rebuilt, you have a prime market for investments. That is why Chi-town made our list at number 9.
6) San Diego, California
Home to universities, music festivals, celebrities, and gorgeous weather, San Diego is a destination for the wealthy to buy vacation homes and the middle class to live their dream life. The innovation scores in this city are high, as you have both technology companies and a military base. All of these lead to a stable job market full of folks looking to buy houses in this sunny city.
5) Los Angeles, California
Since the announcement of “The Metropolis Project” and a strong number of federal workers, LA has had the eyes of investors for a while. There are always people “moving to LA” to join the West Coast lifestyle once they can afford it, not to mention the wealthy individuals who already live there and want the latest and greatest. This is why the City of Angels is ideal for both luxury as well as mid-to-high-end flipping. It could be a condo in south Hollywood or a luxury house in the hills. No matter how you like to invest, this is a market with opportunities for those who have enough access to capital to cover the high purchase prices in desirable neighborhoods. TV networks like Bravo even base their house flipping shows here like Flippin’ Out.
4) Austin, Texas
When you take a fast-growing population that has money and you add in a city with a growing tech community and tons of room to expand, you have Austin. The largest tech companies in the world like Apple are basing headquarters here because of the highly skilled labor and the city has shown a dedication to urban renewal projects. There’s a ton of land to be bought and a heavy demand when it’s time to sell. That is why Austin takes the #4 spot on our list of the best cities for real estate investors to move into.
3) San Francisco, California
We all know about the housing market and sticker shock, but this is one of the richest cities in the US, and residents looking to leave fast and sell for cash. This makes for a sweet spot for the savvy real estate investor. Not only are they a tech town, but they are also a city with high levels of federal employees making for a safe job market. Yes, the cost to entry is high, but if you know your stuff and your negotiating skills are primed, this is a market you want to be in! And if you’re looking to make a longterm play, you could pick up a property from a motivated seller, hold it through the volatility, and sell after the market stabilizes for traditional San Francisco prices.
2) Washington, DC
Number two on our list of the top cities for real estate investing is our nation’s capital and our company’s stomping grounds. DC has one of the largest amounts of federal employees, government contractors, and technology communities in the country. When you combine that with large amounts of investing in urban development and a city with numerous neighborhoods looking to sell properties, you have one of the largest markets for investment opportunities available. When you combine that with the military bases, defense contractors and the Amazon H2Q just across the river, DC easily wins the second best city for real estate investing in the United States.
1) San Jose, California
The number one city for real estate investing in San Jose, boasting one of the largest populations in the country. It’s a tech town with a ton of innovation, the local government invests in urban renewal project with the “Diridon Station Area Plan,” and they have a military base. But that’s not all – the unemployment rate is below the national average, over 22% of the households make more than $200,000 per year and it is constantly growing. With access to high paying jobs and a great way of life, it is prime for savvy investors and tops our chart as the best city for real estate investing in the United States.