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The Best Places to Invest in Rental Property in 2019

Investing in rental property is not easy. There are many factors to consider when choosing a location. Read on to find more about the best places to invest in properties with high returns and appreciating values.
Best Places to Invest in Rental

Choosing the right location for a property to buy as an investment can be overwhelming. There are many factors to consider, including the cost of the property, the return for the investment, and the potential for your property to rise in price in the years ahead.

Here are the five markets you should definitely consider when trying to determine the best places to invest in property.

1. Dallas/Fort Worth, Texas

The “twin cities” of Texas saw massive population growth between 2010 and 2018. In fact, Forbes Magazine has put this area as one of the best places for investors considering rental properties.

The region is home to several colleges and universities, which are a major source of income for many property owners. With the growth of students and educational institutions has also come to a major demand for off-campus housing.

Overall, the median rental list price for homes in the region is $1,440. The 1-year increase in home values hovers around 10%. And even better news for rental property investor is that job growth is strong at 3.2% annually.

2. Nashville, Tennessee

Nashville is Tennessee’s most populous city. It’s also one of the most prosperous southern cities in the country, and that’s making it an extremely hot market for real estate investors right now.

The median price of a home in the city is just over $252,000. Property is a solid investment here with prices expected to rise by about 3.9% next year. Nashville’s future job growth projections also top 40% in the coming decade.

3. Phoenix, Arizona

Phoenix is experiencing a population boom. It is already the fifth most populous city in the U.S. In the past decade, the city has experienced a 33% growth in residents. That’s an additional 1.28 million people — many of them now renting.

In fact, Phoenix leads the nation in population growth and it’s not done growing. That makes it a good location for real estate investments. All that growth has created a constant demand for rental properties. That’s been good for local investors on two fronts.

Investors are able to see their property values rise while taking in optimum rental fees. The city is seeing so much growth that the National Multifamily Housing Council is calling for 150,000 more rental units to be built by 2030.

The market for investors is still ripe. The median price of a home in Phoenix is $239,000, which is expected to rise by about 3.5% this year. It’s also expected to see future job growth into 2020.

4. Atlanta, Georgia

Atlanta has become an economic center and transportation hub for the Southeast in the past two decades. Once known for being the headquarters of Coca Cola, it has become home to scores of Fortune 500 companies, including Home Depot and United Parcel Services.

These companies have brought with them thousands of jobs. They’ve also helped create one of the most robust real estate markets in the U.S. It’s notable that the market is still relatively accessible and affordable. The median price of homes in Atlanta is $200,500, which is expected to rise in the coming years.

Future job growth is also expected to expand for the next decade – making its rental properties a valuable commodity as more highly paid workers move into the state.

5. Boston, Massachusetts

Boston is one of the cultural and educational hubs in the U.S. It’s no wonder so many people to choose to live, work and go to school in the city. It has major league franchise teams that dominate their sports. It has a world-class symphony. And there’s never a shortage of cultural activities to take in.

It’s also home to dozens of colleges, universities and training studios, making it a consistently excellent location for real estate investments, especially when it comes to rental properties.

The fact that there are so many people looking for rental accommodation and willing to pay premium prices are just two reasons the Urban Land Institute named Boston as one of the top 10 real estate markets to watch in 2019.

Thinking of Purchasing a Rental Property?

There are many factors to consider when looking at the best place to invest in property, especially when it comes to rental units. A trusted Clever Partner Agent can make the process easier and safer.

He or she can let you know about potential pitfalls in a neighborhood and about the growth potential. An agent with experience in real estate investing can also help you with any legal matters around local and state laws concerning rental properties.



Thomas O'Shaughnessy
Thomas O'Shaughnessy

Tommy O'Shaughnessy is the Head of Research at Clever Real Estate, the free online service that connects you with top local agents to save on commission. Tommy's team of data scientists create surveys, gather data, and analyze trends in housing, real estate, and personal finance. He directs public relations efforts, acting as a "data communicator" between his team and the press. Clever studies have been featured in Politico, the LA Times, CNBC, Forbes, Yahoo Finance, and other publications.

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