Published On: April 15th, 20243.8 min read

Researching the best places to invest in real estate? See our guide on the top places to invest in real estate and learn what to look for when determining whether a market is hot or not.

Reasons to Invest in Real Estate

Why invest in real estate? The American dream of wealth and freedom is often rooted in the acquisition of real estate. Real estate is a tangible asset that appreciates over time, providing both financial stability and, if passed down, wealth for generations to come. According to Forbes, real estate is a comparatively safe investment secured by the property itself and with the potential for significant returns. Investment in real property is a great way to diversify your portfolio, often with higher-than-average return on investment.

With the right location, your property can yield lucrative rental income and substantial appreciation. Entrepreneur reports that real estate investment offers tax benefits on mortgage interest and depreciation, as well as networking opportunities with other investors, contractors, real estate agents, and property managers.

The best places to invest in real estate are states and cities that are growing and evolving. So how do you find the best states in which to invest in real estate? The best cities in which to invest in real estate? Or even the best places to buy rental property? Start by recognizing a hot market when you see one and figuring out why it’s sizzling.

Recognizing a Real Estate Hot Market: The Key Indicators

To identify a real estate hot market, delve into the underlying indicators that suggest sustainable growth. Here are some critical pointers:

  • Economic growth: A city with a burgeoning job market, particularly in well-paying sectors like tech, healthcare, and research, can indicate a demand for housing.
  • Population growth: A rising population often leads to increased demand for housing, pushing up prices and rental rates.
  • Affordability: Even in booming markets, relative affordability compared to neighboring regions can drive demand.
  • Infrastructure development: Look for cities investing in transportation, education, and public amenities.
  • Low vacancy rates: A low rate of unoccupied homes can indicate a high demand for housing.

The Best Cities to Invest in Real Estate

For many individuals, real estate is more than just a place to live – it’s a long-term investment strategy with potential for lucrative returns. If you’re on the hunt for the best places to invest in real estate, understanding which markets are desirable is crucial.

Researchers at the National Association of RealtorsⓇ (NAR) used various factors to identify 10 markets as leading the nation in 2023. The factors include housing affordability, the number of renters who can afford to purchase a home, job growth, migration gains and population growth, an increase in housing inventory, and less severe housing shortages.

These are the NAR’s top 10 cities across the U.S with booming real estate markets in 2023:

  1. Atlanta-Sandy Springs-Marietta, GA
    Housing Affordability Index: 100.7
    Job growth: 5.4%
    Population change: 0.7%
  2. Raleigh, NC
    Housing Affordability Index: 92.4
    Job growth: 5.1%
    Population change: 2.0%
  3. Dallas-Fort Worth-Arlington, TX
    Housing Affordability Index: 95.7
    Job growth: 6.5%
    Population change: 1.3%
  4. Fayetteville-Springdale-Rogers, AK-MO
    Housing Affordability Index: 102.2
    Job growth: 4.6%
    Population change: 2.0%
  5. Greenville-Anderson-Mauldin, SC
    Housing Affordability Index: 91
    Job growth: 5.3%
    Population change: 1.1%
  6. Charleston-North Charleston, SC
    Housing Affordability Index: 88.3
    Job growth: 6.5%
    Population change: 1.3%
  7. Huntsville, AL
    Housing Affordability Index: 120.1
    Job growth: 2.1%
    Population change: 1.8%
  8. Jacksonville, FL:
    Housing Affordability Index: 85.1
    Job growth: 4.8%
    Population change: 1.6%
  9. San Antonio-New Braunfels, TX
    Housing Affordability Index: 94.6
    Job growth: 4.6%
    Population change: 1.4%
  10. Knoxville, TN
    Housing Affordability Index: 97.2
    Job growth: 4.5%
    Population change: 1.3%

The Best Places to Invest in Real Estate with HomeVestors®

HomeVestors® is known as America’s No. 1 Home Buyer. Become an independent franchisee with HomeVestors, where you have the potential to make life-changing revenue in a system with proven success. You can build financial independence and stability for yourself and generations to come.

We’re the We Buy Ugly Houses® people. We help sellers by purchasing distressed properties for cash and closing quickly. Many of the homes are sold to new buyers or used as rental properties. Properties that were once a blight on a neighborhood are now sources of pride.

Whether you’re a seasoned investor, new to real estate, or looking for a career change, we’ll help you find the best places to buy rental property and the best states to invest in real estate with our training, tools, mentorship, leads, and more.

With HomeVestors, you’ll be a part of a network of fellow franchisees and investors benefiting from our marketing and lead generation. Take charge of your own time and improve every community in which you invest. To learn more about franchising with HomeVestors, fill out and submit a franchise form today.


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