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Originally Posted On: https://www.dohardmoney.com/10-best-real-estate-investments-in-2021-during-a-high-market/

 

When deciding to invest in real estate, it is critical you understand the factors that are affecting prices. You want to make sure you can make the most out of your current situation, especially when investing.

The market depends entirely on supply and demand. When there is more supply than demand (more houses are available to purchase than what people want to buy), the cost and value of houses will go down. This is unfortunate for homeowners trying to sell but great for those who are currently in the market to purchase.

On the other hand, when there is more demand than supply (more people want to purchase a house and fewer houses are available to buy), the cost and value of houses dramatically increase. This is great for homeowners trying to sell (because they will get more money) but unfortunate for those in the market to purchase a house. The market in 2021 is great for real estate investors and those looking to sell their homes, but it’s important to understand the underlying factors before you start buying property.

Important Factors To Consider

Along with the current state of the market, interest rates also affect the value of a property. When the interest rates are lower, people are more likely to purchase a property. While the property itself may cost more, the interest rates are low, which means they will be saving money on interest.

In our current market, people have become so desperate to purchase property, it is not uncommon for buyers to offer more than the asking price for the property. If this is not enough for the sellers to choose them for the property, they may offer things such as making their money non-refundable, so the sellers know they will receive all of the money for their house.

It is a commonly known fact that purchasing real estate when the market is low will be a great investment for the future. You pay the lowest prices and over time, as the market gets better and goes higher (because it almost always will, the market is constantly moving) your investment will have a higher value. If you have purchased real estate in order to rent it to others, the rent will continue to go up along with the value. This is making you more money now and in the future when or if you decide to sell it.

Unfortunately for those looking to purchase property in the market right now, the market value is extremely high. This means it can be very difficult to purchase real estate and make money off of it. If you are wanting to invest in real estate, it’s important to understand what you want to get in return for your investment.

Now that you better understand the market and how that affects the value of a property, it is time to begin investing in real estate! It is important to know that while it is certainly true there are some locations more promising than others, there is no perfect investment location. If there were, all the property would be purchased and investors would move on to a new location.

Below is a list of 10 locations with very promising futures. All of these locations have booming populations, which means more job opportunities and more people needing housing. Refer to the list below for the 10 best places to invest in real estate during 2021!

1 Boise, Idaho

Known for its beautiful natural scenery and its university (Boise State University), Boise is one of the best places to purchase real estate investments in. The population growth in Boise has been ridiculously high. From 2019-2020, there was a 23% increase in the population moving into Boise, Idaho. In April of 2020 alone, there was a population increase of 24,000. Even the pandemic cannot slow down the growth rate of Boise.

The prices for real estate and property are rising with the population. This is creating the perfect situation for homeowners looking to sell their houses and move. Buying real estate in Boise is perfect for those who are looking to fix up a house and sell it back while the market and demand are still high. Due to the rapid increase of population, buying real estate with the intention of renting would be great in this high market because rental prices are so high.

2 Austin, Texas

Everything is bigger in Texas and that includes the real estate opportunities. The entire state of Texas holds so much opportunity, from being home to the #1 Market in the United States for job creation (Houston) and having some of the highest population growth in cities. Texas is also known for affordable housing, which makes living there very appealing for future and current residents.

Austin, Texas is a great place to invest in real estate due to the currently low housing costs and rising rent prices. Purchasing real estate to rent out for future residents is a great investment in Austin, Texas.

3 Las Vegas, Nevada

Las Vegas, Nevada is a city built upon population booms and has continued to grow into the giant city it now is. Those who purchase real estate investments in Las Vegas can almost be certain the value of their real estate will continue to increase and gain value.

While the population is surely growing, business real estate is booming faster than housing. Businesses are moving or sprouting up in Las Vegas faster than the national average. Purchasing real estate for businesses to purchase from you is a great way to receive a large payday reward. If you are interested in purchasing real estate to rent out to businesses, you can be assured that rent prices will rise bringing you more money from the businesses renting from you. Purchasing retain real estate can create an easy passive income which you can easily overlook as a landlord.

4 Spokane, Washington

While the current population of Spokane isn’t huge at 217,353 (according to data in 2019), the housing market is booming. According to data from Zillow, Spokane’s housing market is higher than Seattle’s and this has not happened for 6 years!

The market and value of real estate is currently rising, which means investors should not wait to purchase real estate and sell it. Spokane, Washington is a great city to purchase a house, rehab the interior and exterior quickly, and sell it back during the high market.

According to Zillow, the value of houses has increased 26.3% within the last year (May 2020- June 2021) and is still increasing. When purchasing real estate in Spokane, Washington, it is good to know that the average price for a house is around $340,000 (only including middle-tier houses).

5 Atlanta, Georgia

Not only is Atlanta the capital, but it’s also the most populated city of Georgia. This makes it a great place for real estate investments. The city constantly has events going on to attract people, which helps the population growth. Atlanta, Georgia has live music, professional sporting events, historic areas to visit, and much more to offer residents and visitors alike. All of these events offer employment to residents, which draws more population.

Atlanta, Georgia is growing at a rate of 1.67% each year. This population growth makes it one of the best places to purchase real estate investments both to sell to future homeowners and rent to future residents. The value of houses is rising with the population growth, creating a high market for the housing demand.

While the value of houses is currently high, the city continues to go through an economic boom, which will consequently raise the value and price of real estate. Purchasing real estate investments now could have a big outcome in the coming years.

6 Tampa, Florida

Tampa, Florida is not only home to almost 400,000 residents but is also one of the most visited tourist destinations. This tremendous amount of people living there and visiting creates a huge job market. A larger job market increases the demand for housing. Over the past year, Tampa, Florida has been one of the top markets for real estate. According to Zillow, Tampa, Florida’s housing market has increased 19.7% over the last year (May 2020- June 2021).

The great thing about investing in Tampa, Florida is while the housing market is increasing, the house prices are still affordable to purchase for investments. The average price for a house in Tampa, Florida is around $310,000 (only including middle-tier houses).

Another thing drawing people to Tampa, Florida is the cost of living, which is 23% lower than the national average. This is a huge benefit for people wanting to live in Tampa, Florida. While the housing demand continues to rise and the cost of living stays so low, you should purchase real estate as an investment.

7 Chicago, Illinois

Chicago, Illinois is the third most populated area in the United States reaching a population of over 9,406,000 (Includes populations of Chicago, Naperville, and Elgin). Chicago, Illinois is home to a large population and has a great economy and job market.

When thinking about purchasing real estate to rent out as an investment, Chicago, Illinois, and the surrounding metro areas are great places to consider! Not only is the population so large, but a large percentage of the population lives in rental houses compared to owning their own home. In 2019, over 35% of Chicago’s population lived in rental homes (Click here to view the study). This creates a huge demand for rental real estate.

8 Birmingham, Alabama

Home to the Birmingham Museum of Art, Birmingham, Alabama is a great place for purchasing real estate investments. With a population of almost 300,000 people and a steady population growth, Birmingham is the most populated city in Alabama and has a great housing market for investments. With such a large population and continual growth, there is a higher demand than supply for houses. This makes Birmingham, Alabama one of the best places to purchase real estate to rent out to buyers.

Birmingham, Alabama is home to many popular colleges including the University of Alabama at Birmingham. Having colleges in the town where you own real estate increases the number of people needing housing. This will raise the value of your real estate and the rent you charge.

9 Colorado Springs, Colorado

Colorado Springs, Colorado is known for the amazing nature surrounding the city. The Garden of the Gods and Pikes Peak are commonly toured areas. The Colorado Springs, Colorado city has a constantly rising housing market, making it one of the greatest places to purchase real estate investments. According to Zillow, Colorado Springs has increased the value of their houses by over 25% in the last year (May 2020- June 2021)!

Purchasing real estate investments to either rent or fix up and sell back are both great options in Colorado Springs, Colorado.

10 Phoenix, Arizona

Capital of Arizona, Phoenix is the last city we have on our list. Phoenix, Arizona is becoming a moving destination for those living in high-cost places such as Seattle and Los Angeles. Phoenix, Arizona’s cost of living is 5% less than the national average, making it an increasingly populated city. Phoenix grows its population at a rate of 1.5% each year.

With the growing population, the demand for housing is much higher than the supply (homeowners selling), this has greatly raised the housing market, making it hot in Phoenix, Arizona. When looking for locations to purchase real estate investments, Phoenix, Arizona is a great place. This is a prime location for creating rental locations as well as re-selling houses after flipping them.

According to Zillow, housing in Phoenix, Arizona has increased over 27% in the last year (May 2020- June 2021). This dramatic increase makes Phoenix one of the greatest locations for your next real estate investment.

Fix and Flips

 

If you enjoy watching the house flipping shows and you have always thought you would love that, now is the time to try! Purchasing real estate which you are confident you can remodel, can be a great investment because while you are initially purchasing the property in a high market if you turn the house around quickly and sell it fast, you can then take advantage of the high market and sell it during the high demand.

 

Are you looking for other options of real estate to purchase during a high market? Watch the video below to get all the information you need about your next real estate investment in 2021.