The housing market has made quite the comeback since the recession that took place a few years ago. Although the nation has noticed an increase in homes purchased, popular real estate data-tracking company, Zillow believes 2016 will not provide lower and middle class earners with new home affordability. This is largely due to the fact that housing prices are on the rise, but average wages are staying the same. It is not the best news for individuals looking to purchase their first home, but can be a positive for investors who want to put some money into rental properties.
Local Market Monitor helps develop a list
Forbes and Local Lake Monitor worked together to develop a list of best cities for real estate investment for the year 2016. This list includes the top 20 housing markets, which were based on company research on home prices and economic factors. These locations are the best for both investors and homeowners who will be able to make a purchase in 2016. Based on research, Florida is the happening place to invest in real estate, as seven cities made the top 20 list.How exactly were they able to determine this list? Local Market Monitor looked at the 100 largest metropolitan areas throughout the nation. Each of these cities had a population of at least 600,000, healthy job growth, population growth, and home price appreciation. These cities offer great options for investment in real estate because several of the homes are considered to be undervalued.
A look at the top 5
Based on this information, here is some statistical data as to why each city is a perfect location for real estate investments.
- Grand Rapids, Michigan- The Grand Rapids area has a population of just over 1 million. With an average home price of $154,348, and three year growth forecast of 22%, this area is a great place to invest in a forever home.
- Orlando, Florida- There were several Florida cities to top the list of best locations for real estate investments, but Orlando provided the best option for investors. Current population of the area is 2,321,418 and the average home price will cost around $200,000. Not to mention, Orlando is a wonderful tourist destination because of the entertainment available in the area. Investing in a rental property is a great option, especially with the prices a person could charge for daily or weekly vacation home rental.
- San Antonio, Texas- Texas has one of the largest populations, so there had to be at least one major city in the state that would make a good place for real estate investment. San Antonio has a population of 2,328,652 and an average home in the area is priced at $200,522. This can be a wonderful option because of high expected price growth in the coming years.
- Charlotte, North Carolina- Charlotte offers a wonderful East Coast location, making the top 5. There are nearly 2.4 million people living in the city and surrounding areas. Population growth and unemployment rates are at just over 5 percent, and the average home price is $220,758. For this price you might find a house with over 2,000 square feet of living space.
- Salt Lake City, Utah- The top 5 list would not be complete without a state close to the West coast. Salt Lake City has a population of about 1.1 million and offers an average home price of $258,371, a great option for potential homebuyers.
You can access the full top 20 list here.