Even with the housing market's ups and downs, investing in real estate is still profitable. Real estate continues to draw investors because it offers the possibility of recurrent income from rentals. Particularly the single-family rental market appears promising, with high demand and rapid rent increases. Even though extensive research is necessary, real estate investing may yield steady profits. The single-family rental sector offers substantial opportunities for both individual and institutional investors as we examine the top investment prospects in 2024.
Best US cities to invest in real estate
1. Cleveland, Ohio
Cleveland stands out as one of the top locations for real estate investment, with a typical home price of $146,000 as of right now and a 12.7% annual growth. Cleveland offers investors looking to profit from the real estate industry an alluring possibility since it combines affordability with a potential price increase. Its attractiveness as a profitable investment location is increased by its lower median property price when compared to other cities on the list.
Population: 354,043
Effective property tax rate: 2.08%
Rent to home value ratio: 8.95%
Rental vacancy rate: 6.70%
Rent to income ratio: 5.10%
Annual growth: 4.2%
2. Fresno, California
With a 12.7% annual growth in median home prices and a current price of $299,000, Fresno is a standout location for real estate investment. Fresno, known as "The best little city in the U.S.A." with fondness, gets its name from its profusion of ash trees. It is an appealing choice for investors looking for possibilities in California's real estate market because of its positive price growth and endearing name.
Population: 95,631
Effective property tax rate: 0.82%
Rent to home value ratio: 3.65%
Rental vacancy rate: 3.70%
Rent to income ratio: 7.20%
Annual growth rate: 1.18%
3. Harrisburg, Pennsylvania
Harrisburg is a desirable place to invest in real estate, with a typical home price of $175,000 and a growth of 12.7% year over year. Harrisburg, a city in Pennsylvania, is reasonably priced in comparison to other cities on the list, making it attainable for investors with modest financial resources. For individuals looking to enter the real estate market without making a sizable upfront investment, its advantageous market conditions and fewer entry hurdles make it an appealing option.
Population: 50,135
Effective property tax rate: 6%
Rent to home value ratio: 9.84%
Rental vacancy rate: 4.9%
Annual growth:12.7%
4. Bakersfield, California
With a moderate year-over-year growth of 12.4% and a typical home price of $245,000, Bakersfield, California, appears to be a viable area for real estate investment. The property market in Bakersfield had a rebound in 2020, despite a decrease in the city's pace of population growth, making it a desirable choice for investors looking for consistent profits. The city's attractiveness as an investment destination was further enhanced in 2013 when it was ranked second in the rental market.
Population: 403,455
Effective property tax rate: 1.52%
Rental vacancy rate: 4.9%
Rent to income ratio: 112.25%
Annual growth:12.5%
5. Hartford, Connecticut
Hartford, Connecticut, is ranked sixth on our list of the best places to invest in real estate. Its typical home price is currently $237,500, indicating a significant 15.2% annual growth. Hartford, the nation's capital, has seen a sharp increase in the value of real estate, providing investors who bought before 2020 with substantial profits.
Population: 121,054
Effective property tax rate: 2.4%
Rental vacancy rate: 8
Rent to income ratio: 9.22%
Annual growth: 15.2%
6. Modesto, California
With a population of over 200,000, Modesto is still one of the more inexpensive cities in California, even with a typical home price of $345,000, which is up 14.7% from the previous year.
Population: 218,069
Property tax rate: 1.23%
Annual growth: 15.0%.
7. Ogden, Utah
Owning property in Ogden offers a mix of affordability and access to nature. While investing, consider areas with strong job growth and proximity to public transport. Look for properties with modern designs that maximize space and offer outdoor areas. Prioritize projects with amenities but consider resident density for usability. Don't be swayed by brand names; focus on the project's overall value.
Population: 86,798
Home value: $375,000
Property tax rate: 0.52%
Rental vacancy rate: 5.6%
Annual growth: 0.21%
8. Greensboro, North Carolina
With a typical house price of under $160,000, Greensboro, the third most populated city in North Carolina, stands out as one of the most cheap cities in the country. Home prices in Greensboro have increased significantly year over year by 14.2%, despite the city's affordability. But the city also has a sordid past, including the Greensboro Massacre, which cruelly claimed the lives of Communist Party members. Despite its past, Greensboro presents a compelling real estate investment opportunity due to its affordability and development prospects.
Total population: 298,263
Property tax rate: 6.75%
Rental vacancy rate: 5.61%
Annual growth: 0.81%
9. Columbus, Ohio
At a typical house price of $219,000, Columbus, the state capital of Ohio, is a top option for real estate investment. Columbus's property prices have increased significantly year over year, by 13.8%, yet they are still affordable when compared to many other cities. The city's double-digit growth underscores its potential for substantial returns on investment, rendering it a compelling choice for individuals seeking to venture into the real estate market while maintaining advantageous pricing.
Total population: 906,528
Rental vacancy rate: 4.2%
Annual growth: 13.8%
10. Lansing, Michigan
With a typical property price of around $138,000, Lansing, the capital of Michigan, stands out as the most cheap city on our list for real estate investment. Lansing's property prices have increased significantly year over year, by 13.7%, despite the city's cheap cost. Because of this, it's a desirable choice for those looking to enter the real estate market at a reasonable price and yet profit from future gain.
Total population: 112,648
Rental vacancy rate: 7.5%
Annual growth: 13.7%
11. Orlando, Florida
Despite being a well-known center for tourists, Orlando has a long history that predates its reputation as a travel destination. The city is home to a wide variety of communities, such as Baldwin Park, a former naval facility turned residential neighborhood, and College Park, which has streets lined with quaint bungalows. Thornton Park features Craftsman-style homes and cobblestone streets, creating a laid-back urban vibe. With more than 60% of the population renting, Orlando's real estate market is attractive to investors. Orlando's rental market is thriving and offers investors excellent options, as the city's solid economy and over 2% yearly population growth attract major multinational corporations.
Population: 316,081
Home value: $374,387
Rental vacancy rate: 7.5%
Annual growth: 1.93%
12. Durham, North Carolina
Durham's property market is booming! Residents are drawn to the area by affordable housing and the Research Triangle's thriving employment sector, which sustains the rental market. A lively student population is added by universities like Duke and UNC-Chapel Hill, which is ideal for rental apartments. Through short-term rentals, tourists attracted to Durham's year-round great weather and picturesque location offer another source of revenue. Durham's real estate presents intriguing opportunities for investors looking for long-term value because of the city's rising population and variety of housing alternatives.
Population: 291,928
Home value: $404,940
Rental vacancy rate: 6.2%
Annual growth: 0.93%
13. Tallahassee, Florida
Florida's capital, Tallahassee, breaks the mold of the usual Florida image, prospering as a busy working metropolis in the middle of the state's expansion. It is located in the northern panhandle and has a thriving outdoor scene along with a thriving arts and cultural sector. With 70,000 students attending Florida State University, Tallahassee needs plenty of reasonably priced housing alternatives. The city has a steady economic environment and strong employment from the state government and FSU. Diverse lifestyles are catered to in desirable areas such as Betton Hills, College Town, Killearn Lakes, and Killearn Estates.
Population: 201,731
Home value: $310,000
Rental vacancy rate: 31%
Annual growth: 1.15%
14. El Paso, Texas
With 677,456 citizens, El Paso has expanded to rank as the 22nd largest US metropolis. Its young demographic -- 40% of people under 25 and a median age of 34 -- reflects its attraction to families. A city that embraces Hispanic culture, it offers Tex-Mex food, mariachi music, and honkytonks. With living expenses 11% cheaper than the national average and home prices 30% lower, affordability is a major appeal. Being close to the Mexican border promotes global trade. Professionals and families are drawn to neighborhoods like Cielo Vista and Castner Heights. El Paso presents investors with a strong 61% gross rental return despite little housing growth.
Population: 677,456
Home value: $215671
Rental vacancy rate: 10.4%
Annual growth: 1.58%
15. Oshkosh, Wisconsin
The only city in our rankings that is not in the South is Oshkosh, Wisconsin. About 90 miles north of Milwaukee, Oshkosh is a stand-alone city on the banks of Lake Winnebago with thriving manufacturing, healthcare, and educational sectors. With more than 15,000 students attending the University of Wisconsin-Oshkosh, there is a noticeable demand for off-campus accommodation in this area. Oshkosh's downtown, the Town of Algoma, and the communities around Lake Butte des Morts are popular neighborhoods. Thanks to its closeness to the lake, Oshkosh's real estate market benefits from year-round visitors from Milwaukee and Chicago as well as those looking to invest in summer homes. In 2023, the median house price increased by almost 12% to $222,366.
Total population: 66,607
Home value: $182,000
16. Lakeland, Florida
Located in central Florida, halfway between Tampa and Orlando, Lakeland appeals to seniors and families alike with its distinct combination of resort-style facilities and small-town charm. Notwithstanding the difficulties facing the US housing market, Lakeland's median house price increased by 5% to $314,800 in 2023. With an astounding 86% rise over the last five years and a gross rental yield of 0.52%, real estate investments in Lakeland have shown to be profitable. Lakeland has the benefits of facilities and career possibilities, all while preserving its historic district, which is home to tree-lined avenues and beautiful districts like Dixieland and Beacon Hill. Tampa and Orlando are only an hour away.
Total population: 115,425
Annual growth: 2.29%
17. Jacksonville, Florida
Jacksonville, Florida, has more than 20 miles of stunning beaches and provides a distinctive fusion of coastal living and southern charm. Jacksonville's housing market is still a seller's market with growing prices despite a challenging real estate year in 2023. Jacksonville, known as "The River City" due to the St. John's River, is a haven for boat enthusiasts with its many canals. Options for housing range from opulent Mandarin estates that cost over $600,000 to reasonably priced neighborhoods like the Mid-Westside, where average property prices are $125,000. In 2022, Yahoo Finance acknowledged Jacksonville's affordability and beautiful weather, placing it as the fifth fastest-growing city in the United States. Here's a brief overview of Jacksonville's housing market:
Total population: 954,614
Home value: $297,538
Annual growth: 1.46%
18. Waco, Texas
Waco, a quaint Texas town well-known for Baylor University, is seeing a boom in the real estate market with prices remaining very cheap when compared to many other large cities. Waco house prices have increased by 96% in the previous five years, including a startling 30% gain in the last year alone. The city's planned development places a strong emphasis on mixed-use areas that incorporate housing, retail, and amenities in walkable neighborhoods. Waco has a desirable rental property market, with a $35 million riverside development plan under way and a good number of residences priced around $100,000. The city is a desirable choice for real estate investors due to its robust gross rental return of 0.55%.
Total population: 139,594
Annual growth: 2.07%
19. Savannah, Georgia
Savannah has a robust and diversified economy. A thriving bar and restaurant scene, colonial-era history, and proximity to beaches propel a $4.4 billion tourism industry annually. The fourth-largest port in the US is the deepwater Port of Savannah. One of Savannah's most recognizable areas, the Historic District is rich in Southern architecture and has been featured in several films. Investors are drawn to the area because of its holiday rental homes. The first suburb of Savannah is the family-friendly area known as Ardsley Park. The Victorian District of downtown still has values, but some require renovation.
Total population: 147,088
Home value: $305618
Rental vacancy rate: 7.1%
Annual growth: 1.52%
20. Athens, Georgia
While Athens' average home sold price is still far less than the $430,300 national average, growing home values are encouraging news for real estate investors considering the city. In Athens, Georgia, the median price of a sold home as of September 2023 was $328,265, a 9.3% increase over the same month the previous year. Home sales in Athens increased 7.6% between August 2023 and September 2023, despite the fact that this past year was one of the most difficult real estate markets in the previous ten years. Thirty percent of transactions were for more than asking price.
Athens, which is home to the University of Georgia, is well-known for its vibrant nightlife and cultural scene as well as its relaxed southern atmosphere.
Total population: 127,358
Rental vacancy rate: 6.7%
Annual growth rate: 0.82%
Lucrative opportunities
Every city, from booming metropolises to developing urban centers, presents different chances for investors to profit from the robust real estate market. These locations provide good opportunities for anyone wishing to increase their investment portfolio. Investors may successfully navigate the changing real estate market and obtain lucrative businesses in these desirable places with careful thought and smart preparation.
