Whether one plans to live there, to a given town's "growth potential," an endless array of factors go into making a successful real state investment.
Every buyer hopes for growth but full-time investors seek out towns that are on the verge of a resident influx and try to find properties to flip before the tide changes. Fast returns often require taking a risk based on what could be a momentary blip or an area that does not look particularly promising to anybody else.
DON'T MISS: First-Time Homebuyers Stand a Chance in These Cities
On the other end, those looking for stable long-term growth are better off investing in expanding cities or leafy suburbs within their proximity.
These American Cities Are A Safe Long-Term Investment
According to a new report by fintech company SmartAsset, Austin saw by far the biggest home price growth in the last 25 years — between 1998 and 2023, the average home price soared by 353.92%.
The reasons for this range from years of developing the city as a technology hub to the more recent influx of high-earning residents leaving California amid the pandemic.
"Home prices aren’t the only thing growing: the population has nearly doubled in the last 20 years, in part thanks to the presence of large tech companies — including Apple (AAPL), Amazon (AMZN) and Tesla (TSLA) — supporting the local economy," writes SmartAsset's Patrick Villanova.
Texas, in general, is in the midst of a population boon and five cities from the state also made the top 10 list for long-term price growth: Midland, Odessa (of "Friday Night Lights" fame), Dallas-Plano, San Antonio and Houston.
At 255.5% growth, Midland claimed second place over the last 25 years. Both in Colorado, Boulder and Fort Collins took third and fourth with a respective 256.48% and 224.17%.
While the total growth number is slightly higher in Boulder, it slid below Midland due to bigger ups and down over the last two-and-a-half decades.
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While it is more than three hours from Seattle on the opposite end of the state, the Washington city of Kennewick took the fifth spot with 211.07% growth.
Real estate prices have been rising almost everywhere in the nation but the single lowest increase was observed in Michigan's Flint — the city now permanently associated with the 2014 water crisis saw the average home grow by just 71.74% from 1998.
Even though several forces have been trying to revitalize Detroit, four of the five most depressed housing markets in the last 25 years are within driving distance of it — Flint, Michigan's Monroe and Saginaw and Detroit-Livonia itself. That said, some of the same suburbs have been seeing some short-term growth and popping up on lists of markets that, after years of economic struggle and resident exodus, could finally be "on the way up."
Home value decreases are now being observed in both advantaged and disadvantaged cities across the country as the economy turns and years of unfettered growth starts to catch up with real-world demand.
"Gone are the days of a sub-3% mortgage, commonplace during the housing market boom of the COVID-19 pandemic," SmartAsset writes. "Mortgage rates have steadily increased since the Federal Reserve started hiking interest rates in March 2022 to combat inflation. As a result, home prices have declined from recent heights."
