When it comes to the best states for real estate investing, there are many factors to consider. The property’s location and its market value will likely be two of the most important considerations, as these determine the potential return on investment.
While many factors can influence which states make it to the list of the best states for real estate investing and the investment rates of return, some states consistently rank as top destinations for real estate investors.
Several recent surveys have identified a number of states that are expected to be particularly attractive for real estate investing over the next few years. These include states with thriving economies, robust rental markets, and stable property prices.
Whether you’re looking to invest in residential or commercial properties, one or more of these states is sure to offer rewarding opportunities for real estate investors in 2022 and beyond.
List of Best States for Real Estate Investing
Numerous statistics have helped in accessing the feasibility of investing in a given area. It’s challenging to rank the best states for real estate investing due to some factors.
According to the US Census Reporter and Apartment Guide, the states with highest ROI in real estate include:
The world population review categorizes Georgia as the ninth state with the lowest cost of living. Georgia has a property prizing percentage of 16, a value lower than that of the rest of the country. With its thriving economy, Georgia witnesses a job growth rise of over 2.0 percent.
Atlanta, a major city in Georgia has a recorded population of 500,000. This city has a growth rate greater than that of the national average (0.93 percent) and is home to the headquarters of popular brands like Delta Airlines and Coca-Cola.
Due to the location of these popular brands, a growth rate of 1.17 percent has been recorded. Georgia can be seen as one of the best states to buy real estate.
- North Carolina
North Carolina is located in the south east areas of the United States. It has a beautiful countryside consisting of mountains in the west and the Atlantic plains in the east. In comparison to the national average, the cost of living in North Carolina is nine percent lower.
Cities like Durham and Charlotte are popular for a demographic consisting of mainly students. These groups of people who specialize in tech tend to increase the workforce, making North Carolina a good place to invest in real estate.
Florida is the seventh most highly populous city in America, having a population of about 22 million which increases yearly by 0.84 percent. It’s a coastal country with a warm climate giving it the attention of homeowners and so the percentage of occupied houses is at 85 percent.
An average home costs over $300,000 which is relatively cheap and job growth is at an all time high of 2.5 percent .
Idaho is situated in the north west area of the United States. It’s ranked among the best states for real estate investment for many reasons. The first reason being that when compared to the national average in the United States, Idaho has a 2.4 percent reduction in living cost.
Cost of houses start from about $400,000 with annual increase of 21.72 percent. With a 1.87 percent yearly increase in population due to relocation, Idaho has obtained every right to make this list. This annual population increase drives property owners to hike up prices of their houses, so if you’re considering buying a house in Idaho, the time is now.
People are mainly drawn to Idaho because of the pleasant weather and beautiful mountains and hills for hiking. Cost of living as well as taxes are also low, drawing people more to these areas.
Nashville, which is the capital of Tennessee, is a very populous country. Tennessee is surrounded by nine other states and is most often ignored for its neighboring cities. Residents in Tennessee aren’t required to pay income or salary taxes.
Its hospitals and other amenities are also first class. All these factors have contributed to its yearly population growth of 7.6 percent thus enabling a good foundation to buy investment property.
Texas is situated in the South Central regions of the United States. It’s the largest state in the US in both land mass as well as population. Due to its land mass and location, it has multiple climates ranging from milder winters to more cold temperatures.
House occupancy rates are around 88 percent with prices of houses costing over $250,000 and these prices appreciates yearly at a rate of 20 percent. Major cities in Texas such as Dallas and Austin have an annual population growth of up to 15 percent.
Ohio is another state real estate investors ought to look into. It’s located in the Midwest and is often referred to as the Buckeye State. With a population of 11.8 million, it’s the eight most populated state in the US.
About 5 million of its population are found in the steel productions, manufacturing agencies, and also medical professions. On average the cost of living when compared to the rest of the United States is 15.4 percent less.
It has almost no annual population growth but with a household occupied value of 90 percent. Job growth rate is at 0.67 percent. Ohio is listed as quite important among the best states for real estate investing. Thus, you might want to consider it while choosing where to buy investment properties.
Factors to Consider Before Choosing a State to Invest
Before looking to own a rental property or buy investment property, several factors to consider include:
- Job Growth
For states which have a higher job growth rate, their citizens tend to have higher salary rates. This growth in turn will affect the demand for housing as more people are able to afford and pay for their homes, giving people a reason to stay in that state.
- Population Growth
Investing in real estate in areas with declining populations is quite problematic. Reduced population would reduce prices of properties making it difficult to sell off properties.
This factor can greatly affect the choice of any location, as it can increase the inflow of cash and equity while generating additional profits.
- High Rate of Rental Occupancy
A high occupancy rate in a location entails the proportion of houses occupied in that given area. Areas with high population and job growths have increased rates of rental occupancy, ultimately leading to an increased chance of renting out any property.
- Property Taxes
States with low property taxes lead to low living costs, meaning that investments will have a high return.
The fact remains that almost all states have good investing prospects. But by selecting the best states for real estate investing in 2022 from a good variety of options, you can easily narrow down your choices, thus improving your chances at making a worthwhile investment.