Best Cities to Invest in Real Estate in 2023

Real estate investment is a lucrative and popular way to build wealth and diversify your portfolio.

In 2023, several cities in the U.S. are poised to offer excellent opportunities for real estate investors. These cities have a variety of factors in their favor such as strong job markets, growing populations and a healthy housing market.

In this blog, we will explore some of the best cities to invest in real estate in 2023, taking into account current trends and projections for the future. Whether you're a seasoned investor or just starting out, these cities could offer excellent potential for a profitable investment.

Key Points

• Real estate investment is a lucrative and popular way to build wealth and diversify your portfolio
• Some tips for choosing the best places to invest in real estate include: Researching the local market, being clear on the type of property that you want to invest in, having a long term outlook and working with a local real estate agent and financial advisor
• The 10 best cities to invest in in 2023 are: 1. Dallas, Texas 2. Atlanta, Georgia 3. Huntsville, Alabama 4. Tampa, Florida 5. Austin, Texas 6. Knoxville, Tennessee 7. Huntsville, Alabama 8. Jacksonville, Florida 9. Cincinnati, Ohio 10. Baltimore, Maryland

Disclaimer

The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on financial planning, financial management, and real estate here. More on disclaimers here.

Tips for choosing the best places to invest in real estate

When it comes to real estate investing, choosing the best places to invest in can be a daunting task, but there are some important factors to consider that can help you make an informed decision.

Different real estate markets have key determinant factors that investors should consider. Here are some tips on how to choose the best places to invest in real estate.

Research the local market

Before investing in any real estate market, it's important to research the local market conditions including vacancy rates, rental rates, job growth and other economic indicators. This information can help you determine whether there is demand for rental properties and the potential for rental income.

Location

Location is a critical factor when it comes to real estate investing. Look for areas with good access to transportation, schools, shopping and other amenities. Also, consider the neighborhood's crime rate, property taxes and zoning laws.

Property type

Consider what type of property you want to invest in, such as single-family homes, multi-unit buildings or commercial properties. Each type of property comes with its own set of benefits and challenges, so choose the one that best real estate investments that fit your goals and experience.

Long-term outlook

Real estate investment is a long-term game, so it's important to look beyond the short-term market fluctuations. Consider the long-term outlook for the area, including any planned developments or infrastructure improvements that could increase property values over time.

Seek expert advice

Consider working with a local real estate agent, property manager or financial advisor who has expertise in the local market. They can provide you with current and valuable insights that will help you make informed investment decisions.

10 Best cities to invest in in 2023

1. Dallas, Texas

Dallas is a major city in the state of Texas, located in the southern United States. It is the third-largest city in Texas, with a population of over 1.3 million people. Dallas is part of the larger Dallas-Fort Worth metropolitan area, which has a population of 7+ million people, making it the fourth-largest metropolitan area in the United States.

Among the reasons why you should invest in the Dallas real estate Market include:

Growing population

Dallas has experienced significant population growth over the past decade, which has led to an increasing demand for housing. It is estimated that by 2045, the city's population could grow by 3.4 million people. This is as a result of migration from cities on the East and West coasts.

This can result in rising property values and rental rates, providing opportunities for investors to earn capital gains.

Job growth

According to The Texas Employment Forecast, the prediction is that jobs will increase 1.4% in 2023, with an 80% confidence band of 0.7 to 2.2 percent. A stable job market and a steady stream of potential renters or buyers, which can ensure steady cash flow for real estate investors.

Growing real estate market

According to Zillow, is is reported that the home value for the Dallas-Fort Worth-Arlington area rose by 5.5% in the past 12 months. With high demand and low supply of housing units, investors are likely to enjoy great returns from real estate investing.

2. Atlanta, Georgia

Atlanta is a major city located in the state of Georgia in the southeastern United States. It is the capital and largest city in Georgia, with a population of 500,000+ people. Atlanta is part of the larger Atlanta metropolitan area, which has a population of 6+ million people, making it the ninth-largest metropolitan area in the United States.

Among the reasons why you should invest in the Atlanta Real Estate Market include:

Growing population

Atlanta has experienced significant population growth over the past decade, which has led to an increasing demand for housing. The growth in population is as a result of increased job opportunities. Between 2021 and 2022, the metro area population of Atlanta is reported to have increased by 1.73%.

This can result in rising property values and rental rates, providing opportunities for investors to earn capital gains.

Strong economy

Atlanta has a diverse and growing economy, which has attracted more people to the city. With the increasing population, the real estate industry is also booming as more people acquire and rent different properties.

Growth of home equity

Due to the increased population in Atlanta as a result of increased job opportunities and a strong economy, home and rent prices have gone up. The projection is that the upward trend will continue and this is good news for investors.

3. Huntsville, Alabama

Huntsville is a city located in the northern part of the state of Alabama in the United States. It is the largest city in Alabama, with a population of 215,000+ people. Huntsville is known for its strong ties to the aerospace and defense industries, as well as its growing technology sector.

Among the reasons why you should invest in the Huntsville Real Estate Market include:

Growing real estate industry

The real estate industry in Huntsville is experiencing steady growth due to availability of affordable housing as well numerous job opportunities. It is reported that from July 2021 to July 2022, the average price of homes in Huntsville rose by 19.4%, from $246,082 to $293,797. For investors, appreciation of real estate is a good indicator when it comes to real estate investing.

Appreciation of real estate

According to data from Zillow, the median home value in Huntsville has increased steadily over the past several years, suggesting a strong track record of appreciation. From 2016 to 2021, the median home value in Huntsville increased by 38.2%, which represents a significant increase.

The Alabama Center for Real Estate (ACRE) also reported that the median sales price for homes in Huntsville-Madison County have increased by 18% year-over-year, and there is less than a 1 month supply of homes on the market.

Growing population

Huntsville has experienced significant population growth over the past decade, which has led to an increasing demand for housing. This can result in rising property values and rental rates, providing opportunities for investors to earn capital gains.

It is reported that the Huntsville metro area has grown by a remarkable 19.9% since 2000, 173% above the national average.

4. Tampa, Florida

Tampa is a city located on the western coast of Florida in the United States. It is the third-largest city in Florida, with a population of approximately 400,000 people. Tampa is known for its warm weather, beautiful beaches and diverse cultural attractions.

Among the reasons why you should invest in the Tampa, Florida Real Estate Market include:

Rapid population growth

Tampa has experienced significant population growth over the past decade, which has led to an increasing demand for housing. As a result of that, there has been an increase in the job opportunities that are available.

The population is Tampa is expected to increase by 25 percent over the next 20 years, reaching nearly 4 million by 2040.

Booming Real Estate Market

The real estate in Tampa has been growing steadily and over the last 8 year, home values have increased by 147% , increasing at an average rate of 13.79% per year.

A stable real estate industry can therefore ensure steady cash flow for investors.

Strong population and job growth

Tampa has experienced consistent population growth over the years, and it is expected to continue to do so in the future. The area also has a diverse economy, which has been creating jobs at a steady pace, attracting new residents to the area.

Tampa’s job growth rate of 4.28% is 11% higher than the national average, and this number is set to increase as new businesses continue to set up in the city.

5. Austin, Texas

Austin is a city in the state of Texas, located in the central part of the state. It is the state capital and the fourth-most populous city in Texas. The city has a diverse and growing population of roughly 966,292 people and is known for its vibrant music and arts scene, outdoor recreational opportunities, and a thriving tech industry.

Among the reasons why you should invest in the Austin, Texas Real Estate Market include:

Strong economic growth

Austin's economy has been booming in recent years, with a high concentration of tech companies and a strong job market. This has resulted in a growing population and a high demand for housing.

Limited housing supply

Austin has limited land available for development due to zoning restrictions and a desire to preserve natural areas. This has led to a shortage of housing inventory, which has driven up home prices.

Growing population

It is reported that the economy of Austin is among the fastest-growing in the U.S. This is because of the growing population at a rate of approximately 2.39%. With a growing population, the demand for housing has definitely gone up and this makes Austin an attractive real estate market for investors.

6. Knoxville, Tennessee

Knoxville is a city in eastern Tennessee, located in the Appalachian Mountains region. It is the third-largest city in the state, with a population of over 190,000+ people. The city is home to the University of Tennessee, which is the flagship institution of the state's university system.

Among the reasons why you should invest in the Knoxville, Tennessee Real Estate Market include:

Affordable housing

Knoxville has a relatively low cost of living, with a median home price below the national average. This makes it an attractive market for first-time homebuyers and investors looking for affordable properties.

Growing population

Knoxville has experienced steady population growth in recent years, with projections indicating continued growth in the coming years. This growth is driven in part by the city's strong economy and quality of life.

Strong rental market

Knoxville has a large student population, which creates a strong rental market for investors. Additionally, the city's growing job market and low cost of living make it an attractive destination for young professionals, who often prefer renting to buying.

7. Huntsville, Alabama

Huntsville is a city located in northern Alabama, with a population of 220,000+ people. It is the fourth-largest city in Alabama and is known for its strong economy, rich history and thriving arts and culture scene.

Among the reasons why you should invest in the Huntsville, Alabama Real Estate Market include:

Population growth

Huntsville's population has been steadily increasing over the years, driven by job growth, thus higher demand for housing which in turn contributes to appreciation in the real estate market in the region. It is reported that the Huntsville metro area has grown by a 19.9%, which is 173% above the national average.

Strong rental demand

Huntsville is home to several universities and medical centers, creating a high demand for rental properties in the area. This can create opportunities for investors to generate steady rental income through properties such as apartments, townhouses and multi-family buildings.

Affordable housing market

Compared to other major cities in the southeastern United States, Huntsville's housing market is relatively affordable. This can make it an attractive location for first-time homebuyers and investors looking for affordable real estate options.

8. Jacksonville, Florida

Jacksonville is a city located in northeastern Florida, along the Atlantic coast. With a population of 970,000+ people, it is the largest city in Florida by land area and the fourth-largest city in the state by population. The city is known for its beautiful beaches, mild climate, and outdoor recreation opportunities.

Among the reasons why you should invest in the Jacksonville, Florida Real Estate Market include:

Strong population growth

Jacksonville is the largest city by land area in the United States and the Jacksonville metro area population is 1.6+ million people. The city has experienced steady population growth over the years, and it is expected to continue to do so in the future. This can create opportunities for real estate investors who are interested in rental properties or fix-and-flip opportunities.

Growing economy

Jacksonville has a diverse and growing economy, with industries ranging from finance and healthcare to logistics and manufacturing. The area's low cost of living and business-friendly environment has attracted many businesses to the region, contributing to job growth and economic stability.

Affordable housing

Jacksonville's real estate market is relatively affordable compared to other large cities in Florida, making it an attractive location for first-time homebuyers and investors. The city also has a variety of housing options, from historic homes to modern condos and apartments.

9. Cincinnati, Ohio

Cincinnati is a city located in southwestern Ohio, along the Ohio River. It is the third-largest city in Ohio, with a population of 300,000+ people. Cincinnati is part of the larger Cincinnati metropolitan area, which includes parts of Ohio, Kentucky, and Indiana and has a population of 2+ million people.

Among the top reasons why you should invest in real estate in Cincinnati, Ohio include:

Strong economy

Cincinnati has a diverse and robust economy, with a mix of industries such as healthcare, education, finance, and manufacturing. The city is home to several Fortune 500 companies, including Procter & Gamble and Fifth Third Bank, as well as several smaller businesses and startups. This strong economy provides a stable foundation for real estate investment.

Affordable real estate

Compared to other major cities in the United States, Cincinnati's real estate market is relatively affordable, with a lower cost of living and lower housing prices. This makes it easier for investors to purchase properties and potentially earn a higher return on investment.

Strong rental market

With several universities and major employers in the area, Cincinnati has a strong rental market, with high demand for both long-term and short-term rentals. This can make investing in rental properties a potentially lucrative opportunity. It is reported that 60% of people living in the area would rather live in rental property than own.

10. Baltimore, Maryland

Baltimore is a city located in central Maryland, along the Chesapeake Bay. With a population of over 585,000+ people, it is the largest city in Maryland and the 30th most populous city in the United States.

Among the top reasons why you should invest in real estate in Baltimore, Maryland include:

Strong demand for rental properties

Baltimore is home to several universities and medical centers, which creates a high demand for rental properties in the area. Investors may find opportunities to generate steady rental income through properties such as apartments, townhouses, and multi-family buildings.

Diverse housing stock

Baltimore has a diverse housing stock, with options ranging from historic rowhouses to modern apartments and condos. This variety can create opportunities for investors with different investment goals, such as those interested in renovating historic properties or purchasing newer, turnkey properties.

Growing economy

Baltimore's economy has been growing in recent years, particularly in industries such as healthcare, technology, and education. This growth can contribute to stability in the real estate market and create opportunities for real estate investors.

Other Cities That are Worth Investing in

• San Antonio, TX
• Charlotte, NC
• Indianapolis, IN
• Birmingham, AL
• Ocala, FL
• Palm Bay, FL
• Cleveland, OH
• Pittsburgh, PA
• Oklahoma City, OK
• Montgomery, AL
• Dayton, OH
• Kansas City, MO
• Cape Coral, FL
• Chicago, IL

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Bay Street Capital Holdings is a Black-owned, independent investment advisory, wealth management, and financial planning firm headquartered in Palo Alto, CA.

The firm manages their clients' portfolios with the goal of maintaining and increasing total assets and income with a high priority on managing total risk and volatility.

Bay Street was founded by William Huston founded Bay Street after 13 years of supporting the United States' largest retirement plan ($650B) Thrift Savings Plan. He is recognized as Investopedia’s Top 100 Financial Advisors for 2021. In Scottsdale Arizona, Ekenna Anya-Gafu CFP, AAMS is recognized among the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and detail. Bay Street was founded to advocate for diverse and emerging fund managers and entrepreneurs.

Sources

https://realwealth.com/learn/best-places-to-buy-rental-property/

https://www.noradarealestate.com/blog/best-places-to-invest-in-real-estate/

https://www.dealmachine.com/blog/best-cities-to-invest-2023

https://www.propstream.com/real-estate-investor-blog/10-best-cities-to-invest-in-real-estate-in-2023

https://www.star-telegram.com/news/business/article270952637.html