The Rent vs. Buy debate is a never ending affair when it comes to houses. But we are not here to discuss which option would be better. Instead, for those of you who are interesting in making a real estate purchase, we would like to present you with a list we have compiled of the top 20 markets for real estate investing.
The following areas were ranked according to the statistics released by the Local Market Monitor, which evaluates over 300 housing markets across the USA. The most important indicator Local Market Monitor used to rank the following cities is the Equilibrium Home Price, which indicates what the actual cost of the house would be, if there were no factors, such as speculation or housing collapse, affecting the price. Experts at Local Market Monitor presume that house prices will eventually increase to this level, which is why they granted each of the following markets with a specific growth forecast.
The following housing markets are suitable for both people looking to become home owners and for those looking for houses they can buy and subsequently rent. Curious to see which are the top markets for real estate investing? Let’s take a look at the countdown.
Note: the countdown only applies to US housing markets.
No. 20: Louisville (Kentucky)
Actual price (average): $167, 128
Equilibrium home price (average): $201,248
Difference: -17%
Growth forecast (3 years): 15%
No.19: Phoenix, Mesa (Arizona)
Actual price (average): $196,035
Equilibrium home price (average): $216,373
Difference: -9%
Growth forecast (3 years): 41%
No. 18: Virginia Beach, Norfolk, Newport News (North Carolina)
Actual price (average): $234,828
Equilibrium home price (average): $253, 170
Difference: -7%
Growth forecast (3 years): 9%
No. 17: Minneapolis, St. Paul (Minnesota)
Actual price (average): $209,691
Equilibrium home price (average): $232,663
Difference: -10%
Growth forecast (3 years): 31%
No. 16: Seattle, Bellevue, Everett (Washington)
Actual price (average): $319,544
Equilibrium home price (average): $335,506
Difference: -5%
Growth forecast (3 years): 33%
No. 15: Boston (Massachusetts)
Actual price (average): $323,245
Equilibrium home price (average): $338,061
Difference: -4%
Growth forecast (3 years): 19%
No. 14: Salt Lake City (Utah)
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Actual price (average): $236,279
Equilibrium home price (average): $249,548
Difference: -5%
Growth forecast (3 years): 31%
No. 13: Fort Lauderdale, Pompano Beach (Florida)
Actual price (average): $216,852
Equilibrium home price (average): $221,046
Difference: -2%
Growth forecast (3 years): 33%
No. 12: Tampa, St. Petersburg, Clearwater (Florida)
Actual price (average): $165,052
Equilibrium home price (average): $189,422
Difference: -13%
Growth forecast (3 years): 32%
No. 11: Grand Rapids, Wyoming (Michigan)
Actual price (average): $138,596
Equilibrium home price (average): $184,794
Difference: -25%
Growth forecast (3 years): 27%
No. 10: Boise City, Nampa (Idaho)
Actual price (average): $168,061
Equilibrium home price (average): $190,616
Difference: -12%
Growth forecast (3 years): 37%
No. 9: Las Vegas, Paradise (Nevada)
Actual price (average): $149,382
Equilibrium home price (average): $207,536
Difference: -28%
Growth forecast (3 years): 58%
No. 8: Orlando, Kissimmee (Florida)
Actual price (average): $172,609
Equilibrium home price (average): $209,047
Difference: -17%
Growth forecast (3 years): 35%
No. 7: Oklahoma City (Oklahoma)
Actual price (average): $159,713
Equilibrium home price (average): $192,997
Difference: -17%
Growth forecast (3 years): 16%
No. 6: Atlanta, Sandy Springs, Marietta (Georgia)
Actual price (average): $170,701
Equilibrium home price (average): $230,994
Difference: -26%
Growth forecast (3 years): 26%
No. 5: Houston, Sugar Land, Baytown (Texas)
Actual price (average): $191,279
Equilibrium home price (average): $218,610
Difference: -13%
Growth forecast (3 years): 24%
No. 4: Nashville, Davidson (Franklin, Tennessee)
Actual price (average): $199,506
Equilibrium home price (average): $238,411
Difference: -16%
Growth forecast (3 years): 23%
No. 3: Charlotte, Gastonia (North Carolina)
Actual price (average): $201,855
Equilibrium home price (average): $237,985
Difference: -15%
Growth forecast (3 years): 24%
No. 2: Dallas, Plano (Texas)
Actual price (average): $180,645
Equilibrium home price (average): $204,453
Difference: -12%
Growth forecast (3 years): 29%
No. 1: Fort Worth, Arlington (Texas)
Actual price (average): $168,383
Equilibrium home price (average): $210,296
Difference: -20%
Growth forecast (3 years): 25%
