In this article we discuss the 5 best states to invest in real estate in 2021. If you want to read our detailed analysis of the real estate industry, go directly to the 15 Best States to Invest in Real Estate in 2021.
5. Montana
Montana is a landlocked northern state in the United States and borders Canada at 14 different points. Real estate appreciation in total over the past two years in the state stands at 17%. Median household income of $72,100 in the state is lower than the national average but so is the cost of living and affordability. Mortgage rates are lower in the state, the average being 2.9% like most US states.
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4. Maine
Maine is also located in the northwestern region of the United States. Maine has had a total appreciation of 17.4% over the past two years. While Maine has a lower median income than the national average at $75,700, it is compensated by the fact that the cost of living and affordability is also lower in the state than the national average. Mortgage rate is also low at 2.9% in the state on top of that. This drives up property demand and so does the potential for good returns.
3. Utah
Utah is a state in the US known for its natural parks and wildlife and like Idaho, it’s another attractive market for real estate investment. The total appreciation in Utah for the past two years is 19.23% and like most US states, has to do with the fact that the mortgage rate is very low.
Although the cost of living in Utah is pretty close to the national average, the median income is higher. An above average income earning state with low mortgage rates is bound to be attractive for real estate.
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2. Arizona
Arizona is a southwestern state in the US that borders California on the west. The total real estate appreciation in the state is a staggering 20.43% for the past two years. The cost of living as well as the median income in Arizona are somewhat similar to the national average.
With a cost of living similar to the national average and a low mortgage rate, Arizona grabs a spot on this list for being one of the most lucrative markets for investing in property.
1. Idaho
Idaho is located in the northwestern part of the United States known for its protected wilderness and pristine outdoor landscapes. The total real estate appreciation for the past two years in the state stands at 28.49%. The high appreciation rate is driven by an increasing demand for real estate in Idaho, partly due to the low mortgage rate of 2.9% as mentioned above and partly because of the fact that living expenses in the state are affordable.
The cost of living in Idaho is 2% lower than the national average. These factors combine to make real estate in the state an attractive sector.
You can also take a peek at 11 Best Materials Stocks for 2021 and 10 Best Asian Stocks to Buy Now.
