In 2022, home values in the United States are expected to increase by 2.9 %.
More Americans are looking for new homes, what with the constant shifts in the economy and the increase in remote job opportunities. The annual price growth of real estate continues to increase while inventory decreases. Hence, if you intend to invest in real estate, you should do the calculations to identify the best cities in which to invest in real estate. On the other hand, if you aspire to move this year, it’s crucial to conduct adequate research on the best housing markets to find a suitable match. This article has compiled the top 5 housing market best spots. Read on to determine the ideal location for you.
1. Raleigh, North Carolina
Raleigh is the third most competitive market in the United States. It’s ideal for investors who prefer the high-end rental market due to the availability of lucrative job opportunities in information and technology. The city has a large student market and low unemployment rates and as such, many young people are moving to Raleigh for work. As a result, the city has a rental rate of 43% and the average rent for an apartment is $1,238 which has increased by 6% since last year. On the other hand, the average home price is $290,270 and appreciation rates in the latest quarter were at 1.31% amounting to an annual appreciation rate of 5.34%. An increase that suggests a great opportunity for Raleigh residents to sell.
2. Houston, Texas
Being the 4th largest city in the US, Houston, TX is home to more than 7 million people, a number that continues to grow drastically. Houston is considered the number 1 market in the US for Job Creation. Its unemployment rate is below the national level by far since it provides never-ending job opportunities. This is because it’s home to 53 Fortune 1000 businesses and the US oil and gas industry. Its factors like this continue to boost the Houston housing market. Home values have increased by 23.2% over the last year. While the average home value is at $412,000, the rental income is comparably low at $1,550. Nevertheless housing stock sells fast so can easily sell your home if you choose to.
Houston real estate is affordable because it’s 5%-20% below the current market value; the average purchase price is $75,000. Rest assured that you will receive a 12 Month’s Home Warranty and a ‘No Vacancy’ Guarantee.
3. Tampa, Florida
The past year saw Tampa being described as one of the best real estate markets in the US. This is mainly due to the number of employment opportunities it created. Since the start of 2021, The Tampa Bay area created more than 84,600 new jobs and as a result, over the last year, the employment growth was 3.3%. An added advantage is that there is no state income tax in Florida meaning that residents keep most of their earnings. Over the past year, Tampa home values have increased by 5.3% and it’s most likely to appreciate soon. While the Median Home Price is about $250,000, the average price of rent is $1,600. There are exemplary transport, healthcare, and education facilities in Tampa with the cost of living being 5% below that of the national average.
4. Phoenix, Arizona
Over the past year, Phoenix home values increased by 25.8%, the main reason being an abrupt influx of remote workers, retirees, and home buyers. The Phoenix housing market is very competitive, such that the Phoenix Housing market sale prices didn’t reduce due to the pandemic. Even after more than 21 months of major seller market conditions, Phoenix remains a red-hot seller’s real estate market. The median home price is $470,000. Phoenix has agreeable living conditions, with the availability of affordable housing, stable climate forecasts, lower costs of living, and available employment opportunities.
5. Atlanta, Georgia
Atlanta is one of the Top Rental Markets in the U.S. Over the last decade, the City’s population had increased by more than 14%. This is mostly due to the job opportunities the city offers since its home to various Fortune 500 companies like Delta Air Lines and The Coca-Cola Company. Atlanta’s economy is deemed to be 8th in the nation for GDP. The city’s economy will continue to grow especially since the relocation of NCR is anticipated to create over 3,500 job opportunities in the region. Approximately 500 people move to Atlanta daily and this spike in population growth keeps propelling the demand for housing. In May 2022, the total residential sales were at 6,817 which was an increase of 5.1% from April 2022. At the moment, the Median rental per month is $1,500 while properties start at $70,000. However, as the city’s economy continues to boom, property prices will certainly rise in the coming years.