Whether you’re buying your first home or your tenth single-family rental, you should make sure you’re buying in a market that will help you build wealth in the long run.
For investors, you need to make sure your property will be cash flow, meaning renters will cover the mortgage, insurance, utilities, and help fund any major repairs you might need to make during the life of the property.
For all buyers, you want to be sure your property will appreciate over time. You want to buy in a desirable location that looks like it will grow over time.
While no one can predict the future, here are 3 US cities that fit the bill.
Miami, FL
Miami is considered a gateway market thanks to its international airport, two additional major airports, and seaport, connecting it to Latin America and increasingly Europe. In fact, it’s nickname is literally the Gateway to the Americas.
On top of its global status, Miami is growing at a rate of 1.08% every year, having increased 21% in the past 10 years. Job growth is substantial in tourism and transportation because of its beautiful year-round weather. But it’s not just another beach time. The city is also a major hub for finance and commerce, plus culture and arts.
Miami is a desirable place to live, whether your property is for you or your tenants.
Houston, TX
Already a massive city, Houston’s growth just won’t stop. Compared to the national job growth of around 5%, Houston’s local job growth was a staggering 14% in 2021. And there’s no reason for it to stop there.
Houston’s major economic industries are energy and oil, which you’ll notice along its skyline. It’s also known for health care, biomedical research, and aerospace. These industries pay well, so landlords can expect cash-flowing properties here. Plus, its close proximity to the beach town Galveston and year-round warm weather makes it a desirable location to live.
Phoenix, AZ
With a population of 1.6 million, this large city is continually on the rise. Believe it or not, Phoenix has a low cost of living, in part thanks to low property taxes.
Phoenix has become a popular place to retire, so investors can rest assured they will have easy, long-term tenants. A warm, dry climate and sunshine 300 days a year makes it a nice place to live.
In the past 10 years, Phoenix has grown faster than any other US city at a rate of 11%. Don’t miss this train before it leaves the station!
No Matter Where You Invest, Do It Wisely
Of course, there are many investment opportunities across the United States, each with its pros and cons. Just be sure that you do your research before buying property. If a major industry appears to be leaving town, it’s taking its workers and residents with it, leaving you in the dust.
