Investing in real estate can be a great way to build wealth, but many people still don’t realize all the advantages of doing so. It is usually assumed that investing in real estate means living in a city like New York City or San Francisco. Still, many other cities provide an excellent return on investment without the high cost of living. In this post, we will explore five underrated US cities for real estate investing, discuss why they are excellent real estate investment opportunities, and the best ways to invest in them.
1. Buckeye, AZ
This is one of the most underrated real estate markets in the US. It is located just 45 minutes from downtown Phoenix and about 1 hour from Tucson and Scottsdale, Arizona. This area is not just a growing place; it has already established itself as a viable market in the Phoenix metro area.
With a population of 91,502 as of 2022, the ever-increasing population and the construction of new homes in the Buckeye area, which is 6.22% and rising according to Home Builder Reports, will keep it on the real estate investment radar.
The average price of a Buckeye home for sale is $ 330,290, the median household income is estimated at $ 70,560, and the unemployment rate is 7.2%. These factors, and many others, raise the potential for real estate investors to make a profit.
It is easy to commute with major highway accessibility such as State Route 8, State Route 85, and State Route 347 to major Arizona cities. Buckeye is also near Interstate 10, which connects to the rest of the country.
Additionally, small businesses flourish in this city due to its high growth, prosperous economy, and friendly business environment. There are lots of fun activities, including hiking, mountain biking, playing golf, horseback riding, and sightseeing.
There are so many activities to do that people from all over the world come to Buckeye to take classes at different art and music schools, attend local festivals and events, or just for fun. There are also parks such as Lake Pleasant Park, Goodyear Heights Park, and the Flagstaff Mountain Preserve.
There are also many recreational activities, with some of them being golf courses and swimming areas.
2. Eagle, ID
This is one of the most overlooked places in the United States. It is located in the Pacific Northwest, just a short drive from Seattle and Portland. Eagle has been growing very rapidly, and it is now consistently ranked as one of the fastest-growing cities in the country.
According to Home Builder Reports, the total number of new homes in 2022 is 7.96%. The average price of a home is $ 275,000, the median household income is estimated at $ 67,940, and the unemployment rate is around 2.6%.
It is easy to commute due to major highways such as Interstate 15 and Interstate 84, connecting to major cities in the United States such as Los Angeles, San Francisco, Salt Lake, and Denver. This city is also near National Forest land, so hiking is an excellent option for exercise.
There are many things to do in this lovely city, including golfing, swimming, hiking, fishing, and horseback riding. There is also a very active arts community, with the Eagle Art Guild hosting many cultural events throughout the year. There are also parks, bike paths, and a zoo.
3. Frisco, TX
The city of Frisco is located in the Dallas–Fort Worth area and has been nicknamed. As of 2022, it has a population of about 207,248 with an average home price of $509,200, above the national average, and a median household income of $83,599.
The unemployment rate is only 3.1%, according to Home Builder Reports. It’s an excellent town for people looking for job opportunities and high income. The city’s economic opportunities are part of why it has been so popular over the years.
It’s also been ranked among the best cities to live in by many publications having a 0.92 violent crime rate and 10.34 property crime rate, both well below the national average of 2.58 and 2.48, respectively.
However, the city’s economic opportunities offset the higher prices and make it incredibly safe for its size. In 2022, there were 0.92 violent crimes and 10.34 property crimes per 1,000 people.
It has a good network of highways, including State Route 121 and State Route 380, which connect to major cities like Dallas, Austin, and San Antonio, making it easier for commuters to access different parts of the city and neighboring regions.
There is also a huge community spirit, with Frisco Square hosting a range of events, including the annual Main Street Fest, the Frisco Fair Days, and many others. It is also one of the best outdoor activities as it has many parks which are great for walking, jogging, biking, and horseback riding.
4. Alpharetta, GA
With a population of 67,579 as of 2022, the growing population and high employment rate (4.4%) will put this town on the real estate investors’ radar. Alpharetta is located in the Atlanta metropolitan area, and according to Home Builder Reports, it will have 8.35% of new home construction in 2022.
The average price of a home is $230,101, the median household income is estimated at $71,914, and the unemployment rate is 3.2%.
For commuters, there is a daily train service with major cities such as Atlanta and 1-85 (connecting to Charleston, South Carolina), making it easy to commute from other parts of the country.
It has two major highways, State Route 141 and State Route 140, connecting Alpharetta to major cities such as Columbus, Tennessee, and Tampa, Florida. This city is also known for being a lively place with some of the country’s best community festivals and events.
Alpharetta was named the Best Place to Live in America by Money magazine, and it is consistently rated as one of the best places to live in the U.S.
Since there are so many things to do, this perfect town is also a popular place for retirees who want to work out at the health clubs, go golfing and enjoy the nightlife with plenty of live music shows every month. Alpharetta also has many parks, which are great for walking, jogging, biking, and horseback riding.
5. Fort Collins, CO
The city of Fort Collins is located in the Colorado Front Range, which is known for being a great place to live. According to Home Builder Reports, it has a population of 157,519 as of 2022, with a median household income of $62,095 and a 2.5% unemployment rate.
Fort Collins is one of the safest places in the country, with its violent crime rate at 1.16 and property crime rate at 12.99 per 1,000 people. The cost of living is also low, with a cost of living index of 94.8, according to Business Insider.
It is located near the Loveland Ski Area and Old Town Fort Collins, making it easy for people to commute from other parts of the country. This city is also known for great home and commercial services, with many buildings being LEED-certified, adhering to strict environmental guidelines.
These measures have resulted in a very high percentage of electricity from renewable sources, and all buildings are expected to follow strict energy-efficient standards.
In addition, the town has been named one of the best places to retire in the country due to its high number of active adults, good healthcare services, and low cost of living. It is also next to Rocky Mountain National Park and other major recreational amenities such as hiking, biking, and skiing.
In summary, the real estate market in the United States is doing very well, and there is a strong possibility that it will continue this trend into 2022. This means that the time is right for real estate investors planning to get involved in this market. It is also a great idea for sellers to sell their properties since prices are still on an upward trajectory, especially in the markets mentioned above.