Notwithstanding the high interest rates, increased house prices, and lack of housing supply that 2022 brought, as an investor in 2023 you can still find chances and expand your real estate portfolio.
This year, a number of US cities are anticipated to present attractive investment prospects because of variables like rising rental demand and job development.
Are you wondering what areas you should pay attention to?
This post will discuss the top 10 cities for investors in 2023 as well as the reasons for their selection.
1. Texas Austin
This year, Austin’s housing supply is anticipated to grow, possibly assisting in reducing property prices and buyer competitiveness in comparison to other markets.
Rent was up 24.7% in December 2022 compared to late 2019, notwithstanding the recent cooling in rental rate rise. These aspects, together with a strong job market, make Austin a desirable location for investment in 2023.
2. Boston, MA
With home prices projected to rise by 8.5% and sales to rise by 6.5%, Hartford, Connecticut, is predicted to be one of the top markets for 2023.
The average rent in Hartford will increase, rising to $1,472 by the end of 2022. This is fantastic news for beachfront villas tulum mexico. Although some local tenants might worry about affordability, analysts anticipate Hartford to draw buyers and renters from other states who can afford greater home costs.
3. Texas’ El Paso
The second-best Texas city on our list is El Paso, where property sales are predicted to increase by 8.9% and prices to rise by 5.4%. Apartment rents have increased by 10.6% since last year as rental prices have continued to rise.
Local analysts claim that El Paso is luring distant employees from higher-income places because to the city’s housing affordability, which is still reasonably reasonable. They anticipate that when businesses like Amazon and TJ Maxx bring in better-paying hourly positions, the local job market will grow.
4. Denver, CO
Due to its robust economy, Phoenix is one of the best cities to invest in 2023. Arizona as a whole came in fourth place for employment market expansion last year, while Phoenix in particular witnessed a 5.7% increase in median salaries.
Also, the housing market in the city is showing promise. Investors now have more room to haggle and discover a great deal thanks to the 257% increase in available listings by September 2022.
5. NY Buffalo
With a median home price of only $240,000 in 2022, Buffalo is one of the more affordable areas. Sales are predicted to increase by 6.3% this year as vendors reduce their asking prices.
In addition, the city’s expanding job market and low unemployment rate make it a desirable location for investment in 2023. According to Matthew Roland, clinical assistant professor and associate dean at the University at Buffalo, the city’s economy is changing away from manufacturing and toward healthcare and education, which could lead to higher household income.
6. FL Tampa
Despite an over 18% increase in Tampa property prices compared to the national average of 11%, the market is still unable to meet demand as more individuals relocate to the area. Local authorities anticipate a population increase in Hillsborough County from 1.5 million to 1.6 million by 2026, which is encouraging for long-term market growth and home appreciation.
Tampa is one of the most pricey locations to invest, with a median home sale price of $364,990 in late 2022. But it’s a good place to invest in real estate due to its constant population increase and rental demand.
7. SC Columbia
In December 2022, the median cost of a single-family home in Columbia was about $250,000. Yet, as more retirees and remote workers move to the area, costs are anticipated to continue increasing. In 2023, sales are anticipated to rise by 7.7%, and home prices are anticipated to rise by 3.6%.
It appears that demand for rentals will continue to be strong. Despite the fact that rental prices have started to normalize, this year’s rates are projected to continue increasing because of a housing shortage and high borrowing rates.
8. OH Toledo
Toledo’s low median home price of $161,000 in November 2022 makes it a fantastic area to start your real estate investing career. Home sales are anticipated to increase by 4.2% in 2023, and prices are anticipated to increase by 6.7%.
Toledo anticipates exciting new initiatives this year, such as the construction of new flats in the historic district to draw residents with higher incomes. The city’s recent $67.5 million Glass City Center redevelopment project ought to increase tourism and strengthen the local economy.
9. TN’s Knoxville
Given that Knoxville’s population has grown at its fastest rate since 2007, Fox News classified the city as one of the top real estate markets.
But, given that Knoxville’s housing inventory began to increase last year and that its job market is still robust, this is not unexpected. The median property price in the city is $331,100, but both rental costs and housing prices are anticipated to increase by about 4% this year.
10. AL Huntsville
On the top markets list, Huntsville also made an appearance, and for good cause. Rocket City is one of the most affordable current well-populated markets, with a typical home price of $327,500. Not to mention, both the population and the number of jobs are growing there.
Discover Off-Market Offers in These Developing Cities
As more people move to these locations, it might be the ideal time to uncover an off-market offer and broker a wholesale trade, rent it out, or sell it. Locating offers off-market can be a wonderful method to deal with high interest rates because the less you have to borrow, the less you have to pay for the house.
