The 10 Hottest U.S. Real Estate Markets for Investors in 2019

Posted by Michael Miller on February 1, 2019

Are you considering branching out and extending the geographic reach of your investment business in 2019? Whether you are looking to fix and flip homes or buy and hold single-family rentals, Zillow released its predictions for the hottest markets of 2019.

Analyzing 50 major U.S. cities, Zillow compared changes in median home values and median estimated rents, income and population growth, unemployment rates, and job openings to rank the most fortuitous housing markets and, as a result, investment opportunities.

Understanding the Greatest Drivers for Rising Real Estate Prices

Not surprisingly, the cities that ranked the highest offer an abundance of job opportunities. In fact, four of the top five markets have more opportunities per person than 42 other major U.S. cities, based on data from Glassdoor, a job search and company review database.

The top cities also had low unemployment rates, rapidly increasing salaries and, in the case of nine out of the top 10 cities, population growth at or above 1 percent, which is 29 percent greater than the national average of 0.71%.

Finally, it may be coincidence, but eight of the 10 cities on the list are in year-round, warm-weather climates. You won’t have to worry about the rising costs of home heating oil if you buy and hold rental properties in most of these cities.

San Jose Housing Market Stays Strong

San Jose, number one on Zillow’s list for the second year running, boasts the lowest unemployment rate in the country and continued salary growth. If you are looking to fix and flip, you won’t be disappointed, because house prices are continuing to rise in San Jose, in spite of murmurs of a potential economic recession on the horizon.

Housing affordability continues to be an issue in San Jose, but with slowed population growth and more homes on the market, prices won’t rise fast enough to create a bubble in danger of bursting. Instead, investors can expect stable and steady growth, making the city a smart investment now and, potentially, for years to come.

Orlando’s Population Growth Sparks Rising Housing Costs

Although Orlando’s median home value, $233,700, is a mere fraction of San Jose’s $1.25 million, and rents are about one-third the cost of the South Bay Area, Orlando ranks second on Zillow’s list of hottest markets. Job and population growth, fueled by the tourism and healthcare industries, combine to create a need for affordable housing and incredible opportunities for investors, especially for those considering Class B multi-dwelling units, single-family rentals, or affordable fix and flips.

Where Will You Invest Next?

Choose your next investment property with care, and you aren’t likely to go wrong with a fix and flip or single-family rental in any of the top hottest cities for real estate. It is still a seller’s market, so you’ll need to act quickly when you spot a property, especially in one of the coveted cities on Zillow’s list.

The biggest challenge? Finding a property worth flipping and being the first to make a desirable offer. Working with a lender that offers speed and certainty of closing—like 5arch—will put you ahead of the pack!

Let Our Team Help You Get the Financing You Need for the Hottest Markets: Borrow Better today.

 

 

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