Best Cities for Real Estate Investment

Whether your investor clients seek stable rental income, property appreciation, or both, understanding these top investment markets positions you as an asset.

For example, Toledo is a cash flow gem thanks to low vacancy rates and manufacturing-driven economy. The city also offers landlord-friendly laws and impressive rental yields. In a growing city like Nashville, tourists and residents alike are fueling the local economy.

Salt Lake City

The capital of Utah is a mountainous, snow-capped city that thrives on skiing and outdoor recreation. It’s also known for its thriving tourism industry thanks to the 2002 Winter Olympics. The city is also politically liberal, and in contrast with the rest of the state’s conservative culture, has a strong LGBT community.

Downtown Salt Lake City is experiencing a renaissance. The Natural History Museum of Utah features world-class exhibitions, and the new City Creek Center has boosted retail and restaurant activity. The city’s walkable urban core has become more desirable in recent years, and the TRAX light rail system helps people avoid traffic jams.

The city’s school district is one of the best in the country. The district includes twenty-three K-6 elementary schools, five 7-8 middle schools, and three 9-12 high schools. In addition, the city has a number of charter schools, including Rowland Hall-St. Mark’s School, and many Catholic schools.

Investors who are looking to diversify their portfolios should consider buying rental properties in these top cities. If you’re not ready to invest in a whole property, Arrived Homes offers an affordable way to tap into the rental market. You can buy shares of income-producing properties through the platform, collect quarterly rental dividends, and benefit from property appreciation without having to deal with tenants or maintenance.

Best Cities for Real Estate Investment
Best Cities for Real Estate Investment

Omaha

Omaha has a robust economy that attracts steady influxes of residents, fueling demand for housing. This growth has led to stable home values and a strong rental market, making Omaha one of the best cities for real estate investment. Additionally, the city’s affordable land and development costs make it an ideal location for Build-To-Rent (BTR) investments.

One of the best neighborhoods for real estate investment in Omaha is Aksarben, which offers a mix of modern apartments and historic bungalows. It also features revitalized entertainment areas and close proximity to reputable schools like the University of Nebraska-Omaha. Moreover, local events and parks make Aksarben an appealing choice for students, singles, and young professionals.

Another growing area for real estate investing in Omaha is Dundee. This neighborhood has a strong job market with a thriving medical research community and significant infrastructure investment. In addition, it has low unemployment rates and a relatively affordable home price, making it a desirable place for families to live. Furthermore, the neighborhood’s plethora of family-focused events further boost its appeal.

Buffalo

A renowned cultural and culinary hub, Buffalo is brimming with American history. Its architectural heritage, passionate sports culture, and proximity to Niagara Falls provide visitors with plenty of things to do. From exploring Theodore Roosevelt Inaugural National Historic Site to dining at The Anchor Bar & Restaurant, there’s always something new to discover in this western New York city.

Cleveland remains one of the best places for real estate investing, thanks to a stable rental market and affordable entry costs. Its diversified economy, anchored by the Cleveland Clinic and major universities, has boosted housing demand among working-class tenants and students. Meanwhile, the city’s ongoing infrastructure upgrades have improved its walkability and created opportunities for value-add plays in neglected neighborhoods.

Another hidden gem, Toledo offers a consistent gross rental yield of over 10% and rent growth that outpaces inflation. With a revitalized downtown, low vacancy rates, and a growing manufacturing sector, it’s an ideal spot for cash flow investors to diversify their portfolios. It’s also an attractive option for long-term investors because it is one of Ohio’s most landlord-friendly cities, making it easier to manage your investment property. A growing tech workforce is adding to the city’s appeal, boosting its overall job market.

Little Rock

Known as the capital of Arkansas, Little Rock is big on culture and heavy on history. Its River Market District pulses with energy day and night, and restaurants, bars and music venues crowd the streets. The city also has a wealth of historic buildings, including the Old State House Museum and the Arkansas Arts Center, where world-class traveling exhibitions are showcased alongside a permanent collection of works on paper.

Among the many companies based in Little Rock are Dillard’s, Alltel (now Verizon Wireless), CENTURYLink, Entergy, Heifer International, Baptist Health Medical Center, and Kroger. The area is also home to a large number of nonprofit organizations, including Winrock International and the Association of Community Organizations for Reform Now.

With a stable job market and steady population growth, Columbus is one of the Midwest’s most attractive rental markets. Low property prices, strong rent growth and landlord-friendly legislation make it an ideal place for investors who seek high cash flow with low maintenance costs.

Boise

Invest in Boise real estate and reap the rewards of high rental yields, healthy population growth, low mortgage rates, and limited home inventory. The city has a walkable urban core surrounded by boutique restaurants, craft breweries, and world-class museums. Just beyond the urban center is a rural escape with direct access to mountainous areas, lakes, and deserts. This unique balance of urban living and outdoor adventure has made Boise one of the most popular cities for newcomers to settle down, driving inward migration and boosting both home prices and rents.

A stable job market is a key factor in real estate investment, and Boise is no exception. The city is the headquarters of several major employers, including retail giant Albertsons, technology manufacturer Micron Technology, and engineering services company Washington Group International. The city’s economy is diversified, with strong employment in healthcare, education, manufacturing, and professional services.

The city’s affordable housing and booming job market have combined to create a hot residential real estate market with record-low interest rates, a limited supply of homes for sale, and skyrocketing demand. The combination of these factors has driven prices up and boosted rents, making the city a top place to buy investment property.

Nashville

With a growing economy that’s expanding beyond the music industry, Nashville is poised for continued growth. That’s good news for investors looking to take advantage of strong rental yields and long-term appreciation.

The city has a variety of unique neighborhoods that have their own personalities. For example, 12South is home to a number of Instagram-worthy murals like “What Lifts You?” (expect lines for photos), and the Gulch has an urban feel with upscale boutiques and restaurants like Biscuit Love.

It also has a number of attractions that reflect the city’s musical heritage, including the Grand Ole Opry, Country Music Hall of Fame and Museum, Historic RCA Studio B, and Musicians Hall of Fame & Museum, where visitors can see the very instruments used to record many of Nashville’s famous songs.

There are plenty of green spaces to enjoy, too, like Centennial Park. It has a full-size replica of the Parthenon, as well as a serene lake and plenty of walking trails. Those who prefer a more leisurely pace can wander Cheekwood Botanical Garden and Museum of Art or take a tour of the mansions at the Historic Davidson County Courthouse. The city is governed by a mayor and 40-member Metropolitan Council, using the strong mayor-council form of government.

Charlotte

Famous as the epicenter of thrilling NASCAR auto racing and a refined, cosmopolitan metropolis with stately neighborhoods, Charlotte is one of the most diverse cities in the country. Its vibrant local culture, rich history, and outdoor recreation opportunities make it a favorite among visitors.

The city’s logistics hub, thriving transportation and warehousing sectors, and a growing healthcare and biotech sector drive steady demand for rental homes, fueling consistent cash flow and long-term value appreciation. Home prices remain affordable compared to national averages, with median home values below $225,000 in many neighborhoods.

Rochester is another undervalued rental market with a stable tenant pool and a resilient economy. Anchored by multiple universities, the Rochester Institute of Technology, and a strong healthcare and industrial base, the market is stable with a reliable gross rental yield of 9.1%. In addition, low entry costs and revitalization efforts in underserved neighborhoods make this a top choice for fix and flip investors.

Real estate investing can be an excellent way to diversify your portfolio and achieve wealth through passive income. However, purchasing individual properties can be time-consuming and risky for those who aren’t ready to become landlords. Arrived eliminates the risks and responsibilities of property ownership by finding, purchasing, and managing high-performing rental homes on your behalf. You can invest directly online and receive a share of the rental income based on your ownership percentage.

Related Posts

Top Real Estate Investment Strategies For Novice Investors

Top Real Estate Investment Strategies For Novice Investors

Real estate investing can be a rewarding endeavor. It can generate stable rental income and capitalize on property appreciation. However, it can also be a risky investment for inexperienced investors.

Read more
Beginner's Guide to Buying Your First Home - Step-By-Step Tips

Beginner’s Guide to Buying Your First Home – Step-By-Step Tips

Buying your first home can be an exciting and intimidating process. Using self-education and good planning, this guide will walk you through the homebuying journey.

Read more
Should You Invest in Real Estate Or Stocks?

Should You Invest in Real Estate Or Stocks?

Whether real estate or stocks makes more sense depends on many factors, including the level of control investors want. Real estate offers a more hands-on approach, but can be difficult to sell during downturns.

Read more
The Future of Real Estate

The Future of Real Estate

The work-life-play expectations of millennials are changing property preferences. For example, some buyers seek eco-friendly properties. They’re willing to pay more for homes that harvest rainwater and produce as much energy as they consume.

Read more
How to Analyze a Property Before You Buy

How to Analyze a Property Before You Buy

Investing in property requires intensively analyzing the market and neighborhood. A booming rental market may not be enough to justify investing in a property.

Read more
Commercial Vs Residential Real Estate

Commercial Vs Residential Real Estate

Residential real estate tends to be easier to manage, making it a good choice for first-time and individual investors. However, it also has lower potential returns and might not withstand economic downturns as well as commercial properties.

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *