Americans were on the move in 2018. Beach towns topped the list of popular migration choices. Big cities and an unexpected destination rounded out the top places people wanted to move. Despite hurricanes, wildfires, and varying economic climates, people were ready to lay roots along both coasts.
Do popular cities make good investment areas? When you hear that a city’s population grew by 20,000 residents in one year, your knee-jerk reaction may be to invest. After all, those new neighbors need somewhere to live, right? While popular cities may seem like a natural real estate investment choice, there are some elements to consider before forking over cash.
Popular Cities To Move
Thrillist released its list of fastest growing cities in 2018. Seven of the 25 were in Texas. Florida and California were also well represented on the list. The top five places to move this year, according to Thrillist were:
- McKinney, TX
4. Bend, OR
3. Pearland, TX
2. Midland, TX
1. Fort Myers, FL
As the population swells, so do the house prices. If you’re able to be apart of an emerging city, investment opportunities can pay big dividends, but trying to invest in real estate once an area has everyone’s focus can be pricey – unless you know where to look.
What Makes A City Invest-Worthy?
Before you invest in any area, there are a few elements to consider. Different parts of the city will reveal the economic status of the area and give you insight into whether you should buy property.
- Rental population: If a considerable portion of the population in your city of interest rents their home, you may find better luck turning investment properties (if you’re interested in being a landlord).
- Job growth: While the population may be increasing, one important number to consider is the job growth rate. If the economy can’t support the influx of people, it may be hard to find a buyer for your property.
- Economic drivers: In addition to the number of new jobs, consider the industry that supports a city. If tourism is a driving factor, you could face heavy vacancy rates during the off season.
- Crime statistics: As more people move to a particular area, the crime rate can increase. Stay away from areas where crime spikes.
While a number of cities (particularly warm, beach areas) have blossomed in population, an investestor must still do their due diligence to determine the benefits of investing in the area. As Americans flock to new cities and while some areas are ripe with investment opportunities, others need more research.
Look beyond the investment property and its price. Study the market, income, and economy before deciding to purchase property. For more guidance, turn to the Patten Law Firm library of resources. We’ll help you determine the best time to buy, list, and sell.