22 Best Places to Buy Rental Property in 2023 [Cash Flow & Appreciation]

22 Best Places to Buy Rental Property in 2023 for Cash Flow & Appreciation

22 Best Places To Buy Rental Property in 2023
Kathy Fettke

Kathy Fettke

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Summary: In this article, you will learn about 22 of the best places to buy rental property in 2023. You will discover why each of these markets is a great place to invest in real estate, read housing market statistics for each area and trends to know for the next three to five years.

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How To Determine the Best Places To Buy Rental Property for 2023

If you’re wondering where to invest in real estate in 2023, this article is for you. Before we get into our best places to buy recommendations, there are a few things to note.

First, to find the best real estate market for you, consider your own personal investment goals and don’t make impulse decisions. Before you start, you should have a clear answer to the question, “what do I want out of my investment?”. Your answer to this question will determine the best real estate strategy for you.

In my decades of experience buying single and multi family rental properties around the United States and abroad, I’ve found that the best cities to invest in have three factors in common: job growth, population growth and affordability.

Job Growth

Because population growth is correlated with the availability of job opportunities, property investors should invest in markets where job opportunities are expanding.

To find a strong job market, here are some things to consider:

  1. The number of jobs in an area can be a good indicator of which areas are growing and which are not.
  2. The median salary for workers. The median salary is the midpoint of all wages. When it rises, it means that demand for workers is high. This is a sign of a growing economy.
  3. Job diversity refers to the number of industries and job sources in a certain area.
  4. Commercial buildings. As the economy improves, more business buildings and towers are going up.

Population Growth

Despite what the numbers on a spreadsheet may say, a rental property will only bring in revenue if you can find someone willing to rent it. To determine the best places to buy rental property for 2023, look for areas with high population growth and high demand for housing.

When you analyze a region’s real estate market, you tend to look for signs of increasing population, because this will tend to increase demand for housing. Areas with increasing populations also tend to have strong economies, which means that there are more jobs available and more people who can afford to pay rent.

When demand for housing outpaces supply, home prices rise and rents increase. This means that when you invest in rental properties in an area with high population growth and high demand for housing, your investment should pay off over time as rents rise.

Affordability

The housing market is not a one-size-fits-all situation. When you’re looking to invest in rental property, there are many different factors that come into play. The location of the property plays a big role in its value and how long it will take to recoup your initial investment. If you want to invest in housing, then it would be advisable not to invest in places like New York, Los Angeles, or San Francisco because home prices there are too high.

The price-to-rent ratio is a measurement used by investors to gauge an area’s potential profitability. The higher the price-to-rent ratio, the worse the market will be for real estate investing (rentals in particular). An area with affordable real estate but increasing rents will almost always make for a good investment.

A fixer upper home in a popular or up-and-coming neighborhood can also be a good investment if you have the time, money and experience to improve the home.

When you find a market with all three – affordability, strong job and population growth – you’ll likely be able to find good investment opportunities for both cash flow and appreciation in that market.

In this article, we’ll take a look at 22 of the best cities to invest in real estate for the year 2023 and explain why they’re strong for investors.

Where To Buy Real Estate: 22 Cities To Consider in 2023 and Into

Please Note: We have ranked these markets according to our estimation of their cash flow and appreciation potential. We’ve made this determination based on insights from RealWealth Investment Counselors who are highly experienced real estate investors that own property in many of these markets. 

We’ve also pulled and analyzed current home value and rental data based on the current inventory of the local property teams in our network, as well as metro area historical home value and rental data (dating back to 2014) using Zillow’s Housing Data spreadsheets. In addition, we’ve researched and calculated metro population growth for the last eleven years using Census.gov and annual job growth using data Department of Numbers. We’ve completed months of research to update this article for 2023, however, please do your own due diligence when deciding which real estate market to invest in and which property to purchase. This is the best and only way to make sure you are making the best investment decision for you.

#1 - San Antonio, Texas

San Antonio Real Estate Market 2023 - Trends & Statistics

According to a study conducted by online rental marketplace RentCafe, San Antonio was ranked seventh in Texas for rental housing competitiveness in 2022 with an RCI score of 39.2.

The median home price in San Antonio is $331,741 and the median monthly rent is $1,473. The median rent to value ratio in the San Antonio metro area is 0.44%. Investors who target San Antonio can reap the benefits of the city’s low vacancy rates and fast-rising population.

RealWealth members who invested in duplexes in San Antonio paid $500,000 on average, collected an average of $3,500 in rent per month, and had an average RTV ratio of 0.7% (23% greater than the US average).

About the San Antonio Housing Market

San Antonio, Texas is one of the fastest-growing metropolitan areas in the United States. The San Antonio metro area has a population of 2.6 million people, and it is growing by more than 10,000 new residents each year.

San Antonio is located in South Texas on the southwestern corner of the state’s border with Mexico. It lies at an elevation of 1,006 feet above sea level and is approximately 174 miles from Austin and three hours’ drive from Houston.

The city was founded as a Spanish colonial outpost in 1718 and was named for Saint Anthony of Padua. A famous battle between Mexican troops and Texan forces took place here in 1836 during the Texas Revolution. The Alamo, where this conflict took place, is located within San Antonio’s city limits today; it houses a museum dedicated to telling this important part of history.

San Antonio reflects its Spanish heritage with numerous historic buildings such as St Mary’s Cathedral (built 1856) and La Villita Chapel (built 1894). However, there are also several notable modern buildings including the Alamodome stadium (built 1993) which hosts the Alamo Bowl.
San Antonio’s economy is strong in both military and higher-education sectors. Business, financial services and health care also play a major role here—as does tourism due to San Antonio’s unique blend of historical sites and natural landscape.

According to the NAR projections for 2022, San Antonio-New Braunfels, Texas was one of the areas predicted to show significant growth due to “strong underlying housing market fundamentals” and resilient home values.

While home sales have slowed down recently (due mostly to rising mortgage rates), rental demand has not—making San Antonio one of the best places to invest in real estate in 2023.

Housing Market Statistics

  • Median Household Income: $66,775
  • Metro Population: 2.6 Million
  • 11-Year Population Growth: 20.84%
  • Median Home Price: $331,741
  • Median Rent Per Month: $1,473 (0.44% rent-to-value ratio)
  • 1-Year Equity Growth: 20%
  • 8-Year Equity Growth (January 2014- December 2022): 89%
  • 1-Year Rent Growth: 9%
  • 8-Year Rent Growth (January 2014 – December 2022): 46%
  • Job Growth: +48,700 CES jobs created over the last year
  • 1-Year Job Growth Rate: 4.52% (17.6% higher than the national average)
  • Unemployment Rate: 3.6% (2.7% lower than the national average)

Housing Market Quick Facts

  • The average home price in San Antonio is $331,741, which is 3.36% lower than the national average. The average monthly rent is $1,473, which is also lower than the national average.
  • Home prices in San Antonio have risen 89% in the last eight years, growing at an average rate of 9.52% per year.
  • From 2014 to 2022, the median rent in San Antonio increased by 45.7%. Over the past 8 years, rent has been increasing by 5.52% per year on average.
  • The job market in San Antonio grew at a rate of 4.52% YOY between October 2021 and October 2022, adding 48,700 new jobs to the economy. This was 17.6% greater than the national average.
  • Major employers in the San Antonio region include Lackland Air Force Base, Fort Sam Houston-U.S. Army Base, H-E-B, USAA, Methodist Healthcare System, City of San Antonio and Bill Miller BBQ.
  • The San Antonio metro area is growing at an amazing rate, increasing by 20.84% between 2010 and 2021. The growth rate over the last 11 years has been 186% higher than the national population growth rate.

[Recap] Top 3 Reasons to Invest in the San Antonio Real Estate Market in 2023

Fast Population Growth
San Antonio’s population grew at an astonishing rate of 20.84% between 2010 and 2021, more than double the growth rate of the US.

Strong Job Growth
According to the Federal Reserve Bank of St. Louis, the GDP of the San Antonio-New Braunfels metropolitan area is over $132.1 billion and has grown by more than 58% since 2010.

The city is experiencing strong job growth, which is expected to continue into the future. From October 2021 to October 2022, San Antonio experienced an increase of 48,700 new jobs at a growth rate of 4.52% YOY.

Steady Home Price Appreciation
Home prices in San Antonio have climbed by 89% over the last eight years, increasing at an annual rate of 9.52%. With such a good rate of appreciation, it’s no wonder that many people are looking for ways to invest in the San Antonio real estate market.

San Antonio’s home sales are anticipated to rise 2.5% in 2023, with average prices increasing by 4.6%.

How To Purchase Investment Property in San Antonio

San Antonio has become a hotbed for short-term real estate investing, with more than 34 million visitors annually and growing. People flock there to visit Sea World, the Botanical Gardens, the UNESCO World Heritage Site, The Alamo and more.

In 2018, San Antonio enacted regulations around short-term rentals but these are not overly strict.

The city of New Braunfels, located in Comal County, Texas, is the fastest growing city in the San Antonio metropolitan area and one of the fastest growing cities in Texas.

The ten neighborhoods in San Antonio where home values have risen the most since 2000 are Dignowity Hill, Downtown South, Villa Coronado, Lavaca, Roosevelt Park North, Thompson Community West, King William, Downtown, Monticello Park and Beacon Hill.

Note: While a rise in home values might not necessarily indicate good cash flow potential, it does indicate growth in population and housing demand.

The teams that RealWealth works with in San Antonio primarily sell duplexes and other small multifamily investments. These properties have been fully renovated and are rent ready.

So if you’re interested in buying an investment property in San Antonio, don’t go it alone! Become a member of RealWealth for free by clicking the the orange “Join for Free” button in the menu above to view sample pro-formas for the San Antonio area and to connect with the team.

#2 - Jacksonville, Florida

Jacksonville Real Estate Market 2023 - Trends & Statistics

Jacksonville has one of the country’s highest-performing economies, and its low unemployment rate highlights the strength of the job market. The average price of a single family home in Jacksonville is $353,575 while the average monthly rent price is $1,743.

Jacksonville has grown by more than 100,000 residents over the past decade—the latest census numbers show St. Johns County in the Jacksonville metro area has seen a 44% growth in population since 2010. And this influx of residents is drawing businesses to the area and making it a prime place to invest in real estate for 2023.

About the Jacksonville Housing Market

Jacksonville, Florida is a booming city that has experienced significant growth in recent years. In fact, the metro area’s total population has increased by over 21% since the year 2010. Currently there are over 1.6 million people living in this area and more continue to move here every year. In addition, Jacksonville’s workforce has been expanding at twice the national average.

Jacksonville, located in northeastern Florida, often gets overshadowed by some of the state’s more popular destinations, but it offers a diverse economy and plenty of investment opportunities for real estate investors.

The Jacksonville Metropolitan Area (JMA), also called the First Coast or Northeast Florida, is a metropolitan area that includes the city of Jacksonville and surrounding areas in North Florida.

Jacksonville’s GDP is over $91 billion, growing by more than 55% in the last ten years. According to a recent study, Jacksonville’s job growth has outpaced other major metropolitan areas like Los Angeles and New York since pre-pandemic times.

The growing number of high-rise condominiums, a boom in corporate headquarters and plans for downtown revitalization are creating opportunities for investors in Jacksonville.

Housing Market Statistics

  • Median Household Income: $68,394
  • Metro Population: 1.64 Million
  • 11-Year Population Growth: 21.4%
  • Median Home Price: $353,575
  • Median Rent Per Month: $1,743 (0.49% rent-to-value ratio)
  • 1-Year Equity Growth: 23.8%
  • 8-Year Equity Growth (January 2014- December 2022): 110%
  • 1-Year Rent Growth: 13%
  • 8-Year Rent Growth (January 2014 – December 2022): 57%
  • Job Growth: +33,100 CES jobs created over the last year
  • 1-Year Job Growth Rate: 4.51% (17% higher than the national average)
  • Unemployment Rate: 2.5% (32% lower than the national average)

Housing Market Quick Facts

  • Jacksonville’s median home price of $353,575 is only about 3% greater than the national average. Jacksonville has an average monthly rent price of $1,743 that is only 11.6% lower than the national average. With a price to rent ratio of 16.9, renting is more cost-effective for Jacksonville residents than buying.
  • The median home price in Jacksonville has increased by 110% over the last eight years. That means that buyers who purchased a home in 2014 could sell for over twice the price now. Jacksonville’s real estate prices have been growing by an average of 11% per year since 2014.
  • Over the past eight years, Jacksonville’s rent prices have grown by 56.5% The average yearly rent price appreciation rate for this period was 6.61%.
  • From July 2021 to July 2022, the Jacksonville metro area added 33,100 new jobs at a rate of 4.51% per year, 17.4% greater than the US average job growth rate for the same period.
  • The Jacksonville metro area has had a 21.4% increase in population since 2010. That’s almost 194% faster than the average US population growth rate. Jacksonville has been growing at the rate of 1.96% per year since 2010.
  • The Port of Jacksonville, a major shipping hub along the Atlantic Coast, contributes to the local economy significantly. Three public marine terminals, including a cruise terminal, make up the Port of Jacksonville, which is the third-busiest container port complex in Florida by tonnage.

[Recap] Top 3 Reasons to Invest in the Jacksonville Real Estate Market in 2023

Fast Population Growth
Between 2010 and 2021, the population of Jacksonville grew by 21.4% at the rate of 1.96% annually. This fast population growth is expected to continue for the foreseeable future.

Hot Real Estate Market
In Jacksonville, the prices of homes have risen faster than rent prices, which has fueled demand for rental properties and created an attractive investment opportunity.

The percentage of households in Jacksonville that rent their homes is currently 44%, a number that is expected to increase in the near future.

Fast Job Growth
In the next decade, job growth in the Jacksonville region is expected to reach 44%. This is approximately 11 percentage points higher than the national average. It’s no wonder that so many people are moving here.

How To Purchase Investment Property in Jacksonville

As the population in Jacksonville continues to grow, so does the need for investment properties. According to data from Woods and Poole Economics, by 2060, Jacksonville’s population is expected to grow by 60%, while employment in the city is projected to grow by 88.8% and personal income per capita is projected to grow from $60,190 in 2022 to $368,201 in 2060.

Nocatee is a master-planned community in St. Johns County and one of the fastest growing cities in Jacksonville and Florida as a whole.

The most significant increases in home values since the year 2000 have taken place in the following neighborhoods in Jacksonville: Riverside, Brooklyn, Downtown, Isle of Palms, North Beach, Avondale, Avondale East, Sandalwood East, Murray Hill West, and Beechwood.

If you’re looking to buy investment property in Jacksonville, RealWealth can help! Sign up for your free RealWealth membership by clicking the orange “Join for Free” button in the menu above. You’ll be able to view sample pro-formas for the Jacksonville area, get connected with resources, including 1031 exchange intermediaries, CPAs, IRA custodians, lenders and more. You’ll also have access to free weekly webinars and free investment strategy sessions!

#3 - Baltimore, Maryland

Baltimore Maryland Real Estate Market Trends & Statistics 2023

As of 2023, the average rent-to-value ratio for Baltimore properties purchased by RealWealth members was 0.94%, which is significantly higher than the national average RTV ratio of 0.57%. This means that investors who purchase houses in Baltimore can expect solid cash flow potential.

The median price of homes in Baltimore is $369,708, while the median rent is $1,785. This makes Baltimore an excellent investment opportunity, as it provides both opportunities for appreciation and rental income potential.

The Baltimore market also offers opportunities for investors interested in Section 8 housing. The area has a balanced market (where supply and demand are about equal). These properties can be purchased at a discount and provide excellent cash flow potential as well as room for appreciation over time.

About the Baltimore Housing Market

The Baltimore metro area has seen its ups and downs over the years, but it has remained an important center of commerce in the Mid-Atlantic region. In 2020, the city had a population of 585,708 people that included a significant number of young professionals who were drawn to its vibrant cultural scene and proximity to Washington, DC. The Baltimore-Columbia-Towson metropolitan area had a population of 2.84 million people in 2021.

The median household income ($86,302) is about 25% higher than the national average; however, Baltimore’s cost of living is also higher than average by about 11%. The city is home to the nation’s top RO/RO port and an enormous duty-free zone. The city has excellent public transit options, including a subway system and light rail, as well as a major international airport. Four Fortune 1000 companies are headquartered in the Baltimore metropolitan area: Grace Chemicals (Columbia), Legg Mason, T. Rowe Price, and McCormick & Company (Hunt Valley).

The economy is recovering and the job market is diverse—with slow but steady population growth and relatively affordable housing. These factors present good opportunities for investors who want to invest in Baltimore real estate.

Housing Market Statistics

  • Median Household Income: $86,302
  • Metro Population: 2.83 Million
  • 11-Year Population Growth: 4.51%
  • Median Home Price: $369,708
  • Median Rent Per Month: $1,785 (0.48% rent-to-value ratio)
  • 1-Year Equity Growth: 8.03%
  • 8-Year Equity Growth (January 2014- December 2022): 38%
  • 1-Year Rent Growth: 8%
  • 8-Year Rent Growth (January 2014 – December 2022): 17%
  • Job Growth: +41,600 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.02% (21% lower than the national average)
  • Unemployment Rate: 4% (8% above the national average)

Housing Market Quick Facts

  • Baltimore’s median home value is $369,708. This is about 8% higher than the national average of $343,292. The average rent in Baltimore is $1,785 and the price-to-rent ratio is 17.3.
  • Since 2014, the median home price in Baltimore has increased by 37.94% at an annual rate of 4.70%, while rents have increased even more slowly at 2.22% per year.
  • The Baltimore metropolitan area is home to three Fortune 500 companies—U.S. Foodservice Inc., Black & Decker Corp., and Constellation Energy.
  • According to the Federal Reserve Bank of St. Louis, the GDP of Baltimore-Columbia-Towson MSA is more than $205.8 billion, and has grown by more than 34% over the past ten years.
  • While the population of Baltimore has grown very slowly, the number of jobs has risen steadily, although not as quickly as in other metro areas. Between July 2021 and July 2022, over 40,000 new jobs were created in the area, a job growth rate of 3.02%. The US average for the same period was 3.84%.

[Recap] Top 3 Reasons to Invest in the Baltimore Real Estate Market in 2023

Strong Rental Market
Baltimore has a strong rental market, with 51% of households renting their homes. 33% of households in the Baltimore metro area are renter occupied. Also, economic growth is strong in Baltimore – the city’s unemployment rate is low, and the median income is high. These factors combine to make Baltimore one of the best places to invest in real estate in 2023.

Cash Flow Opportunities
In the Baltimore metro, the average RTV was 0.48% in 2022. However, in Baltimore neighborhoods where RealWealth members invest, the average RTV is 0.94%. This shows that there are a lot of good deals to be found in Baltimore if you know where to look.

Recovering Economy
Baltimore’s downtown core has undergone a renaissance in recent years, with the opening of new attractions and the re-opening of historic buildings. These include the National Aquarium, Camden Yards, M&T Bank Stadium, the Baltimore Convention Center and more. The results have been dramatic: Baltimore has seen an increase in tourism and retail sales, which bodes well for the future of real estate investment in this area.

How To Purchase Investment Property in Baltimore

Baltimore is a city with a diverse economy and many different neighborhoods, each with its own appeal to prospective real estate investors. The city of Barclay in Queen Anne’s county, Baltimore metro area is one of the fastest growing cities in Maryland. Its population was 50,798 as of 2021.

According to data from NeighborhoodScout, the Baltimore neighborhoods that saw the biggest increase in home values since the year 2000 are Remington, Wyman Park, Hampden West, Milton-Montford, Hoes Heights, Woodberry, Greenmount West, Jonestown, Madison Park and Reservoir Hill.

Check out this article to learn more about the classes of properties you can find in Baltimore.

Local Baltimore property teams in RealWealth’s network can help you find a property in Baltimore that fits your needs. So if you’re interested in buying an investment property in Baltimore, don’t go it alone! Click the orange “Join for Free” button in the menu above to become a member, view sample pro-formas for the Baltimore area, and to receive a variety of other free membership benefits.

#4 - Tampa, Florida

Tampa Real Estate Market 2023 - Trends & Statistics

Tampa is one of the hottest real estate markets in the country—and it’s only getting hotter.

Tampa’s housing market is outpacing the rest of the country, as its population grows at a rate that is 112% faster than the national average. This rapid growth has led to an increase in housing and commercial construction, which means that now is an ideal time for investors to get involved in this market.

The average price of a home in Tampa is $361,696, and the average monthly rent is $2,058. The Tampa area has been experiencing steady job growth as a result of the expansion of its higher-paying professional and business services sectors. As a result, many people are moving there from other areas of Florida and other parts of the United States to take advantage of these opportunities.

In Tampa, 51% of households rent their homes—which means that there is a large demand for rental properties. All of these reasons and more make it one of the best places to buy real estate this year, in our opinion!

About the Tampa Housing Market

The Tampa Bay area, in the west-central region of the Florida peninsula, is a densely populated metropolitan area with a population exceeding 3.2 million. It is known as the economic hub of West Central Florida and its local economy is worth $160 billion. Tampa is home to the largest seaport in Florida, handling more than 70 million tons of cargo each year.

Tampa Bay is home to many small technology firms as well as seven Fortune 500 companies, including Publix Supermarkets, Roper Technologies, WellCare Health Plans, and Bloomin’ Brands.

In the past decade, the Gross Domestic Product of Tampa-St. Petersburg-Clearwater has grown by nearly 50%. The metropolitan area’s GDP is now $190 billion according to a report from the Federal Reserve Bank of St Louis.

Tampa was one of the top-performing real estate markets throughout the US even during the pandemic as people kept moving to the area. And the population continues to grow at the rate of 1.45% per year.

Housing Market Statistics

  • Median Household Income: $62,951
  • Metro Population: 3.2 Million
  • 11-Year Population Growth: 15.46%
  • Median Home Price: $361,696
  • Median Rent Per Month: $2,058 (0.57% rent-to-value ratio)
  • 1-Year Equity Growth: 25.3%
  • 8-Year Equity Growth (January 2014 – December 2022): 147%
  • 1-Year Rent Growth: 17%
  • 8-Year Rent Growth (January 2014 – December 2022): 74%
  • Job Growth: +60,300 CES jobs created over the last year
  • 1-Year Job Growth Rate: 4.28% (11.5% higher than the national average)
  • Unemployment Rate: 2.5% (32% lower than the national average)

Housing Market Quick Facts

  • The median home price in Tampa, FL is $361,696, 5.3% higher than the national average home price of $343,200.
  • The median rent in Tampa is $2,058, 4.3% higher than the national average of $1,973.
  • Tampa real estate has appreciated at an exponential rate since 2014, with home values increasing 147 percent in the last eight years at a rate of 13.79% per year.
  • In the last eight years, rent prices in Tampa have increased by 73.61%. The average rent has been growing at an average annual rate of 8.2% since 2014.
  • From 2010 to 2021, the population of Tampa grew by 15.46% at an annual rate of 1.45%.
  • This was 112% faster than the US average for the same period.
  • Tampa’s job growth has been 11% greater than the US average. The city added 60,300 jobs between July 2021 to July 2022, a growth rate of 4.28%. Tampa’s unemployment rate is also 32% lower than the national average, at just 2.5%.
  • Tampa Bay is home to three military bases: MacDill Air Force Base, Coast Guard Air Station Clearwater and Coast Guard Station St. Petersburg.

[Recap] Top 3 Reasons to Invest in the Tampa Real Estate Market in 2023

Rapid Population Growth
Due to a steady increase in job opportunities beginning in the mid-2010s, many people from out of state are moving to Tampa. As a result, there has been a growth in the population of the Tampa Bay MSA, which is expected to increase by 25 percent over the next 20 years, reaching nearly four million by 2040.

Hot Real Estate Market
Tampa’s real estate market has experienced a rapid increase in value since 2014. Home values have increased by 147% in the last eight years, increasing at an average rate of 13.79% per year.

Fast Job Growth
Tampa’s job growth rate of 4.28% is 11% higher than the national average, and this is only going to increase as the city continues to grow and attract new businesses. Twenty companies with a combined annual revenue of more than $1 billion have their corporate headquarters in Tampa Bay, including eight Fortune 1000 companies.

How To Purchase Investment Property in Tampa

Buyers looking to purchase investment properties in Tampa Bay need to take into account the hazards of the subtropical climate. A home inspection is essential to make sure that the foundation is good and stable. Also, homeowners and investors need flood insurance.

The 10 neighborhoods where home values have risen the highest in Tampa since 2000 are: Downtown, MacDill AFB, USF, Channel District, Ridgewood Park, Tampa Heights South, Tampa Heights, Historic Ybor, Arlington Heights and Riverside Heights.

If you’re interested in buying an investment property in Tampa, consider becoming a member of RealWealth. Our network includes local property teams in Tampa that also offer quality property management. Properties are also fully renovated to like new condition and are rent ready. Join RealWealth today to view sample property pro formas and to schedule a complimentary call with one of our experienced investment counselors!

#5 – Cincinnati, Ohio

Cincinnati, OH Real Estate Market Trends & Predictions 2023

If you’re looking for an affordable housing market with steady appreciation rates, Cincinnati is a great choice.

The median home price in Cincinnati is $254,824, 26% less than the average price of a US home and the median monthly rent is $1,376, 30% less than the US average. In Cincinnati, Ohio, more than 60 percent of households rent their homes.

The average RTV ratio for RealWealth investors who invest in Cincinnati is 0.95%, which is 67% higher than the national average RTV ratio; these homes cost $131,000 on average, and rent for an average of $1,250 per month.

About the Cincinnati Housing Market

The Greater Cincinnati area is a metropolitan area centered on the city of Cincinnati and including surrounding counties in Ohio, Kentucky, and Indiana. Nicknamed the “Queen City of the West,” Cincinnati is home to three pro sports teams and one of the largest economies in the Midwest. Its nickname was coined because it is considered to be a city that welcomes new people and businesses alike.

In the 19th century, Cincinnati was among the ten most populous U.S. cities, surpassed only by New Orleans and a few cities along the East Coast. It endured economic depression through much of its early history, but has since grown into a thriving city with over 2 million residents.

Cincinnati’s gross domestic product is over $170 billion and has increased by 54.3% in the last ten years. Its economy is fifth-largest in the Midwest after Chicago, St Louis, Minneapolis, and Detroit.

Fortune 500 companies headquartered in Cincinnati include Procter & Gamble (P&G), The Kroger Company (Kroger), Macy’s; General Electric’s Global Operations Center is also located in downtown Cincinnati; Cincinnati has become a hot spot for investors looking for cash flow because of its affordability and job growth.

Housing Market Statistics

  • Median Household Income: $70,818
  • Metro Population: 2.26 Million
  • 11-Year Population Growth: 5.57%
  • Median Home Price: $254,824
  • Median Rent Per Month: $1,376 (0.54% rent-to-value ratio)
  • 1-Year Equity Growth: 11.5%
  • 8-Year Equity Growth (January 2014 – December 2022): 79.3%
  • 1-Year Rent Growth: 6%
  • 8-Year Rent Growth (January 2014 – December 2022): 39%
  • Job Growth: +10,600 CES jobs created over the last year
  • 1-Year Job Growth Rate: 0.98% (75% lower than the national average)
  • Unemployment Rate: 3.6% (2.7% lower than the national average)

Housing Market Quick Facts

  • Cincinnati is one of the nation’s 25 fastest-growing regions. It’s also the country’s fourth-largest inland hub.
  • Since 2014, home prices in Cincinnati have increased by 79.3% at an annual rate of 8.7%. The current median home price in Cincinnati is $254,824.
  • The job market in Cincinnati has been slow to recover from the recession, but it has been growing steadily.
  • Cincinnati has not been the fastest-growing metro area in the United States, but its population has increased steadily over the years. From 2010 to 2021, it saw a 5.57% increase in residents.
  • In the past year, 10,600 jobs were added to Cincinnati’s economy, corresponding to a job growth of 0.98%.
  • The Cincinnati MSA is projected to experience an average of 6.2 percent growth in employment from 2018-2028. Well-paying healthcare jobs are predicted to be the fastest growing component of the employment market in the Cincinnati metro area over the next ten years.

[Recap] Top 3 Reasons to Invest in the Cincinnati Real Estate Market in 2023

Strong economy
Metropolitan Cincinnati’s economy ranks twenty-eighth in the United States. It also has the fifth largest economy in the Midwest, after Chicago, Minneapolis-St. Paul, Detroit, and St. Louis.

Strong renter’s market
The Cincinnati housing market is experiencing a high demand for rental property, as 60% of area households rent rather than own.

Furthermore, WCPO in Cincinnati reports that the market offers a “real affordability proposal” and is benefitting from the inbound migration of people from high-cost coastal areas. This means that investors are likely to see more opportunities for investment in the Cincinnati real estate market in 2023.

Affordable real estate
The average price of a home in Cincinnati is $254,800, 26% less than the national average. In some neighborhoods, you can find investment properties that are as much as 60% less than the national average and rent them out for just under 1% of the purchase price.

How To Purchase Investment Property in Cincinnati

Cincinnati is one of the few affordable markets in the US where you can still find a lot of properties that conform to the 1% rule. If you can get 1% of your purchase price in rent every month, then you have a good chance of seeing an adequate return on investment.

In Cincinnati, investment properties sell quickly because there is a shortage of inventory in the current market. It is important to be prepared to make an offer as soon as you determine that you want a property.

The Cincinnati metro area is home to a number of rapidly growing Ohio cities, including Middletown in Butler County, Cincinnati in Hamilton County and Hamilton in Butler County.

The 10 neighborhoods in Cincinnati where home values have increased the most since 2000 are: Laurel Park, West End South, Cumminsville, Jacob Hoffner Park, Mount Auburn Northwest, Oakley Square, Losantville Triangle, Corryville, Madisonville and Camp Washington.

If you’re looking to invest in Cincinnati real estate, RealWealth can help! Sign up for your free RealWealth membership by clicking the orange “Join for Free” button in the menu above. You’ll be able to view sample pro-formas for the Cincinnati area, get connected with resources, accountants, conventional and alternative lenders, 1031 exchange intermediaries and more. You’ll also be assigned an experienced investment counselor that you can speak with for free at any time.

To learn more about Cincinnati and to understand why it’s one of the best cities to invest in real estate today, visit our Cincinnati Market Page.

#6 – Dallas, Texas

Dallas Fort Worth Real Estate Market Trends & Statistics Chart 2023

The Dallas real estate market is one that continues to show rapid growth. It has been one of the fastest-growing markets in the country since 2012, and it has consistently remained one of the most competitive markets in the US. Over the past 8 years, Dallas-area home prices have risen by 122.39 percent at an annual rate of 12.1 percent. Home values in certain Dallas–Fort Worth neighborhoods have increased 270 percent in the past decade as more people look to settle down in North Texas.

The Dallas real estate market is quite competitive, with a Redfin Compete score of 63. However, home sales are down 36% year over year due to rising mortgage rates. The average home price in Dallas is $377,991. The average monthly rent is $1,771.

The average home price in Dallas neighborhoods where RealWealth members invest is $215,000, and the average rent is $1,650. For these neighborhoods, the average rent to value ratio is 0.77%, almost 35% greater than the national average.

About the Dallas Housing Market

Dallas–Fort Worth, often called “the Metroplex,” is the economic and cultural hub of North Texas. The Dallas metro area is home to technology, financial services, and defense industries. The Fort Worth area is also a part of the Dallas metro and has major industries in oil and gas, manufacturing, and aviation/aerospace.

The largest employers in the region include American Airlines, Dallas ISD (the second-largest school district in Texas), Texas Health Resources (a hospital chain), Bank of America (the largest bank in Texas), Baylor Scott & White (a hospital chain), and Lockheed Martin Aeronautics.

The Dallas-Fort Worth-Arlington, TX metropolitan statistical area (MSA) has a Gross Domestic Product (GDP) of nearly $535 billion according to the Federal Reserve Bank of St. Louis; its GDP has grown by more than 57% over the last 10 years!

Dallas has experienced steady population growth for years—which has pushed prices of Dallas investment properties higher as builders have been unable to keep up with demand.

Housing Market Statistics

  • Median Household Income: $75,975
  • Metro Population: 7.76 Million
  • 11-Year Population Growth: 21.39%
  • Median Home Price: $377,991
  • Median Rent Per Month: $1,770.7 (0.47% rent-to-value ratio)
  • 1-Year Equity Growth: 21.2%
  • 8-Year Equity Growth (January 2014 – December 2022): 122%
  • 1-Year Rent Growth: 12%
  • 8-Year Rent Growth (January 2014 – December 2022): 42%
  • Job Growth: +276,799 CES jobs created over the last year
  • 1-Year Job Growth Rate: 7.17% (87% higher than the national average)
  • Unemployment Rate: 3.5% (5.7% lower than the national average)

Housing Market Quick Facts

  • In the past decade, Dallas has become one of the fastest-growing areas in the country because of its popularity as a job hub.
  • Between July 2021 and July 2022, Dallas created 276,799 new jobs—an increase of 7.17%—87% higher than the national average.
  • The Dallas real estate market is one of the strongest in the country. Home values have gone up 21% over the past year and 122% over the past eight years.
  • The median home value in Dallas, Texas is $377,991. This is 10% higher than the average US home price. The median rent price in Dallas is $1,795. This is 10% lower than the average US monthly rent.
  • The population of the Dallas-Fort Worth area has increased by over 21% since 2010, growing from 6th place to 4th place among major U.S. metro areas.
  • The area’s population growth rate is almost 200% faster than the national average.

[Recap] Top 3 Reasons to Invest in the Dallas Real Estate Market in 2023

Fast population growth
The Dallas-Fort Worth area could see the biggest population surge in the country this decade, with an increase of nearly 18% forecast between 2020 and 2029.

Fast job growth
Dallas is a great place to invest in real estate because it continues to attract jobs and business. In fact, between July 2021 and July 2022, Dallas created 276,799 new jobs at a growth rate of 7.17%, 87% higher than the national average.

Hot real estate market
Over the past eight years, the average home price in Dallas has increased 12.1% per year on average. This high appreciation rate is due to low housing supply relative to demand.

How To Purchase Investment Property in Dallas

Dallas is known for its incredible real estate market, and it’s no secret that there are a lot of great opportunities to be found here. The National Association of Realtors ranked Dallas third on its list of the 10 housing markets expected to lead the nation in 2023, with prices expected to rise by at least 5 percent. This is a healthy rate of return for those holding investment property.

The Dallas metro area is home to several of the fastest-growing cities in Texas. Among them are Wylie in Collin County, Frisco in Collin and Denton Counties, Burleson in Johnson and Tarrant Counties and McKinney in Collin County.

The 10 neighborhoods in Dallas that have seen the greatest increase in home values since 2000 are: Pleasant Grove, Wynnewood North, Rylie West, Government District, Rylie South, Convention Center District, West Texas, Pleasant Grove East, S Westmoreland Rd, and City Center District.

Want to take advantage of the Dallas real estate market while there’s still so much room for growth? Join RealWealth’s network for help. We’ll connect you with the Dallas property team in our network. They sell fully renovated homes with experienced property management in place. There are also a variety of other benefits to your free membership, including access to our network of resources from CPAs to lenders. Join today by clicking the orange button in the menu above!

#7 – Charlotte, North Carolina

Charlotte, NC Real Estate Market Trends & Statistics 2023

The Queen City has seen real estate prices grow by over 120% over the past eight years, which bodes well for future appreciation. Charlotte’s population has also been growing at more than twice the national average— at a rate of 2.29% annually. These are a few of the reasons Charlotte has made our best places to buy rental property list for 2023!

Charlotte is also home to twelve Fortune 500 firms and fifteen Fortune 1000 companies. Forbes recently named Charlotte one of the top 10 places for businesses and careers. All reasons that we’ve places Charlotte on our best places to buy rental property in 2023.

The median value of homes in Charlotte is $369,109 while the median rent is $1,751. Let’s take a closer look at why Charlotte is a great market for investors in 2023.

About the Charlotte Housing Market

Charlotte is the county seat of Mecklenburg County, North Carolina. It is located in the Piedmont region at the intersection of two major interstate highways (I-85 and I-77), which explains why the city handles about twenty percent of North Carolina’s toll road traffic. The population was 874,579 at the 2020 census, making Charlotte the 16th-most populous city in the U.S., the seventh most populous city in the South, and the second most populous city in the Southeast behind Jacksonville, Florida.

A recent study by The Inspection Support Network examined census data and ranked the Charlotte metro in the top 10 for the fastest-growing large metros in the U.S.

Charlotte has experienced a lot of growth in recent years, with its population expected to increase by 23.7% from 2014 to 2025, reaching 2.8 million people.

The Charlotte metro area has a current population of 2.5 million, boasts a number of popular pro sports teams, and has one of the best year-round climates in the US.

Charlotte’s population growth and low cost of living when compared to salary make it an ideal location for real estate investment.

Housing Market Statistics

  • Median Household Income: $71,041
  • Metro Population: 2.7 Million
  • 11-Year Population Growth: 20.04%
  • Median Home Price: $369,109
  • Median Rent Per Month: $1,751 (0.47% rent-to-value ratio)
  • 1-Year Equity Growth: 21.9%
  • 8-Year Equity Growth (January 2014 – December 2022): 121.27%
  • 1-Year Rent Growth: 12%
  • 8-Year Rent Growth (January 2014 – December 2022): 51%
  • Job Growth: +154,500 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.33% (13% lower than the national average)
  • Unemployment Rate: 3.7% (same as the national average)

Housing Market Quick Facts

  • Charlotte is a rapidly growing city with a strong economy and a low cost of living. The city’s location in close proximity to other major cities, such as Atlanta and Raleigh, contributes to its rapid growth.
  • Charlotte’s median home value of $369,109 is 7.5% higher than the national average, and its price to rent ratio of 17.6 indicates that it is more expensive to own a home in Charlotte than it is to rent.
  • A typical Charlotte rental property costs $1,750 a month. And because of Charlotte’s high population of renters—47% of households—there is a lot of demand for rental properties.
  • In the last eight years, home prices in Charlotte have grown 121.27% at a yearly rate of 12%, while rent prices have grown 6% per year.
  • Charlotte offers a super-charged blend of high-tech, white collar and service/distribution jobs.
  • The Charlotte metro area added 154,500 jobs between July 2021 and July 2022, a 3.33% growth rate.
  • The GDP of Charlotte is over $184.8 billion, having grown by nearly 65% in the past 10 years.
  • Over the last eight years, Charlotte has been one of the best long-term real estate investments in the U.S., with an average appreciation rate of 12% per year.

[Recap] Top 3 Reasons to Invest in the Charlotte Real Estate Market in 2023

Hot real estate market
Charlotte’s real estate market is one of the hottest in the country. Home equity gains in Charlotte were 121.7% on average, from 2014-2022. This is 44.3% greater than the national average for the same time period.

Fast population growth
Over the last several years, Charlotte’s population has surged and high-tech and professional services jobs have boomed, helping to make it one of the best markets for real estate investors and developers.

Strong job market
Charlotte is known as the second-largest banking center in the United States, after New York City. People have been calling it “Banktown” for years.

The strong economy in the Charlotte area is attracting approximately 100 new residents per day, fueling the demand for Charlotte real estate.

How To Purchase Investment Property in Charlotte

Charlotte is a magnet for investors, according to Redfin. The company reports that investors bought nearly one out of every three homes in Charlotte at the end of 2021.

Three of the fastest growing cities in North Carolina are located in Mecklenburg County, which is part of the Charlotte metro area. They include Concord, Kannapolis and Huntersville. Gastonia in Gaston County is also growing fast and it’s located in the Charlotte metropolitan area.

The Charlotte neighborhood with the highest increase in home values since 2000 is Dilworth, followed by Dilworth East, Wilmore, Collingwood, Sedgefield, Belmont, Villa Heights, Elizabeth, Ashley Park East and NoDa. 

Click the orange “Join for Free” button in the menu above to sign up for your free RealWealth membership. You’ll be able to instantly view sample pro-formas for the Charlotte area and we’ll connect you with the Charlotte team in our network if you’d like to learn more. Other membership benefits include complimentary strategy sessions, access to our network of preferred real estate resources (1031 exchange intermediaries, lenders, CPAs, etc.). Join today for free.

#8 – Indianapolis, Indiana

Indianapolis Real Estate Market Trends & Statistics 2023

Indianapolis is a great place to invest in real estate in 2023. It has affordable real estate, a rapidly growing population, above-average home and rent appreciation rates, and a growing job market.

A report from HousingWire noted that Indianapolis has become a popular target for remote real estate investors, who are drawn to the city’s low cost of living and high returns on investment.

Indianapolis has an average home price of $262,770 and an average monthly rent of $1,453. Over 46% of Indianapolis residents rent their homes. This means that there is high demand for rental properties in the area.

About the Indianapolis Housing Market

The Indianapolis metropolitan area is the 32nd most populous metropolitan area in the United States, and it has a population of over 2 million people. It is part of a network of cities known as the Great Lakes Megalopolis, which contains an estimated 59 million people.

Downtown Indianapolis has been named one of the best in the U.S. by Livability.com, and it boasts two major league sports teams—the NBA Indiana Pacers, who play at the 18,000-seat Conseco Fieldhouse, and the NFL Indianapolis Colts, who play at the 56,000-seat RCA dome.

Indianapolis is ideally located in the center of America with easy access to big-city amenities and relaxed comfort that comes only from being nestled in a small town. The Indianapolis region has become a magnet for out-of-state investors because of its strong economy and job growth; as well as its terrific location and affordable property prices compared to other major cities in America.

In October 2021 to October 2022, there were 33,400 new jobs created in Indianapolis—an increase of 3.04%.

Health care, tourism and sporting events are major employment contributors in this area. A number of national companies have their headquarters here including Eli Lilly, Anthem Inc., RCI, and Simon Property Group.

Its affordability, strong economy and job growth numbers make it one of the top U.S. markets for cash flow rental properties.

Housing Market Statistics

  • Median Household Income: $70,224
  • Metro Population: 2.12 Million
  • 11-Year Population Growth: 12.37%
  • Median Home Price: $262,770
  • Median Rent Per Month: $1,453 (0.55% rent-to-value ratio)
  • 1-Year Equity Growth: 15.7%
  • 8-Year Equity Growth (January 2014 – December 2022): 89%
  • 1-Year Rent Growth: 9%
    8-Year Rent Growth (January 2014 – December 2022): 42%
  • Job Growth: +33,400 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.04% (21% lower than the national average)
  • Unemployment Rate: 2.8% (24% lower than the national average)

Housing Market Quick Facts

  • Indianapolis is sometimes called the Racing Capital of the World because of its Indianapolis Motor Speedway, which takes up 560 acres on the west side of town. Every May, thousands of people show up to watch one of the largest-attended sporting events in the U.S., the Indianapolis 500. Sports in general play a huge role in the region’s economy.
  • The average home value in Indianapolis is $262,770. This is 23% lower than the US average home value of $343,000. The average monthly rent in Indianapolis is $1,453—26% lower than the US average monthly rent of $1,973.
  • The average rent-to-value ratio in Indianapolis is 0.55, which is 3% lower than the national average of 0.57.
  • Indianapolis neighborhoods where RealWealth members invest have an average RTV ratio of 0.86%, 51.2% higher than the national average.
  • Indianapolis has been growing at a yearly rate of 1.17%. Over the last 11 years, Indianapolis’s population has increased by 12.37%—almost 70% faster than the United States’ overall growth during that same period.
  • In the past eight years, home values in Indianapolis have increased by 88.7%. Indianapolis’s median rent appreciation has also been on the up-and-up over the past eight years, increasing by 42% between July 2014 and July 2022.

[Recap] Top 3 Reasons to Invest in the Indianapolis Real Estate Market in 2023

Affordable real estate
The Indianapolis real estate market is very competitive, but prices of homes are still affordable. The average price of a home in Indianapolis is $262,770—23% lower than the national average.

Strong job growth
The Indianapolis metropolitan statistical area (MSA) is projected to add jobs at a rate of 2.9% annually from 2021-2024, according to projections by the Indiana University Center for Econometric Model Research (CEMR). The growth rate is higher than any other MSA in the state and stronger than the statewide average of 2%.

Fast population growth
Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. The population of Indianapolis is over 2 million, growing by 12.4% since 2010, which is 70% faster than the national average.

How To Purchase Investment Property in Indianapolis

Indianapolis has been a top destination for investors for years. With a booming economy, strong investments in neighborhood revitalization, and some of the most affordable housing in the US.

Indianapolis, the capital of Indiana and also its most populous city, is also home to some of the fastest-growing cities in the state. These include Westfield, Fishers, Noblesville and Carmel in Hamilton County, as well as Greenwood in Johnson County.

The 10 Indianapolis neighborhoods with the highest home value increases since 2000 are Near Northside, Old Northside, Arsenal Heights West, Ransom Place, N Belville Ave., N Rural St., Arsenal Heights, Fletcher Place, Fountain Square, and Fall Creek Place East.

With our local network of professional property teams in Indianapolis, RealWealth can help you find a property that fits your needs. So if you’re interested in buying an investment property in Indianapolis, don’t go it alone! Become a member to view sample pro-formas for the Indianapolis area and to connect with the local team!

#9 – Birmingham, Alabama

Birmingham, Alabama Housing Market Trends & Statistics 2023

Birmingham, Alabama is one of the best places to invest in rental properties in 2023. Its diversified economy and steady population growth make it a solid choice, as do its low unemployment rate and low average home value.

In October 2022, Birmingham’s unemployment rate was 2.8%, significantly less than the national average of 3.7%. This means that investors attract more high quality renters in Birmingham.

On top of all this, the average value of homes in Birmingham is $238,514—about 30% less than the national average! You can get more bang for your buck when buying property here than most other places in America.

About the Birmingham Housing Market

Birmingham, Alabama was founded during the Reconstruction period following the Civil War. It began as a series of small farming communities and grew into an industrial center focused on mining, iron and steel production, and railroading. It has transformed itself from an industrial center into a center for medical research, banking, and services while maintaining its manufacturing roots.

Nestled at the base of the Appalachian Mountains, Birmingham is a place where you can experience the best of Alabama. You’ll find a lively downtown area and fantastic restaurants in the middle of one of America’s most livable cities.

The Birmingham metropolitan area, which includes Hoover and Vestavia Hills, had an estimated population of 1,114,262 in 2021. It is the largest metropolitan area in Alabama as well as the 50th largest in the United States.

Due to a combination of factors—including suburbanization, racial tensions, and the loss of major employers—Birmingham’s population has fallen dramatically since its peak in 1960. Yet the Birmingham metropolitan area is still the third largest in Alabama after Huntsville and Montgomery.

Birmingham has been ranked one of the top cities for millennial entrepreneurs by Thumbtack due to its friendly local tax laws, a regulatory environment that allows them to start businesses, and many opportunities for training and networking. This is expected to continue as more technology companies flock to the area.

Housing Market Statistics

  • Median Household Income: $60,725
  • Metro Population: 1.1 Million
  • 11-Year Population Growth: 4.95%
  • Median Home Price: $238,515
  • Median Rent Per Month: $1,341 (0.56% rent-to-value ratio)
  • 1-Year Equity Growth: 13.1%
  • 8-Year Equity Growth (January 2014 – December 2022): 74%
  • 1-Year Rent Growth: 10%
  • 8-Year Rent Growth (January 2014 – December 2022): 37%
  • Job Growth: +18,700 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.48% (9.3% lower than the national average)
  • Unemployment Rate: 2.8% (24% lower than the national average)

Housing Market Quick Facts

  • The average home price in Birmingham is $238,515 and the average rent price is $1,341. The average home price in Birmingham is 31% lower than the national average and the rent price is 32% lower than the national average.
  • RentCafe reports that 54% of the households in Birmingham are renter-occupied.
  • From 2014 to 2022, home prices in Birmingham increased by 73.82% at an annual rate of 8.22%.
  • During the same period, rent prices rose by 37.37% at 4.64% per year. Birmingham is a Neutral Housing Market, which means prices tend to be reasonable and homes stay on the market for a typical length of time.
  • Birmingham’s population is growing at an annual rate of 0.48%. It grew by only 4.95% from 2011 to 2021, 32% lower than the national population growth rate for the same period.
  • The Birmingham metro area added 18,700 jobs from May 2021 to May 2022, a 3.5% YOY increase, close to the US average of 3.84% for the same period.

[Recap] Top 3 Reasons to Invest in the Birmingham Real Estate Market in 2023

Affordable real estate
According to Kiplinger’s affordability index, Birmingham has an affordability index of 1 out of 10, making it one of the most affordable places to own a home in the U.S.

Birmingham’s housing market is stable. Home prices here are 31% cheaper than the rest of the country.

Strong job growth
Birmingham is experiencing a growth in the economy due to an influx of new companies and millions of dollars being invested into the city. The unemployment rate in Birmingham has continued its downward trajectory, dropping to just 2.8%. Year-over-year job growth has been positive, with over 18,000 new jobs added.

Steady home price appreciation
Home prices in Birmingham have risen by over 8% annually for the past 8 years, which indicates that the housing market there is slightly competitive with supply still lagging behind demand.

The average home value in Birmingham increased by 13% between 2021 and 2022. The average rent price also increased by 9.8% on average.

How To Purchase Investment Property in Birmingham

Birmingham is a city with a rich history, a thriving tourism industry, and affordable housing. It also has good schools, access to public transportation, and an economy that is attractive to investors.

The neighborhoods of Calera, Chelsea and Pell City are three of the fastest growing neighborhoods in the Birmingham metro area, as well as in Alabama as a whole.

The 10 neighborhoods where home values have risen the highest since 2000 in Birmingham are City Center, Five Points South, Redmont Park West, East Avondale, 10th Ave S, Glen Iris, Redmont Park, Tuxedo, Crestwood North and Crestwood South.

If you’re considering buying your first rental property in Birmingham, here is a comprehensive guide.
If you’re interested in buying an investment property in Birmingham, don’t go it alone! Get connected with the local property team in our network by joining us today. Membership is always 100% free and signing up takes less than 5 minutes.

#10 – Houston, Texas

Houston Real Estate Market Trends & Statistics 2023

Houston is the 14th best market for real estate investors in 2023, according to PwC. The city was ranked 14th out of 80 cities on the overall real estate prospects list in a recent report by PwC.

Houston’s rapid job and population growth, stable real estate appreciation rates, and affordable home prices have made it one of the strongest markets for real estate investors in 2023.

Houston’s median home value in 2022 was $299,400. This was 12.79% more affordable than the average US home value.

About the Houston Housing Market

Houston is the largest city in Texas and fourth-largest in the United States. With a population of over 2.3 million, it is also home to the largest medical center in the world, NASA’s Mission Control Center and one of the busiest seaports in the U.S. in terms of foreign tonnage.

Houston’s economy is dominated by energy-related businesses, which account for 25% of Houston’s gross metropolitan product (GMP). As such, it has been considered the Energy Capital of the world since oil was first discovered there in 1901. In addition to its core industries, Houston has become known for its diversity—it boasts one of the largest LGBTQ populations in Texas, as well as a strong arts scene that includes local theater groups and museums like The Menil Collection Museum or Rothko Chapel.

The Houston-Sugar Land-Baytown Metropolitan Statistical Area had a population of 7,206,841 as of the 2021 census. This area added 1 million residents between 2010 and 2021—accounting for a quarter of Texas’s total population growth during this period. From July 2021 to July 2022 alone, Houston added 193,600 new jobs— a growth rate of 6.26%, almost 63% more than the national average!

Houston’s housing market was a hotbed of activity during the mid-2000s, when investors flocked to the city in search of affordable real estate. And the market has been on the rise since recovering from The Great Recession.

Housing Market Statistics

  • Median Household Income: $70,893
  • Metro Population: 7.2 Million
  • 11-Year Population Growth: 21.18%
  • Median Home Price: $299,400
  • Median Rent Per Month: $1,573 (0.53% rent-to-value ratio)
  • 1-Year Equity Growth: 16%
  • 8-Year Equity Growth (January 2014 – December 2022): 74%
  • 1-Year Rent Growth: 8%
  • 8-Year Rent Growth (January 2014 – December 2022): 19.5%
  • Job Growth: +193,600 CES jobs created over the last year
  • 1-Year Job Growth Rate: 6.26% (63% higher than the national average)
  • Unemployment Rate: 4.4% (19% higher than the national average)

Housing Market Quick Facts

  • The median price of homes in Houston is $299,400, which is 12.8% less than the national average home price.
  • Houston’s rent is $1,573 per month, which is over 20% lower than the national median rent of $1,973 per month. This puts Houston’s average rent to value ratio at 0.53%, almost 8% lower than the national average of 0.57%.
  • The median home value in the areas where RealWealth members invest is $155,000 while the average rent is $1,275. In Houston, RealWealth members invest in homes with an average of 0.82% RTV—44.3% higher than the national average.
  • Houston’s population has grown at an average annual rate of 1.94% since 2010. This has led to a demand for homes that still outweighs supply.
  • Houston’s supply of single-family homes on the market was 2.9 months in November, up from 1.3 months in March and the highest since July of ’20 when it was also 2.9 months.
  • From 2014 to 2022, Houston home prices increased 74.05% at a yearly rate of 8.24%. In the same period, rent prices in Houston increased 19.54% at a yearly rate of 2.58%.

[Recap] Top 3 Reasons to Invest in the Houston Real Estate Market in 2023

Fast job growth
Houston has become a hotbed for job seekers, with 193,600 new jobs created between July 2021 and July 2022—a 6.26% increase in jobs. This is 63% more than the national average.

Steady real estate appreciation rates
The Houston real estate market has had an average appreciation rate of 8.24% per year for the last 8 years, making it one of the safest places to invest in real estate in the US right now.

Fast population growth
Houston is a hotbed of opportunity. The city has been drawing people from all over the country, and it’s not hard to see why. It’s got a strong job market and is experiencing incredible population growth. Houston is the fifth-fastest growing metropolitan area in the United States, with an 11-year population growth rate that is 190.5% higher than the national average.

How To Purchase Investment Property in Houston

Houston is a city of many firsts. It was the first capital of Texas, the first to train African-American pilots in World War II and the first to host an MLB team (1962).

The city is crossed by a number of slow-moving rivers, which drain the region’s broad floodplains but also present flood risks. After Hurricane Harvey hit Houston in 2017, the city showed its trademark resilience by bouncing back faster than expected.

The city’s diversification of its economy has made it less vulnerable to the ups and downs of the oil and gas industry than it was in the past.

Texas City in Galveston County, and Conroe in Montgomery County are two of the fastest growing cities in Texas. They are both located within the Houston metropolitan area.

The 10 Houston neighborhoods where home values have risen the most since 2000 are Lawndale Wayside South, Brittmoore Rd, Gulfton South, Woodland Heights, Greater Heights SouthEast, Greater Heights East, Downtown SouthEast, Near Northside, Second Ward East and Greenway Upper Kirby Area West.

Interested in purchasing rental property in Houston? Become a member of RealWealth to view sample property pro formas and to connect with the local team.

#11 – Ocala, Florida

Ocala Real Estate Market 2023 - Trends & Statistics

The Ocala real estate market has grown substantially in the past year, with home prices increasing by over 30%. The average home price in Ocala is now $272,593, and monthly rents average $1,587.

Ocala is experiencing steady population growth as people working in other parts of Central Florida move to Ocala for its lower cost of living. This influx of residents has driven up demand for housing and contributed to rising prices.

The Ocala real estate market remains affordable, but rising prices suggest that those interested in investing in the area should act quickly.

These are all reasons that Ocala has made our list of the best places to buy rental property for 2023. Keep reading to learn even more.

About the Ocala Housing Market

Ocala is a small city in north central Florida, about 60 miles east of the famous Daytona Beach and 70 miles north of Orlando. The city features tree-lined streets and southern-style homes nestled among miles of nature preserves.

The Ocala region is home to several tourist attractions such as the Appleton Museum of Art and Silver Springs State Park.

Ocala, known as the “Horse Capital of the World,” is a growing city with deep equestrian roots.

In recent years, several major companies have opened large distribution centers in the city. FedEx, Chewy and AutoZone have established large facilities here. The city’s central location, with its easy interstate access to much of the Southeast, makes it an attractive spot for these companies.

According to the latest US News Best Places Rankings, Ocala is ranked No. 16 as the best place to retire, No. 6 for fastest growing, No. 9 for best place to live in Florida and No. 10 as the safest place to live in Florida.

A study by Avalanche Consulting showed that the Ocala Metro ranked in the top 15 of all metros under 500,000 in terms of growth of Millennials (25-34) during the period between 2012-2017. The growth rate was more than double the national average.

Demand for rentals is driving rent growth in Ocala. Zumper reports that, as of January 2023, the average rent for a 1-bedroom apartment in Ocala is $1,199, a 29% increase from last year.

Housing Market Statistics

  • Median Household Income: $55,161
  • Metro Population: 385,915
  • 11-Year Population Growth: 16.47%
  • Median Home Price: $272,593
  • Median Rent Per Month: $1,587 (0.58% rent-to-value ratio)
  • 1-Year Equity Growth: 32.8%
  • 8-Year Equity Growth (January 2014 – December 2022): 137%
  • 1-Year Rent Growth: 17%
  • 8-Year Rent Growth (January 2014 – December 2022): 77%
  • Job Growth: +2,700 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.44% (36% lower than the national average)
  • Unemployment Rate: 3.2% (13.5% lower than the national average)

Housing Market Quick Facts

  • The median price of homes in Ocala, FL is $272,593, which is 21% lower than the median home price in the United States.
  • The median monthly rent in Ocala is $1,587, which is 20% less than the national average.
  • Home prices in Ocala have appreciated by a total of 136.84%, 63% faster than the US average, since 2014. The average annual home price appreciation rate in the Ocala metro area is 13.11%.
  • From 2014 to 2022, average rent prices in the Ocala metro area have appreciated by a total of 76.9%. The average annual rent appreciation rate between 2014 and 2022 was 8.49%.
  • The Ocala metro area has grown by 16.47% since 2010. As of the 2021 census, its population was 385,915. The area has grown at a rate of 1.54% per year since 2010 and 126% faster than the total US population in the last 11 years.
  • The Ocala metro area added about 2,700 new jobs between October 2021 and October 2022, a job growth rate of 2.44% that lags the national average by 36.5%. The area’s unemployment rate is 3.2% as of October 2022, lower than the US average of 3.7% for the same month.
  • The growth of Ocala has led to a need for more housing, as well as the creation of new jobs. Unemployment is at an all-time low for Marion County.

[Recap] Top 3 Reasons to Invest in the Ocala Real Estate Market in 2023

Affordable real estate
Compared to other Florida markets, like Tampa, the Ocala housing market is quite affordable for investors. The median home price in Ocala is $272,593, which is 21% lower than the national average.

Attractive rental market
Ocala is a growing city, which means that there are plenty of attractive investment opportunities in the real estate market. In 2022, rental prices rose by over 16% annually and they’re expected to rise even higher in 2023 as the population continues to grow. 54% of households in Ocala rent their homes, so there is a high demand for rental properties.

Strong population growth
Marion County’s population is growing quickly, and projections show it will reach 400,000 next year and half a million by 2040.

How To Purchase Investment Property in Ocala

Both short-term and long-term investors will enjoy excellent returns in Ocala. Mashvisor data shows that for traditional real estate investors in Ocala, the cash-on-cash return is 5%; for AirBnB investors, it’s also 5%.

9% of Ocala homes are required to have flood insurance. Flood insurance premiums range from $225 – $2,476 per month. It’s important to note that some neighborhoods are more flood prone than others.

These Ocala neighborhoods have seen the sharpest increases in home values since 2000: Lowell, York, Silver Springs Shores Northeast, Early Bird, US Hwy 27, Silver Springs Shores Northwest, W Silver Springs Blvd, Oak, Silver Springs, and Ocala Ridge. Springs.

If you’d like to buy rental property in Ocala, become a member of RealWealth. Our local team sells fully renovated homes with property management in place. Sign up today by clicking the orange “join for free” button in the menu and start viewing sample property pro formas.

#12 – Palm Bay, Florida

Palm Bay Real Estate Market 2023 - Trends & Statistics

Palm Bay has a track record of being one of the best long term real estate investments over the course of the last ten years. In the last eight years, home values have increased by 139% in Palm Bay, while rents have increased by 82%.

The Palm Bay metro was named one of the top 10 hidden gem real estate markets with strong underlying housing market fundamentals by the NAR. This report states that, in comparison with other Florida metro areas, Palm Bay has a low home price-to-income ratio (2.9) and is affordable. The area also had the second-highest pace of wage growth over a 3-year period (27.2%)—just behind Daphne.

Continue reading to see why Palm Bay is one of the best places to buy rental property in 2023. 

About the Palm Bay Housing Market

The Palm Bay-Melbourne-Titusville metro area is a cluster of cities in east Florida, with the largest being Palm Bay. This area is ripe for investment because of its growing population and high home appreciation rates.

The Palm Bay-Melbourne-Titusville metro area, located in Florida, has one of the fastest growing high-tech sectors in the country. High-tech industries in the region added 10,356 jobs between 2015 and 2020, a 41.6% increase compared to 8.9% nationwide. The city is home to high-tech companies such as Lockheed Martin and IBM.

Palm Bay’s economic success has been built on a diversified, high-tech industrial base that includes aerospace and defense industries. The growth of these industries has been stimulated by the development of the nearby John F. Kennedy Space Center and Cape Canaveral Space Force Station.

Housing Market Statistics

  • Median Household Income: $65,333
  • Metro Population: 616,628
  • 11-Year Population Growth: 13.36%
  • Median Home Price: $349,525
  • Median Rent Per Month: $1,984 (0.57% rent-to-value ratio)
  • 1-Year Equity Growth: 26.6%
  • 8-Year Equity Growth (January 2014 – December 2022): 139%
  • 1-Year Rent Growth: 18%
  • 8-Year Rent Growth (January 2014 – December 2022): 82%
  • Job Growth: +8,500 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.57% (6.9% lower than the national average)
  • Unemployment Rate: 2.5% (32% lower than the national average)

Housing Market Quick Facts

  • The median home price in Palm Bay is $349,525, and the average rent is $1,984.
  • Palm Bay, Florida was one of the fastest appreciating markets in the United States between July 2021 and July 2022, with home prices increasing by 26.6%. On average, home prices have been appreciating at a rate of 13.25% per year since 2014 and have appreciated by 138.96% since that time.
  • In the last eight years, Palm Bay has seen an 82% increase in rent prices. The average rent has increased by 8.93% per year since 2014.
  • Even though Palm Bay’s hot housing market is cooling down, some home sellers are still receiving multiple offers.
  • The Palm Bay metropolitan area, with a population of 616,628 as of 2021, is growing at an 83% faster rate than the rest of the United States. In the past eleven years (between 2010 and 2021), its population has increased by 13.36%, which is an annual growth rate of 1.26%.
  • Palm Bay’s central location makes it a prime spot for businesses. The city is located in the east of Central Florida between Jacksonville and Miami in Northeastern Florida and Southeastern Florida respectively. It’s also southeast of Orlando in Central Florida.

[Recap] Top 3 Reasons to Invest in the Palm Bay Real Estate Market in 2023

High home price appreciation
Home prices in Palm Bay appreciated by over 26% last year. Rent prices appreciated by almost 18%. The average home price in Palm Bay has been appreciating at the rate of 13.25% per year since 2014.

This is probably why researchers Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D., ranked the Palm Bay metropolitan area No. 2 on their list of the 100 most overpriced metro areas in the U.S.

Fast job growth
With a thriving tech economy and growing job market, Palm Bay is one of the fastest-growing cities in Florida. In fact, according to a report from Center Square, Palm Bay has a thriving tech economy that employs approximately 16% of the city’s workforce. In the period from October 2021 to October 2022, Palm Bay added 8,500 new jobs, a growth rate of 3.57%. This is only 6.6% lower than the average job growth rate for the US during that period (3.84%).

High population growth rate
Palm Bay, Florida, is drawing new residents thanks to strong wage and job growth, access to broadband services (key for remote workers), and a young population.

How To Purchase Investment Property in Palm Bay

The city of Palm Bay has seen a construction boom in recent years, with thousands of new single-family homes being built and many more in various stages of review.

In 2022, the city of Palm Bay was one of the fastest growing cities in Florida. The Palm Bay neighborhoods that have seen the greatest increase in home values since 2000 are Port Malabar Country Club, Tropicana, Bayside Lakes, Americana Blvd NW, Port Malabar Country Club West, Jupiter Blvd SE, Fred Lee Park, Treasure Coast Northwest, Liberty Park and West Oaks Park.

Become a member of RealWealth today to view sample property pro formas for the Palm Bay area, and to connect with the local Palm Bay team in our network. Membership is always 100% free and signing up takes less than five minutes!

#13 – Atlanta, Georgia

Atlanta Georgia Real Estate Market 2023 Overview

Atlanta is one of the best places to invest in real estate right now because its population is growing fast, home equity is rising and rent prices are increasing. The city’s GDP grew by over 32% in the last 10 years (through 2020), reaching a total of $399 billion dollars in 2021—more than that of many countries.

The average home price in Atlanta is $366,274. That’s about $23,000 higher than the national average of $343,292. The median monthly rent is $1,927.

About the Atlanta Housing Market

Metro Atlanta, which began as a railroad terminus, has become one of the nation’s largest and most dynamic regions. It is growing fast, with a population that is rapidly diversifying. The Atlanta-Sandy Springs-Alpharetta, Georgia Metropolitan Statistical Area is the largest metropolitan area in Georgia and the eighth-largest in the United States.

Atlanta is the third largest city in the U.S. in terms of the concentration of Fortune 500 companies, after New York City and Dallas-Fort Worth. There are currently 17 Fortune 500 companies, 31 Fortune 1000 companies and one Dow Jones company headquartered in Atlanta. Major companies headquartered here include Delta Air Lines, Coca-Cola, Home Depot, UPS, AT&T and Centers for Disease Control.

From July 2021 to July 2022, 148,200 jobs were added to the Atlanta economy. This represents a 5.22% growth rate—35.9% greater than the US average of 3.84%. The Atlanta metropolitan area has experienced impressive job growth and offers equity growth potential that is greater than most other major cities around America.

Housing Market Statistics

  • Median Household Income: $69,164
  • Metro Population: 6.14 Million
  • 11-Year Population Growth: 15.9%
  • Median Home Price: $366,274
  • Median Rent Per Month: $1,927 (0.53% rent-to-value ratio)
  • 1-Year Equity Growth: 21.6%
  • 8-Year Equity Growth (January 2014 – December 2022): 122%
  • 1-Year Rent Growth: 12%
  • 8-Year Rent Growth (January 2014 – December 2022): 66%
  • Job Growth: +148,200 CES jobs created over the last year
  • 1-Year Job Growth Rate: 5.22% (36% higher than the national average of 3.28%)
  • Unemployment Rate: 2.8% (24% below the national average)

Housing Market Quick Facts

  • The median home price in Atlanta is $366,273.86, which is 6.69% higher than the national average home price of $343,292.29. Home prices in Atlanta have increased by 121.7% over the past 8 years.
  • The median monthly rent in Atlanta is $1,927.43. Rent prices in Atlanta have grown by 65.73% over the past eight years.
  • Atlanta has a price to rent ratio of 15.8% and a rent to value ratio of 0.53%. The average RTV ratio in places where RealWealth members invest is 0.67%.
  • In the last 11 years, Atlanta’s population increased by 15.87% at an average yearly rate of 1.48%.
  • Between October 2021 and October 2022, Atlanta added 153,900 new jobs at a 5.4% growth rate. The current unemployment rate in Atlanta is 2.8%, 24% below the national average.

[Recap] Top 3 Reasons to Invest in the Atlanta Real Estate Market in 2023

Fast population growth
Atlanta’s population is continuing to grow, and the biggest driver of this growth is jobs.

The Atlanta Regional Commission projects that over the next 30 years, Metro Atlanta will grow by 2.9 million people.

High home equity growth
According to PwC’s Emerging Trends in Real Estate report, Atlanta was named one of the Top 10 Markets to Watch in 2022, as well as a “magnet market” – an area where population and job opportunities are growing faster than the national average.

Atlanta home prices have grown by 121.71% in the last 8 years, and rent prices have increased by 66%. With a growing number of new jobs and a strong economy, there are no signs that the real estate market will slow down in Atlanta.

Strong economy and job growth
The Atlanta real estate market is booming, and it’s not just because of the tight housing market. The economy there is strong, and it’s drawing more people to the area.

In fact, between now and 2050, metro Atlanta is expected to add 1.2 million jobs—bringing its total number of jobs to 4.7 million. That includes self-employed workers as well as employees of corporations and small businesses.

How To Purchase Investment Property in Atlanta

Atlanta is one of the fastest-growing cities in the U.S., with a growing economy and population. This combination creates a great environment for investors to buy older homes that need repair and turn them into rental properties or purchase newer, larger homes in upscale neighborhoods to rent out to more affluent tenants.

The Atlanta metro area is home to five of Georgia’s fastest growing cities, including South Fulton (Fulton county), Stonecrest (DeKalb county), Brookhaven (DeKalb county), Dunwoody (DeKalb county) and Marietta (Cobb county).

The top 10 neighborhoods in Atlanta with the highest percentage increase in home values since 2000 are: The Villages at CastleBerry Hill, Hunter Hill, Vine City East, Vine City, West Lake, Ashview Heights, Atlanta University Center, Oakland City, Westview and Pittsburgh. While a rise in home values might not necessarily indicate good cash flow potential, it does indicate growth in population and housing demand.

If you’re considering buy and hold investing in Atlanta or any other market, here is a guide to help you get started. With our nationwide network of professional property teams, RealWealth can help you find a property in Atlanta that fits your needs. Our professional property teams in the Atlanta metro area are ready to help you take the next step toward making your investment dreams come true.

So if you’re interested in buying an investment property in Atlanta, don’t go it alone! Get connected with one of our nationwide teams today and get started on your next great investment opportunity! Click the orange “Join for Free” button in the menu above to view sample pro-formas for the Atlanta area.

#14 – Cleveland, Ohio

Cleveland Real Estate Market Trends & Statistics 2023

Cleveland is one of the most resilient housing markets in the United States. A recent Redfin report named Cleveland the 5th most resilient housing market in the U.S., with an average home sale price of $173,000 and a 6% year-over-year increase in home values.

The median home price in the Cleveland metro area is almost 40% lower than the average US home price.

RealWealth’s members invest in Cleveland neighborhoods where the median home price is $130,000 and the median rent is $1,250. In these neighborhoods, the average rent to value ratio is 0.96%, almost 70% higher than the national average.

About the Cleveland Housing Market

Cleveland, Ohio is a city with a rich history that dates back to 1796. In the past 200 years, it has undergone many changes and has been home to some of the most important figures in American history. From its beginnings as an industrial town to its current position as a center for high-tech industry, Cleveland’s story is one of transformation and innovation.

The Cleveland metropolitan area, or Greater Cleveland as it is more commonly known, is an urban area that straddles Cuyahoga and Lorain counties in Ohio. The city itself has a population of 396,815 people, but when you add in surrounding cities like Elyria and Lakewood, the total population comes close to 2 million people—making this region one of America’s largest metropolitan areas.

Cleveland’s health care sector is made up of some of the nation’s most prestigious hospitals, including the Cleveland Clinic and the MetroHealth System. The manufacturing and biomedical industries also provide jobs for many of Cleveland’s residents.

There are 10 Fortune 500 companies in the Cleveland-Akron area, five of which are in Cleveland, two in Akron and one each in Mayfield, Westlake and Wickliffe. They include Progressive Insurance Company, Cardinal Health Inc., Goodyear Tire & Rubber Company, FirstEnergy Corp., Parker Hannifin Corp., TravelCenters of America Inc., and J.M. Smucker Co.

The Cleveland region is expected to gain 123,000 new jobs by 2025, and food manufacturing will play a big role in that growth. The industry contributes $2.6 billion annually to the local economy.

The rising cost of home ownership in Cleveland has created a large demand for single-family rentals, with over half of the housing units occupied by renters.

Housing Market Statistics

  • Median Household Income: $62,315
  • Metro Population: 2.08 Million
  • 11-Year Population Growth: 0%
  • Median Home Price: $213,457
  • Median Rent Per Month: $1,336 (0.63% rent-to-value ratio)
  • 1-Year Equity Growth: 10.8%
  • 8-Year Equity Growth (January 2014 – December 2022): 78%
  • 1-Year Rent Growth: 7%
  • 8-Year Rent Growth (January 2014 – December 2022): 40%
  • Job Growth: +27,799 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.69% (30% lower than the national average)
  • Unemployment Rate: 5.1% (30.7% higher than the national average)

Housing Market Quick Facts

  • Cleveland’s cost of living is 27.4% lower than the national average, making it an affordable place to live. Housing, groceries, transportation and utilities are all less expensive in Cleveland than in other cities.
  • Home prices are 37.8% cheaper on average in Cleveland than they are in the US. The current average home price in Cleveland is $213,457.
  • Over the past eight years, home values in Cleveland have increased by 77.68% at an annual rate of 8.56%.
  • Rent prices have also been rising steadily. Since 2014, rents have increased by almost 40%, increasing by 4.88% annually.
  • In the past year, Cleveland’s economy added 27,799 new jobs, a growth rate of 2.69%. This was 30% slower than the national average.
  • As of 2021, Cleveland’s gross domestic product was $122 billion, an increase of more than 11% over the past decade.
  • Even though the city of Cleveland lags behind other major cities in terms of economic growth, per capita GDP in Cleveland has surpassed other Sun Belt metros such as Phoenix, San Antonio, and Las Vegas.

[Recap] Top 3 Reasons to Invest in the Cleveland Real Estate Market in 2023

Affordable real estate
The average price of a home in Cleveland is almost 40% less than the national average. You can find homes in Cleveland for as little as $109,900 that will rent for $1,150 per month. This means there’s a good opportunity for cash flow in this market.

Steady home appreciation
The average value of homes in Cleveland increased by 77.68% percent at an average yearly rate of 8.56 percent over the past eight years. The city has a real estate market that is one of the least vulnerable to price dips, which makes it an excellent place to invest in property.

Steady job growth
Cleveland is investing in healthcare and bio-science business accelerators like Bio-Enterprise and the Global Center for Health Innovation. These institutions are expected to spur healthcare advancements in America in the near future.

How To Purchase Investment Property in Cleveland

Investors have several options when investing in Cleveland real estate. They can buy distressed properties, start with turnkey investments or do both.

Some of Ohio’s fastest growing cities are located in the Cleveland metropolitan area. They include Cuyahoga Falls in Summit County, Lorain in Lorain County, and Parma in Cuyahoga County.

The top 10 Cleveland neighborhoods where home values have increased the most since 2000 are: Central South, Central Southwest, Central East, Central, Downtown South, Ohio City South, Clark Fulton North, Ohio City and Tremont.

If you’re interested in buying an investment property in Cleveland, don’t go it alone! Get connected with a local Cleveland property team through our network and get started on your next great investment opportunity! Click the orange “Join for Free” button in the menu above to join RealWealth, view sample pro-formas for the Cleveland area, connect with teams and more.

To learn more about why Cleveland made our best places to invest in real estate list, visit our Cleveland Market Page.

#15 – Pittsburgh, Pennsylvania

Pittsburgh Real Estate Market 2023 - Trends & Statistics

In a September 2022 report from Redfin, Pittsburgh was ranked 9th among the most affordable markets where housing prices are still holding up well.

Despite its slight population decline, Pittsburgh has long been known as a solid cash-flowing market for investors. The average RTV (rent-to-value) ratio for the Pittsburgh metro area is 0.63%, almost 10% greater than the US average.

In neighborhoods where RealWealth members invest in Pittsburgh, the average RTV ratio is 0.87%, which is 52% more than the national average.

About the Pittsburgh Housing Market

Pittsburgh is a city that has seen its share of ups and downs. In the past, it was seen as part of the Rust Belt, struggling to find its footing in the wake of deindustrialization. But today, Pittsburgh is thriving—and it’s all thanks to new investments that have led to its inclusion in the Great Lakes Basin, membership in the Great Lakes Metro Chamber Coalition, and a host of other developments that have reshaped this city into one of America’s most vibrant.

Pittsburgh is the second-largest city in Pennsylvania after Philadelphia. Its population is just over 2.35 million people—about 20% of Pennsylvania’s total population.

Between 2000 and 2010, the population of Pittsburgh declined by 4%, but the per capita income increased by 24%. Since 2010, Pittsburgh’s population has remained relatively steady with a very slight decline of only 0.15%.

The GDP of Pittsburgh is $141 billion as of 2021, up more than 11% over the past ten years.

Pittsburgh’s primary industries are advanced manufacturing, technology, education, and healthcare. The largest employers are UPMC (the University of Pittsburgh Medical Center), PNC Financial Services Group (a regional bank), PPG Industries (one of the world’s largest paint companies), and Highmark (a regional health insurance provider). Pittsburgh is also home to U.S. Steel, Carnegie Mellon University (CMU), and the Kraft Heinz Company (KHC)—all large employers providing stability for the city’s economy.]

In addition to its thriving business sector, Pittsburgh has many colleges and universities: Carnegie Mellon University (CMU), the University of Pittsburgh, Duquesne University, Point Park University and Robert Morris University are just a few examples.

Housing Market Statistics

  • Median Household Income: $66,609
  • Metro Population: 2.35 Million
  • 11-Year Population Growth: -0.15%
  • Median Home Price: $210,190
  • Median Rent Per Month: $1,316 (0.57% rent-to-value ratio)
  • 1-Year Equity Growth: 8.8%
  • 8-Year Equity Growth (January 2014 – December 2022): 63%
  • 1-Year Rent Growth: 6%
  • 8-Year Rent Growth (January 2014 – December 2022): 31%
  • Job Growth: +28,100 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.5% (35% lower than the national average)
  • Unemployment Rate: 4.1% (10.8% higher than the national average)

Housing Market Quick Facts

  • Pittsburgh home values have increased by 62.51% in the last eight years at an annual rate of 7.18%. Rental prices have increased by 31.13% in the same time period at an annual rate of 3.95%.
  • The median home price in Pittsburgh is $210,190, which is 39% lower than the US average of $373,200. The median rent in Pittsburgh is $1,316, which is 33% lower than the US average of $1,943.
  • The Demographia International Housing Affordability study, presented by the Urban Reform Institute and released in March 2022, ranked Pittsburgh as the most affordable city to buy a home in the world.
  • According to the U.S. Census Bureau, Pittsburgh’s overal metro population declined by about 1% over the past decade while Allegheny County grew by a little over 2.2%.
  • Between July 2021 and July 2022, Pittsburgh gained 28,100 new jobs. This represents a 2.5% increase in employment over that time period but it still trails the national job growth rate by 35%.
  • The Pittsburgh metro area is home to 68 colleges and universities, including the prestigious Carnegie Mellon University and the University of Pittsburgh, which together host almost 50,000 students.

[Recap] Top 3 Reasons to Invest in the Pittsburgh Real Estate Market in 2023

Affordable real estate
One of the biggest reasons Pittsburgh made our list of the best places to buy rental property this year is because of it’s affordability. Pittsburgh is a classic example of a tertiary market where buyers can still find affordable housing. The median home price in Pittsburgh is $210,190, which is 39% lower than the US average.

Steady job growth
Between July 2021 and July 2022, the Pittsburgh region gained 28,100 jobs—a 2.5% increase over the previous year. This steady job growth is a sign of a growing economy, which is favorable for real estate investing.

Strong rental market
The average RTV ratio for the Pittsburgh metro area is 0.63%, which is 10% higher than the US average RTV ratio of 0.57%. In neighborhoods where RealWealth members invest in Pittsburgh, the average RTV ratio is 0.87%, 52% higher than the US average.

With more than 53% of households renting rather than owning their homes, there’s a lot of demand for rentals in the city of Pittsburgh.

How To Purchase Investment Property in Pittsburgh

The Greater Pittsburgh area is a fast-growing market that’s ripe with opportunity for investors.

In 2022, Lawrenceville, East Liberty, and Garfield were hot spots for home flippers. One in every 14 mortgages was going to an investor at the time. In October of that year, however, there was only one in 27 mortgages going to an investor. Cash buyers are still making around one-third of purchases in these communities.

The cities of Franklin Park and Jefferson Hills in Allegheny County are two of the fastest-growing communities in the Pittsburgh metro area and in Pennsylvania overall.

The neighborhoods in Pittsburgh where home values have risen the most since the year 2000 are Central Lawrenceville West, Lower Lawrenceville, Upper Lawrenceville, Lawrenceville, Central Oakland, East Liberty North, South Oakland, Highland Park West, Garfield East and Friendship.

Become a member of RealWealth today for free to view sample investment property pro formas in Pittsburgh. If you like what you see, you’ll have the ability to connect with the local property team in our network to view current inventory.

#16 – Huntsville, Alabama

The Huntsville metro area is located in northern Alabama, and it’s one of the most economically prosperous areas in the country. Huntsville ranked eighth on SmartAsset’s list of the top 120 U.S. cities where it pays to buy a long-term rental property in 2021, thanks to its affordability and population growth.

SmartAsset looked at factors like affordability, cash flow, and population growth to determine which cities were most profitable for long-term rentals.

In Huntsville, home prices and rent appreciation rates are above average at 9.29% per year and 7.72% per year, respectively.

Home prices in Huntsville are also lower than the national average; the median home price of $293,797 (2022 average) is 14.42% lower than the national median of $343,292. The average monthly rent for single family homes and apartments in Huntsville is $1,498—this is 24% less than the national average of $1,973!

About the Huntsville Housing Market

The Huntsville Metropolitan Statistical Area (MSA) is a metropolitan area on the northern border of Alabama. The MSA consists of two counties: Limestone and Madison. In fact, Huntsville has the nickname “Rocket City” due to its close ties with NASA.

Huntsville is the second most populous metropolitan area in the state of Alabama. More than 40 Fortune 500 companies including Booz Allen Hamilton, Lockheed Martin and Jacobs Engineering Group have branches in Huntsville.

The GDP of the Huntsville Metropolitan Statistical Area, according to the Federal Reserve Bank of St. Louis, is nearly $31 billion and has grown by nearly 40% over the last 10 years.

Huntsville is a technology hub where the military and NASA have created a strong presence. The top employer is Redstone Arsenal, an army base that employs over 31,000 people. Between 2010 and 2021, Huntsville’s population grew by 19.9% at an annual rate of 1.83%.

Huntsville offers a steady job market that pays STEM workers above average salaries and a growing population (38% of whom are renters). You can expect good returns on investment from your property as well, since the area has been growing rapidly over the last 10 years.

Housing Market Statistics

  • Median Household Income: $76,963
  • Metro Population: 502,728
  • 11-Year Population Growth: 19.9%
    Median Home Price: $293,797
    Median Rent Per Month: $1,498 (0.51% rent-to-value ratio)
  • 1-Year Equity Growth: 19.4%
  • 8-Year Equity Growth (January 2014 – December 2022): 86%
  • 1-Year Rent Growth: 10%
  • 8-Year Rent Growth (January 2014 – December 2022): 68%
  • Job Growth: +5,299 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.09% (45% lower than the national average)
  • Unemployment Rate: 2.2% (40% lower than the national average)

Housing Market Quick Facts

  • Huntsville’s economy is one of the most stable in the country due to its diversification. The city has always been known for its aerospace and defense industries, but it has also become a hub for information technology, bioscience and advanced manufacturing.
  • The median home price in Huntsville is $293,797, which is 14.4% lower than the median home price in the United States.
  • Median home prices in Huntsville have increased by 86% in the last 8 years, growing by 9.29% per year.
  • In Huntsville, the median monthly rent is $1,498. This represents an increase of over 68% in the last 8 years.
  • Huntsville rent prices have been increasing by 7.72% per year since 2014.
  • In the last 11 years, the population of the Huntsville metro area has jumped 19.9%, from 419,276 in 2010 to 502,728 in 2021. The population of the Huntsville metro area has been growing at a rate of 1.83% per year.
  • In recent years, job growth in Huntsville has been slow. In 2022, the metro area’s job growth lagged the national average by more than 45%. But as of October 2022, its unemployment rate was one of the lowest in the country at 2.2% (19% lower than the US unemployment rate).

[Recap] Top 3 Reasons to Invest in the Huntsville Real Estate Market in 2023

Solid rental cash flow opportunities
The Huntsville real estate market is experiencing a boom, with affordable housing, good-paying jobs, and other factors drawing people to the area. As a result, investors have plenty of opportunities to choose from as they put their money into Huntsville properties. These are the primary reasons Huntsville made our best cities to invest in real estate list for two years in a row!

The average rent to value ratio for RealWealth investors in Huntsville is 0.93%. This means that it is easy to find properties that conform to the 1% rule in Huntsville, if you look in the right neighborhoods.

High real estate appreciation rates
In the last eight years, Huntsville home prices have grown by 86.25%, 2.64% higher than the 84.03% average growth rate for home prices across the country. In the same time period, rent prices have grown by 68.31%, which is 67.15% higher than the 40.87% average growth rate for rents across the US.

Fast population growth
The Huntsville metro area has grown by a remarkable 19.9% since 2000, 173% above the national average.

How To Purchase Investment Property in Huntsville

Huntsville is one of the most desirable places to invest, with a stable economy and low unemployment rate.

The Huntsville metro area is home to two of the fastest-growing cities in Alabama: Madison in Madison County and Huntsville, which lies in Madison and Limestone Counties.

The top 10 Huntsville neighborhoods with the greatest percentage increase in home values since 2000 are: Redstone Arsenal, West Huntsville, Twickenham, Longwood, Five Points, Terry Heights, Downtown Huntsville, Mountain Brook, Huntsville Park, and Fanning Manor.

Looking for housing inventory in Huntsville or any other area in the US right now? Here are some tips.

If you’re interested in buying an investment property in Huntsville, don’t go it alone! Get connected with the local Huntsville property team in our network today. They offer fully renovated properties with property management in place. Become a member of RealWealth today to get started.

#17 – Oklahoma City, Oklahoma

Oklahoma City Real Estate Market 2023 - Trends & Statistics

Oklahoma City, Oklahoma is another one of the best places to invest in rental properties in 2023.

The city has grown by more than 12% since the 2010 census, and it is now the 25th largest city in the United States. The average price of a home in Oklahoma City is $215,179 and the average monthly rent price is $1,310.

The economy of the Oklahoma City metro area has been steadily growing, propelling an increase in the local housing market. A great economy coupled with affordable housing presents solid investment opportunities.

About the Oklahoma City Housing Market

Oklahoma City, the capital of Oklahoma and a bustling western city, is known for its cowboy culture and sprawling capitol complex. Surrounded by large oil wells, this city has grown 14% since 2010, adding approximately 180,000 people to its metro area. Five of the seven counties in the Oklahoma City metropolitan area experienced double-digit growth over that period.

The Oklahoma State government and the University of Oklahoma are two major employers for the city. In addition to these institutions, Integris Health, Mike Monroney Aeronautical Center and other major employers keep the economy strong.

Oklahoma City’s GDP is nearly $74.4 billion—about 25% more than it was 10 years ago.

Oklahoma City’s cost of living is 13% lower than the national average, helping to keep the rental market strong. Oklahoma is also a very landlord-friendly state which makes it an ideal location for long term real estate investment.

Housing Market Statistics

  • Median Household Income: $61,815
  • Metro Population: 1.4 Million
  • 11-Year Population Growth: 14.62%
  • Median Home Price: $215,179
  • Median Rent Per Month: $1,310 (0.61% rent-to-value ratio)
  • 1-Year Equity Growth: 15.8%
  • 8-Year Equity Growth (January 2014 – December 2022): 57%
  • 1-Year Rent Growth: 8%
  • 8-Year Rent Growth (January 2014 – December 2022): 30%
  • Job Growth: +22,100 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.41% (11% lower than the national average)
  • Unemployment Rate: 3.1% (16% lower than the national average)

Housing Market Quick Facts

  • The average price of a home in Oklahoma City is $215,179, 37.3% lower than the US average.
  • The average monthly rent in Oklahoma City is $1,310, which is 33.6% lower than the US average.
  • Over the last eight years, home prices in Oklahoma City have increased by 57.36% at an annual rate of 6.69%.
  • In the past eight years, median rents in Oklahoma City have increased by 30.35%. This increase has been accompanied by an average annual rate of 3.86%.
  • Oklahoma City’s population grew by 14.62%, from 1,257,793 to 1,441,647 between 2010 and 2021. The metro area population has been growing at a rate of 1.37% per year for the last 11 years. Oklahoma City’s population has grown 100.5% faster than that of the US in the last 11 years.
  • Since October 2021, job growth in Oklahoma City has been strong. The city added 22,100 new jobs between October 2021 and October 2022, a job growth rate of 3.41%, lagging the US average by 11%.

[Recap] Top 3 Reasons to Invest in the Oklahoma City Real Estate Market in 2023

Affordable real estate
The Oklahoma City real estate market is one of the most affordable in the country, with the average home price at $215,179—37.3% lower than the national average.

For cash flow investors in this market, typical entry level price points are $75,000 for C properties and $175,000- $200,000 for A properties. New construction can be purchased for as low as $120,000.

Steady population growth
The population of Oklahoma City has increased about 3 times as fast as the state’s total population and almost twice as fast as the U.S. overall. This can be attributed to the $1.5 billion MAPS Projects which included construction of sports venues and other projects throughout the town.

High home price appreciation
Oklahoma City is a relatively stable market, in comparison to many coastal cities, and is frequently targeted for investment due to its stability and cash flow opportunities. In the last 8 years, the average home price in Oklahoma City has increased by 57.36% at an annual rate of 6.69%. From October 2021 to October 2022, the average home price in Oklahoma City increased by 15.8%.

How To Purchase Investment Property in Oklahoma City

In Oklahoma City, the newer the home, the easier it is to invest in. Fewer maintenance concerns mean fewer tenant problems and complaints. Many of the newer homes are in beautiful neighborhoods, but credit restrictions make it difficult for many families to buy. So they opt for renting.

The cities of Mustang and Piedmont in Canadian County, Newcastle in McClain County, Harrah in Oklahoma County and Tuttle in Grady County have seen some of the highest population growth rates in the Oklahoma City region and Oklahoma as a whole.

The neighborhoods in Oklahoma City where home values have increased the most since 2000 are Gatewood UCD, Mesta Park, The Elliott Midtown, Classen-Ten-Penn, Epworth, Totan Park, Paseo, Heritage Hills, Metro Park and Jefferson Park.

#18 – Montgomery, Alabama

Montgomery Real Estate Market 2023 - Trends & Statistics

Montgomery, Alabama is another one of the best cities to buy rental property in 2023, offering both affordable properties and a strong rental market. The median home value in Montgomery is $181,065, while the median monthly rent is $1,215.

There is high rental demand in Montgomery with 42% of households renting their homes.

Military and student renters, as well as an expanding job market, have contributed to the demand for rental housing in Montgomery.

About the Montgomery Housing Market

Montgomery has a rich history and lots to offer.

The capital of Alabama, Montgomery is the most populous city in the state with a metro area population of approximately 390,000. It is located along the Alabama River midway between Birmingham to the north and Mobile to the south.

Montgomery is home to many businesses and several state and local universities, including Auburn University at Montgomery and Troy University. Maxwell Air Force Base is also in Montgomery.

The largest employer in Montgomery, Alabama is the state government. Public school system jobs are the second-largest area of employment, followed by health care jobs at area hospitals and clinics and manufacturing jobs at Hyundai Motor Manufacturing Alabama, where the Elantra, Tucson, Santa Cruz and Santa Fe are built.

The metro area population of the Montgomery metro area was 385,798 in 2021, a slow increase of 2.85% from 2010’s population of 375,119 (U.S Census Bureau).

Montgomery has one of the highest ratios of median income to median housing costs in the country (making it a desirable place for both renters and property investors).

Housing Market Statistics

  • Median Household Income: $52,677
  • Metro Population: 385,798
  • 11-Year Population Growth: 2.85%
  • Median Home Price: $181,065
  • Median Rent Per Month: $1,215 (0.67% rent-to-value ratio)
  • 1-Year Equity Growth: 15%
  • 8-Year Equity Growth (January 2014 – December 2022): 44%
  • 1-Year Rent Growth: 11%
  • 8-Year Rent Growth (January 2014 – December 2022): 31%
  • Job Growth: +3,400 CES jobs created over the last year
  • 1-Year Job Growth Rate: 1.94% (49% lower than the national average)
  • Unemployment Rate: 3.1% (16% lower than the national average)

Housing Market Quick Facts

  • The median price of a home in the Montgomery area is $181,065, almost 50% lower than the national average.
  • The median monthly rent for homes in the Montgomery metro area is $1,215. This is 38% lower than the national average.
  • In the past eight years, home prices in Montgomery have increased 43.9% while rent prices have grown by 31.34%. Since 2014, average home price growth per year has been 5.34%, while average rent growth per year has been 4.65%. However, in the last 12 months, rents in Montgomery increased 10.5% YOY.
  • The Montgomery metro area saw a population increase of 2.85% between 2010 and 2021, which was 61% slower than the national average. As of 2021, the population of the Montgomery metro was 385,798.
  • Approximately 42% of the population rents in the area, while 58% own their homes.
    Montgomery County, Alabama, in the Montgomery metro area was ranked by ATTOM Data Solutions as one of the counties with the highest potential annual gross rental yields in 2018.

[Recap] Top 3 Reasons to Invest in the Montgomery Real Estate Market in 2023

Strong rental market
Montgomery saw strong rental market growth in the last 12 months, with rents increasing by 10.5% year-over-year. While Montgomery home and rent prices still remain affordable, rent prices in the city have increased at almost the same rate as home appreciation.

Affordable real estate
The cost of living in Montgomery is 11% below the national average, and the cost of housing is 50% lower than the national average. This affordability will continue driving demand for Montgomery real estate in 2023.

Stable real estate market
The Montgomery real estate market is stable, with the average home price increasing 5.34% per year since 2014, and the average rent increasing 4.65% per year. This stability makes Montgomery an attractive place for long term real estate investing.

Montgomery’s job market has not grown as rapidly as other parts of the state, but it’s diverse and unemployment is low.

How To Purchase Investment Property in Montgomery

Montgomery, Alabama is a great place to buy investment property. As of January 2023, Connected Investors reports that Montgomery has 2,774 vacant properties, 36 pre-foreclosures and 87,799 other types of investment properties. With a median flip profit of $80,926, investors are sure to find great deals in Montgomery.

The average rent-to-value ratio for all cities in the Montgomery metro area is 0.67%, 17.7% greater than the US average RTV ratio of 0.57%.

Pike Road and Wetumpka are two of the fastest growing cities in Alabama. They are located in the Montgomery metro area and in Montgomery County and Elmore County respectively.

The neighborhoods in Montgomery with the highest percentage increase in home values since 2000 are: Gunter Annex, Cottage Hill, Centennial Hill, South Hull, Maxwell Boulevard North, Hayneville Rd Park, Chisholm, Mount Meigs, Washington Park, and Marston Way.

If you’re interested in buying an investment property in Montgomery, we can help! Get connected with one of the local Montgomery property team in our network by joining RealWealth. Membership is 100% free and you’ll be able to view sample property pro formas instantly.

#19 – Dayton, Ohio

Dayton Ohio Real Estate Market Trends & Statistics 2023

Dayton, Ohio is another great place to invest in rental properties in 2023. Home prices are low, cash flow from single-family rental property is strong and the real estate market favors buyers.

Dayton was ranked 23 on Realtor’s list of the top housing markets in 2023, with a projected 5.6% year-over-year price appreciation rate.

The median price of a home in Dayton is $186,058—that’s 45.8% less than the national average! The average monthly rent is $1,244 and this puts the average rent to value ratio for Dayton investment properties at 0.67%.

For RealWealth members investing in specific Dayton neighborhoods, the average price of a home is $131,000 while the average monthly rent is $1,250—this means that the average rent-to-value ratio for RealWealth investors in Dayton is 0.95%. In Dayton, finding properties that conform to the 1% rule is easy once you know where to look!

About the Dayton Housing Market

Dayton is a city in southwestern Ohio, situated just north of Cincinnati. It is part of the Miami Valley region and has a population of 624,000.

Dayton has a small but diverse economy driven by manufacturing, logistics, aerospace engineering, military and government sectors.

The largest employers include Wright-Patterson Air Force Base, Premier Health Partners, Kettering Health Network, Montgomery County and The Kroger Company.

Dayton has a high concentration of people holding advanced degrees in the STEM fields (science, technology, engineering, mathematics) which help fuel its reputation as a STEM powerhouse.

The population of the Dayton metro area grew at an average rate of 0.2% per year since 2015 after experiencing negative growth rates since 2010. But even though population growth has been very slow, affordable prices and easy access to the urban center of Cincinnati make Dayton one of the best cities to buy rental property for long term cash flow!

Housing Market Statistics

  • Median Household Income: $61,986
  • Metro Population: 813,516
  • 11-Year Population Growth: 1.73%
  • Median Home Price: $186,059
  • Median Rent Per Month: $1,244 (0.67% rent-to-value ratio)
  • 1-Year Equity Growth: 11.3%
  • 8-Year Equity Growth (January 2014 – December 2022): 79%
  • 1-Year Rent Growth: 8%
  • 8-Year Rent Growth (January 2014 – December 2022): 55%
  • Job Growth: +9,800 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.62% (32% lower than the national average)
  • Unemployment Rate: 4.1% (11% higher than the national average)

Housing Market Quick Facts

  • Home values in the Dayton metro area have risen by 79.22% in the last 8 years, at an annual rate of 8.69%.
  • Over the same time period, average monthly rent values have increased by 55.16% and at an annualized rate of 6.48%.
  • The median home value in Dayton is $186,059. This is about 46% lower than the national average.
  • The average monthly rent in Dayton, Ohio is $1,244. This is 37% lower than the national average of $1,871.
  • MarketWatch named Dayton as one of the top cities in the country where Social Security checks can easily pay for rent.
  • The U.S. Census Bureau reports that Dayton’s population grew by 1.73% between July 2010 and July 2021, much slower than the national average of 7.3% for the same period.
  • Dayton has seen a 23% increase in tech jobs in the past five years, bringing the total number of tech jobs to 18,460 in 2021.
  • Dayton’s status as an up-and-coming market for tech talent was recently recognized by CBRE, which ranked it No. 2 on its list of the top emerging markets for North American tech talent.

[Recap] Top 3 Reasons to Invest in the Dayton Real Estate Market in 2023

Strong rental market
Even though the price of homes in Dayton is low compared to other cities, 53% of city residents rent. This is a strong indication that there is a strong rental market in Dayton.

Steady home price appreciation
Over the last eight years, home values in the Dayton metro area have increased by 79.22%, at an average annual rate of 8.69%. In Dayton, Ohio, members of RealWealth see an average RTV of 0.95%. With the right guidance, it’s possible to find high cash flow properties in the area.

Affordable real estate
Dayton is one of the few metropolitan areas in the country where the median home price is still below $200,000. This makes it a great place to invest if you’re looking for affordable real estate.

In Dayton, Ohio, it is possible to buy a fully renovated cash flow property in a good neighborhood for an average of $131,000. This is over 60% less than the national average price of homes.

How To Purchase Investment Property in Dayton

The greater downtown Dayton area has seen more than $2 billion in private investment over the past 12 years, as hundreds of new apartments and hotel rooms have been constructed. Developers are planning projects that could push that total north of $3 billion, according to the Downtown Dayton Partnership.

Honda plans to spend $3.5 billion on a new battery production site in Fayette County, about an hour southeast of Dayton, that will create 2,200 new jobs in construction and operation. This and other developments have made Dayton one of the best places to invest in real estate in 2023.

Kettering in Montgomery County is one of the fastest growing cities in Ohio and it is located in the Dayton metro area.

The Dayton neighborhoods that have experienced the most growth in their home values since the year 2000 include Rosewood Park, Downtown, Oak Grove Park, University Park East, University of Dayton, University Park, Pheasant Hill, Old Lane Park, Germantown Meadow and Donnybrook Park.

If you’re interested in buying an investment property in Dayton, don’t go it alone! Get connected with the local Dayton property team in our network and get started on your next great investment opportunity! Click the orange “Join for Free” button in the menu above to view sample pro-formas for the Dayton area and to schedule a complimentary call with one of our experienced investment counselors.

#20 – Kansas City, Missouri

Kansas City Real Estate Market 2023 - Trends & Statistics

The steady population growth and high property appreciation rates in Kansas City are attracting more investors to the area. The average home price in Kansas City is $283,385. This is almost 18% lower than the average US home price of $343,200. The monthly rent price is $1,316, which is also 33% lower than the average US rent of $1,973.

46% of households in Kansas City rent rather than own a home. And as the demand for rental units increases, the competition among renters will also increase. This creates opportunities for rental investors.

These are a few of the many reasons we’ve put KC on our best places to buy rental property list for this year. Keep reading to learn even more. 

About the Kansas City Housing Market

Kansas City is known for a lot of things: jazz music, pro sports teams, and delicious barbecue. But what may surprise you is how much the city’s real estate market has grown over the past eight years.

In fact, the Kansas City metropolitan area has seen an almost 90% increase in home values over the past eight years—and rent prices have increased by more than 45%!

Kansas City has a diverse economy and a business-friendly government. These factors make it one of the best places in the nation to start up or relocate a company.

The cost of doing business there is low, too: according to Moody’s Analytics, it’s 4% lower than the national average. This is because Kansas City offers aggressive tax incentives and structures that save employers like JPMorgan Chase and AMC Theaters a lot of money.

And those aren’t even the only reasons why companies want to relocate there. There are also great schools in Kansas City. The engineering programs at University of Kansas, Kansas State University, and Wichita State University have been so successful that internationally renowned engineering firms like Black & Veatch, HNTB, and Burns & McDonnell already call the area home.

According to the Federal Reserve Bank of St. Louis, Kansas City’s annual gross domestic product (GDP) is over $142.5 billion, and it has grown by nearly 40% in the last 10 years.

Housing Market Statistics

  • Median Household Income: $73,900
  • Metro Population: 2.2 Million
  • 11-Year Population Growth: 9.24%
  • Median Home Price: $283,385
  • Median Rent Per Month: $1,316 (0.46% rent-to-value ratio)
  • 1-Year Equity Growth: 13.7%
  • 8-Year Equity Growth (January 2014 – December 2022): 89%
  • 1-Year Rent Growth: 8%
  • 8-Year Rent Growth (January 2014 – December 2022): 45%
  • Job Growth: +24,300 CES jobs created over the last year
  • 1-Year Job Growth Rate: 2.27% (41% lower than the national average)
  • Unemployment Rate: 2.6% (30% lower than the national average)

Add Your Heading Text Here

  • The median home price in Kansas City is $283,385, which is 17% lower than the national average. The median monthly rent in Kansas City is $1,316, which is 33% lower than the national average.
  • In the past eight years, the average home price in the Kansas City metro area has increased by 88.97% and at a rate of 9.52% per year.
  • In the past eight years, the average monthly rent in Kansas City has increased 45.38%. Rent has been increasing at a rate of 5.49% per year.
  • Kansas City has a price to rent ratio of 18. In other words, it’s cheaper to rent here than to buy.
  • The population of the Kansas City metro area grew by 9.24% from 2010 to 2021. This was 0.89% per year on average, about 27% faster than the US average.
  • Zillow named Prairie Village in Kansas City its most popular city in 2022, beating out thousands of zip codes across America’s top 100 metro areas.

[Recap] Top 3 Reasons to Invest in the Kansas City Real Estate Market in 2023

Rapid population growth
The population of Kansas City is growing 26.8% faster than that of the United States. With a population of 2.1 million, located in the center of Missouri, Kansas City is the second largest metropolitan area in the state, behind Greater St. Louis, and the 29th largest in the United States.

Steady job growth
In the last decade, Kansas City has seen steady growth in its economy and job market. While once known primarily for agriculture and manufacturing, Kansas City has added new areas of growth to its economy, including telecommunications, banking and finance, and the service industry. The Kansas City economy grew by 24,300 jobs between October 2021 and October 2022.

Affordable real estate
The Kansas City metropolitan area is consistently ranked as one of the most affordable housing markets among metropolitan areas with populations exceeding one million. The median home price in Kansas City is $283,385, 17% lower than the national average.

How To Purchase Investment Property in Kansas City

Although the Kansas City housing market is cooling down right now, some homes are still getting multiple offers above list price. KCRAR reports that there is currently 1.7 months of inventory and homes spend an average of 32 days on market.

The following are some of the fastest-growing cities in Missouri: Blue Springs, Independence, Kansas City and Lee’s Summit—all four are located in Jackson County, Kansas City metro area.

The 10 neighborhoods where home values have risen the highest in Kansas City since 2000 are: South Hyde Park, Westside North, Downtown East, Crossroads, Columbus Park, River Market, Longfellow, Pendleton Heights, Western 49-63 and Eastern 49-63.

#21 – Cape Coral, Florida

Cape Coral Real Estate Market 2023 - Trends & Statistics

The Cape Coral metro area has seen some of the highest housing appreciation rates in the past eight years. From 2014 to 2021, home prices in this metro area increased by an average of 122.5% while rent prices increased 86%. However, in a recent study by Redfin, Cape Coral was ranked 11th among U.S. metropolitan areas that have cooled the fastest in 2022.

The median home price in Cape Coral is $405,194.20, which is 18% higher than the median home price in the United States. With a population growth rate that historically dwarfs the US population growth rate, Cape Coral is still one of the best places to invest in real estate in 2023.

About the Cape Coral Housing Market

Cape Coral is well known for its natural beauty, its many canals, and its superb boating opportunities. It’s also the second largest city in Florida and the county seat of Lee County. The city has been built around 400 miles of canals—so you can imagine that there are plenty of waterfront properties available for residents to enjoy.

Since 2020, the real estate market in Cape Coral has experienced a significant increase in both sales and average home sale prices.

The Cape Coral area has seen a tremendous boom in jobs over the past decade, largely driven by growth in the healthcare and construction sectors.

In September 2022, the area’s unemployment rate was 2.6% compared to the US unemployment rate of 3.5%. Some of the area’s largest employers include The City of Cape Coral, Publix Supermarkets, Walmart, Wells Fargo, AT&T IBM Verizon and Target (to name a few). Cape Coral’s projected job growth is 41%, compared to the national average of 33.51%.

Housing Market Statistics

  • Median Household Income: $66,256
  • Metro Population: 787,976
  • 11-Year Population Growth: 27%
  • Median Home Price: $$405,194
  • Median Rent Per Month: $$2,088 (0.52% rent-to-value ratio)
  • 1-Year Equity Growth: 36.5%
  • 8-Year Equity Growth (January 2014 – December 2022): 123%
  • 1-Year Rent Growth: 25%
  • 8-Year Rent Growth (January 2014 – December 2022): 86%
  • Job Growth: +10,400 CES jobs created over the last year
  • 1-Year Job Growth Rate: 3.62% (5.8% lower than the national average)
  • Unemployment Rate: 2.6% (26% lower than the national average)

Housing Market Quick Facts

  • Cape Coral had one of the hottest housing markets in America as of 2022, with prices rising more than 36% YOY.
  • The median price of homes in Cape Coral is $405,194, 18% greater than the US average.
  • The median monthly rent in the Cape Coral metro area is $2,088, which is 5.8% greater than the overall US rent average.
  • In the last eight years, home prices in Cape Coral have increased by 122%–on average increasing 12.11% annually.
  • Rent prices have risen by almost 86% in the past 8 years, an average of 9.25% each year.
  • The year-over-year job growth rate in the area was 3.62% close to the national average of 3.82%.
  • From July 2010 to July 2021, the population of the Cape Coral MSA grew by 27% at a rate of 2.42% per year. In the last 11 years, Cape Coral’s population has grown 270% faster than the average US population.

[Recap] Top 3 Reasons to Invest in the Cape Coral Real Estate Market in 2023

Strong rental market
Despite the fact that most households in Cape Coral own their own homes, the Cape Coral rental market has been showing strong growth lately. In 2022, the Cape Coral-Fort Myers area had the largest rental price increase and rent premium increase of any U.S. metro area, at 17.16% and 17.37% respectively.

Steady population growth
Cape Coral, Florida is the 116th largest city in the US. It grew 97.9% in population between 2000 and 2021—faster than 92% of similarly sized cities—and it’s still growing quickly.

The Cape Coral metro area has grown by 27% in the past 11 years, from 620,449 people in 2010 to 787,976 in 2021.

High home price appreciation
Cape Coral has been one of the hottest real estate markets in the United States for a while now. Last year, home prices in Cape Coral soared by over 36%. The average home price appreciation rate in Cape Coral over the last eight years has been 12.11%, 33% higher than the national average of 9.1%.

How To Purchase Investment Property in Cape Coral

Cape Coral is a popular vacation destination, and many vacation homes can be found in the Southwest and Southeast areas of the city. Fort Myers and Cape Coral are the 5th and 7th fastest-growing cities in Florida, respectively, according to Redfin. They are both located in Lee County in the Cape Coral-Fort Myers metro area.

The neighborhoods in Cape Coral where home values have risen the highest since the year 2000 are: Yacht Club, Caloosahatchee Northwest, Market Square District, Coral Oaks Golf Course, Mariner West, Bimini Basin, Mariner, Sunset Pointe, Jacarandas, and Coral Lakes.

Here is a comprehensive guide for anyone considering investing in a Cape Coral vacation rental. It’ll continue to help you understand why Cape Coral made our list of the best cities to buy rental properties for this year.

#22 – Chicago, Illinois

Chicago Real Estate Market Trends & Statistics 2023

Chicago has long been one of the best investment property locations in the US. The city has a balanced market where supply and demand are almost equal, which means that even though it is a major city, home prices in the Chicago metro area are still very affordable.

Chicago has a low volatility in home prices, which suggests that it will not be greatly affected by rising inflation or high interest rates.

The median home price in Chicago is $305,009, while the median rent is $1,876 per month.

Chicago’s home prices and rent prices have been growing at a slower rate than the national average, and so has its population.

Yet Chicago is a city that offers better cash flow potential with affordable properties, considerable demand for rental properties (with over 50% of households renting), and a strong economy.

About the Chicago Housing Market

Chicago is one of the most important cities in the United States. It’s a key market in the U.S. urban hierarchy—the same status as other “gateway” markets like New York, Boston, and San Francisco.

Chicago’s urban landscape is characterized by its towering skyscrapers and Fortune 500 companies. These factors, combined with the city’s strong retail presence and its proximity to major population centers, make Chicago one of the few U.S. gateway markets where you can still find great investment opportunities.

The Chicago metro area has a population of 9,509,934 as of the 2021 census, making it third largest metro area in the US and fourth largest in North America. It’s also one of the most diverse cities in America, which makes it even more stable and strong economically than most other American cities (as well as culturally).

You can find homes for around $220,000 in some neighborhoods around Chicago—and since these areas have a high rental demand, they’re ideal places to invest if you’re looking for cash flow or capital appreciation.

Housing Market Statistics

  • Median Household Income: $78,166
  • Metro Population: 9.5 Million
  • 11-Year Population Growth: 0.41%
  • Median Home Price: $305,009
  • Median Rent Per Month: $1,876 (0.62% rent-to-value ratio)
  • 1-Year Equity Growth: 10.6%
  • 8-Year Equity Growth (January 2014 – December 2022): 51%
  • 1-Year Rent Growth: 9%
  • 8-Year Rent Growth (January 2014 – December 2022): 20%
  • Job Growth: +200,000 CES jobs created over the last year
  • 1-Year Job Growth Rate: 4.42% (15% higher than the national average)
  • Unemployment Rate: 4.6% (24% higher than the national average)

Housing Market Quick Facts

  • The median price of a home in the Chicago metro area is currently $305,009. This is 10.6% greater than last year’s median price of $275,805.
  • Rental prices in the Chicago metro area are $1,876 a month on average.
  • The median price of a home in Chicago is 11% lower than the national average. The average monthly rent in Chicago is also about 5% lower than the national average.
  • Between July 2021 and July 2022, Chicago added 200,000 jobs. That was a growth rate of 4.42%, which was 15% higher than the national average job growth rate.
  • The Chicago real estate market has been growing steadily since 2014, with home prices increasing by 50.78%. However, this growth rate is almost 40% slower than the national average.
  • While Chicago’s low appreciation rate may seem like a problem, it actually means that housing is not overpriced here.
  • Rents in Chicago have grown slowly but steadily over the past eight years and are high enough to be profitable for investors without being too expensive for most renters.

[Recap] Top 3 Reasons to Invest in the Chicago Real Estate Market in 2023

Strong economy and job growth
Chicago is a major hub for freight distribution and passenger rail travel in the United States. Freight trains move throughout Chicago’s extensive freight train network, which connects directly with all the major metros on both coasts except New York City. This gives it a strong advantage over other cities when it comes to shipping goods and services.

Chicago has the third-largest gross metropolitan product in the United States, valued at $770 billion. The city is also home to many large corporations such as Boeing and McDonald’s.

Strong cash flow potential
The Chicago real estate market is growing more slowly than other markets, meaning that investors can find lots of affordable properties here. There are also many distressed properties that can be purchased at bargain prices.

The average RTV ratio for rental properties in the Chicago MSA is 0.62, 7.9% greater than the national average of 0.57.

Balanced real estate market
Chicago’s housing market is more stable than that of the nation as a whole, which means you won’t be subject to wild fluctuations in home equity.

How To Purchase Investment Property in Chicago

Chicago’s metro population growth has been very slow, but it still contains nine of the fastest growing cities in Illinois. Most of these are located in Cook County, Illinois. They include Schaumburg, Skokie, Des Plaines, Evanston, Oak Park, Oak Lawn and Mount Prospect in Cook County, and Joliet in Will County.

Home prices in Chicago average $305,000 but you can find houses in middle-class communities for considerably less than that. But you want to steer clear of high crime areas; 41.2% of Chicago commercial real estate investors are concerned about crime rates and property taxes especially in downtown Chicago.

The 10 neighborhoods in Chicago where home values have increased the most since 2000 are: N Whipple St., N Mozart St., N Francisco Ave, Humboldt Park Northeast, Logan Square East, Palmer Square East, Palmer Square West, Logan Square Northwest, and W Cortland St.

Become a member of RealWealth to get connected with the local Chicago property team in our network. They sell fully renovated properties with property management in place. You’ll also reap additional benefits of membership, including free investment counseling and access to our network of preferred real estate providers – CPAs, attorneys, IRA custodians, 1031 exchange intermediaries and more.

Final Thoughts

We hope this list of the 22 best places to buy rental property in 2023 will help inform your investment strategy for the coming years. As mentioned in the preliminary note before the list, we spend several months pulling and analyzing data to complete this article. We take great pride in the content we create and we hope you find it useful. If you need any help with your investment strategy, we are here! RealWealth is one of the top real estate investment clubs in the country, helping investors buy and hold real estate for lasting wealth. 

Kathy Fettke

Invest in Single & Multi Family Rental Properties in these Markets for as Little as $150k...

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