These Are 5 of the Best Markets for Real Estate Investors in 2021
Any investor knows that it’s a bad idea to put all of your eggs in one basket. This means you should try to diversify your investment portfolio as much as possible, by investing strategically in different areas, and not relying on a single source, like the stock market. Real estate is one of the safest short-term and long-term bets for investors, if you do it right. This means working with an experienced team with local knowledge like LUXred, deciding on your desired level of involvement, and last but not least, picking the right market to invest in.
We all know that real estate is all about location, location, location, and if you want to get a handsome return on your investment, then choosing a market with a lot of potential is crucial. If you’re going to invest in a design/build/sell project, for instance, where you will see returns in roughly two years, you’ll want to bet on a market that’s currently in demand and that shows promise for the following years. We’ve selected what we think are 5 of the best markets to invest in this year, markets that promise long-term growth and handsome returns. Keep reading to see why you should consider investing in these real estate markets.
1. Columbus, Ohio
The Columbus real estate market, much like Park City, Utah, is currently experiencing a housing boom. Demand for homes is higher than ever, with both homebuyers and institutional investors competing for any available properties. The high interest for single-family homes that offer privacy, outdoor space, and enough space to accommodate home offices, has pushed prices higher and higher each month in the past year. According to NBC, a house that was on the market for $279,000 sold above ask at $321,550, getting 17 offers in just a few days. As demand starts to surpass supply, the competition for any available properties is growing fiercer by the minute. Data from Zillow shows that Columbus is the best market to invest in right now, as homes here tend to sell in just 8 days – the quickest in the entire country. The race to snag quality properties in Columbus means that this is the best time to invest in real estate here.
2. Austin, Texas
The city of Austin is another solid choice for real estate investors looking to diversify and secure long-term returns. According to Zillow, home prices in Austin climbed 18% over the past year, and the market has become one of the most sought-after in the country, both for homebuyers and job seekers. Austin is one of the most active tech hubs in the U.S., and companies like Apple, Google, and Tesla have massive presences here, which is highly appealing to entrepreneurs and young tech talent. Nowadays, Austin is seeing an influx of people moving here from crowded California. People are looking to get more bang for their buck and snag spacious properties that they couldn’t find or afford in cities like San Francisco or L.A. The result is intense competition for properties, which creates the perfect conditions for investors to tap into the market’s potential.
3. Boise City, Idaho
Boise City is currently one of the hottest housing markets in the country, with home prices breaking new records each month. The median home price in the Boise metro area surpassed $500,000 for the first time in May 2021, according to Norada, while new construction home prices reached a record $544,986, and are still on the rise. Buyers are more than willing to pay above asking price for their dream home, as available supply is starting to dwindle. The constant climb in prices and high demand make Boise City a great market for real estate investors, and one that promises steady growth over the next few years, at least.
4. Salt Lake City, Utah
The Utah housing market is having a big moment, and Salt Lake City and Park City are doing particularly well. According to a recent Re/Max report, median home prices in the Salt Lake metro reached an all-time record high of $450,000 this summer. Over the last five years, prices for Salt Lake City homes have been on the rise, and they are expected to double in the next decade, if this growth trend persists. Luckily, experts predict that the Salt Lake City housing market is likely to continue experiencing growth, which bodes very well for investors. What’s more, recent research shows that Salt Lake City is still a homebuyer’s market, as just 15% of homes sold here are sold to investors. By comparison, 24% of all homes sold nationally are purchased by investors. This shows that the market has tremendous untapped potential for investors looking to diversify, and this might be the best possible moment to make an investment here.
5. Park City, Utah
Park City is LUXred’s main focus, and we can confidently say that it’s one of the best destinations for investors in 2021. The market is experiencing unprecedented growth, fueled by new remote work trends and a desire for social distancing and a connection to the outdoors. Wealthy homebuyers are flocking to Park City from all across the country, and they’re no longer looking for just a vacation or second home. These buyers are here to stay, and they’re willing to pay whatever it takes for their dream home. The competition for available luxury homes is fierce, however, which is why many homebuyers are turning their attention to new-build homes. This is where LUXred can step in, and help both investors and homebuyers find the right project for them. By investing in a luxury design/build/sell project here, you’re guaranteed handsome returns in roughly two years, and our team can handle the entire process from start to finish. Home prices are still rising in Park City, and so is demand; consequently, this is the best moment to invest in a real estate project here.
Looking to invest in Park City real estate? Reach out to our team at LUXred and let’s find out how we can help you get started. Tap into the potential of this growing market and get guaranteed, above-average returns on your investment.