The hotter a real estate market gets the more competitive and pricey it becomes to invest in said market. To get the most bang for your buck, the idea is to invest in a market that looks primed for a major upswing. This could be due to an increase in the population, or possibly a growing economy or job market – there are many reasons why a quiet real estate market may be heading towards a major upswing.
Here are some of the ones investors think might be on the verge of major growth.
CNBC listed Jacksonville, Florida as one of its five hottest housing markets for young buyers. Indeed, compared to other markets, the $141,000 median home price is affordable, but it goes beyond that. For one thing, the population has risen by a stunning twenty percent over the last ten years, and the workforce is twice the national average, with only 3.4% unemployment. It’s also the home base to four Fortune 500 companies, twenty hospitals, and while some may worry about it being vulnerable to hurricanes due to its Florida location, it’s only been directly hit once in the last 145 years.
Atlanta, Georgia has the unique privilege of having not only a thriving metropolitan scene but also remaining consistently affordable. According to Buildium, the median house price is $224,100, well below the national median. However, year-to-year price growth is large, jumping up over 9% compared to the national average of 4.8%, making this a place that may not stay affordable too much longer. Also, with the influx of young workers flooding into the city, demand is likely to spike, and all signs suggest this may be one of the next red hot housing markets.
Already famous for its thriving arts scene (it’s home to the SXSW Music and Film Festival every March), Austin’s median house price is already significantly more expensive than the national median, with the price for a single-family home around $318,200. However, the average household income is also higher, with it pegged at $66,697 by Buildium, almost 10K higher than the national median. It’s also a notably youthful city, with the median age only 32.7 years old. While Austin natives may bristle at the way home prices have spiked, Forbes notes that for newcomers coming from places like San Francisco, the home prices seem like a steal, making this a market that’s certainly amid a giant upswing.