Historically, real estate has not been a bulletproof investment. Beyond the upfront costs and ongoing expenses of maintaining your investment, it can also be diminished by volatile market conditions and economic policies.
So, how is the market looking in 2023? Certain cities are catching the attention of investors, thanks to their stable growth in key areas. Let’s look at the top five cities that are worth your money.
So, Who’s Buying?
A hot real estate market is determined by demand for residential, commercial, and raw land acquisition. When population and job growth numbers begin to climb, median home price averages rise as well. And that’s when people decide where to invest.
A trending city will bring investors of all sizes. Murmurs of real estate development plans, plus the crowdfunding and sale of major projects can convince startups, large corporations, and families to invest in a certain city. As a result, homeowners, business leaders, and young entrepreneurs are pushing these cities to new heights in 2023.
El Paso, Texas
Median House Price: $268,000
El Paso is one of the best cities to invest in right now. The Lone Star state has been trending upwards for the past decade, with house prices in Austin nearly doubling during that time. And while Dallas is becoming a bigger investment draw by the day, El Paso wins on account of its affordability.
This year, home sales in El Paso are set to grow by 8.9%, while house prices are set to increase by 5.4%. The forecast is therefore expecting a 14.3% surge in residential sales for this border city.
Median House Price: $335,000
Of the many southern cities named as prime real estate opportunities for 2023, Huntsville, Alabama is near the top. Not only is Huntsville already the state’s most populated city, but its job growth is speculated to grow significantly in 2023.
Compounding this forecasted job growth is the city’s low cost of living. Almost 30 percent of renters in Huntsville can afford a typical home with a 10 percent down payment.
The greater region promises just as much expansion. Birmingham, Alabama and Chattanooga, Tennessee are set to grow nearly as much. Both of these real estate hotbeds are within a two-hour drive of Huntsville.
Median House Price: $395,000
While Jacksonville and Orlando are both on the rise, Tampa is truly crushing the real estate competition. In the past year alone, the price of homes has increased about 27.7 percent. On top of that, rental prices have spiked by 39 percent.
These numbers, which are well above the national average, are bringing businesses to Tampa – not least of which, rental property companies. In fact, it’s becoming one of the fastest-growing job hubs in the U.S.
Median House Price: $565,000
Despite the trend, there are major investment opportunities happening outside of the south as well. Denver has been undergoing a major growth spurt in recent years, and 2023 looks to be no different. In January 2023, median home prices were up 6.6 percent over the previous year.
The city boasts an upscale culture and lots of tourism, which explains their low unemployment rate (3 percent). Demand for jobs further drives the city’s rental market as well as the steady rise in home values. Everything’s looking up for the mile-high city.
Buffalo, New York
Median House Price: $165,000
Another solid real estate investment is Buffalo and the greater Cheektowaga area of Western New York. Both home sales and home prices are set to increase by 12.3 percent in 2023. The former rust belt city has climbed back into favor with a cultural renaissance that suits its low cost of living.
Don’t let the snowstorms or crime rates dissuade you. If anything, those factors have contributed to the city’s affordability, which is the reason so many millennials and startups are flocking to Buffalo. With its reinvigorated downtown scene and gateway to Canada, Buffalo is truly on the upswing – for businesses and families, alike.
Real Estate Investments 2023
The real estate market’s rollercoaster ride is finally settling down. But if these cities have a reputation for being ‘off the beaten path’, it’s an astute reflection of what motivated people to buy over the past few years. These cities are advancing at a steady, diligent clip – and that consistency is just what people want.
If you’re wondering where to invest, the benefits of these top-ranked areas should give you some criteria to keep in mind. Whichever city manages to grab your attention, be a skeptical investor. Research its economic growth, population growth, and quality of life to make sure your dream city isn’t about to pop like a bubble.