Investing in real estate can be a lucrative venture, especially when you choose the right location. This report synthesizes key points from various sources to highlight the best places to invest in real estate in 2024, focusing on factors such as population growth, rental yields, vacancy rates, and overall market potential.
Key Factors for Real Estate Investment
Population Growth and Job Market
Cities with growing populations and robust job markets are prime candidates for real estate investment. These factors indicate a higher demand for housing and rental properties, which can lead to better returns on investment 123.
Gross Rental Yield
Gross rental yield is a critical metric for real estate investors. It represents the percentage of the property’s cost that is returned in rent annually before expenses. A gross rental yield of 7% or higher is considered ideal 4.
Vacancy Rate
A healthy vacancy rate, typically between 5% and 10%, indicates a balanced market where there is enough demand to keep properties occupied without an oversupply 5.
Housing Price Index Growth
The housing price index measures changes in property values over time. A higher percentage indicates a robust return on recent real estate investments 6.
Median Home Sold Price
The median home sold price provides a more accurate picture of the typical property value in a market, as it is less affected by outliers compared to the average price 7.
Top Cities for Real Estate Investment in 2024
Athens, Georgia
- Population: 128,561
- Gross Rental Yield: 40%
- Vacancy Rate: 48%
- Housing Price Index 5-Year Growth: 9%
- Median Home Sold Price: $328,265 8
Athens, Georgia, offers a high gross rental yield and a growing population, making it an attractive option for real estate investors.
Savannah, Georgia
- Population: 148,004
- Gross Rental Yield: 49%
- Vacancy Rate: 14%
- Housing Price Index 5-Year Growth: 22%
- Median Home Sold Price: $327,125 9
Savannah’s low vacancy rate and high rental yield make it a promising market for real estate investment.
Waco, Texas
- Population: 143,984
- Gross Rental Yield: 55%
- Vacancy Rate: 82%
- Housing Price Index 5-Year Growth: 79%
- Median Home Sold Price: $252,500 10
Waco stands out with its impressive rental yield and significant growth in housing prices over the past five years.
Jacksonville, Florida
- Population: 971,319
- Gross Rental Yield: 44%
- Vacancy Rate: 4%
- Housing Price Index 5-Year Growth: 99%
- Median Home Sold Price: $297,538 11
Jacksonville’s low vacancy rate and high housing price growth make it a top contender for real estate investment.
Raleigh, North Carolina
- Population: 291,928
- Gross Rental Yield: 36%
- Vacancy Rate: 42%
- Housing Price Index 5-Year Growth: 7%
- Median Home Sold Price: $404,940 121314
Raleigh has been a successful city for real estate investors due to its strong job market and population growth.
Austin, Texas
- Population: 964,254
- Gross Rental Yield: 35%
- Vacancy Rate: 45%
- Housing Price Index 5-Year Growth: 15%
- Median Home Sold Price: $450,000 151617
Austin’s booming tech industry and population growth make it a hot market for real estate investment.
Columbus, Ohio
- Population: 905,748
- Gross Rental Yield: 38%
- Vacancy Rate: 20%
- Housing Price Index 5-Year Growth: 10%
- Median Home Sold Price: $250,000 181920
Columbus offers a balanced market with good rental yields and steady housing price growth.
Nashville, Tennessee
- Population: 692,587
- Gross Rental Yield: 50%
- Vacancy Rate: 30%
- Housing Price Index 5-Year Growth: 20%
- Median Home Sold Price: $350,000 212223
Nashville continues to be a hot market due to its vibrant music scene and growing economy.
Orlando, Florida
- Population: 316,081
- Gross Rental Yield: 42%
- Vacancy Rate: 65%
- Housing Price Index 5-Year Growth: 14%
- Median Home Sold Price: $374,387 242520
Orlando’s strong tourism industry and population growth make it a lucrative market for real estate investors.
Charlotte, North Carolina
- Population: 885,708
- Gross Rental Yield: 40%
- Vacancy Rate: 35%
- Housing Price Index 5-Year Growth: 12%
- Median Home Sold Price: $350,000 262728
Charlotte’s growing financial sector and population make it a promising market for real estate investment.
Conclusion
Investing in real estate requires careful consideration of various factors, including population growth, rental yields, vacancy rates, and housing price trends. The cities highlighted in this report offer strong potential for real estate investment in 2024, providing opportunities for both rental income and property appreciation. By focusing on these key markets, investors can make informed decisions and maximize their returns.
