The real estate industry is one of the most successful and sought-after investment options for individuals seeking a secondary source of income. In fact, 29% of Americans consider it one of the most trending investment choices. To become a successful real estate investor, you need to build a property appealing to the end residents and located in a reasonable area with a significant demand.
Despite its high demand, investment in the real estate industry requires thorough research and comprehensive knowledge before you invest your money. Whether you are looking to invest in a residential property or a vacation home, finding the right spot is mandatory. So, to save you from signing a mortgage deal you might regret, we have compiled a list of the best American states to invest in real estate.
Let’s explore the best states to invest in real estate in America.
- Texas
Texas, the Lone Star State, besides its mouth-watering food, love for sports, and cultural enthusiasm, is also a savant in real estate. The state has experienced a job growth of 3% in 2022, making it a desirable place for individuals looking for a career. Moreover, the population in Texas is consistently rising due to domestic rising, which creates a demand for housing.
Texas is slowly becoming a hub for businesses. It is, in fact, among the top five American states for new business growth, which means that the need for commercial property is bound to increase with time.
The average Texas home/apartment value is a little over $200,000 for a 1000 sq ft house, which decreased 1.8% from 2022, and you can earn over $1500 for monthly rental for a house this size.
So, if you are looking for an investment option that can quickly yield a return, Texas is the right place to invest in real estate.
- Florida
Florida has experienced a growth spurge over the last few years due to different factors such as business-related relocations, retirement relocations, and employment opportunities. Besides the residential properties, Florida is also famous for short-term residences because of the tourism influx. So, you can put your money in well-facilitated apartments for people who come to enjoy their vacations.
The average Florida home/apartment value is over $170,000 for a 1000 sq ft house, and you can earn over $1500 for monthly rental for a house this size. The property price has increased by 3% in 2023. It is expected to increase further in 2024, which means you should hire a fiduciary financial planner as soon as possible and put your money into the property.
Florida has an incredible climate, business opportunities, tourism and high employment. It means that your real estate investment, regardless of type, will succeed if planned right.
- Georgia
The Georgian state is beaming with American pride and a family-friendly environment. It is one of the most economically stable and growing states regarding job opportunities across various industries, like technology, healthcare, finance, and logistics. Georgia offers various incentives to attract businesses, so most entrepreneurs plan to relocate.
The average Georgia home/apartment value costs between $100,000 and $250,000, depending on whether you purchase one or build the property. Property prices in Georgia are expected to increase by 2.9% every year and will not see a decline by August 2024. It implies the high demand for real estate across the state, making Georgia a viable investment option.
All in all, from residential properties to commercial housing and markets, real estate investment in Georgia is a great way to get a quick return on your investment. Since Georgia is considered more of a family-friendly, suburban region, pick something a growing family would like to opt for.
- South Carolina
South Carolina is one of the few American states where the property tax rate is 0.56% in 2023. It implies that you can get a significantly better return on investment. Besides this, the population grew by 1.7%, increasing the state’s vacancy rate and, ultimately, the demand for houses.
If you are interested in buying property in South Carolina, the rentals can generate an income of $1300 – $1500 for a 1000 sq ft apartment or lodging. However, the average purchase price of a residence this size may cost you over $150K.
South Carolina is all about culture, rustic vibe, and love for the country. You will find a lot of families willing to relocate here, so selling or renting out residential property may yield a return sooner than you expect.
- Tennessee
Tennessee is a gorgeous state, home to natural beauty and stunning flatlands. Besides residential properties, vacation properties such as cabins, lodges, apartments, guest houses, and resorts are in demand throughout the year. So, real estate investors are in a sweet spot when putting money into real estate.
Depending on the area, demand, and popularity, renters are expected to pay anywhere between $1000 – $2000 for a 1000 sq ft apartment, and on average, the cost of building can range between $130,000 – $191,000.
Tennessee has around 65% of homeowners, especially those who wish to stay in the state for the long term. However, many tourist destinations in the state increase the demand for short-term rental properties. Thanks to the tourism culture, the job market has significantly increased in Tennessee, which means people will consider relocation to the Volunteer State.
Final Thoughts
America is home to over 300 million people, meaning real estate investment can yield a quick profit if done right. There are over 50 states in the country, but not every state yields a great return on real estate investments.
States with the highest rates of tourism and business opportunities have seen increased demand for property. You can invest in anything from residential family property to apartments and vacation houses.
In most cases, the cost of investing in real estate can be higher in popular areas than in other states, but you can easily find a suitable buyer or tenant for your property.
Don’t hesitate to seek assistance of a finance professional if you want guidance on where to invest.
