Looking to diversify your real estate portfolio in 2017 but aren’t sure where to focus your attention? A recent article published by Forbes may be just the thing to help guide you. Read on to learn which cities have properties with the best potential for a healthy passive income this year.
Forbes shows that there are a number of booming cities in California, Florida, and Texas in which real estate prices are predicted to continue their rapid rise through at least 2020.
Which California Cities Made The Cut?
Boasting a gorgeous coastal climate and home to many of the world’s top companies from Google to Tesla, California has much to offer the real estate investor — but homes in certain parts of the state, like San Francisco and Los Angeles, are already somewhat overpriced for their value. On the other hand, purchasing in these two cities could provide you with a quickly appreciating asset:
As the Golden State’s capital city, Sacramento provides great purchasing opportunities for those who seek entry-level housing stock. Homes in this area are perfect to rent out to young couples, college students or other rental shoppers who are just starting out. Also, unlike much of California, Sacramento’s housing prices have avoided forming a “bubble.” Monthly housing costs have continued to line up just about perfectly with the city’s median household income.
Although San Diego’s housing stock remains the highest-priced on Forbes’ list, the booming economy and continued population growth ensure that these homes are still affordable for most city residents. With a 6% increase in housing prices during 2016, now may be the last opportunity for a generation or more to snatch up income-generating real estate in San Diego.
Which Other States Boast Great Housing Buys?
The southern part of the U.S. is filled with affordable real estate, with three Texas and four Florida cities making the cut for highly lucrative areas to invest in.
Texas Cities to Invest In:
Dallas, Fort Worth, and San Antonio:
While home prices continued to rise (with Fort Worth boasting a 9% gain and San Antonio noting 7%), a booming economy and continued population growth help ensure that this price growth will endure.
- Dallas, Fort Worth, and San Antonio:
Florida Cities to Invest In:
Homes are undervalued by an estimated average of 8%, which, when combined with the city’s annual 9% growth in home prices, can help you begin instantly earning a respectable rate of return.
Heading south, you’ll hit Orlando, whose rapid population growth is good news for real estate investors.
Last year, this city boasted a 9% annual increase in home prices, but still isn’t overbought, with a population increase of nearly five percent over the course of just a year.
West Palm Beach:
Another highly affordable Florida city, despite its recent increase in housing prices. Analysts believe this city’s real estate remains undervalued and will continue to rise in price.
Use this well-researched advice to help guide your next home purchase and add valuable real estate, expected to rise in value, to your real estate portfolio.