You know what they say about real estate, it really all comes down to location, location, location.
It isn’t an exact science, but when it comes to real estate investing, understanding what markets are poised for growth is essential to setting the groundwork for potential wealth building. While real estate is always in flux, a good market is typically characterized by a focus on fundamental factors like demand, supply, and affordability.
Digging into research on job growth, rental and housing markets, cost of living, quality of life, and economic factors, we’ve found five up-and-and-coming rental markets we think investors should consider.
1. Hampton Roads, VA: A thriving industry hub
Market Snapshot:
- Economic growth: Predicted inflation-adjusted GDP growth of 1.3% in 2023, outpacing the national forecast.
- Population: Nearly 1.8 million residents, making it the 37th largest MSA in the country.
- Real estate: Stable rental market with a median home price at an all-time high of $335,000.
With its diverse economy fueled by defense, shipbuilding, healthcare, and tourism, Hampton Roads, Virginia, is as an economic powerhouse. Between a manageable cost of living and a stable influx of military personnel, the area also has a thriving rental market. The Norfolk Naval Shipyard in Portsmouth is the largest shipyard in North America, employing more than 12,000 people.
2. Charlotte, NC: Where business meets quality of life
Market Snapshot:
- Economic growth: GDP growth rate of 3%, exceeding the national average.
- Population: Over 2.7 million residents, with a 21% growth rate over the last decade.
- Real estate: Affordable median home price of $400,000 with average rents near $2,000.
With its exceptional quality of life and affordable housing options, Charlotte, North Carolina’s booming economy is a magnet for businesses and residents. With strong ties to the financial industry with companies like MetLife and Wells Fargo headquartered in the region, the area is a popular draw for young professionals.
3. Huntsville, AL: Where technology and community thrive
Market Snapshot:
- Economic Growth: GDP of $30 billion, driven by technology, research, and aerospace industries.
- Population: Over 500,000 residents, attracted by job opportunities and a high quality of life.
- Real Estate: Affordable housing market with strong rental demand, offering attractive returns on investment.
Huntsville, Alabama’s remarkable growth, fueled by technology and aerospace sectors through sites like the Army’s Redstone Arsenal and NASA’s Marshall Space Flight Center, has transformed it into a hub for innovation. With its affordable cost of living and thriving community, it presents an enticing prospect for real estate investors.
4. Knoxville, TN: Where nature and economy flourish
Market Snapshot:
- Economic Growth: Robust GDP growth rate of 2.9%, driven by diverse industries.
- Population: Over 890,000 residents, attracted by the area’s natural beauty and strong sense of community.
- Real Estate: Median sales price for a single-family home at an all-time high of $330,000.
Nestled in the scenic foothills of the Great Smoky Mountains, Knoxville, Tennesse offers a unique blend of economic growth and natural splendor. Its affordability and a thriving job market create a favorable environment for real estate investments. With museums, historical sites, and a well-rated zoo, the area is popular among young families.
5. Indianapolis, IN: Where Diversity Drives Prosperity
Market Snapshot:
- Economic Diversity: Diversified economy anchored in agriculture, biotechnology, and manufacturing sectors.
- Population: Thriving city with a 10% population growth rate, outpacing the national average.
- Infrastructure: Massive investments in airport and road infrastructure, creating jobs and boosting the economy.
Indianapolis, Indiana, with its diverse economy, lower cost of living, and strategic investments in infrastructure, is a city on the rise. Its welcoming business environment and population growth make it a promising destination for real estate investors seeking resilience and returns.
Interested in investing in real estate but not the hassle of deep market research on areas far from home? Arrived does the hard work for their investors so they can focus on their own portfolios, not the complicated data.
For this report, Arrived factored in data on local GDP from the Bureau of Economic Analysis and local municipal organizations, population numbers from the U.S. Census, cost of living data from the Council for Community and Economic Research, and data on median home and single-family rental prices from the National Association of Realtors.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. The views reflected in the commentary are subject to change at any time without notice. View Arrived’s disclaimers.
