Top 10 Real Estate Markets with the Best ROI

Author: Nora Green

ROI is the formula for calculating the return on an investor's investment. This is a financial metric that can be used for strategic decision-making. It is a tool that makes planning and forecasting "financial outcomes" easier for real estate investors. Want to explore the best real estate market with ROI? Read this guide for answers.

 

Best real estate market with ROI

Here are some of the top cities with the best ROI markets. So, let's explore.

1. Austin

Our itinerary now brings us to Austin, Texas. Some homes in the Austin real estate market have nearly doubled in value over the past decade. Its population is exploding, making it the fastest-growing metropolitan area in the United States.

Austin has been attracting tech companies from California's Silicon Valley for some time. However, the main thing that attracts newcomers to the city is low real estate prices and average rents.

Austin's unemployment rate is below average at 4.2%. Add a lack of supply, increased rental demand, and more. As a result, several high-profile tech companies, including Apple, Samsung, and Tesla, have established significant offices in Austin.

2. Nashville, Tennessee

The final stop of our tour is Music City, USA. The local real estate market may have slowed down recently, but that's still just a number. Despite the slowing expansion, housing in Nashville is in short supply.

Nashville's prominence on this list of top real estate markets is mainly due to the city's resilient economy, rising home prices, and buoyant real estate market.

3. Phoenix

Phoenix, Arizona, was the next destination on our itinerary. Phoenix is home to one of the fastest-growing economic regions in the United States, and housing markets and population growth in these areas are also resilient and improving.

The average cost of living in Phoenix is also relatively low. The typical home price in Phoenix is just $269,175, an affordable and proliferating market. Affordable housing, a low cost of living, a helpful workforce, and a consistent environment all contribute to Phoenix's vital commercial and residential needs.

4. Boise, Idaho

Boise, the capital of Idaho, attracts more real estate investors each year. Boise attracts real estate investors, because of its strong job market, affordable housing, growing population, market, and low property taxes. Boise is an excellent market for investors looking to buy a rental home or invest in real estate for a profit.

5. Houston

Houston's real estate market has always been highly competitive. The city is the center of the U.S. oil and gas industry. Jobs are always available here. With a population of 7.2 million, the Houston metro area is the fastest-growing central area in the United States. There are 41 Fortune 1000 headquarters in the Houston area.

 

6. Tampa

Tampa, Florida, is the next city on our list of top real estate markets for 2022. The average home price in Tampa is approximately $323,040, and the average monthly rent is $1,970. These are slightly above the national average, but Tampa's expansion stands out.

Average housing costs in the U.S. are up about 27.7 percent from last year. That's a dramatic shift considering the population grew by 1.4%. Rents also jumped 39 percent in Tampa.

7. Charlotte

The next destination on our itinerary was Charlotte, North Carolina. Due to several key variables, the Charlotte, NC, real estate market has grown by 16.4% over the past year.

A significant increase in population and available jobs have contributed significantly to this development. The city's 25 schools and agencies also help create a relatively young working environment.

8. Birmingham

Birmingham, Alabama, is the #5 best city for real estate investment in 2022. This southern city was once known for its industry but is now one of the fastest-growing cities in the country.

Birmingham's underground system is also cheap; typical rent is $1,312 monthly, while the median home price is about $216,000. However, Birmingham's recent redevelopment has also drawn considerable attention to the city for other reasons.

9. Atlanta

If you're looking to invest in real estate, Atlanta is a great place to be. Investing in the city makes sense for several reasons, not the least of which is its strong economy and rapidly growing population. Atlanta is one of the top locations in the United States for real estate investment due to its affordable cost of living, diverse culture, and high investment returns.

10. Orlando

Orlando, Florida, is a popular vacation destination because of its many exciting theme parks. However, the greater Orlando area now has more permanent residents and is growing by 1,000 people weekly.

Real estate prices in Orlando have also risen rapidly in recent years. The annual price increase in the Orlando real estate market was 18.7%. By 2022, we expect home prices to increase by 15.8%. Thanks to these statistics and the city's growing population, Forbes now ranks Orlando as the second fastest-growing major city in the United States.

Diploma

We've rounded up the hotspots where real estate investors can maximize returns. Let's briefly review the most critical points.

Before making a siting decision, every investor must understand the return on investment (ROI) and when and how to apply the ROI formula. In addition, it is strongly recommended to clarify several important issues before the acquisition.

Once they have decided on the type of property they want to invest in, they can start exploring the alternatives available to find the one that best suits their goals and budget.