Real estate is one of the most profitable investments available, but you must stay informed and proactive to succeed. In the first quarter of 2023, the US housing economy finally slowed down after home prices had seen record highs the year before. This context presents an opportunity for forward-thinking investors to identify real estate markets to watch— those that may be poised for growth. Keeping your finger on the pulse of these markets and tracking trends will allow you to stay ahead of the curve. Keep reading for a comprehensive guide on how to achieve this.
1.Methodology And Criteria
Taking as reference the Buildium report on the top 60 real estate markets to watch, the methodology used for selecting these markets is data-driven and comprehensive. It considers data from sources such as the National Association of Realtors, PwC & the Urban Land Institute, and more. Data and analysis’s role in making informed decisions can’t be overstated, as they give the most accurate, unbiased picture of a market possible.
Some of the criteria considered for this article are the following:
- Measures of opportunity for investors
- Measures of housing affordability and availability
- Measures of job creation and opportunity
- Measures of population growth
2.Top Real Estate Markets To Watch
Based on the criteria established in the methodology, here are the top real estate markets to watch in 2023.
- Austin, TX: Austin’s population is growing faster than any other city in the US, and it has one of the strongest economies. The job market is strong, while housing remains relatively affordable. Additionally, Austin is the perfect city for outdoor recreation, with numerous parks and trails, plus a thriving food and music scene.
- Raleigh & Durham, NC: This market has one of the highest levels of investment in community infrastructure, driving economic development and job opportunities. It’s also ranked as one of the top places to live in the US.
- Atlanta, GA: Atlanta has one of the best real estate prospects in the country. The market is quickly growing, and investors have numerous opportunities to capitalize on emerging neighborhoods.
- Fayetteville, AR: As one of the markets where rent increased the most in 2022, Fayetteville remains a top choice for investors. It has seen robust economic growth, and being one of the highest-rated places to live in the US adds to its potential.
3.Regional Estate Market Trends And Insights
Knowing regional trends and insights can be valuable regardless of which markets you invest in. For one, the most attractive real estate markets appear in the South and Southwest of the US. This region is outpacing the rest of the country regarding population growth, job creation, and real estate development.
On the other hand, the markets that top this list are urban or suburban. The coastal markets are still performing well, but inland areas are the ones that have seen the highest growth in recent years. Finally, the US housing market remains a seller’s market, despite slightly cooling prices in 2023. Experts predict that prices will decrease further in the coming months (without reaching Great Recession levels.) We recommend that investors, homebuyers, and real estate professionals stay informed of the latest trends and act accordingly.
4.Case Study And Success Story
Investing in real estate markets is a long-term endeavor that requires careful researching and planning. Read the following case study of a successful real estate investment to get inspired and learn some valuable lessons.
The Farm Soho project in New York City is a prime example of how you can take advantage of market trends. The company began in 2014 and became one of the earliest coworking spaces in the city. Lucas Seyhun, the founder, turned his 2,700-square-foot loft without any furniture into an “Airbnb for startups.” He said, “We primarily started focusing on early-stage startups, solopreneurs, or digital nomads to build a place for them to call home.” While competitors charged exorbitant prices, Farm Soho’s mission was to provide an affordable workspace. The company now makes $3.6 million in revenue annually and keeps growing.
So, what can you learn from Farm Soho? It’s essential to study the local market, understand what people need, and be willing to take risks. Additionally, finding the right partners and having experienced investors on board can make a huge difference.
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