18 Best Places to Buy Rental Property in 2020
Roberto Jacob Santos REALTOR / COLDWELL BANKER REALTY
Real Estate Agent in FLORIDA, Corretor de imoveis na FLORIDA,
Summary: In this article you’ll learn about 18 of the best places to buy rental property in 2020. Discover why each of these markets is a great place to invest, read rental market statistics and more.
Table of Contents
- Introduction: How Do We Know the Best Places To Buy Rental Property for 2020?
- Where To Buy Real Estate: 18 Cities To Consider in 2020
- #1 – Orlando, Florida Copy this Link for prices
- https://bit.ly/318znhv
- #2 – Tampa, Florida Copy this Link for prices
- https://bit.ly/3aX9yFR
- #3 – Jacksonville, Florida Copy this Link for prices
- https://bit.ly/38R9eX7
- From #4 to #18 Outside Florida
Introduction: How Do We Know the Best Places To Buy Rental Property for 2020?
Wondering where to buy real estate in 2020? The truth is, the best real estate market for you may not be best one for your neighbor or your coworker. Where you end up investing will depend largely on your personal investment goals.
The best places to buy rental property for cash flow and equity growth (for example) often three things in common: job growth, population growth and affordability. When you find a market that has all three of these factors, you’ll probably be able to find good investment opportunities.
There are several cities across the United States where these factors exist today — places where you can buy high cash flow rental property while prices are still low (around $100,000 in many cases), and watch your equity grow.
In this article you’ll learn about 18 of these “best-buy” real estate markets for the year 2020. Find out what makes them great places to invest and why.
Where To Buy Real Estate: 18 Cities To Consider in 2020
Please Note: These markets are not listed in any particular order.
#1 – Orlando, Florida
The demand for single family homes has been on the rise in the Sunshine State for quite some time. Still, it’s possible to acquire fully renovated properties in good Florida neighborhoods for under $193,000.
What’s even more interesting is that, despite these incredibly low housing prices statewide, many home seekers are choosing to rent instead of buy. As you can imagine, this is causing rental rates to rise (over 6% in just a year) and is expected to keep increasing in 2020.
On top of great cash flow, values are on an upswing in these areas with no sign of slowing down. They are nowhere near their 2006 highs and inventory levels are still way down because builders just can’t make a profit at these price points.
Property taxes and insurance are low, plus there’s no state income tax. Add warm weather and exceptional health care, and you can see why many of the 10,000 baby boomers retiring every day are moving to Florida.
Orlando is one of the best places to buy rental property and real estate in the state of Florida in 2020. Located in Florida’s “sun belt” region, the area is known for its warm climate, beautiful beaches, world famous amusement parks, entertainment, and attractions.
With a growing population of over 2.5 million residents, the Orlando real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost.
Housing Market Statistics
- Median Sales Price: $231,000
- Median Rent Per Month: $1,486
- Median Household Income: $42,418
- Population: 2.6 M
- 1-Year Job Growth Rate: 3.44%
- 7-Year Equity Growth Rate: 110%
- 8-Year Population Growth: 30%
- Unemployment Rate: 2.9%
Housing Market Quick Facts
- Orlando is listed as the #1 Best Places to Buy a House by Forbes for the third year in a row. Projections suggest up to a 35% increase in house prices by 2021.
- Metro Orlando is the 4th largest metro area in the country, and it’s also the fastest growing metro in the nation.
- Over 68 million people visited the Orlando area in 2019, making it the most visited tourism destination in the country.
- The population in Orlando has grown over 20% since the year 2010. To date Metro Orlando houses over 2.6 million residents.
- Rents grew by 3.44% in the last 12 months, which is 134% higher than the national levels.
- Orlando’s projected job growth for the next ten years is the highest in the United States among the 200 largest metros, Forbes reports.
- Orlando Medical City boasts a $7.6 billion economic impact and will create over 45,000 jobs.
Conclusion: Top 3 Reasons to Invest in the Orlando Real Estate Market in 2020
As mentioned, most of the best real estate investment markets have three factors in common: job growth, population growth and affordability. Orlando is no exception…
Job Growth: Orlando’s employment growth is among the best in the U.S. with more than 45,000 new jobs created in just a year and a projected growth rate of 3.44% annually for the next ten years.
Population Growth: Orlando’s population has grown 252% faster than the national average over the last 8 years, and with all the new jobs coming to the area, it’s very likely this trend will continue in 2020. (This means the demand for housing is likely to increase.)
Affordability: In Orlando it is still possible to purchase fully renovated 3-bedroom properties in good neighborhoods for as little as $193,000.
Data Sources:
- https://www.zillow.com
- https://factfinder.census.gov
- https://www.deptofnumbers.com
- Real Wealth Network Property Team Data
#2 – Tampa, Florida
Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area (second only to Miami), with a population of more than 3 million people. Major cities in this area include St. Petersburg, Largo, Clearwater, New Port Richey, Holiday and Tampa.
Why is Tampa on our list of best places to buy real estate in 2020? For starters, the local economy is worth over $130 billion and the metro area has been ranked as one of the fastest growing in the country. Tampa also places a strong focus on job growth in areas such as financial services and healthcare.
The Greater Tampa Bay area has created more than 34,300 new jobs in just 12 months, with a job growth rate 71% above the national average. More than 19 firms with annual revenues of more than $1 billion are headquartered here and it is home to four Fortune 500 companies. Tampa and surrounding areas continue to be some of the best real estate markets in the country.
Housing Market Statistics
- Median Sales Price: $225,250
- Median Rent Per Month: $1,485
- Median Household Income: $65,196
- Metro Population: 3.1 M
- 1-Year Job Growth Rate: 2.52%
- 7-Year Equity Growth Rate: 106%
- 8-Year Population Growth: 12.69%
- Unemployment Rate: 3.4%
Housing Market Quick Facts
- Tampa area has a population of over 3 million, a local economy worth over $130 billion, and is one of the fasted growing metros in the United States.
- An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices (even as low as $150,000) and turn around to rent them for around $1,485 a month.
- New jobs from Amazon and a talent pipeline from the University of South Florida helped push the Tampa metropolitan area to the No. 15 spot on the Milken Institute’s 2018 index of best-performing cities in the United States.
- The area has numerous strong Fortune 500 companies including Publix Super Markets Inc., Jabil Circuit Inc., and WellCare Health Plans, Inc.
- Tampa remains a fantastic tourism market and one of the best cities to buy real estate. It’s a popular option for retirees as well, providing for many short-term rental opportunities.
Conclusion: Top 3 Reasons to Invest in the Tampa Real Estate Market in 2020
As you’ve learned, when a real estate market has job growth, population growth and affordability, you’ll likely be able to find good investment opportunities. We believe Tampa is one of the best places to invest in real estate in 2020 because it has all three.
Job Growth: The Tampa metro area is ranked #15 on the Milken Institute’s 2018 index of best-performing cities in the United States
Population Growth: Tampa has a population of 3.1 million, a local economy worth over $130 billion, and is one of the fastest growing metros in the United States.
Affordability: An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $150,000 and turn around to rent them for around $1,485 a month, above the national average.
Data Sources:
- https://www.zillow.com
- https://factfinder.census.gov
- https://www.deptofnumbers.com
- Real Wealth Network Property Team Data
#3 – Jacksonville, Florida
Located on the eastern coast of Florida, Jacksonville lines both banks of the St. Johns River – the longest river in Florida and also one of only two rivers in North America that flows north instead of south.
In the past 10 years, the Jacksonville metro area has grown by almost 14%. To date there are over 1.5 million people living in this area, and more continue to come every year. In fact, Jacksonville’s population has been steadily increasing at a rate of about 2% per year, and their workforce is growing at a consistent rate as well.
There are many reasons for this growth. For starters, Jacksonville is also the only Florida city that is home to four Fortune 500 companies. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community. Additionally, 13 of Forbes Global 500 have operations in Jacksonville.
With a cost of living below the national average, a wonderful climate and a business-friendly environment, we believe Jacksonville is one of the best real estate investment markets in the country right now.
Housing Market Statistics
- Median Sales Price: $189,000
- Median Monthly Rent: $1,409
- Median Household Income: $58,709
- Metro Population: 1.5 M
- 1-Year Job Growth Rate: 3.11%
- 7-Year Equity Growth Rate: 75%
- 8-Year Population Growth: 14.75%
- Unemployment Rate: 3.0%
Housing Market Quick Facts
- The population in Jacksonville has grown almost 14% in population since 2000, which is higher than Miami’s and Tampa’s.
- Future job growth in Jacksonville is predicted to be 39.21% over the next 10 years.
- In Jacksonville, the median home price is about $189,000, which is 15% less than the national average.
- A typical 3 bedroom home can rent for around or more than the national average.
- The expansion of the Panama Canal is helping to bring jobs into the Jacksonville area ports. This is likely to lead to even more population growth.
- The Jacksonville metro also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.
Conclusion: Top 3 Reasons to Invest in Jacksonville Real Estate Market in 2020
There are three main reasons that Jacksonville made our list of the best places to invest in property: job growth, population growth and affordability.
Job Growth: Forbes also ranked Jacksonville #3 on their list of best cities in the U.S. for jobs with a growth rate of 3.11% this year, which is 111% faster than the national average. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.
Population Growth: The population in Jacksonville has grown almost 15% since the year 2000, and continues to grow by an average 2% annually. Future job growth over the next ten years is predicted to be 39.21%.
Affordability: In Jacksonville, the median home price is about $189,000, which is 15% less than the national average. A typical 3 bedroom home can rent for more or around the national average. These factors show us that there’s a strong opportunity for cash flow in the Jacksonville metro.
Data Sources:
- https://www.zillow.com
- Real Wealth Network Property Team Data
- https://factfinder.census.gov
- https://www.deptofnumbers.com
https://www.realwealthnetwork.com/learn/best-places-to-buy-rental-property/#2-1---orlando-florida
- Kathy Fettke Articles & Guides, Where to Buy Real Estate
Please call today;
Roberto Jacob Santos
Agent Plus Realty
Cell 954-326-1716
WhatsApp +16173085348