Undervalued US Real Estate Markets for Small to Mid-Size Real Estate Investors & Landlords to Look at in 2025

For 2025, small to mid-size real estate investors might find opportunities in several undervalued or growth markets across the U.S. These markets balance affordability, strong job growth, and increasing demand, making them attractive for both mid-term and long-term rental investments:

1. Dallas-Fort Worth, Texas

• The region leads the list for 2025 due to rapid economic growth, driven by a thriving financial sector, tech expansion, and population influx. Home prices remain relatively affordable, appealing to families and young professionals moving in for job opportunities

2. Tampa-St. Petersburg, Florida

• This area combines affordability with growth potential. Strong job creation, tourism, and demand for housing offer investors steady rental yields (4-6%) and property appreciation. However, climate risks and rising insurance costs should be considered

3. Charlotte, North Carolina

• Charlotte’s booming economy, supported by finance, tech, and healthcare, along with a growing population, creates a robust rental demand. The city's relatively lower housing costs compared to nearby metros make it appealing for investors

4. Nashville, Tennessee

• Nashville continues to attract residents with its healthcare and tourism-driven economy. High rental demand from young professionals and limited housing supply creates investment opportunities, though housing prices are rising

5. Salt Lake City, Utah

• Known for its growing tech sector and high quality of life, Salt Lake City offers relatively affordable housing with strong appreciation potential. It is increasingly attractive for families and tech professionals

6. Houston, Texas

• Houston benefits from job growth in healthcare, tech, and energy sectors. With a large population influx and no zoning laws, it remains a development-friendly and affordable market for landlords

Other notable mentions include Boise, Idaho (a hidden gem with high demand), and Phoenix, Arizona, which continues to attract retirees and families due to its weather and affordability【

Before investing, consider factors like property taxes, insurance rates, local regulations, and any climate risks specific to the region. Continuous market analysis and due diligence are key for maximizing returns.