The American South has long been a land of opportunity. And while some southern markets give investors pause, others are shining bright with opportunity. GOBankingRates talked to industry experts to get their take on the region’s real estate hotspots where smart money is flowing.
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Houston and Dallas Deliver Resilient Growth
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Dallas average home price according to Realtor.com: $479,000
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Houston average home price, according to Realtor.com: $340,000
“Houston and Dallas continue to shine when I think about great places to invest,” said Jennifer Beeston, senior vice president of mortgage lending at Guaranteed Rate Mortgage. “The job growth as well as the continued migration to Texas from other states makes it a solid investment for the future.”
What makes these Texas titans so compelling? According to Arvind Cheruku, partner and CIO at Fulshear Central, Houston boasts steadier growth compared to boomtowns like Austin.
“Houston was heavily reliant on the oil and gas industry for its growth in the past but it has been steadily diversifying into the healthcare industry,” Cheruku shared. “With this net gain, there is constant demand for housing, which then spurs growth in all areas like commercial real estate, services and much more.”
The expert points to Dallas as another market with balanced expansion. “Growth in terms of population moving from other states has been steady,” he said of the metro. “When there is demand for retail and other services, that spurs new construction and all the downstream impacts thereof.”
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Atlanta’s Thriving Diversity Offers Stability
At the top of Graham Sowden’s list of prime multifamily markets is Atlanta. Sowden is the chief investment officer of RREAF Holdings, a firm controlling over 15,000 units in the region.
“With a diversified economy and population growth outpacing national averages, Atlanta remains a top destination for multifamily investment, offering stability and growth potential,” Sowden shared.
Rise of the Mid-Sized Multi-Family Markets
While mega-metros like Atlanta get attention, Sowden sees emerging potential in several mid-sized southern cities like:
Nashville, Tennessee
“Boasting a vibrant cultural scene and a booming tech sector, Nashville continues to attract residents and investors alike, driving demand for multifamily properties.” Stephen Kovach, the CEO at Global Advisers, added that Nashville is a great bet because of its significant investments in infrastructure and real estate development and because of of it’s economic resilience.
“Nashville has shown strong economic resilience and growth, driven by its diversified economy, including healthcare, education, and music industries. The city has a robust job market and continues to attract new businesses and residents.”
Charlotte, North Carolina
“As a financial hub with steady job growth and infrastructure development, Charlotte presents compelling investment opportunities in the multifamily sector,” said Kovach.
Orlando, Florida
“Beyond its tourism industry, Orlando benefits from a growing tech presence and steady population influx, making it an attractive market for multifamily investment,” he said.
Raleigh, North Carolina
“Fueled by innovation and a young, educated workforce, Raleigh presents promising investment prospects in the multifamily sector,” Kovach added that Raleigh is also great for investors because of its high quality of life and its investments in tech and education. “Raleigh is part of the Research Triangle, known for its high concentration of tech companies and research institutions. This has created a stable and growing job market, attracting a young and educated workforce.”
Jacksonville, Florida
“Positioned as a logistics and transportation hub, Jacksonville offers a diverse economy and strategic location, supporting demand for multifamily housing.”
Chattanooga, Tennessee
“With a focus on sustainability and innovation, Chattanooga offers unique investment opportunities in the multifamily sector, supported by economic revitalization efforts.”
Huntsville, Alabama
“With a positive trend in employment since 2017, and being a leading STEM city that attracts young professionals, Huntsville market appears to have all the key characteristics that support the fundamentals in multifamily.”
Tampa, Florida
“With a robust job market and affordable living costs, Tampa offers investors solid returns in a dynamic environment fueled by population growth,” Kovach said.
According to our experts, the smartest real estate money is targeting cities in the South with the right mix of ingredients, including population growth, industry diversification, and housing undersupply. If you’re looking to invest in the South, start with those factors and build your empire from there.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Investor: 11 Southern Cities You Should Invest In Now
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