The housing market is forever changing, no matter what state you’re in. However, some states have particularly strong real estate markets in compariso
The housing market is forever changing, no matter what state you’re in. However, some states have particularly strong real estate markets in comparison to others.
If you’re already a real estate investor or you’re hoping to invest in your very first property, you’re probably wondering which states are the best options. You’ll want to find housing markets that have growth and stability.
Currently, California and Texas real estate are the strongest, with Kentucky and Mississippi being some of the weakest areas for real estate investment. But with 50 states in total, America has several thriving housing markets that are perfect for new and existing real estate investors.
Which States Have the Most Lucrative Housing Markets?
To make things as easy as possible for you as a real estate investor, here are the states with the most thriving housing marketing.
The Golden State has one of the best real estate markets in America by far. The income levels are high and there is a constant stream of new homes being built.
The average house price in the state is half a million dollars, with a relatively high mortgage rate of 4.39%. However, the state has a lot of affordable housing options that are perfect for those who have a lower annual income
Thanks to the strong economy and worldwide appeal of California, the demand for rental properties will never dip. As a real estate investor, you won’t struggle to find long-term tenants.
Texas has the second-best housing market in the States. As with California, there is an ongoing supply of new constructions and there is a high demand for affordable properties. Mortgage rates are around 4.0%.
Since the covid-19 pandemic, there has been a huge migration to the state of Texas as people searched for a cheaper alternative to their California or New York condos. This has enhanced the demand for properties and has opened the door up for several real estate investment opportunities.
With an average home value of just over $150,000 and an average rent of around $900 a month, Arkansas is another investment-friendly state. The population is slowly increasing as is the job market in the state, meaning you won’t struggle to find great tenants as a landlord.
New York has had one of the best housing markets in the United States for years and it’s not shown any signs of regression.
Although many people moved out of the city in the last two years, the state saw hundreds of real estate investors and homebuyers flood the area. This enabled the housing market to continue thriving through the global pandemic.
The average income sits around $100,000 a year. Despite this being relatively high, homes cost more than triple the average annual income, making renting a popular choice.
The mortgage rates are also higher than the national average, which further encourages people to rent over buy. As a landlord in New York, you’ll find it easy to rent your properties at a relatively high monthly fee.