Best Places to Purchase an Investment Property

Best Places to Purchase an Investment Property

Real estate investors who diversify their portfolios can gain access to markets that are trending in growth, capitalizing on emerging markets, in spite of national averages telling a different story. Even in this era of higher mortgage rates, there are still opportunities for homebuyers!

The great thing about real estate investing is that not all markets in America are the same. While some places go up, some remain stable, and others may even slow in growth. Knowing when and where to acquire rental properties and when to cash out before a decline is key to profiting.

Right now, there are many housing markets in the country that are slated for growth and present valuable opportunities for real estate investors of all scales. These areas are the best cities for investors based on factors like population growth, a high-demand rental market, competitive housing prices, and a low unemployment rate – all strong indicators for strong cash flow.

What are the best places to purchase an investment property?

Since Marketplace Homes partners with the nation’s top builders, we get expert insights into growing and emerging markets. When you partner with our real estate experts, you will get access to investments in many exciting markets around the country.

We will also keep you updated on important metrics so you know how your portfolio is performing. Diversify your portfolio by exploring where our builder partners are developing in the upcoming months!

Phoenix, Arizona

Phoenix, AZ is the nation’s fifth-largest city and one of the best places to live in the West. Known for its many career opportunities and excellent outdoor recreation, young professionals have flocked to this city to enjoy a vibrant urban lifestyle.

Phoenix is also experiencing incredible real estate growth due to the ample opportunities here. Everyone from college grads to growing families are relocating to the city that is home to five Fortune 500 companies. The city’s home values appreciated by 26.59% in 2022. Then, in 2023, this value continued to increase by 1.1% compared to last year.

West Michigan/Lansing, Michigan

Michigan is a beautiful state that allows its residents to soak in all four seasons. Locals enjoy the state’s natural beauty, by hiking, biking, fishing, and spending time at its many waterfronts. While the east side of the state gets a lot of attention because of Detroit’s cityscape, the west also has much to offer. This is why some of the nation’s best builders are here establishing new builds.

Right now, some of the nation’s top builders are making new construction homes in the Lansing/ West Michigan area. This is in response to growing demand and rising property values in this part of the state.

The prices are good for homeowners too. At the end of 2023, the average home sale price was $140,387. This is an excellent price range if you want to buy rental properties to boost your portfolio. West Michigan, like the rest of the state, has areas of moderate median home prices and high rental rates, which makes an attractive option for many investors. There are also great schools, affordable prices, and excellent health care and universities nearby.

Memphis, Tennessee

Memphis TN is a place you should not miss. It’s just one of the many cities in the south that are getting a lot of attention as people relocate and plant roots in search for the best place to live. Not only is their job growth rate excellent, but the media even boasts its strong economy compared to many other US cities.

Not only have home values appreciated by at least 71% in the past 5 years, there is still affordable housing to be found. The city’s median sold price is around $180k, which makes Memphis one of the best real estate opportunities for investors looking for houses that cost lower than the national average.

With more than 60 unique attractions across Memphis, you’ll find plenty to do in the city. Whether you’re looking for relaxation, excitement or classic memory-making, Memphis will take you through famous sites like Elvis Presley’s Graceland and the Stax Museum of American Soul Music.

Downtown Memphis is also a gem. Locals love the amazing museums, shopping, and fine dining in this hot spot in the city. The National Civil Rights Museum and other landmarks tell of Memphis’ powerful place in civil rights history, plus exciting activity around the Mississippi Riverfront.

Baton Rouge, Louisiana

Louisiana is another Southern state that offers some good investment opportunities. Its capital, Baton Rouge, currently has a stable real estate market, which is good news for builders and property managers. The city is near top universities, breathtaking scenery and a vibrant local culture to boot. It’s also just a short drive from Historic New Orleans, which is known for its amazing food, music and culture.

Locals enjoy plenty of activities to fit diverse lifestyle needs. Whether you’re taking a nature hike with your kids at Bluebonnet Swamp Nature Center, enjoying a romantic evening in downtown Baton Rouge, or discovering local culture in the Arts & Entertainment District – the Baton Rouge community offers a variety of ways to help make your new house a home.

Our builder partners offer some stunning, spacious floor plans for single-family homes in Baton Rouge and surrounding areas like Denham Springs, Slidell, Covington, and Hammond. If you are looking to live further East, Ponchatoula, Covington and Slidell offer amazing communities all along the North side of Beautiful Lake Pontchartrain.

Currently, the average rental price in Baton Rouge is $1,219, a reflection of how the cost-of-living index is 3% below the national average. This is good for renters, while the city’s year-over-year economic stability keeps real estate investors interested.

Detroit, Michigan

The Motor City was destined to make this list. Over the past 5 years, home values have increased by around 103% in Detroit, making it one of the best places to invest in 2022. It also made our list of best cities to buy investments in 2024. Not only is it the center of the U.S. auto industry, it’s undergoing some serious revitalization. Major employers are a large driving factor behind this growth.

The Big Three auto manufacturers are here, as well as Quicken Loans, Ally Financial, and DTE Energy. In 2021, Apple also announced it was opening its first Developer Academy in the city.

Detroit’s low home prices combined with its positive home value appreciation rate make it an attractive place to invest. Get in this exciting American success story with an investment property of your own.

Jacksonville, Florida

Jacksonville has one of the fastest-growing populations in the country. The cost of living in the city is 6% below the national average, which makes it an attractive place to anyone looking for a great deal.  Not only that, but investors have had their eye on this city for quite some time, especially since home appreciation rates here have increased by in previous years and currently remain stable.

This family-friendly city is geared for relaxation and adventures, with plenty 22 miles of beaches, an extensive park system, world-class fishing, historic neighborhoods, eclectic museums, vibrant street arts scene, creative coastal cuisine, delicious craft beer, and so much more!

Charlotte, North Carolina

Charlotte has remained one of the consistently fastest growing areas of the US. It’s the largest city in North Carolina and a beacon for professionals looking for a fresh start. After all, Charlotte is home to some of the largest financial institutions in the country, making it the second largest banking center in the US.

When it comes to investments, Charlotte saw its median home value increase by 5% by the end of 2023 after a 23.5% in 2022. There is no sign of this momentum slowing since the city continues to attract people from all over the country looking for an exciting lifestyle. Locals enjoy attending games from  professional sports franchises and vibrant arts culture in the city.

Atlanta, Georgia

Atlanta, also known as “The Big Peach” or “New York of the South,” is one of the most exciting places to live in the nation. Not only is the cost of living still low compared to other major cities, locals enjoy a bustling city center with seemingly endless entertainment and opportunities. People from all over the country are flocking to this growing metropolis that enjoys a stable job market, award-winning restaurants, mild winters, and copious amenities.

When good things happen, everyone is bound to catch on. Investors have also noticed Atlanta’s incredible progress and potential, resulting in exciting new builds and urban growth. An influx of new residents obtaining lucrative careers means Atlanta is a solid emerging market. In recent years, it has become one of the most sought-after places for investors to add to their portfolio.

Augusta, Georgia

Augusta’s official city motto is “We feel good,” and it’s not hard to see why. This pleasant community bursts with natural beauty and historic charm. Though it’s best known as the home of the Masters Golf Tournament, it’s also a growing city that attracts new residents with its excellent cost of living and career opportunities in medicine and manufacturing. It’s also home to Fort Gordon and U.S. Cyber Command.

Having ranked as the top metro area in Georgia to live and retire in the U.S. News & World Report, The Garden City is appealing new residents. Mild winters make outdoor living a possibility year-round, making it easy for residents to enjoy activities along the Savannah River, tour historic sites, and enjoy the thriving arts presence in the city.

If it ever gets too cold (which is not often), you can head inside and explore the local museums, farm-to-table dining, or experience the wonders of live music at the many theaters, arenas, and bars in the city.

Hop on these opportunities while these areas are growing. Catch on to the good ideas first and reap the rewards in the future.

The Best Places to Purchase an Investment Property

As you can see, there are still many opportunities out there where people are flocking to get beautiful homes and investments in emerging markets. Opportunities are also not limited to these places. Check out places like Austin, TX, cities in Alabama, Colorado, Ohio, and other places that boast low property taxes and job growth.

Marketplace Homes is a nationwide property management company that helps investors stay on top of all their investments around the country. If you’re looking to diversify your portfolio, here are some of the best places to invest in real estate. These are markets in which we actively participate.

Since we partner with most of the nation’s top builders, you get inside access to new construction investments in emerging markets as well. If a place is slated for growth, you can be among the first in these areas that can later become established, high-value markets.