The Best States to Invest in Real Estate

8 Best States to Invest in Real Estate in 2022

Knowing the best states for real estate investment can be tricky as there are many variables to consider. Savvy investors should compare a wide range of potential investment opportunities to determine where they will make the most profit.

While no one has a crystal ball, some specific metrics can be used to predict the likelihood of investment success.

Key indicators to consider when investing

No matter what area you plan to invest in, the principles of real estate investing remain the same. Of course, investors want to buy property in areas that will bring the highest return on their investment. So how can this be predicted with real accuracy?

The most important indicators to consider when investing in any area are:

  • High demand for rental property
  • High average rental income
  • Population growth
  • Job Growth
  • Average house prices
  • the cost of living

The first two speak for themselves, while population and job growth indicate a growing area to support demand for rental housing.

Best States to Invest in 2022

Investors and real estate experts do not always agree on exactly where the best investment opportunities are located. However, based on the numbers above, we have selected the top eight states to consider for 2022.

To compile this list, we took the most up-to-date information from official and authoritative sources such as census.gov, worldpopulationreview.com, redfin.com and apartmentguide.com.

Missouri

Average property price: $244,400

Average annual increase in real estate prices: 11.8%

The average cost of renting a 2-room apartment: $1235

Growth over the previous year with two bedrooms: 3.27%

Population growth: 0.2%

Job Growth: 1.01%

The cost of living: 87.1

Many enterprises and Fortune 500 companies call Missouri home, all of which certainly support the state’s growing economy. It is also an attractive state for new buyers with affordable housing options and strong growth in sales and rents.

The cost of living in Missouri is also one of the lowest in the country.

Virginia

Average property price: $434,500

Average annual increase in real estate prices: 8.8%

The average cost of renting a 2-room apartment: $2120

Growth over the previous year with two bedrooms: 16.86%

Population growth: 0.01%

Job Growth: 1.01%

The cost of living: 100.7

Named the best state for business by Forbes, Virginia’s economy continues to grow thanks to a strong technology industry and solid job growth. Proximity to Washington DC remains a significant disadvantage. Suburb of Northern Virginia offers many investment hotspots.

North Carolina

Average property price: 359 600

Average annual increase in real estate prices: 18.8%

The average cost of renting a 2-room apartment: $1584

Growth over the previous year with two bedrooms: 29.04%

Population growth: -0.8%

Job Growth: 1.02%

The cost of living: 94.9

Despite a slight decline in population, North Carolina’s real estate affordability, steady job growth, and fantastic rent growth make it attractive to investors. In addition, the availability of real estate and the cost of living in the state, combined with mild weather, make it a popular destination for millennials and an attractive destination for investors.

Idaho

Average property price: $512,500

Average annual increase in real estate prices: 19.4%

The average cost of renting a 2-room apartment: $1429

Growth over the previous year with two bedrooms: 21.72%

Population growth: 3.4%

Job Growth: 1.03%

The cost of living: 92.3

With a significant increase in population, Idaho continues to show signs of continued growth in its technology-driven economy. Similarly, job growth rates are above average, property and rent growth is robust, and the cost of living remains below the national average. Idaho is often overlooked when you think of the best state to invest in real estate, but it provides plenty of opportunities.

Indiana

Average property price: 255 400

Average annual increase in real estate prices: 12.1%

The average cost of renting a 2-room apartment: $1208

Growth over the previous year with two bedrooms: 7.15%

Population growth: 0.3%

Job Growth: 1.01%

The cost of living: 90

Indiana’s economy is strong and growing. In addition, the state offers attractive real estate prices for investors, combined with a healthy rental market and a growing labor market.

Florida

Average property price: $401,500

Average annual increase in real estate prices: 23.1%

The average cost of renting a 2-room apartment: $2271

Growth over the previous year with two bedrooms: 37.56%

Population growth: 1.1%

Job Growth: 1.03%

The cost of living: 97.9

The Sunshine State has long been a favorite among real estate investors, and with good reason. Florida continues to see significant growth in property values ​​and rents, with jobs and population growth, and the cost of living remains below the national average. Its tax-friendly status is always a big concern when looking for the best state for real estate investment.

Georgia

Average property price: $512,500

Average annual increase in real estate prices: 19.4%

The average cost of renting a 2-room apartment: $1666

Growth over the previous year with two bedrooms: 29.34%

Population growth: 0.8%

Job Growth: 1.02%

The cost of living: 89.2

Real estate values ​​in Georgia are skyrocketing, as is the average rental yield, and the state is seeing population and job growth to support this. It is also the 9th lowest cost of living out of all 52 states.

Texas

Average property price: $376,800

Average annual increase in real estate prices: 19.8%

The average cost of renting a 2-room apartment: $1448

Growth over the previous year with two bedrooms: 10.94%

Population growth: 1.3%

Job Growth: 1.03%

The cost of living: 91.5

The Texas economy is fueled by leading universities and colleges, a wide range of industries, and wealth of natural resources. In addition, the state’s strong population growth speaks to potential investment opportunities.

Ohio

Average property price: $221,100

Average annual increase in real estate prices: 10.3%

The average cost of renting a 2-room apartment: $1213

Growth over the previous year with two bedrooms: 9.06%

Population growth: -0.2%

Job Growth: 1.00%

The cost of living: 90.8

In addition to being home to some of the best colleges and universities in the country and a strong economy, Ohio is a good place to invest in real estate. While the population has declined slightly, this is likely a temporary Covid-related phenomenon. Such affordable property prices, robust growth in sales and rentals, and strong job growth all point to promising investment opportunities.

Given the affordability of housing, Ohio is particularly well-suited for first-time investors. Many opportunities can be found in major metropolitan areas such as Columbus, Cincinnati, Cleveland and Toledo.

Final Thoughts

Wherever you decide to invest, it is important to research indicators like those used above. So be sure to think ahead and do your research. No matter how “hot” the market may seem, it must be based on economic statistics. Indeed, a growing economy is vital to sustainability as tenants will eventually move to where there are jobs. Also, keep in mind that markets are constantly changing. What is relevant today may not be relevant next week. When looking for the best state to invest in real estate, it might be worth asking yourself if the decision is worth it. Or perhaps not. And if so, then go ahead!

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