Investment in equities is undoubtedly simpler than real estate investment. However, there are wealthy investors who prefer real estate investments simply because it has the potential to earn higher returns. There are a lot of ways through which a person can launch into real estate investment. You may choose to purchase a property and rehab it or invest it in an investment group dedicated to real estate.
However, if it is your desire to get the most from your investment, there are some states that you should consider checking out. A study considered data which put into consideration the average listing price of houses across the biggest real estate markets of each of the states as well as a year increase in the average home values of the markets.
Based on the study, below are the top states where your investment in real estate will yield more
1. Indiana
This state has a lot of things to offer when it comes to real estate investment. That goes from the cheapest median property prices to an impressive purchasing power locally as well as the value appreciation of houses. The affordable living cost in Indiana helped the state earn high marks in a recent ranking.
2. Mississippi
This state has the lowest living cost in the nation and it also offers high purchasing power. The biggest real estate markets in Mississippi, Hattiesburg, Jackson, and Gulfport on a combined level have a median home price which totals $191,633. The national average came in at $275,000.
3. Idaho
Idaho offers vigorous home values growth yearly and affordable prices and that combination earns it a spot on this list. In Boise, the home values increased by 13.5%, in Idaho Falls it increased by 8.6% and the home value in Coeur d’Alene increase by 8.6%. The rental rates have also been rising. In Boise area, for instance, rent price increased from a previous $1,150 to $1,400.
4. Alabama
Alabama earns a spot on the list of states with low living cost. The local purchasing power here is in a way close to what obtains in Mississippi. Mississippi houses Gulf Shores, a place that has been tagged one of the top vacation destinations.
5. Missouri
The state reportedly had the fourth lowest living cost in the 3rd quarter of the year. That helped in stretching the dollar further in the state. The three biggest real estate markets in the state, Kansas City, Springfield, and St. Louis gave a combined average house price of about $202,900 and also house value growth of 8.1%.
6. Tennessee
The 3 largest real Estate markets in Tennessee namely Nashville, Knoxville, and Memphis have a combined median home price that totals $251,133 and the home value has risen by 9.1% from one year ago. It was reportedly the study’s largest increase. Tennessee also has a relatively cheap living cost.
7. Arkansas
Like a lot of Southern states, the economy of Arkansas has been rising. A report indicates that the population of the state is only over three million. The GDP of the state reportedly grew by 8.3% in the past 3 years from the 2nd quarter of 2015 through 2018.
8. Ohio
The state has brilliantly shown that it is capable of diversifying its economy amid declining industry. The major real estate markets in the state, Columbus, Cincinnati, and Cleveland offer robust growth of home value and affordable prices. The living cost in this state is lesser than the national average.
9. Michigan
The nosedive in the auto industry hit the economy of Michigan between 2008 and 2009. Since that period. Michigan had to diversify its economy and that has yielded some improvement from the state. Grand Rapids which has always been a city known for its contribution to manufacturing has also spread its contribution net to the retail, education services, social assistance, and health care services.
10. Georgia
A handful of Southern states are recording considerable economic growth. Taxes in the state are low and it has a skilled workforce. The prosperity of the state has helped in boosting home values which increased 8.8% in a year.
Also, those who want to invest in property can get affordable residences which they can buy and subsequently rent out. Particularly, they should consider cities like Atlanta that has a median rent price which recently increased to $1,725.
