2017 Cities to Invest in

[Greg Nydick]

I am relatively new to the Bigger Pockets community, but have been part of the management team for an apartment complex since 2014. This is my first attempt at analyzing a market, so please be brutally honest if I am off somewhere. Hopefully this forum leads to a good discussion and provides information that is useful to both new and experienced investors.

My company is looking to diversify from the Philadelphia market and become a multi-family investor in various growth markets around the United States. I have come up with the 6 cities below that I think are worth looking into in more detail. The information is primarily from the Milkin Institute’s economic growth reports over the past 10 years. Hopefully the community can help me with the following questions:

Do you agree or disagree with my assessment of these cities?

What other cities are you currently looking at, and why?

How do I get information about population and median income during non-census years?

How do I get information about new home and apartment construction in these cities?

Charleston, SC

For the past 10 years the economic growth has been in the top 40 cities based on the Milkin Institute’s reports.

The major industry is manufacturing of transportation with Mercedes and Boeing investing in facilities in the area.

The Port of Charleston allows for easy importing and exporting from the city.

While there is a high-tech sector, Charleston is not as reliant as other high growth cities.

Charlotte, NC

With the exception of 2009-2012, the economy has been in the top 30 cities for economic growth based on the Milkin Institute’s reports over the past 10 years.

The economy is less reliant on technology compared to other high-growth cities.

Instead it relies on state policies to entice companies to relocate to the state. Professional services and Back-office jobs have been fueling job growth.

Grand Rapids, MI

The economy appears to be recovering faster than the rest of the mid-west based on the Milkin Institute’s reports. It has been improving it’s ranking since 2009, and has been in the top 25 for economic growth since 2014.

Manufacturing is still a major industry, but with new investments from GM and Tesla the city should see some stability in the industry.

Alumni from Michigan State University provide a good base for high tech and research jobs in the area.

Orlando, FL

The economy has been improving every year since 2012, and the economic growth ranked #9 on the Milkin Institute’s 2016 report.

Tourism remains the main industry for the area with Disney and Universal creating a lot of jobs in the area.

In addition to the Tourism industry, Orlando has a strong Health Care industry, which will help it attract retirees.

Raleigh, NC

The economy has been in the top 15 of the Milkin Institute’s top growing economies for the past 10 years.

The Research Triangle that includes NC State, Duke University, and UNC Chapel Hill support a lot of growth in the R&D industry and the alumni provide skilled workers that attract businesses.

San Antonio, TX

The economic growth has been in the top 25 of the Milkin Institute’s top growing economies since 2008.

In the past, the economy has been highly tied to the Oil industry. While that is still the case, the city is making progress to diversify. There is a lot of research and development tied to the Government Military and Security industry.

The Texas government’s regulations continue to bring new businesses into the State, which San Antonio benefits from.