Investor · Jacksonville, FL · Member since 2013 · 34 posts · 6 votes
HomeVestors, an investment company that brands itself “We buy ugly houses,” named the following top 10 housing markets for investing in single-family homes for 2014. All of these markets have posted strong appreciation in the past year but are still underpriced by up to 28 percent.
1. Forth Worth, Texas
2. Dallas
3. Charlotte, N.C.
4. Nashville
5. Houston
6. Atlanta
7. Oklahoma City
8. Orlando, Fla.
9. Las Vegas
10. Boise City
"We think the markets hold considerable opportunities for investors as long as they do not over pay for properties," says David Hicks, HomeVestors co-president. "Only seven of the top 100 markets continue to be ranked as 'speculative.'"
On the other hand, the 10 “riskiest” markets named were:
Los Angeles
Gary, Ind.
Providence
Buffalo, N.Y.
Toledo, Ohio
Cleveland
"These markets continue to have weak population and job growth that makes them more risky investments," Hicks says.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
The lists seem to generally focus on long term population and job growth.
I wonder though, if the list is self serving for HomeVestors, as they are based in Dallas, and likely do a lot more deals in the sun belt vs. the rust belt.
Cleveland, OH · Member since 2011 · 400 posts · 223 votes
12y
Rust Belt cities will be moving closer to the top of the list soon, but of course by that time, the good deals will be gone!
These places are turning the corner on population loss. Take a look at Pittsburgh, whose real estate market experienced rapid recovery shortly after its population showed some growth again.
I agree with Michael. Cashflow should weigh heavily into the equation not just appreciation. I was surprised that Pittsburgh PA wasn't on the list. But again, if you're looking mainly at appreciation you'll miss the great cashflow that properties in the Pittsburgh market provide. New business & jobs, population growth, infrastructure overhauling, universities, a diverse ecomony, etc... Pittsburgh has alot going for it.