Invest Midwest! Why the Middle of the Country is the Best Place

As a born and bred Midwesterner, I realize I might sound a little biased when I say that the Midwest is the absolute best place to invest in rental property. I promise I’m looking at this objectively, though. There are just so many great things about real estate in the middle part of the country, not the least of which are the prices. Here’s why you should be looking at the Midwest for your next rental property investment.

Affordable Homes

As I said, home prices in the Midwest can’t be beat. You can get a cashflowing property in great shape for less than $100k - something that’s extremely hard to come by, if not impossible, on the coasts. In fact, if you look at the median home values from each state, most of the Midwestern states clock in in the low 200s, while states like California ($372,400), Washington ($372,400), and New York ($282,300) are clearly much higher. If affordability is a factor for you (and let’s be honest - it is), then Midwestern markets are where you need to be looking.

Low Cost of Living

In addition to more affordable housing, the overall cost of living is much lower in the Midwest. Everything from a carton of milk to a gym membership is lower here, which makes it an attractive choice for both investors and renters. In the middle of the country, income can stretch much farther. This also explains why some markets in the Midwest are able to justify higher rent prices than you might think. Since money can go farther in every other area, it allows people to spend more on rent. Combined with home affordability, it’s a win-win for investors.

Job Opportunities

As companies take notice of all the great things about the Midwest, they’re expanding their operations to this part of the country. Costs are low, there’s room to build, and there’s a growing population base hungry for employment. Fortunately for them, there are plenty of job opportunities! Many major Midwestern cities are experiencing an employment boom, especially in industries like manufacturing, tech, and finance.

Slower Pace

Finally, there’s something to be said for the peacefulness of the area. There’s definitely not as much hustle and bustle in the Midwest. Even the big cities here run at a bit of a slower pace than say, New York or L.A. And you know what? A lot of people like this! There’s less stress, more leisure time, and ultimately this means happier tenants. Plus, people just aren’t as high maintenance as they can be on the coasts. I realize there are exceptions, and I know I’m making some broad generalizations here, but this has been my experience. In the Midwest, generally speaking, you’ll find happier people who don’t demand as much.

Believe me when I say that the Midwest should be a top contender for your investment property. There are just too many positive factors to ignore. Do some research on some of the top markets, like Kansas City and Dayton, and see for yourself!