New York, Los Angeles, and San Francisco have long dominated the real estate market, but they may have exhausted their stay. Other cities, with the same employment opportunities and booming social scenes, but with more space and less exorbitant rents, are on the rise. Here’s where to look for the next big real estate upswing:
Atlanta: Atlanta’s job economy is experiencing a boom due to the influx of jobs in technology, research, and development. The new Coda at Technology Square facilities, which contain numerous data centers and research labs, serve as a home for many of these jobs. Atlanta’s housing market was hard-hit by the recession, but these well paying jobs have it on the upswing.
Dallas: Property prices are expected to grow in Dallas, due to fast population growth, large job gains in the past year, and a trend of home price gains (up 9% since 2016). Dallas is one of the biggest cities in one of the biggest states in the US, and it’s only expected to get bigger, but timing is everything. If you’re going to enter the Dallas market, do it before it prices you out.
Nashville: Nashville is cheaper than most cities but undeniably chic. Its hip downtown has employers pouring in: more than 200 companies have headquarters or regional offices within the city. Between the jobs, reasonable apartments, and cool reputation, Nashville is especially picking up popularity in the millennial market. Known best for its influential music industry, Nashville also has its hand in the healthcare sector.
Raleigh: Raleigh is experiencing an influx of young, educated workers, spurred by its proximity to institutions such as The University of North Carolina at Chapel Hill and Duke University. These new arrivals won’t be looking for homes–yet–but they will be looking for affordable apartments to rent. And as more jobs move to the area, there will also be demand for new office buildings.
Salt Lake City: Last year, Salt Lake City’s job growth was 3.4%–some of the fastest in the country. If that trend continues, real estate investors should expect lots of new residents. Many of these new residents will also be highly paid, as job earnings in the area are climbing. But considerable growth in the service suggests that investors should think about the needs of future residents from all walks of life.