In 2022, real estate investment is all the rage. Real estate values are rising faster than they’ve risen in years, and they’re showing no signs of letting up any time soon. If you’ve got the capital for it, investing in real estate is a solid way to gain immense returns on investment and secure a bright future for yourself and your family.
Of course, real estate investment is hardly a simple matter. If you’re going to turn a profit, you’re going to need a healthy helping of skill and knowledge pertinent to the field. Of these various aspects that you’ll need to be familiar with, perhaps the most important is location. The market that you choose to invest in will likely prove the most crucial factor that determines whether or not you turn a profit.
This begs the question “what are the hottest real estate markets for investors in 2022?” Well, that’s what we’re here to tell you! From the arid steppes of Arizona to the sunny shores of Florida and the charming communities of Maryland, this article is going to take you all across the country in a first-rate manner. Curious to find out more? Keep reading!
What makes a market suitable for investment?
Before we can tell you which American cities are home to the hottest real estate markets for investors in 2022, we’ve got to take a look at what makes a city a good place to invest. If we simply tell you which markets to invest in, you’ll be poorly equipped to invest elsewhere on your own volition. So, what makes a city a good place to invest your money?
The first thing to look at when assessing a real estate market is the median property appreciation rate. This is measured as the year-over-year increase in price for homes sold, as reported by any number of real estate indexes and appraisal sites. These sources aren’t always as precise as we’d like them to be, but with some cross referencing you can find approximate figures with relative ease.
Then there’s the median home price. While this isn’t quite as indicative of profit potential as the property appreciation rate, median home price will be the primary factor in determining whether or not you can actually afford to invest in the market you’re considering an investment in. With some calculation and research, you can easily find out which cities match your budget and expectations for a real estate investment.
Lastly, you’ll want to consider two additional factors: the time listings spend on the market and the amount above or below list price that listings sell for. The two factors may not seem important, but they’re crucial for anyone investing in real estate, especially if the type of property you’re investing in is particularly volatile. Hope online and do your research; we guarantee that you won’t regret it!
Real estate markets on the rise
Now that that’s out of the way, it’s time to take you on a trip across the country to survey the best real estate markets for investors in 2022. We can’t cover every advantageous real estate market, of course, but we’ve handpicked three of the most impressive ones and brought you some helpful information about them today. Let’s take a look now, shall we?
Bowie, MD
North of the capital, sequestered away on the eastern seaboard there lies a charming little town known as Bowie. This delightful place is a great place to live according to real estate agents in Bowie MD, but it also lays claim to another significant advantage: it’s a great place to invest in the real estate market! There are a number of reasons for this, the most significant of which we’ll explore now.
First off, there’s the local median home price. At $465,000 on average, this market is somewhat higher than others when it comes to the barrier for entry imposed upon investors. Nevertheless, this high median home price is also a great reason to invest here. With appreciation rates such as they are, a high purchase price means an even higher sale price when you eventually liquidate your holdings.
Bowie is home to a fairly high property appreciation rate of over 10.5%, making it an exceptionally fast growing market. There are plenty of cities with higher median appreciation rates, but this one is a lot more reliable than some of the other more volatile markets. Overall, you can expect your investment to increase in value at a very steady rate.
Finally, homes in Bowie spend an average of only 16 days on the market. This means that there is an absurdly high amount of demand, making this a great place for sellers. Once you purchase a home or two here as an investment, you can become a seller too! When that happens, we’ve got more good news; on average, homes here sell for 5% or more above list price!
Scottsdale, AZ
Not one for the cold winters and gray summers of Maryland? Then Arizona might just be the place for you! Located in the heart of the rugged but fiercely beautiful Sonoran desert, the little town of Scottsdale Arizona awaits you with one of the most lucrative real estate markets in the entire country, let alone the state!
Starting off with the median home price in Scottsdale, it’s immediately apparent that this market is reserved only for wealthy and experienced real estate investors. With a median home price of over $815,000, homes here cost nearly triple what they do in the average American city. In spite of this, those with the means to buy into this market will find it extremely lucrative, as the local realtors in Scottsdale AZ tell us.
Why is that, you ask? Because of the property appreciation rate, of course! Increasing by over 24% year-over-year, real estate in this city gains value at a phenomenal rate. In spite of the high median home price, buyers are clamoring to purchase property here. On average, homes only spend 22 days on the market, and sell for up to 8% over list price.
Boca Raton, FL
For the last entry on this list, we’re traveling south to the land of beaches, theme parks and perpetual parties. This state may have a reputation for being a bit wild, but that doesn’t mean it isn’t a good place to invest in real estate. On the contrary, in fact; it’s actually home to some of the hottest real estate markets in the country. Case in point? The city of Boca Raton!
With an average home price of $567,000, Boca Raton is yet another city that will be unsuitable for investors with smaller budgets. In spite of this, homes here are in extremely high demand, selling soon after being listed. The numbers aren’t quite as flattering as those in other cities, but there is one statistic that might make your eyes pop out of your head like a character from Looney Tunes: the property appreciation rates.
At a staggering 39% year-over-year, homes here are gaining measurable value every minute. The longer you wait to buy property here, the more expensive that property is likely to become, making it even harder to break into this market. If you want to make obscene and unreasonable profits, top-ranked real estate agents in Boca Raton recommend that you buy in soon!
Conclusion
Investing in real estate can seem like a bit of a fool’s errand if you don’t know what you’re doing, but if you do it can be a great way to turn a certain amount of money into a much larger sum of money. Hopefully, this article has given you some ideas as to how and where to invest your money, and hopefully it will lead to you turning a hefty profit. We wish you the best of luck!
