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Whether you're looking for the perfect home to live in or as a real estate investment, you want to spend your money wisely. And with the real estate market having so much excitement over the last few years, how do you know where to make solid investments in areas that haven't reached their full financial potential?
GOBankingRates asked real estate experts and investors for their thoughts on the best states to buy real estate over the next five years. Indeed, they agreed on two things. That means avoiding the expensive coast and looking inland.
ohio
According to Zillow, the average home price in Ohio in August 2024 was about $232,000, nearly $130,000 less than the national average price. Real estate experts are paying attention.
“Cities like Toledo, Columbus and Dayton are poised to see significant growth,” said Seamus Nally, CEO of Turbotenant, which helps landlords manage their properties. “Many people have already started moving to these areas as the economy is growing and job opportunities are expanding. But real estate prices are still pretty good. We expect prices to start rising as the population and demand increases, so it could prove to be very profitable to invest sooner rather than later.”
Average home prices in Dayton ($149,406) and Toledo ($121,585) are well below the median price in Ohio, and have increased more than 7% in the past 12 months, according to Zillow.
adjacent to ohio
Michael Gewurz, founder and CEO of Bluebird Lending, a national private lender that primarily serves real estate developers and investors, also said that Based on the increase, we agree that Ohio is a hot spot for acquiring real estate.
However, states that border Ohio can be good places to buy as a primary residence or as an investment. Homes in the state typically cost more to rent than mortgages and the state's income taxes are low, which could foster growth, he said.
thank you!
He said the trend is spreading to other Midwestern states, including Wisconsin, Illinois, Michigan and Indiana.
florida
Austin Hare, managing partner of Reeders Real Estate, said Florida is an ideal place to buy real estate. He has been investing in real estate in the state since 2011.
“Despite significant rate hikes and historically high interest rates, markets continue to show strength,” he said.
Hare said Florida has some intangibles that make it a winner.
“The combination of year-round warm weather and no state income tax is a great combination,” he says. “People continue to move to the state even as real estate prices continue to rise.”
Zillow reports that Florida real estate values have increased 63.7% in the past five years, but only 1.1% in the past 12 months. Still, Hare said there is room for growth in the state, where the average home price is about $395,000.
“Florida is also increasing at a faster rate than the national average, so the rate of increase is slowing,” he said. “But the population continues to grow by pulling people away from other states. So the fundamentals are there to deliver long-term upside.”
Other southern tier countries
Alex Blackwood, co-founder and CEO of Mogul Club, a fractional real estate investment app, said, “Today and over the next five years, the Sunbelt region is the best state to buy real estate.'' We're going to come together,” he said.
“In particular, states like Texas, Tennessee, and Georgia are already experiencing growth and have received a great deal of attention over the past few years. Suburbs are heating up because more people are leaving than they are leaving, reducing supply and increasing demand.
“We therefore expect real estate in these cities to become increasingly unaffordable in the coming years, making now the perfect time to invest in these high-profile areas.”
new york
Well, not all of New York.
In his 2021 book How to Prepare for Climate Change: A Practical Guide to Surviving Chaos, author David Pogue calls the upstate New York cities of Buffalo and Syracuse ideal for living in a changing climate. I mentioned it as a place. He called these cities “climate paradises” because of their lack of wildfires, hurricanes, and clean fresh water supplies.
Angelica Ferguson Fondrak, a real estate associate broker in the state's Hudson Valley region, said buyers are looking to areas like New York state that are less vulnerable to climate change.
“Residents in the Hudson Valley, Catskills, and Adirondack regions are made up of many people who love the outdoors and are generally climate-sensitive, so to speak. This is why a lot of climate action is being implemented in different regions. and local residents lead an environmentally conscious lifestyle,” she said.
“We love the natural beauty of these areas and want to preserve them. I'm already seeing a lot of 'climate refugees' moving in from places like upstate New York and especially California. . I predict that we will see more of this in the coming years, and that real estate values will continue to rise as the area continues to grow in appeal. ”
