3 Unexpected Rental Markets You Should Consider in 2023
With the rise of the virtual economy, it’s never been easier to invest in real estate long-distance.
Technologies that help with virtual showings, property management, the submission of maintenance requests and more have been rapidly adopted. This opens up a world of possibilities for where you could snag your next real estate investment.
The question is…where should you look?
And sure, there are plenty of popular markets where real estate investors are outbidding each other left and right.
But there are other lesser-known markets where you can get a steal of a price and profitable returns for years to come.
In fact, the ideal location for your future real estate investment could be one of the three unexpected markets that follow.
Columbus, Ohio
College towns often make great locations for residential rental property. And with Ohio State University’s local undergraduate enrollment close to 50,000, you won’t be short of potential tenants in Columbus, Ohio. Additionally, it’s also the area’s number one employer, continuously bringing in additional faculty and staff who need housing as well.
Plus, with so many fresh college graduates in the area, Columbus is enjoying a technological renaissance. These young professionals have the skills that companies like JP Morgan Chase need to grow their businesses. In fact, 20 of the Fortune 1000 Companies now call Columbus home.
Speaking of homes, they are super affordable in Columbus, at a median home price of $290,000. And while they have seen an increase in home values in recent years, they saw a sharp decline in home sales from 2021 to 2022 - the greatest decline in the area since 2008 (Source: The Columbus Dispatch).
This means that if you’re ready to buy real estate in Columbus, you can expect sellers to be more accommodating to your requests.
Huntsville, Alabama
If you’re looking for a diamond in the rough investment, Huntsville, Alabama could be the perfect location for your next real estate investment.
With only 13,000 inhabitants back in 1940, everything changed for Huntsville when the U.S. Army chose to build multiple munitions facilities there. This led to many military operations in the area, along with a growth in population and industry to support those efforts.
Today, industries are flocking to Huntsville due to the affordable cost of living and a low cost of doing business.
It hosts a Toyota manufacturing plant; 25 biotechnology firms; and Meta (parent company of Facebook) is currently building a data center there.
On top of that, Alabama is a landlord-friendly state. It does not prohibit fees for late rent payments and has the second-lowest property tax rate in the country.
If you want to enter an inexpensive housing market right before it starts bursting at the seams, Huntsville is the place for you.
Jacksonville, Florida
As the 3rd best city to live in Florida according to Forbes, Jacksonville offers an economy that has steadily grown year over year since 2010. It also boasted a whopping 10% growth in GDP from 2020 to 2021.
Additionally, the city’s perfect combination of outdoor recreation areas, sporting events and arts community help the area to continue drawing new residents to the area.
These factors make Jacksonville a desirable location not only for long-term rentals, but for short term rentals as well. Having this option available to you could be beneficial in case of market fluctuations, or if there is an adjustment in your investment needs or goals.
For now, it’s easy to enter the Jacksonville market with a median listing home price of $299,900. And you’ll get plenty of returns, with an area that is seeing a significant growth in average rent prices.
Be Open to Exploring New Markets
Ultimately, the best real estate investment is one that matches your personal needs and your investment objectives.
Some investors prefer keeping eyes on their property while others enjoy the scalability that comes with more hands-off, long-distance investments.
At Temple View Capital, we provide investor loans for residential rental property near and far. And the best part is, we’ve seen where our clients have had their greatest successes and challenges.
If you’re considering a long-distance real estate investment in your future, talk to one of our trusted advisors today. As a non-traditional private money lender, our team members have specialized expertise to support you as you grow your rental portfolio in the way that works best for you.