Every real estate investor knows that their best opportunities are found in an area’s location value. Yet, real estate investments can be found in several cities, even underrated cities. However, 2022 is a new ball game for the real estate world.
Or is it?
Although there have been some hits to the market in the recent past, there are several reasons why the 2022 real estate market is holding steady. From higher-paying jobs and improved corporate policies to housing inventory shortages and tax-friendly states, these are just some of the reasons why investors are digging their nails in and taking advantage of real estate investment opportunities that keep renewing themselves. Let’s take some of the nation’s top underrated cities for real estate investment.
Although it’s sitting 30 miles on the outskirts of Phoenix, the city of Buckeye, AZ is next to become a booming real estate area. First, it is already home to many existing and developing master-planned communities. Next, with more than 600 square miles of potential real estate, recreational, and business development, Buckeye, AZ is an important place to consider investing in real estate.
However, one of the best reasons why Buckeye, AZ real estate is such an investment-friendly place is that it offers residents an affordable price tag. Compared to national averages, the cost of living in Buckeye, AZ is almost 4% higher. However, its cost of living is lower compared to other areas within Arizona. For example, medium home prices for Arizona stand about $349,000, while Buckeye, AZ is at $330,000.
Although Charlotte, NC is one of the fastest-growing cities within North Carolina and the US, this also means that its potential for real estate can be underestimated. With more than 3% population growth each year, affordable homes are one thing on the mind of local and potential residents.
As a result, Charlotte’s real estate investments in the area of affordable housing make it on our list of underrated real estate investment potential.
Known as a bedroom community that is located just outside of the Dallas-Fort Worth area, Frisco, TX has become a popular residential spot for commuters. With less than a 30-mile commute, it makes sense that Frisco, TX has become one of the area’s most rapidly growing cities. Because Frisco is still a bedroom community, its economy is expected to grow by more than 55%. Frisco, Texas is also known for its low property taxes with a rate of $0.44.
Nampa has seen recent job market attraction with a growth of more than 3.3%. Home appreciation values within the area have grown to slightly more than 16%. The mountainous region and the area’s low cost of living have also attracted new residents, mainly those seeking refuge from the high cost of living in California.
As compared to the US, Nampa, Idaho’s cost of living is less than 5.7%. Additionally, the area is just minutes away from Boise which also makes Nampa attractive for those that want to commute. However, Nampa, ID holds its own in job growth with plenty of jobs centered around high-tech companies, manufacturing businesses, and agricultural industries.
Chapel Hill, NC
As an attractive urban area, Chapel Hill, NC offers residents a positive livability rating. The area is known for its stable economy due to the presents of the University of North Carolina at Chapel Hill. Home values in Chapel Hill, NC have seen a massive increase in appreciation values.
Within just one year, home values have soared to more than 26% in this area. However, the research triangle is still one of the main reasons the economy of Durham-Chapel Hill is attractive to new residents. Recently, Chapel Hill has seen more than a 2% increase in job market growth.
Foley, AL is known as a beautiful coastal town with its sports centers and historic downtown districts. The area continues to bring in new inhabitants year after year. Residential appreciation values have gone up by more than 14% for Foley, Alabama homeowners.
The cost of living in Foley is less than 15% compared to the US overall, while commute times are usually less than 20 minutes. Another reason why real estate investors should consider Foley, AL is the area’s steady increase in jobs which has increased by more than 3.2% recently.
Known for its resort-style living with attractions such as the Glacier National Park and the Whitefish Mountain Resort, the area continues to bring in potential residents. Home values in the area have appreciated by as much as 15% within the past decade.
The job market in Whitefish, Montana has recently increased by a little over 2%. Although the cost of living in the area in Whitefish is almost 12% higher than the US average, the potential rental costs and real estate gains make the area a worthwhile consideration as far as investment potential is concerned.
Kalamazoo, MI provides a stable economy as a college town with the existence of Kalamazoo College and Western Michigan University. Recent job growth within the area is seeing positive attention. However, one of the most attractive things about Kalamazoo, besides its name, is the area’s low cost of living. As compared to the US, residents enjoy a cost of living that is almost 21% lower than the national average. Within the past 10 years, the appreciation values for homes in Kalamazoo, MI have increased by nearly 13%.
Known for its beaches, dramatic waterfalls, and national parks, Hilo, Hawaii is still one of the most picturesque places on the paradise side of real estate.
Compared to other cities in the United States, Hilo, Hawaii is also known to be a part of Hawaii’s expensive coastal areas and still has a high cost of living price tag. However, it is located on the northeast side of the big island of Hawaii and still offers real estate opportunities that are worthwhile. With beach living being almost 30% lower than the rest of Hawaii, it has made it to our top underrated real estate investments list.
Although the location of real estate is vital when it comes to investing, these underrated cities make the potential for investments worthwhile due to important areas of change. With local areas seeing shifts in economic stability, job growth, population growth, and lower cost of living, this makes investing in these areas a smart move.
Other considerations for real estate investments in these cities include improved corporate policies that may attract more jobs to the city, the higher demand for planned communities and the need for more affordable housing options in some areas.
Factors such as increased rents, increased demand for bedroom communities, and the location’s access to attractions may also be factors that help increase the demand for real estate investments in these areas.
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