The hottest real estate markets to invest in, according to experts

Work from home, but invest across the nation.

Real estate investments shouldn’t be limited to where you physically live, as you may be missing out on some of the hottest markets in the nation. The experts at Roofstock agree completely, which is why they are on a mission to make buying and selling properties a breeze while breaking down physical boundaries to enter the lucrative biz.

Roofstock is a company that allows individuals to invest in real estate, be it buying or selling, mostly focused on single-family homes and smaller, manageable properties. First, browse the marketplace for a property anywhere in the nation, which we can help you with in a moment. Then buy the listing in cash or via financing to get the title in your name. Finally, consider pairing up with a vetted property manager to handle day-to-day responsibilities like maintenance and tenanting. The latter is especially useful for out-of-state buys, in any booming markets you discover.

“Our platform lets everyone from first-time investors to global asset managers evaluate, purchase and own residential investment properties with confidence from anywhere in the world,” the company, which launched in 2015, stated on its website. “Since launch, we’ve surpassed $3 billion in transactions and continue to disrupt the industry with cutting edge technology and innovations.”

Where are the best markets to invest in right now?

A map of the United States with colored dots representing Roofstock's properties

So now on to the fun part: starting your journey as a real estate investor by choosing an area to invest in. Since Roofstock’s map of markets is so vast, narrowing down a place to set up shop can be tricky, especially now that you don’t have to physically live in that area to invest. Lucky for you, we called in some experts from some of the top real estate companies like Keller Williams and RE/MAX to help map out your future investments.

Seth Levin, an associate real estate broker at Keller Williams NYC wants you to put down the map for a moment and take a look at your taxes in order to find the best places to invest in real estate.

“Right now there is a lot of money pouring into the states that have seen a lot of migration away from higher tax states,” Levin explained to The Post. “States like Texas and Florida are experiencing a boom and prices have been skyrocketing while demand far exceeds supply. While this is fantastic in the short-term, there is a good chance that property values come back to earth when inventory levels loosen and temporary shifts in population due to the pandemic go back to normal. Other hot areas include North Carolina, Idaho, and Arizona.”

While this past year has been an unprecedented one with a rocky real estate history due to the pandemic, it is also wise to look at the stats year over year. That’s what the pros at RE/MAX do, publishing their monthly report online to help others make real estate decisions moving into 2022 and beyond.

A screenshot of a top 5 markets report from RE/MAX

“Of the 53 metro areas surveyed in May 2021, the overall average number of home sales is down 0.2% compared to April 2021, and up 53.4% compared to May 2020. Leading the year-over-year sales percentage increase were Detroit, MI at +136.6%, San Francisco, CA at +135.7%, and Miami, FL at +131.8%,” according to the RE/MAX National Housing Report for May 2021.

Where in my chosen state specifically should I be investing?

Once you’ve picked a general area, there is a bit more decision making to do when it comes time to picking the property, be it in a booming city or a quietly growing suburb, and knowing how to spot the ebbs and flows of the market and the migration patterns of the people who live in the area is key.

“The best way to see what areas are best for investment include simply looking at what percent of the location rents property versus owns,” Levin suggests. “Looking at vacancy rates is another great way to see how a specific market is performing. It also makes sense to see, from a future appreciation standpoint, if a market is undervalued because of a temporary situation. Manhattan would be a prime example of a high performing area that was negatively impacted by temporary events. Other urban markets like Los Angeles, San Francisco, Seattle, Minneapolis and Chicago have seen some of their condo inventory suffer in the short-term. Most of these areas have already seen this trend turnaround, but there is a lot more appreciation ahead.”

While remote investing is a game changer for those who don’t want to move somewhere to manage their properties, experts do suggest getting some boots on the ground during the location scouting process to get a feel for the area before committing.

“There is no alternative to kicking tires,” said Kobi Lahav, Sr. Managing Director and Sales Director at client brokerage company Living NY. “Go to the neighborhood, talk to people, sit in a coffee shop. Get the feel of who’s living there. Young families are always a good sign, as well as new trendy coffee shops. There are also certain constants that never change and keep the market around them always booming. One such constant is universities. Always look close to good universities, top-notch, not second-tier schools, and that’s always a sign of strong demand.”

Of course, no one expects you to do this alone. Upon request, Roofstock will pair you with an experienced property manager for the day-to-day, and all the experts agree that having a strong team of advisors is a must, regardless of where you invest.

At the end of the day where you invest will become part of your life so you may as well pick a place that you are passionate about. After all, if you love what you do you won’t work a day in your life, right?

“Find where you love,” said Daniel Blatman, an associate broker for Triplemint, a real estate agency in New York. “They say that if you invest in companies that you use and love then you can’t go wrong. I’ve found that with real estate too.”

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