As you look for the best metro areas for real estate growth, think about Seattle, Austin, Queens, Washington, D.C., and other cities that are not only fast-growing, but also affordable. These cities have high job growth and are popular for many reasons. Let’s take a closer look at some of these cities. Which ones are a good investment? Listed below are the cities with the best real estate growth potential, according to Forbes.
Seattle
While Seattle’s real estate market is not as strong as many other cities, it is still thriving to growth. The city has a limited supply of homes, which affects demand. Due to this, homes in Seattle tend to sell quickly, often in just a few days. This is a marked difference from US housing markets, where homes typically take anywhere from 30 to 45 days to sell. 부동산담보대출 This means that Seattle has a low inventory of homes, which means more choice for buyers and more sales.
Meanwhile, interest rates remain low, so investors in Seattle have favored long-term strategies with rental properties. While many investors continued flipping homes, profit margins were narrow and drove people to rent out their properties. The low interest rate helped to justify the high acquisition costs and maximize cash flow from rental properties. Regardless of the market conditions, Seattle is likely to remain hot for at least another five years. While the housing market may be overheated now, there’s no reason to expect the current pace of growth to slow down.
Austin
The real estate market in Austin continues to grow. Although the housing market in Austin is saturated, the market still has a high level of buyer motivation, as evidenced by the high number of sold and active listings. While sellers experienced physical barriers to movement, buyers swept through the market without bidding wars. A recent spring market rush in Austin illustrates the effects of COVID-19 on the local market. Though the stock market and housing market suffered, the Austin real estate market remained relatively steady. Pending contracts dropped, but home prices rose with Real Estate Growth.
One factor that contributes to Austin’s real estate growth is low interest rates. This is a good sign for buyers and sellers, because the interest rates are still relatively low. Furthermore, a lack of inventory makes finding a home difficult. Moreover, buyers are more qualified today than in previous years, so prices are expected to rise further in the future. While the housing market is currently experiencing an upward trend, there are many factors that can cause this trend to reverse.
Queens
In November, new lease activity in Brooklyn and Queens jumped to the highest level in more than 12 years, and the number of leases fell for the sixteenth consecutive month. Leasing activity rose, but net effective median rent fell for the second straight month, the fastest rate in more than a decade. Rents fell in Northwest Queens, where a lockdown ended in June. Net effective median rent decreased by the most since April 2011, while new leases declined for the fifteenth straight month.
In the second quarter of 2019, sales in Queens fell by nearly a quarter, and the region saw its lowest level in nearly a decade. While the number of listings decreased, the median sales price rose at its fastest pace in three years. The decline in inventory is largely due to the state-imposed COVID lockdown, but the city still has a large number of vacant homes. Despite this, home prices are still growing in many areas of Queens.
Washington, D.C.
The commercial real estate market in the Washington, D.C. region has traditionally depended on the federal government for much of its demand for office space with growth. However, this reliance on government spending has dwindled in recent years. In fact, federal tenants accounted for roughly 25% of leasing activity in the DC region during the 1980s and early 2000s. Vacancy increased to 11.5% in 2009 and rents plummeted as law firms reduced their footprints. Between 2009 and 2014, large law firms returned 4.5 million square feet to the market for Real Estate Growth.
However, despite rising interest rates, the DC housing market has remained healthy in recent years. There are few homes available for purchase on Capitol Hill, and demand is high. This lack of inventory is creating a buyer’s market and increasing competition, resulting in higher prices. However, there is a silver lining to this situation – the housing market in the D.C. area is set to grow in the coming years, with the median price of homes in the area increasing by 4% in the next few years.
New York City
The latest statistics on New York City real estate growth indicate that prices are continuing to increase. Despite a continued drop in listing inventory, the price trend indicators rose. Net effective median rent and all face rent prices increased to record highs. Vacancy rates dropped to the lowest level since 2008.
For the sixth straight quarter, sales in Brooklyn hit record highs. Year-over-year growth in sales over $1 million thresholds was three times higher than for sales below those thresholds. One in five sales in the boroughs ended higher than the asking price. Despite the high demand, there is little housing inventory in the boroughs. New listings rose for the first time in eight months, but inventory remains extremely low.
Los Angeles
The most significant factor driving Los Angeles real estate growth is the increase in the number of military bases in the area. The area is home to more than 13 million people and is comprised of dozens of smaller cities and suburbs with very distinct personalities. This growth is attributed to two factors: the military bases that dump renters into the Los Angeles housing market and the defense contractors who pay premiums for living in the area. But what are these factors that spur the growth of real estate in these areas?
Low interest rates for growth are a contributing factor to the overall real estate market in Los Angeles, which will boost home sales and increase inventories. Meanwhile, first-time homebuyers and Baby Boomers will spur demand for new homes. Moreover, cities in the region will ease zoning restrictions and open up the permit process, boosting inventories. Once these factors become a part of everyday life, the Los Angeles housing market is likely to grow again.