Real Estate Experts Say These Will Be the Best US Cities To Buy Property in the Next 5 Years
When buying property in the United States, it’s important to consider the bigger picture. Location is one of the biggest factors, along with economic opportunity, cost of living, crime and safety, affordability, growth, education and climate.
According to the Federal Reserve, the average sales price of US homes is $513,100. Five years ago, that number was just $375,500. While extenuating circumstances led to this jump, prices will continue to climb in the coming years.
Learn More: 5 Types of Homes That Will Plummet in Value in 2024
Try This: How To Get Rich in Real Estate Starting With Just $1,000
Riverside, California
Typical home price: $643,521
Year-over-year increase in price: 8.6%
Safety index: 59.76 (moderate)
Climate index: 86.63 (very high)
Crime and safety rating: C-
Overall rating: B-
“Having leased and sold millions of square feet in the Inland Empire, I can vouch for Riverside’s rapid growth and increasing appeal,” said Joe Stance, a broker and founder of Stance Commercial Real Estate.
The area could be a great place for investors as well as individual residents to buy. It’s located near several major urban centers, including Anaheim, California; San Bernardino, California; Los Angeles; and, to an extent, San Diego. Yet, according to Stance, it still maintains a small-town community feel that makes it attractive to families.
“Riverside is poised for sustained growth,” he said. “The city’s dedication to arts, innovation and new business development makes it a prime location for both residential and commercial investments.”
Find Out: 6 Best Florida Suburbs to Buy Property in the Next 5 Years, According to Real Estate Agents
Trending Now: 7 Reasons You Must Speak To a Financial Advisor Before Spending $50,000 or More
Earning passive income doesn't need to be difficult. You can start this week.
New Albany, Ohio
Typical home price: $599,251
Year-over-year increase in price: 7.9%
Safety index in nearby Columbus: 50.66 (moderate)
Climate index in Columbus: 71.29 (high)
Crime and safety rating: B+
Overall rating: A+
Dimitri Zubrich, a Realtor with Re/Max Affiliates in Westerville, Ohio, said New Albany is a hidden gem that’s bound to become a hot spot in the next five years.
“This lesser-known location is on the verge of a significant economic boom due to Intel’s new microchip plant,” he said. “The plant is expected to bring over 3,000 jobs and $20 billion in investment to the area. This project is part of a larger initiative to create a ‘Silicon Heartland’ in Ohio. It will drive technological growth and economic development.
“Having worked extensively in the Columbus area, I’ve seen how such developments can transform communities,” he said. “The Intel project, combined with New Albany’s already low property taxes and excellent school system, makes it an ideal spot for long-term investment.”
Pictured: Columbus, Ohio
Discover More: 7 Worst States To Buy Property in the Next 5 Years, According to Real Estate Agents
Atlanta
Typical home price: $399,879
Year-over-year increase in price: 2%
Safety index: 36.02 (low)
Climate index: 89.73 (high)
Crime and safety rating: C-
Overall rating: A
For those interested in living in the South, Atlanta is another U.S. city to consider.
“As an Atlanta Realtor, I wholeheartedly believe Atlanta is the top city for property investment in the next five years. Our city is an economic powerhouse in the Southeast, with major companies like Delta, Coca-Cola and Home Depot continually expanding. These corporations, along with numerous tech startups, are generating job opportunities and attracting people from other states to Atlanta and its surrounding suburbs,” said Jeremy Smith, a real estate advisor and Realtor with Engel & Völkers.
“Compared to other major cities such as New York, San Francisco and Los Angeles, Atlanta offers a relatively affordable cost of living,” he said. “Our suburbs are growing, providing excellent schools and much lower cost per square foot than other major metropolitan areas. Although housing prices are rising, Atlanta still provides more affordable options and promises a better return on investment over the next five years.”
Boise, Idaho
Typical home price: $491,295
Year-over-year increase in price: 4.8%
Safety index: 64.72 (high)
Climate index: 65.11 (high)
Crime and safety rating: B-
Overall rating: A-
While based in California, Stance also said he’s seen great potential in Boise.
“Boise’s rise as an economic and population growth center cannot be overlooked,” he said. “The city’s low cost of living and high quality of life … make it a compelling market.”
Stance also said it’s likely that the city would make for a great investment opportunity, especially for those who purchase commercial spaces, like office buildings. This is because the rental market there is already high and buildings — residential and nonresidential alike — have continued to appreciate over time.
Hudson Valley/Catskills Region, New York
Typical home price: $446,241
Year-over-year increase in price: 7%
Safety index: 49.22 (moderate)
Climate index: 79.66 (high)
Crime and safety rating: B-
Overall rating: B-
Several locations in the Hudson Valley/Catskills region could also be great to buy property in the next five years, according to Angelica Ferguson VonDrak, an associate real estate broker at Sotheby’s International Realty.
“Kingston is right in the heart of the Hudson Valley and has a lot going for it. The city is undergoing a significant revitalization right now,” she said. “Catskill is really on the rise. It offers affordable housing prices and is close to both the Hudson River and the Catskill Mountains. There’s a lot of ongoing revitalization in the downtown area, which is drawing new businesses and residents.”
And the options don’t stop there. “Livingston Manor is another great spot to see the positive appreciation, and it’s a perfect place for those who love the outdoors,” she said. “It’s nestled in the southern Catskills and offers both beautiful natural surroundings and small-town charm. Over the past few years, it’s become a hotspot for weekenders from the city, which has spurred growth in the local economy.”
As for Germanton, VonDrak said it’s a hidden gem that’s seen a steady increase in buyers who want to settle down in a more peaceful, rural area. It also has a strong sense of community and a growing number of local businesses — a good sign for future property values.
Last but not least is Coxsackie.
“Coxsackie is a town that is really starting to catch people’s attention. Located right along the Hudson River, Coxsackie has beautiful waterfront views and a charming historic downtown,” she said. “There’s a lot of potential here, especially with new restaurants and shops opening up, and the community is very welcoming. The real estate prices are still relatively low, so it’s a great time to buy before it really takes off. River towns don’t stay cheap for long though!”
Check Out: I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election
Bottom Line
Ultimately, where you decide to buy property is a personal choice. It’s important to weigh all of the factors that matter to you, as well as understand your budget and reasons for doing it.
Whether you’re buying for your family or for investment purposes, knowing these things and focusing on the bigger picture can help you make an informed decision and choose the best location for you.
All home prices and price changes were sourced from Zillow, all safety and climate index figures were sourced from Numbeo, and all crime and safety and overall ratings were sourced from Niche.
More From GOBankingRates
7 Reasons A Financial Advisor Could Boost Your Savings in 2024
8 Rare Coins Worth Millions That Are Highly Coveted by Coin Collectors
This article originally appeared on GOBankingRates.com: Real Estate Experts Say These Will Be the Best US Cities To Buy Property in the Next 5 Years