Target Markets for Investors in 2017

Lake Eola Park at Night

Florida holds on with 4 cities making the list of top markets for investors in the new year

For prime investment locations, it may be time to look South. Forbes teamed up with Local Market Monitor, a company that tracks more than 300 housing markets, to uncover the top markets for investors in the new year. The cities that dominate this year’s list reflect two major benefits: affordability and growth.

“If you are planning on making an investment, either by buying a home or by buying a rental property, these are really good markets,” says Ingo Winzer, Local Market Monitor CEO. “These are markets where… you are probably going to get a good return and you are not taking an extraordinary risk.”

Four cities in the Sunshine State made the list, the most of any state, and all are in the top 10. There’s Jacksonville at no. 2, Orlando at no. 3, West Palm Beach at no. 5 and Tampa at no. 7. Winzer says that Florida’s continued strength is the biggest surprise of the list – seven Florida cities made the cut last year. Florida was the poster child for financial crisis devastation. As recently as 2015 seven markets in the state were undervalued by more than 20%. But builder constraint and job growth have boosted the value of existing homes.

Here are the 15 cities investors could do particularly well in this year, according to the study:

  1. Dallas, Texas: 31% (the percentage increase predicted for home prices by 2020)
  2. Jacksonville, Fla.: 30%
  3. Orlando, Fla.: 28%
  4. Seattle, Wash.: 26%
  5. West Palm Beach, Fla.: 26%
  6. Salt Lake City, Utah: 25%
  7. Tampa-St. Petersburg, Fla.: 25%
  8. Nashville, Tenn.: 24%
  9. Fort Worth, Texas: 24%
  10. Grand Rapids, Mich.: 23%
  11. Sacramento, Calif.: 22%
  12. Charlotte, N.C.: 21%
  13. Raleigh, N.C.: 21%
  14. San Diego, Calif.: 21%
  15. Las Vegas, Nev.: 20%

 

Sources: “Target Markets for Investors in 2017,” RISMedia; “Best Buy Cities: Where to Invest in Housing in 2017,” Forbes.com