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Housing markets previously considered secondary have soared to new heights during the pandemic as remote work policies and low interest rates spurred exodus to cities like Austin, Phoenix and Tampa, driving home prices in those cities to record highs .
But as the dust settles on the epidemic, mortgage interest rates have more than doubled, and housing prices in some epidemic hotspots have fallen. However, demand remains higher than before 2020, creating favorable timing for investors.
in a recent interview business insiderZillow chief economist Skylar Olsen said these 11 markets are ideal for real estate investors to purchase properties in the next few years. That’s because, while prices have corrected significantly, job growth is still rising, which means there’s a lot of opportunity for both house price appreciation and rental growth.
“Look for investments in areas that have good fundamentals or have long-term prospects. I always like to look at job growth in these types of things,” Olson told the media. “If we consider job growth since pre-pandemic and rank it, you see the stars of the pandemic headlines.”
Here are the 11 cities Olson selected as the friendliest to investors looking for cash flow and price appreciation in the coming years.
1. Austin, Texas
Image credit: Tomek Baginski/Unsplash
Austin, where the median home price is $509,500, has seen home prices fall 23.8% since May 2022, while employment increased 2.8% between November 2023 and November 2022, according to the U.S. Bureau of Labor Statistics. This Central Texas city has long attracted young people with its world-class music scene, but it’s increasingly becoming a tech hub.
2. Nashville, Tennessee
Nashville, Tennessee
Nashville’s median home price is now $439,950, down 6.3% since May 2022, according to Redfin. According to the Bureau of Labor Statistics, job growth between November 2022 and November 2023 is 2.1%.
3. Dallas, Texas
Dallas, Texas
Dallas, where the median home price is $385,000, has fallen 20.7% since May 2022, while employment grew 3.3% between November 2022 and November 2023.
4. Tampa, Florida
Sean Pavone/Shutterstock
While Tampa home prices are down just 2.9% since May 2022, they are down 13.6% since their peak in August 2023, while employment is up 1.9%. The current median home price is $393,000, according to Redfin.
5. Las Vegas, Nevada
Las Vegas/Unsplash
Since May 2022, Sin City home prices have fallen 4.6% to $415,000, while job growth in November 2023 was 3.8%, according to the Bureau of Labor Statistics.
6. San Antonio, Texas
Saint Anthony. Weston M/Unsplash
Redfin data shows that home prices have fallen 15.2% since May 2022, with the median home price in San Antonio being just $250,000. According to the Bureau of Labor Statistics, annual employment growth through November 2023 was 2.6%.
7. Charlotte, North Carolina
Charlotte, North Carolina
Home prices in Charlotte are down 4.6% since May 2022 to $384,182 and 9.6% since June 2023, while annual job growth in November 2023 was 2.5%.
8.Sacramento, California
Sacramento.Getty Images
Since May 2022, home prices in California’s capital have fallen 12.6% to a median price of $463,000. According to the Bureau of Labor Statistics, job growth will be at an annual rate of 2.2% through November 2023.
9. Atlanta, Georgia
Brad Hurtman/Unsplash
Atlanta’s median home price is now $360,000, down 20% since May 2022, according to Redfin. Meanwhile, job opportunities in the Peach City are growing at an annual rate of 2.5% through November 2023.
10. Phoenix, Arizona
Phoenix, Arizona.Getty Images
In a poster child for the pandemic housing market, Phoenix home prices are down 8.5% since May 2022 to a median of $430,000, while employment continues to trend upward, with an annual rate of 1.9% in November 2023 .
11. Miami, Florida
Poladamonte/Getty Images
Miami is the only market on the list to see positive price movements over the past year, with home prices rising 8.9% since May 2022. Home prices fell 7.2% between May and December 2022, but have since rebounded sharply, while employment fell by 3% year over year in November 2023, according to the Bureau of Labor Statistics.
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