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15 Best Cities for Real Estate Investment

Google invested $10 billion in new real estate projects this year. But commercial buildings aren’t the only type of real estate that’s hot this year. Residential homes also present investment opportunities with high ROI.

If you know anything about real estate, you know location is everything. It’s critical to choose the right city before making your investment. So, we’re bringing you this guide to the best cities for real estate investment in 2022.

We used reports from the National Association of Realtors, Opendoor, and MoneyTalks to identify the hottest markets right now. Then, we chose the cities with the most demand and highest home price growth.

Ready to find the perfect location for your next investment property? Then check out this list of the top 15 cities guaranteed to give you a bang for your buck.

1. Clarksville, TN

Clarksville, TN, is a large city (population: 156,092) located in northern Tennessee. It topped Opendoor’s 2022 list of the hottest US zip codes. Clarksville had the highest number of home sale listings to go under contract within 90 days.

The average home price in Clarksville is $299,900. Demand is currently higher than supply right now, with an average of 650 homes per month. That number would have to increase to 3,900 homes on the market to meet demand.

Clarksville is located a few miles East of Nashville, another hot market. Nashville home prices grew 20.9% from 2021 to 2022.

Knoxville is a bit further to the east of Clarksville. It is home to the fifth-most undervalued housing market in America. In 2021 alone, the home price to income ratio hit 2.7, the sixth-highest in the country.

2. Leander, TX

Leander, TX, is a small suburb of Austin. It was one of the fastest-growing cities in the US from 2018 to 2019. Leander also made the #2 spot on Opendoor’s hot zip codes roundup.

Buyers love Leander because it has a plethora of new homes and good schools. This city is also a short drive from Austin, where Adobe, Amazon, and Apple all have a presence. The average home price in the area is $525,000, growing an incredible 31.3% year over year.

Despite these stats, experts consider Leander a buyer’s market right now. And rest easy knowing that, even if you can’t flip your investment property, the rental market is healthy. Homes rent for up to $4,400 per month in Leander.

3. Katy, TX

Katy, TX is a suburb located west of the Houston metroplex. This small city ranked third on Opendoor’s list of the nation’s hottest zip codes. Considering the 17.9% home price growth in nearby Houston, it should be no wonder.

Homes go for anywhere from $125,000 up to $8.5 million in Katy, up 12.6% from last year. Homes are going fast, too. Currently, Katy houses sell after around 36 days on the market.

The Houston suburb of The Woodlands is close by and another hot market for real estate properties. The median home price in this and a nearby suburb, Sugar Land, has grown nearly 18% over last year. Experts further project this market to see 15.5% home price gains going forward.

4. New Braunfels, TX

Texas home prices hit an all-time high in 2021, so it should be no surprise that yet another Texas city is on this list. This time, it’s New Braunfels, TX— a large city that’s close to Austin and part of the San Antonio metro area.

With a 2.8 ratio of home prices to median income, this metroplex has seen 15.2% growth in home prices over the last three years. The median home price in this metro is $401,250. Days on the market are currently averaging about 39 days.

Additionally, the San Antonio-New Braunfels metroplex is expected to keep growing. Experts project a 4.8% population growth and 12.6% wage growth over the next three years. Meanwhile, you can expect to see a 17.6% growth in home prices in the future.

5. Yukon, OK

Yukon, OK, is part of the Oklahoma City metroplex. It’s an affordable market for home buyers and investors, with a median listing price of only $279,000. Also, homes tend to go below the asking price or for a median home price of $260,000.

You’ve got to get in fast, though, because home prices in the area are rising. Oklahoma City-area home values increased 13.7% from 2021, and experts project that this growth will continue at a rate of 11.9% going forward.

Like many markets, Yukon homes are starting to go 3%–10% above asking. Homes sit on the market for as little as a few hours to up to 35 days. And most homes get multiple offers.

Just a few miles east of Oklahoma City, Tulsa, OK, is also seeing record home sales. Home values have jumped 14.5% from 2021, a rate that’s expected to stay the same in the near future.

6. Loganville, GA

Loganville, GA, is a mid-sized city (population: 12,490) located about an hour east of Atlanta. It’s a good market for high-end real estate investments with a median listing price of $425,900. Unlike other markets on this list, home prices don’t seem to be too overvalued, going for an average of 2.31% above asking.

The great thing about Loganville is that it offers a rural feel but is close to the city. The nearby Atlanta-Sandy Springs-Alpharetta metro area also has a great housing market. Homes go for a median of $315,033.

The only downside to investing in real estate in Loganville? It’s currently a seller’s market. Currently, there are only 664 homes for sale in the entire city, and homes stay on the market for about 40 days before selling.

7. Forney, TX

Forney, TX is part of the Dallas-Fort Worth metro area, the fourth-largest metropolitan area in the US. Like the rest of the DFW housing market, Forney home values are way up. Redfin estimates that home values rose 34.9% from 2021 to 2022.

The median home price in Forney is $401,000. Compare this to the rest of the DFW market, which has a median home price of $293,976. Many homes sell for an average of 7% above asking.

Getting into this market may be easier than selling. Still, Forney and surrounding areas will continue to see massive home value spikes. Experts project a 15.8% home price growth in DFW between now and 2024.

Coupled with a 15% projected wage growth and nearly 5% increase in population, these stats make Forney and surrounding areas an extremely attractive buy. Plus, the National Association of Realtors found the DFW area to be the #1 most undervalued housing market in the nation.

8. Temecula, CA

Halfway between Las Angeles and San Diego, Temecula, CA, is a tourist spot known for its award-winning wineries and scenic golf courses. The real estate market is a luxury one. The median home price is around $750,000.

The coveted Los Ranchitos neighborhood sees median home values of $1.4 million, making it the most expensive neighborhood in Temecula. The neighborhood of Winchester Creek is the least expensive area, with median home values clocking in at a more modest $557,500.

You might not think these prices are worth it. However, considering that home prices rose 22% from 2021 to 2022, you might want to think again. Investing in this market now could earn you a major ROI over the next couple of years.

9. San Diego, CA

San Diego abuts the northern border of Mexico on the southern coast of California. With a population of 1.4 million, it’s the second-largest city in San Diego. San Diego is also a hot real estate investing market right now.

In April 2022, median home prices in the area hit a record $1 million. According to other estimates, this median home price is up more than 22% from last year.

In fact, there’s a ton of demand for San Diego homes. Listings only stay on the market for an average of 8 days. Multiple bidder scenarios are further pushing up home prices to 12% above the asking price.

10. Celebration, FL

The final market to make Opendoor’s hot zip code list was Celebration, FL. This small city is a suburb of the Orlando-Kissimmee-Sanford metro area. Located near Disney World, Celebration is 100% owned by the Walt Disney Company.

Celebration is a relatively young city (it was founded in 1996), meaning most homes are newer. That’s why the median listing price is high for Florida at around $650,000.

For reference, compare Celebration to nearby Kissimmee and Orlando, both of which have median listing prices in the $300,000–$400,000 range. The Orlando metro area is a great place to look for investment properties, too, since local home prices are forecasted to grow by 15.8%.

11. Charlotte, NC

Charlotte is part of the Charlotte-Concord-Gastonia metropolitan area. This area extends across both North and South Carolina. The nearby city of Spartanburg, SC is also one of the most undervalued housing markets in the nation.

In Charlotte, the median home lists for $400,000 and sells for slightly more at $401,700. Concord, NC is slightly more affordable, with a median home listing price of $375,000. Gastonia is the cheapest city in the metro area when it comes to home prices since the median selling price is $265,000.

Home prices in this area are on the rise, increasing 23.8% since last year. Experts forecast that home values will climb at least 23% going forward.

12. Las Vegas, NV

Las Vegas, NV needs no introduction. This tourist city is home to over half a million people, making it the 26th most populated city in the US. Las Vegas is always a hot market for real estate, and 2022 is no different.

Currently, home prices are up nearly 31% from last year. The median home price is around $378,000 and is expected to increase 18.5% year-over-year. With an extremely low property tax rate of only 0.58%, Las Vegas is a great place to be a homeowner or house flipper.

Las Vegas is competitive but not as hot as some other markets on this list. You may be able to purchase an investment home without competing against other buyers. Plus, homes only go 5% above asking.

13. Phoenix, AZ

Phoenix is the capital of Arizona and part of the Phoenix-Mesa-Chandler metro area. Phoenix is home to Arizona State University and has a population of over 1.5 million people.

This area sees median home prices of around $410,000, which is a 32.2% increase from last year. Forecasts show that the median home price next year should grow an additional 23.8%. Like Las Vegas, Phoenix has a low effective property tax rate of 0.57%.

Another nearby hot real estate market is in Tucson, AZ. Tucson is the state’s second-largest city and the tenth most undervalued market in the country. Homes go for an estimated $261,046, and prices have increased 23.4% since 2018.

14. Tampa, FL

Tampa, FL, is a mid-sized city located on the west coast of the Sunshine State. It is part of the larger Tampa-St. Petersburg-Clearwater metropolitan area. According to MoneyTalks, this market is the #1 best market to invest your real estate dollars.

Part of the reason for this is that the Tampa area has great home sales and rental markets. The median home price is a modest $310,000, while rents go for an average of $1,523 per month. Experts project that home prices will increase at the same rate they have been— 27%.

15. Miami, FL

Last but not least, Miami is a large city on the southern tip of Florida. The median home listing price is $535,000, but homes tend to sell for lower (a median of $499,000).

The great thing about Miami is that there’s an investment property for every budget. The affordable Little Havana neighborhood has homes going for lower than $230,000. Coconut Grove is the highest-priced market in Miami, with a median listing price of $2.3M.

Ready to Buy a Home in One of the Best Cities for Real Estate Investment?

These 15 markets are the best cities for real estate investment in 2022. Don’t miss out— find the perfect investment property for your portfolio before home prices start falling again!

Need a home loan to purchase your dream investment? We’ve got you covered. Get a free mortgage quote today!

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