With the real estate market always fluctuating, it’s important to know which states offer the best investment opportunities for 2023.
If you’re looking to buy a property in the year ahead, here are the top 3 states that you should consider investing in. From low taxes and great geographical features to strong housing markets and population growth, these states have plenty of incentives for investors to get involved.
What makes a state one of the best to invest in it?
Warring investors may never find a consensus on the top state for investments, but certain performance metrics can help sort through the choices and identify which states offer prime opportunities.
Rising property prices
The best states to consider investing in real estate in 2023 have strong housing markets with rising prices and historical appreciation in market values. Over the past several years, these states have seen consistent increases in their median home prices, which is a sign of an upward real estate trend that investors should take advantage of. In addition, each state boasts good economic fundamentals, a favorable tax environment for landlords and business owners, and easy access to financing options that make property purchases even more attractive. With these factors in mind, it’s not hard to understand why these three locations are ideal for those looking to invest in real estate this coming year.
Affordable rental property
Another great incentive to invest in real estate in these best states is the availability of the affordable rental property. This can help keep your cash flow high and your equity growing, generating more profits over the long term. Furthermore, with rent prices on the rise, you could see even greater returns on your investment as property values continue to climb.
The best states to consider investing in real estate in 2023 have positive population growth that creates a consistent and predictable demand for housing. This is especially important because as more people move into the area, it increases both rental prices and home values, creating an attractive environment for investors.
Job market growth
The best states provide residents and businesses with employment gains and job market growth. This helps to increase the demand for housing, making them attractive places to buy properties and generate income from rentals. Furthermore, these locations often have strong economies that create a stable environment for investors looking to get involved in the real estate market. With all this in mind, it’s easy to see why so many people are choosing these best states as their preferred places to invest in real estate this coming year.
High rental occupancy rates
Look for states with high rental occupancy rates. It indicates how much of the housing supply is vacant. This also highlights how attractive these markets are for renters, as they offer affordable options and lifestyle choices to rent rather than own. In addition, many of these best states have seen a growing share of renter-occupied households over the past few years, indicating potential for future growth in their real estate markets.
States with low property taxes
Another point you should watch when considering investing in real estate in 2023 is low property taxes that help keep the cost of living low and net cash flow from investment property high. This is particularly attractive for those looking to invest in rental properties, as it can mean more money in the pocket each month. Furthermore, many of these best states have a favorable taxation environment for landlords and business owners, meaning you don’t need to worry about spending too much on overhead costs like tax payments.
After looking at some of the crucial elements you need to consider when investing in real estate in 2023, let’s discover the top 3 best-performing states in the US!
People are flocking to Florida, and it’s easy to see why! From its outstanding opportunities for education and career advancement to the booming housing market that has seen prices rise by an impressive 5.8% year-on-year according to Redfin.
Investing in property in Florida is a sure way of getting a good return on investment long term. With population growth of 1.9% from July 2021 to July 2022 — netting over 400,000 new residents, this sunny hub offers plenty of attractions such as universities plus family-friendly places making it an ideal spot for all types with lots more potential still yet untapped.
Median home value: $377,816
Median home value increase year-over-year: 15.7%
Average rent: $1,670/month for a two-bedroom apartment
Population growth: 1.9%
Job growth: 4.8%
Are you looking for a picturesque state with great job opportunities and low taxes? Look no further than Colorado! Alongside its incredible scenery and beautiful weather, this Rocky Mountain State is home to flat income tax rates that make the higher median sales price of $577,500 worth it. And since more than one-third of citizens rent in Colorado, anyone can settle down here hassle-free – plus their population keeps growing.
Median home value: $577,500
Median home value increase year-over-year: 2.8%
Average rent: $$1,535/month for a two-bedroom apartment
Population growth: 0.49%
Job growth: 2.0%
Ohio is an ideal place for real estate investment, with 30% of its population as renters and a low cost of living. Job growth has been slow but it’s compensated by the state’s culture-rich atmosphere filled with stunning museums and art galleries that make it attractive to potential tenants. Despite market uncertainty last year, unemployment rates have remained steady at 4%, only slightly higher than the national average of 3.4%- making property acquisition in Ohio even more feasible.
Median home value: $217,283
Median home value increase year-over-year: 4.6%
Average rent: $794/month for a two-bedroom apartment
In conclusion, when it comes to investing in real estate in 2023, there are a number of best states you should consider. Florida offers an attractive housing market with rising prices and plenty of attractions for potential renters; Colorado is picturesque and boasts flat income taxes that make the higher median sales price worth it; while Ohio has a low cost of living, steady unemployment rates, and a culture-rich atmosphere perfect for tenants. Regardless of which state you choose, these best-performing US markets offer great opportunities to buy property this year. With all the information discussed above, hopefully, now you have more confidence in selecting where to invest your money wisely by choosing one (or even more) of these best states.