As a member of the Forbes Real Estate Expert Panel, I am consistently seeking out the freshest, most relevant market data and insight from a wide range of sources in order to enable our clients from around the nation and around the globe to have the power of knowledge when they are considering their next moves in the US real estate investment arena.
This article shares some of that fresh knowledge that we gleam from each other here at the Forbes Real Estate Council, and it's really all about the old real estate adage: Location, Location, Location. Where are the real estate markets with the strongest investment opportunities across the nation right now?
Staying up to date with current trends and market fluctuations is key to keeping a competitive edge. This also includes being aware of cities and regions that are expected to be prime real estate locations in the future — knowledge that is crucial to making sound investment decisions.
Within the real estate industry, there are already so many focal areas — such as commercial, residential and hospitality — that it can be difficult to know which locations are up-and-coming in the near future. To help you become aware of potential new real estate hot spots, 15 members of Forbes Real Estate Council offer their 2019 prime location predictions below.
Experts in the real estate industry tell us what to expect.
1. Amazon HQ Cities
I've watched Long Island City in Queens for many years now, and now that Amazon has announced it's moving half of its second headquarters to the neighborhood, prices have surged. Investors and buyers looking to get bargains in this area need to move quickly as we anticipate prices will only rise. The same can be said of Crystal City, Virginia where the other part of Amazon's HQ2 has landed. - Elizabeth Ann Stribling-Kivlan, Stribling & Associates
2. Mid-Size Growing Cities
Amazon has lit investors' fires in NYC and DC, and rightfully so. If you're not already there, it's too late. The real opportunities are where most aren't looking. Mid-size cities with growing populations are fine targets. The best opportunities are right now flying below the radar. Think Oklahoma City, Des Moines, Indianapolis, etc. Low prices, strong economies, and growing population are key. - Roger Blankenship, Flipping America
3. Opportunity Zones
Investors will be pouring capital and their investors' equity into Opportunity Zones in an effort to defer and eliminate capital gains from non-like-kind investments in 2019 and beyond. The influx of long-term capital into these lower-income neighborhoods will provide for long-term growth and a lot of news. - Blake Janover, Janover Ventures
4. Cities With Migration Inflows
Of course, the cities where real estate investors are looking to update will be the cities Amazon picked for its HQ2 — these will experience some construction growth. However, cities that are experiencing migration inflows will also see construction investments in 2019. These include cities in the Pacific Northwest, Denver, central Florida and Arizona. - Nathaniel Kunes,AppFolio Inc.
5. Atlanta, Georgia
In Atlanta, the quality of life is high relative to the cost of real estate. You can live a luxurious lifestyle at an affordable price, from a real estate perspective. There are also key pockets in the city going through gentrification, which is a great opportunity for investors to win some strong equity gains. - Ali Jamal,Stablegold Hospitality LLC
6. Los Angeles, California
Our property management platform tracks listings in cities worldwide and in 2018, we witnessed substantial growth of our Los Angeles clients along with their number of listings. In 2019, we'll see investors capitalize on LA's opportunity for growth as it's a hub for both urban short-term rentals and traditional vacation rentals. - Vered Schwarz, Guesty
7. Charlotte, North Carolina
Charlotte is well-positioned to continue its solid performance in 2019. High job growth and a favorable supply and demand environment will support continued rent growth. Affordability and a high quality of life attract a highly skilled workforce, positioning Charlotte as the go-to place for national and international corporate relocation. - Guy Zipori, Skyline AI
8. Manhattan And The Hamptons
Manhattan will remain a competitive market. The influx of megamansions has created a surge in activity for investors who are looking for private locations in highly sought-after areas, such as the West Village. The Hamptons will also remain one of the top destinations based on the scarcity of available pinnacle properties. The Hamptons has proven to investors that their home will accrue in value. - Cody Vichinsky, Bespoke Real Estate
9. Nashville, Reno And Portland
The hype around the Amazon HQ announcements will continue to drive interest in NYC and Virginia, but places like Nashville, Reno, and Portland are much more interesting. These areas have benefited from people moving from high-cost areas, and with each respective city’s unique offering (entertainment, craft food scene, proximity to Lake Tahoe), they have more to offer than just lower costs. - Brew Johnson, PeerStreet
10. Denver, Colorado & Ski Country
Colorado is one of the fastest-growing states in the nation and has become a bastion for business with a booming tech and startup community. Colorado has high tech wages, low office lease rates, and low home prices, which equals a trifecta of success for real estate investment. - Garratt Hasenstab, The Mountain Life Companies™
Commercial real estate flourishes where job growth is strong. Most of the recent surveys show job growth to be strongest in the south, most notably Texas. Two cities with large job growth are Dallas and Austin, Texas. Orlando, Nashville, and Charlotte are also high on the list. My suggestion is to embrace boots and barbecue and invest in Texas. - Tom Burns, Presario Ventures
12. Sunbelt Region
The best multifamily real estate investment opportunities are going to be in the Sunbelt region, in mid-size to smaller Tier 2/3 cities with strong population and job growth. These will continue to prove resilient as they attract talent and growing families and offer a higher quality of life than traditional urban centers. Keep an eye on cities like Greenville, South Carolina; Raleigh, North Carolina; and Granbury, Texas. - Yousif Abudra,BENA Capital, LLC
13. Warm-Weather States
Companies and employees look for the area that has the lower tax rates, good schools and great climate. Therefore, tourist states promote these positives. Investing in Texas, Florida, Arizona and generally California are excellent due to climate. Floods, fires, hurricanes come and go. People have a short memory as to the havoc they produce. Most desire warm-weather lifestyles. -Rita Santamaria, Champions School of Real Estate
14. The Midwest
As late as we are in the current cycle, margins are getting pretty slim on the coasts and in major cities. Investors are seeking opportunities in secondary and tertiary markets to augment returns, and the Midwest still has a ton of opportunity. I think we'll continue to see an influx of capital to Midwest markets. - Marc Rutzen, Enodo Inc
15. The South And Southeast
We do an annual survey of our national network of residential real estate investors, and based on the latest responses we see a market slowdown coming in high-priced homes in areas with high tax rates. The most promising areas for residential real estate investors are the South and Southeast where there is high demand for entry-level homes (which home builders are failing to provide). - Jeremy Brandt, Fast Home Offer
So, wherever you are looking to accomplish your next real estate investment or development goals, please feel free to reach out to us at The Mountain Life Companies for some knowledge transfer! It is our pleasure to share what we know in the hope that we can help you achieve your real estate endeavors.
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