The real estate market has since recovered and been on a steady growth from the crash of 2008, which triggered one of the worst financial crisis in United States history. Housing in most major cities have always been quite expensive and beyond reach for the low-income and middle-class earners.
However, not all hope is lost. In fact, some of the best real estate investment opportunities are found in those major cities. While others could be found in fast developing cities.
Factors to consider is not just affordable housing but also income (salary and wage) growth, employment rate, new constructions, quality standard of living, and high rate of youth relocating and settling in.
According to research by Zillow, a reputable leading real estate marketplace, the median home value in the United States is $228,000 with a forecast of 2.5% rise by the end of 2019.
Find below a list of top 5 best places to buy a home, along with the latest population data from the United States Census Bureau (which is 2017) and median home prices from Zillow. All of these cities have a median home pricing below $300,000.
5. Colorado Springs, Colorado
Median Home Price: $292,800
Colorado Springs is home to six military bases. Many young recruits move to the city when starting out. Colorado Springs is also experiencing an increase of tech start-ups.
4. Salt Lake City, Utah
Median Home Price: $294,200
Unemployment rate has been below the US national rate for years in Salt Lake City. Every year during summer, young people gather for free concerts at Pioneer Park. And when the snow comes, the mountains provide sweet skiing spots.
3. Des Moines, Iowa
Median Home Price: $142,700
Des Moines is one of the fastest developing cities in the Midwest. Des Moines boasts of low operational costs and overall cost of doing business. The median home price is about $85,000 less than the national average. It also offer lots of job opportunities in the insurance industry.
2. Raleigh-Durham, North Carolina
Median Home Price: $276,400
Raleigh is home to some of the best biotech, advanced medical research facilities, and high-tech companies listed under Fortune 500. This makes it an attractive place for people who consider healthcare a major determining factor for moving.
1. Fayetteville, Arkansas
Median Home Price: $220,600
Unemployment rate in Fayetteville has continued to drop in the past 5 years consistently and currently sits at 2.8%. While the cost of living is 8% lower than the national average.
What makes these cities good places for real estate investments are the potential for growth. As cost of living is stabilized by the rising income of residents, lower unemployment rate, and more constructions springing up, more young people move and settle in to start a family. The homes in these cities appreciate in value with each year, some by up 7% in select neighbourhoods. This makes it easy to sell your property in future and get good returns on the investment.