The Top 10 USA Real Estate Investment Markets


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If you have been thinking it’s time to diversify your retirement portfolio, here are 10 of the best markets in the USA to purchase investment real estate.

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The Top 10 USA Real Estate Investment Markets

  1. 1. The Top 10 USA Real Estate Investment Markets by Safeguard Financial
  2. 2. Top 10 Real Estate Investment MarketsMore and more wealthy investors are moving away from the stock market in fear offurther loss because of volatility, as documented by recent articles in the Wall StreetJournal.Interestingly, when asked where they are putting their money, the answer was “cashand real estate”. In keeping with this investment direction, we have compiled a list ofthe Top 10 Best Real Estate markets for investment of retirement funds.Data has been analyzed based on lender trends, home values in relation to job growth,unemployment, population and ownership-to-rent ratio. Information has beencorrelated from reports released by The Wall Street Journal, CNNMoney, Inman Newsand Local Market Monitor. (Appendix A)If you have been thinking it’s time to diversify your retirement portfolio, here are 10of the best markets in the USA to purchase investment real estate:Number 10: Fort Lauderdale, Florida Average Listing Price: $228,000 Unemployment: 8.2% (June 2011) Median household income: $33,912Seen as one of the most expensive areas in Florida, house prices are still expected todrop with the large amount of housing boom new construction inventory still on themarket. Rents however are on the rise and are expected to rise 10% over the next fewyears.Real estate investors can expect a 2.3% premium over the national average that isforecast for returns on rentals.Page 2
  3. 3. Number 9: Boston, Massachusetts Average Listing Price: $498,000 Unemployment: 7.1% (June 2011) Median household income: $33,889Multi-family homes and apartment buildings are top picks for investors as prices haveincreased by only 3% in the last year.There is an expected 41% decline in construction projects putting further pressure onthe rental market which should increase rental rates over the next few years.Number 8: Bakersfield, California Average Listing Price: $183,500 Unemployment: 11.7% (May 2011) Median household income: $21,496Bakersfield was seen as the worst performing housing market after the burst of thehousing market bubble. House prices fell almost overnight leading to high foreclosurerates and delinquencies. Unemployment soared to 15% as local industries dependedsolely on the real estate growth of new construction.Page 3
  4. 4. Real estate investments are expected to return 2.5% higher than the national averageas unemployment improves and rental rates climb.Number 7: Orlando Metro, Florida Average Listing Price: $159,000 Unemployment: 10.8% (June 2011) Median household income: $35,732Home to Mickey Mouse and all the other Disney characters, Orlando experienced aboom-then-bust market over the last five years seeing housing prices fall 43% since2006. These prices are not expected to rise anytime soon but rents, however, areexpected climb by 17% over the next few years.Tourism and seasonal workers still flock to amusement parks, but unemploymentremains high and job market poor. Page 4
  5. 5. Number 6: Oklahoma City, Oklahoma Average Listing Price: $137,000 Unemployment: 5.3% (June 2011) Median household income: $34,945Oklahoma saw a 15% increase in population according to census data as people aremoving to the metro areas for work and a stronger economy.Unemployment rates remain below the national average and industries such as oil, gasand aerospace are attracting a high number of college graduates from the 18universities in the area.Number 5: Rochester Metro, New York Average Listing Price: $78,000 Unemployment: 8.4% (June 2011) Median household income: $27,123Rochester experienced a below national average employment rate, but is a city whichhas seen a slow-growth pace with a few older corporations headquartered within thePage 5
  6. 6. metro such as Kodak and previously Xerox. Rents have remained consistent and areprojected to rise about 15% by 2014. Number 4: Indianapolis, Indiana Average Listing Price: $61,000 Unemployment: 8.2% (April 2011) Median household income: $23,049With a population growth of 15.2% from 2000 to 2010 compared to the nationalaverage of 9.7%, Indianapolis is a city on the move. With the city offering largeperformance-based tax credits to growing business creating jobs, as well as investingin city infrastructure and improvements, Indianapolis is seeing a large economicdevelopment and strong job growth.Foreclosure rates in the area remain stubbornly higher than the national average, butdelinquency rates are in decline indicating the drop of foreclosures in the near future.Page 6
  7. 7. Number 3: Stockton, California Average Listing Price: $123,000 Unemployment: 16.7% (June 2011) Median household income: $45,730Local housing prices have dropped 57% since the housing market bubble, allowingsingle-family homes and investment properties to become more affordable.Rents are also set to go up 11% over the next three years with a demand in rentalsincreasing as the foreclosure and housing market continues to drop. Number 2: Las Vegas, Nevada Average Listing Price: $374,000 Unemployment: 13.8% (June 2011) Median household income: $53,000With the highest foreclosure rate in the nation, many former homeowners have nowbecome renters. With a large casino workforce who rent and cannot afford mortgagepayments the home-ownership rate is one of the lowest in the country at 55%.Page 7
  8. 8. Unemployment has grown and rents have decreased about 10% since 2007, but rentsare expected to rise and residential investment is predicted to yield at 4.7% above thenational average. Number 1: Phoenix, Arizona Average Listing Price: $123,500 Unemployment: 9% (June 2011) Median household income: $22,209Home prices soared by double digits annually over three years, until they crashed in2007, falling 47% since. The foreclosure market is widespread, pushing families outof their homes and into rental properties. Rents are increasing at an alarming rate.Estimated at $100 a month increase over the next three years.The job market is slowly improving and unemployment still remains below thenational average. Speak to an advisor at Safeguard Financial to take advantage of these markets andinvest into Real Estate with your 401k. Call 877-229-9763 or visit 8