Image by: AugustaGALiving
By Michael Sterling
The real estate market is never going to die. In 2014, it’s not only going to thrive, but we’re also going to see the beginning of a new phase in the sector itself. With so many eager young minds migrating away from the “big cities,” there is so much potential for investors to see. All you have to do is open your eyes.
#1) “Millennial” Cities
Real-estate investors are particularly interested in where the millennial generation is setting up shop, and in 2014, it’s these group of people that will make the market sour. Certain cities like Austin, Seattle, Portland and the Twin Cities in Minneapolis have seen increased economic activity in the real estate sector and is showing no signs of stopping.
Though the millennials aren’t buying as many homes as the baby boomers were, the cities in which they are flocking sends a message to America that this is where the new “scene” is happening. Eventually, this creates a steady migration towards that area. Let’s look at two of the best:
- MINNEAPOLIS, MI – This is one city that’s attractive to younger generations, especially to college grads who don’t want to leave the Midwest. According to Forbes, the average home price is around $200,000 and the economy is expected to grow 31% within the next three years.
- SEATTLE, WA – This city has always been a youth-oriented city due do its artistic vibe, and in 2014 it has become not only a city for artists, but a city for young entrepreneurs as well due to the city’s innovative programs. With a population of around 2 ½ million, the real estate market has gone up 5% with an expected growth of 33% within the next three years.
#2) Second-tier Cities
According to a ULI report, investors, developers, and builders are losing interest in 24-hour cities, like New York City and San Francisco, and have since developed more interest in cities like Dallas and Portland, where there are more housing deals.
In fact, back in 2011 only NYC and Washington, D.C. had good prospects for real estate investors and developers. But today, cities like Dallas and Houston top the list. There must be something in that Texas water.
- DALLAS, TX – Dallas has become a city for young businessmen to live, and the good thing about that is they’re usually willing to spend way more than necessary to achieve a certain lifestyle. That’s definitely shown in the numbers since the market has grown 12%, and is expected to grow another 29% in the next three years.
- HOUSTON, TX – This is the city of billionaires, largely due to the great oil industry. There are not only great deals to be made, but also great partners to be found. Thousands of investors have migrated to Houston searching for other likeminded money, and with a growth of 13% over the last year, it’s certain that they’ve found it.
#3) Media-Covered Cities
There’s a psychological thing that typically happens with Americans. When a city is publicized on TV or Film, particularly if its demographic is college grads, there is usually a flock towards those cities.
Some predictions have said that cities like Nashville will see a slight increase in population due to the show “Nashville,” while others are saying Boston has already seen an increase due to the media attention the Boston Marathon bombings received. During that time, the city certainly proved itself to be a community that is there for each other. That charm has brought about a migration.
- BOSTON, MA – With a population of just under 2 million, the real estate market is expected grow 19% in the next three years. Being one of the biggest college towns in the country, it’s full of eager post-grads who are choosing to build roots in the city, rather than leave for other more populous ones.
- NASHVILLE, TN – This city is extremely underrated because it has some of the best deals out there. A $200,000 dollar home typically comes equipped with 6 bedrooms and 4 full baths which is something you almost never see anywhere in the country. A smart investor will take advantage of it before the rest start sniffing.