Deciding where to make an investment in real estate is not an easy task. Building and purchasing real estate entails diving into many local markets, some of them treacherously illiquid and/or dependent on a select industry, factory, company headquarters, military base or limited natural resource. Here, the interested investor is presented with several locations that, after considerable research, seem to be lucrative purchasing/building prospects as far as real estate goes.
According to Zillow.com, between May 2004 and November 2007, the average home value in the Provo, Utah metropolitan area rose from about $164k to $248k, a 51 percent rise in 42 months. Since then, home prices appear to be poised for growth substantial enough to justify investment. Consider: nearby Salt Lake City is the cultural, economic and financial center of the state. With such glamour comes high prices and cost pressures. People of more modest means, whether retirees or those in between jobs or careers, would be wise to consider other Utah communities such as Provo.
Simply put, Miami is difficult to replace or replicate. While there are many medium-sized mountain towns such as Provo, the South Florida region dominated by Miami, is only one of perhaps three locales, the others being Hawaii and San Diego-Los Angeles, that offer a tropical climate within U.S. territory. Combined with its robust economy and close connections to Latin American commerce and banking, it is a prime candidate for real estate profit opportunities.
Raleigh, Durham, Chapel Hill, North Carolina
This region is known as the Research Triangle and has an incredibly high concentration of middle and upper-middle class jobs. To be specific, the 27704 zip code seems particularly enticing given its location in the midst of the Triangle, just northeast of the Durham city center. Trulia.com and city-data.com imply that the area seems ripe for gentrification.
The city is a regional cultural and economic center in the same league as Miami. According to Atlanta Business Chronicle’s “Five Atlanta Housing Market Trends to Watch,” a diverse, clustered population should drive up prices of any new construction in the area. More so, aging Boomers will stimulate demand for condos that do not have the maintenance hassles of single-family homes, making condominium developments an attractive investment.
With the exception of Provo, Utah, the purchase/build opportunities are clustered in the traditional South. This makes sense given the region’s improving employment opportunities, mild weather and business-friendly climate.