Smithsonian has released a new top 20 list of the best towns in the United States. So where are they, do they offer great real estate investing opportunities, and how do they stack up against big city investments?
Real estate investors are constantly on the lookout for the next hot spot, the ‘best kept secret,’ and more importantly better returns. Some might be very interested in more remote locations with less competition. Smithsonian Magazine just published a new list of top small U.S. towns based upon still offering top cultural activities and attractions. So where are they at, and what are the pros and cons of investing in them?
Top 20 World Class Small U.S. Towns:
- Chautauqua, NY
- Healdsburg, CA
- Williamsburg, VA
- Steamboat Springs, CO
- Woods Hole, MA
- Marietta, OH
- Beaufort, SC
- Sedona, Arizona,
- Nebraska City, NE
- Lanesboro, MN
- Spring Green, WI
- Harve de Grace, MD
- Columbia, PA
- Mont Dora, FL
- Ketchum, ID
- Montpelier, VT
- Harrodsburg, KY
- Silver City, NM
- Decorah, IA
- The Dalles, OR
Those near major metros or with booming local job markets could be poised for massive growth. However, some may only be popular because of their inclusion on this list. This may make some an idyllic destination for a quiet and peaceful residence as opposed to a profitable investment opportunity.
Big Versus Small Town Real Estate Investing
Most of the action occurring in the U.S. real estate market seems to be happening around major business hubs. On both a national and global scale, big city real estate frequently comes with big price tags. Look at Hong Kong, London, Paris, New York, Miami, Boston, San Francisco and San Diego. These cities are, and have been in hot demand for generations, benefit from more buyers and are sought out by job seekers, business and international investors seeking wealth preservation. Of course, these big cities are also often plagued by limited inventory, lower yields and competition.
Branching out from these major hubs will witness more affordable housing markets. The same goes for central Florida, New York, and the Midwest. There can be a lot less competition, sometimes spreads on rentals can be much greater, and it can be far more affordable and ‘easy’ for real estate investors and agents to move in and dominate markets.
Of course, small town USA has its own challenges too. You will likely be subjected to a smaller tenant and buyer pool. You also will not see the same price growth that has been witnessed in larger cities. This can limit the upside and hamper rapid wealth building. It’s really a case by case basis scenario, but vital for all real estate professionals and companies to recognize. So where will you invest?
