One of the world’s leading economists was recently asked if there was one statistic to track which signaled the strength of a real estate market what it would be…
The answer? Affordability.
Fortunately the U.S. real estate has a ton of affordability right now!
The hottest markets in which some in real estate investing have been complaining are becoming too competitive are in the more affluent areas where they can be afforded. In harder hit markets there is at least still a good spread for investors buying homes to rent them out for a substantial amount of monthly cash flow.
Different indexes paint, define or rank affordability slightly differently but it all comes down to a combination of three main factors:
- Home prices
- Mortgage rates
- Income levels
Of course for those looking into buying a home or real estate investing choosing the best places to buy also need to be tempered with the availability of deals, the strength of demand and personal goals and investment strategy. At a given moment some markets may be slightly better for flipping houses and others acquiring a portfolio of rental properties.
However, those investing outside of their home areas also need to keep in mind the challenges of long distance real estate investing. For flipping houses who will do showings and supervise rehabbing of properties and for buy and hold investors who will take care of property management and leasing?
Where are some of the best places for real estate investing right now?
According to one index 5 of the most affordable real estate markets in the U.S. are:
- Indianapolis, IN
- Modesto, CA
- Lakeland, FL
- Cincinnati, OH
- Akron, OH
However, when all factors are put together CT Homes is still bullish on San Diego and Connecticut for great short and long term real estate investing opportunities.
