If you’re wondering which real estate markets will be the best investment destinations heading into 2025, the suburbs are the hotbeds. Selection subjects One concern for buyers is that lower-priced suburbs (often below $250,000) are experiencing a surge in new residents.
The good news for investors is that a recent report said: Translation companyThese real estate nuggets are spreading Outside They are spread across the country and occupy some of the fastest growing regions.
The charm of the suburbs
Recent Harvard University Research In contrast to the demographics of previous generations in the 2000s and early 2010s, we find that young people in their 20s and 30s are driving today’s suburban migration because cities are too expensive for them.
“While there has been extensive research and debate about whether millennials prefer walkable urban areas, the largest gains among early millennials have been in suburban and metropolitan fringe areas,” said David B. Schneider, senior research analyst at the Joint Center for Housing Studies at Harvard University. Report Together with co-authors Whitney Airgood Obrycki and Hyojung Lee, she will be studying millennial migration.
Before we dive into our top five, let’s take a look at the current state of the housing market.
As you can see, the cash flow is strict To come Purchase, Price Still highThat’s why finding affordable suburban housing is Really Open the door to quality purchases.
Top 5
To be featured on GoBankingRates.com’s Hot Suburban Markets ListEach area has a 9% or Greater than Cities had to be in metropolitan areas with a population of at least 1 million and experience a population change between 2020 and 2022. All homes had to be priced below $500,000, and all data was collected as of August 13.
The top 5 out of 50 suburbs To be inspectedThe first thing that becomes apparent is geographic and price diversity.
1. Mooresville, North Carolina
- July 2024 home prices: $480,430
- Total population in 2020: 38,498
- Total population in 2022: 50,025
- 2-year percentage change in total population: 29.94%
- Average rent: $2,273
Suburban CharlotteMooresville is generally expensive, with homes costing nearly $500,000. Zillow Search You will see many homes under $250,000, as well as new construction three-bedroom communities.
Mooresville is just a 30-minute (28-mile) commute to Charlotte, a major center of banking and financial services, manufacturing, energy, and the automotive industries.
2. Hamtramck, Michigan
- Home prices in July 2024: $167,930
- Total population in 2020: 21,704
- Total population in 2022: 27,842
- 2-year percentage change in total population: 28.28%
- Average rent: $1,050
Hamtramck offers great value for money with many three and four bedroom homes for sale at low prices. Under $200,000. Detroit The suburb is just 15 minutes (6 miles) from the city, allowing residents to enjoy suburban living. Jump Away from the hustle and bustle of downtown.
3. Buckeye, Arizona
- Home prices in July 2024: $407,118
- Total population in 2020: 74,467
- Total population in 2022: 95,042
- 2-year percentage change in total population: 27.63%
- Average rent: $1,995
In Buckeye, Phoenix In the suburbs, a stylish renovated ranch Under $400,000Buckeye is a 40 minute commute to Phoenix. Currently the fifth largest city in the United States And it is one of the fastest growing cities in the country. Extreme heat and water shortagespeople Depicted Come to Phoenix for job opportunities in healthcare, leisure, tourism, technology, education, e-commerce and finance.
4. Union City, Georgia
- Home prices in July 2024: $259,054
- Total population in 2020: 21,976
- Total population in 2022: 26,869
- 2-year percentage change in total population: 22.27%
- Average rent: $1,829
In the up-and-coming suburb, you can easily pick up a stylish new or recently renovated three-bedroom home for under $1000. $250,000. Just 27 minutes (17 miles) Atlantathis Conveniently located in the suburbs for commuting You can work from home while still attending business meetings, socializing around town, and commuting every day.
5. Canyon Lake, Texas
- Home prices in July 2024: $461,779
- Total population in 2020: 26,338
- Total population in 2022: 32,035
- 2-year percentage change in total population: 21.63%
- Average rent: $1,688
Located About 40 miles from downtown San AntonioLike most of Texas, Canyon Lake requires a long drive to get anywhere. But San Antonio and its suburbs are booming. According to the Census Bureau, the metropolitan area is: Fastest growing cities The United States is expected to add 22,000 residents in 2023 alone.
As the name suggests, Canyon Lake is a great place to escape the Texas heat, with a central body of water with a surface area of 8,200 acres. Texas Water sports are a big draw in the Hill Country, and there are campgrounds and marinas perfect for family activities. Natural attractions drive up many home prices Mid to high $400,000 range, but Also, There are plenty of decent homes available in the $200,000 to $300,000 range.
Gen Z is moving to cities in droves
Interestingly, while millennials and older generations are moving out of cities, Gen Z is moving into them. Over 42% of people are expected to move to cities between 2021 and 2022. New York City Generation Z is Census Bureau Data. plus, Major metropolitan areas, including New York, are experiencing population decline across all generations except Gen Z., Report show.
If the city is so expensive, how can Gen Z afford it? To use today’s terminology: Communal LivingHowever, roommates are often only sustainable for single people or couples without children. For those hoping to start a family, The suburbs remain a big attraction; In doing so, they’re changing the image of their parents’ suburbs with trendy bars, restaurants, gyms, spas and more.
lastly
Traditional Concept Cash Flow Have Underwent rigorous testing With home prices and interest rates soaring recently, The 1% rule Because investing has seemed unrealistic for a while. but, be In suburban markets like the one described here, just It’s almost doable if you ignore the median home price and look around for bargains in the area.
The suburbs are a great place to own a rental property. generally Families who live in a decent school district and are therefore stable renters. Therefore, they Incentives are given Paying rent And stay Within the school district and Being close to a big city for work, but without disrupting my children’s life and education. Popular suburban areas usually maintain their status for these reasons. Investors If one tenant eventually moves out, you shouldn’t have a problem filling the vacancy.
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BiggerPockets notes: These are opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.
