3 Tips for identifying the Best Real Estate Markets | HomeUnion

3 Tips for Pinpointing the Best Real Estate Markets

A lucrative real estate market doesn’t have to be a needle in the haystack.

If your virtual destination is financial independence through real estate investing, it helps to know where you’re heading—before you lose sight of the shore. Do your homework. Keep a look out. And don’t get lost.

With so many great markets out there to choose from, it’s critical to know which one best meets your financial goals. Which markets are poised to turn a solid profit in today’s market? And which ones look promising for the future? Here are three tips to help ensure smooth sailing for your investment journey.

Tampa on US Map

Tip #1: Know What to Look For

Before you can identify a great real estate market, you have to recognize its features. Importantly, keep an eye on that magic mix of strong job growth, a diverse population, and low vacancy rates—punctuated by high consumer confidence. These elements should add up to an ideal real estate market in which the demand for homes is strong… and is likely to stay that way.

Get started! Check out this list of where to invest in housing in 2017.

Tip #2: Take Economic Factors into Account

Crunch the numbers. Have interest rates jumped or fallen over the past year?  How about the past six months? What are the growth indicators and how are they impacting real estate values?

Above all, look for a location that offers both affordability and growth. Your objective is to get a good return over time, without taking extraordinary risk.

According to Forbes.com writer Samantha Sharf, “When it comes to balancing risk and reward in real estate, cities in the Southern half of the country look to be in the sweet spot now, as well as one surprising Northeastern metropolis, where lack of land to build turns out to be a plus.” Her top pick? Dallas, Texas, where Local Market Monitor forecasts home prices will increase 31% by 2020 thanks in part to 3.9% job growth in the past year and 6.2% population growth in the last three. Florida and Texas fall into second and third place. And Boston, at number 16, makes the list thanks to a slightly undervalued market.

Tip 3: Keep Your Finger on the Pulse of Trends

What are the key trends and issues shaping the real estate markets today, tomorrow and beyond?

For example, as boomers move into retirement and towards a warmer year-round climate, the Florida rental market looks very bright. In fact, Orlando is the second-best market in the nation based on opportunities for growth. “Most of Florida’s major real estate markets are performing remarkably well,” says Steve Hovland, director of research at HomeUnion®. “Orlando’s economy is the second-strongest in the state, with a projected 39,0000 jobs to be added by year’s end. As a result, demand for rentals will remain intense, and we expect vacancy to decline to a scant 2.8 percent. Landlords in the metro area will benefit from these tightening conditions by raising rents 3.5 percent this year.”

A smart investment in real estate starts with doing your due diligence… and then some. But it doesn’t have to be a time-consuming travail—HomeUnion® is here to lend you expertise every step of the way. We offer the big data, local experts, and critical research you need to be spot on with your investments.

Your time is valuable, so our goal is to streamline the process and take the busy work off your plate. From property acquisition to ongoing property management, you can feel at home with HomeUnion® as your partner to success.

Save Time—Tap into HomeUnion®’s Research

Take a moment and download our national SFR report that shows you in-depth research knowledge on 29 markets across the United States. Our team of data experts are constantly researching neighborhoods across the United States so that you can get a jump on taking advantage of real estate opportunities that meet your criteria. To speak with a HomeUnion® Solution Manager, call 888-276-0232 Monday-Friday, 8 – 6 pm PST, or schedule a consultation.


Have Questions?


Ready to learn more? Schedule a call