The American economy is expected to grow this year and housing prices are following suit with the best markets expected to grow almost 20% in value this year. Investing in real estate in the United States is a popular method for growing and saving money because it is seemingly always growing. American homes are a good investment for their price security and growth potential. The only trouble is knowing where to invest because there are so many options from the Northeast, Texas, California, as well as up-and-coming cities across the nation.
Is the West Coast the Best Coast?
Properties along the American West Coast, ie. California, Washington, and Oregon have been popular for decades due to strong job growth, property protection laws in the US, and better weather. California, in particular, is one of the biggest property markets with cities such as San Jose offering the highest return on investment for property in the nation at over 18% per year in 2018. San Francisco offers similar returns with an average 12% growth in price per year.
Don’t Forget About the Formidable East
On the East Coast the market is more mature, offering smaller returns, but good property retention value in the north and strong growth in the south. Massachusetts stands out for growth in the Northeast because of the continuing education and medical industry in the state. In 2018, property values fell by 0.7% in the US, but Massachusetts still had a strong seller’s market. Properties stayed on the market for an average of 40-50 days, 20% less time than in most parts of the country. Homes in Massachusetts are still affordable for average Americans, but the values are increasing by as much as 5% per year.
Inland & Sun Belt Growth States
The non-coastal states have always had a weaker economy and thus lower housing prices. This is about to change however, as industry in Nevada, Arizona, Colorado, Illinois, Indiana, and Wisconsin have shown us that good growth can occur anywhere. The Las Vegas metropolitan area, for example, has a predicted housing price growth rate of 15% in 2019, with other cities like Reno, Boise in Idaho, and Colorado Springs, Colorado having estimated growth higher than 10%.
Property Investment in the US is all about location and sustainable growth of the region. There are many options in various states and climates around the country, from the sustainable and mature Northeast to the burgeoning markets in the South and West. This upcoming year will be one for good growth in these areas and good property retention values for those looking for a safe investment.