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8 Best Cities to Invest in Real Estate

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Want to jump straight to the best? Diversyfund is definitely the best real estate investing platform for most people.

Real estate investment is becoming a more attractive risk profile. Take a look at our picks for the top 8 best cities to invest in real estate, and get ready to jump into the market. 

Best Cities for Real Estate Investing:

  • Austin, Texas
  • Raleigh and Durham, North Carolina
  • Nashville, Tennessee
  • Charlotte, North Carolina
  • Boston, Massachusetts
  • Dallas-Fort Worth, Texas
  • Orlando, Florida
  • Atlanta, Georgia

Real Estate Investing Optimal Market

The optimal market to invest in real estate is based on the qualities of a location. To assess a market’s prospects, get an overview of the factors that make a city or market ideal for real estate investing. These include:

  • Population. The market’s existing population and projected growth numbers 
  • Pricing. The current levels and trends in the average rent and home prices in the market and how affordable they are given income levels 
  • Attractions. Popular local industries and attractive features that will draw tourism, students and/or permanent occupants into the market 

Best Investing Platforms for Real Estate

Real estate investing may involve buying real estate stocks or using investing platforms to simplify the process. Alternative investment platforms like Diversyfund, Crowdstreet and Roofstock give you the option of owning shares of commercial property, investing money in a real estate investment trust (REIT) and more. 

Get started by comparing the best investing platforms for real estate.

Minimum Investment
$500
Fees
No management fees
Get started securely through Diversyfund’s website
Minimum Investment
$500
Fees
No management fees
1 Minute Review

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For
  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros
  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons
  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT
Minimum Investment
$1,000
Fees
average 1-2%
Get started securely through Yieldstreet’s website
Minimum Investment
$1,000
Fees
average 1-2%
1 Minute Review

Yieldstreet is an alternative investment platform that allows you to access unique, diversified and expert-reviewed investments. From real estate offerings to works of art, Yieldstreet offers investments that have low correlations with the general markets, meaning they can act as a new source of portfolio diversity.

Yieldstreet’s platform is easy to initiate and use — open an account in just a few minutes and begin browsing available investments before your account is fully verified. Due diligence information is easy to find and clearly laid out, and most investments include additional resources to learn more about the investment’s industry or category. Although the majority of investments are only open to accredited investors, anyone can invest in Yieldstreet’s Prism Fund.

Best For
  • Passive income generation
  • Accredited investors
  • New investors looking for an intuitive platform
Pros
  • Wide range of expert-reviewed alternative investments
  • Investments that are pre-funded by Yieldstreet
  • Prism Fund open to non-accredited investors
Cons
  • Majority of investments only open to accredited investors
Minimum Investment
$10,000
Fees
1% – 1.75%
Get started securely through CrowdStreet’s website
Minimum Investment
$10,000
Fees
1% – 1.75%
1 Minute Review

CrowdStreet is a commercial real estate investing platform where people can invest directly in commercial projects. Unlike a brokerage firm, CrowdStreet isn’t a middleman. Instead, the platform acts as a marketplace where investors can pick and choose the best deals for their time horizon and strategy.

Available investments range from family living spaces to office buildings to storage facilities and investors can sign up for a free membership. Your investment options are limited to what’s live on the Marketplace and you’ll need capital to build a diverse real estate portfolio. Only accredited investors can access deals through CrowdStreet.

Best For
  • Investors looking for diversification away from stocks
  • Real estate investors interested in new opportunities
  • Accredited investors with lots of capital at their disposal
Pros
  • Unique opportunities available
  • Makes real estate accessible and understandable
  • Investors can devote capital to both debt and equity offerings
  • Offers quality education materials and answers to FAQs
Cons
  • Real estate is highly illiquid
  • Most properties require a minimum $25,000 investment
  • You’re limited to what’s on the CrowdStreet Marketplace
Minimum Investment
$1,000
Fees
0.85% asset management fee per year
get started securely through Fundrise’s website
Minimum Investment
$1,000
Fees
0.85% asset management fee per year
1 Minute Review

Fundrise makes real estate investing affordable to investors. The easy-to-use crowdfunding platform gives you a fixed rate of return on top real estate properties in the U.S. 

Here’s why investing your money through Fundrise can improve your portfolio and earn you a reliable source of income.  

Best For
  • Investors with a limited financial budget
  • Investors looking to instantly diversify their portfolio
  • Long-term investors with at least 5 years of commitment
  • Investors looking to earn fixed returns higher than 8%
  • Passive investors who do not want to monitor the market regularly
  • Investors looking for a transparent investment process
Pros
  • Low minimum balance to sign-up for an account
  • Plenty of low-cost real estate investments
  • Many listed properties project a lower risk rate
  • Wide range of real estate investments in prime locations
  • Open to non-accredited investors
  • Regulated by the SEC
  • Consistent track record of high returns
Cons
  • Charges a fee on early withdrawals from investments
  • Customer support does not feature live chat
  • Liquidity issues as eREITs and eFunds are not exchange traded
Minimum Investment
$10,000
Fees
1% of your total investment + 1% per year in asset management fees
Get started securely through FarmTogether’s website
Minimum Investment
$10,000
Fees
1% of your total investment + 1% per year in asset management fees
1 Minute Review

FarmTogether is a crowdfunding investment platform that allows you to pool money with other investors for agricultural opportunities. FarmTogether does have strict requirements for who can and cannot invest on the platform. 

FarmTogether’s platform is new and offers limited educational offerings. It doesn’t currently offer a mobile app, and it requires higher-than-average account minimums. However, as a newer platform, FarmTogether has potential that shouldn’t be ignored,  especially if you’re a higher-value investor looking for novel ways to invest directly in farmland real estate. 

Best For
  • Investors who want to invest in farmland real estate
  • Long-term investors who don’t mind investing in illiquid assets
  • Investors with a net worth of at least $1 million
Pros
  • Can invest directly in agricultural real estate
  • Can combine your investments with other investors for larger returns
  • Offers an easy-to-use platform that’s simple enough for total beginners
Cons
  • Higher-than-average minimum investments when compared to standard brokerage platforms
  • No mobile app currently available
  • Educational offerings are limited
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price
Get started securely through Roofstock’s website
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price
1 Minute Review

Roofstock is a registered real estate broker and marketplace specializing in single-family rental properties. Unlike its competitors, Roofstock isn’t selling shares of properties through trusts or LLCs — they’re connecting buyers and sellers directly. Roofstock properties are carefully vetted by a qualified home inspector and come with a rental income guarantee. That’s right, Roofstock will pay you rent even if your property stays vacant.

Financial data on each property is available even to those who are not clients and nonaccredited investors are welcome to join free of charge. Cash and financing options are available when making a purchase, but Roofstock will tack on their own fees in addition to closing costs.

As the solitary owner of your property, you’ll be expected to fund repairs out of your own pocket. Still, Roofstock is a great way to get a foot in the door of the real estate industry and their fees are much lower than most of the competition.

Best For
  • Nonaccredited investors
  • Real estate investors with limited capital
  • Investors looking for income through rental properties
Pros
  • Free to sign up
  • No investment minimum
  • Ownership of real assets
  • Low fees 30-day money back guarantee
Cons
  • Single-family homes only
  • Need to finance repairs yourself
  • Requires down payments

Best Cities for Real Estate

The Urban Land Institute and the consulting and tax firm PwC creates an annual list of the top housing markets for the following year. Their extensive report on Emerging Trends in Real Estate 2020 places the 8 cities listed in the table below at the top of the list for the 2020 real estate market. 

Key investment data for each top real estate market is also listed in the table. This data includes population and projected population growth in 2020, average rent, average home price and the existence and type of popular industries that draw tourism or increase demand. 

CityPopulation(millions)/5ygrowth (%)Rent as % of income (%)Median Home price (000’s)STEM* IndustriesOffice Businesses**Goods Industries**Tourism**
Austin2.28/2.2%18.4$2961.71.10.91.1
Raleigh/Durham2.69/1.3%20.0$2391.71.01.01.0
Nashville1.99/1.2%19.6$2550.81.11.01.1
Charlotte2.66/1.4%21.0$2291.11.21.11.1
Boston4.94/0.5%30.7$4991.61.20.80.9
Dallas/Fort Worth7.81/1.6%18.2$2611.21.21.01.0
Orlando2.69/1.7%25.2$2450.81.20.81.8
Atlanta6.11/1.2%21.0$2071.21.20.81.0
* A STEM industry involves advanced training in the fields of science, technology, engineering and/or mathematics and attracts a more highly-educated population.

** The industry location quotient measures industry employment concentration by market. This is computed by expressing the metro area’s industry employment as a percentage of the total metro area population and then dividing that by national industry employment to express the result as a percentage of the national total.

1. Austin, Texas

Austin is our top pick for 2020 real estate investments based on expected investor demand and a high projected population growth rate of 2.2% over the next 5 years.

A college town, it features a deep pool of educated talent, a popular and unique lifestyle and a strong commitment to support both businesses and real estate expansion.

Right now, housing is affordable but upward pressure on prices and rents is increasing. This suggests a good investment opportunity for a careful buyer, especially in the industrial, office building and apartment sectors.  

2. Raleigh and Durham, North Carolina

Our 2nd choice for 2020 is Raleigh and Durham. There has been especially strong investment activity in suburban office buildings and multifamily structures, as well as in homebuilding.

This key North Carolina metro area has a projected 5-year population growth rate of 1.3% and a strong supply of educated talent from the University of North Carolina, Duke University and North Carolina State University, in addition to several small colleges. It also boasts the Research Triangle Park, an up-and-coming mecca for tech jobs. 

3. Nashville, Tennessee

Nashville ranks 3rd among top real estate investment cities for 2020 due to its significant job growth numbers and attractive social options. The city has a projected population growth estimate of 1.2% for the next 5 years.

Although recent quick growth may tax Nashville’s infrastructure and the city’s affordability has suffered as housing costs rise, investing in this booming real estate market seems like a decent option for the coming year. 

4. Charlotte, North Carolina

Charlotte comes in 4th place for 2020 due to its rising business prospects and 1.4% expected 5-year population growth. The city has taken strong steps to attract manufacturing and technology businesses to bolster its existing industrial profile, dominated for decades by banking.

Charlotte is also upgrading its infrastructure, although some improvements remain to be done, such as expanding its rainwater runoff systems. On the downside, housing costs have already risen, suggesting possibly lower investment returns and income than other top markets. 

5. Boston, Massachusetts

Boston ranks 5th on our list and has often been an excellent choice for real estate investments historically based on its strong and resilient economic performance. The city expects to see 1.7% population growth over the next 5 years.

The firmest real estate sectors in Boston are offices, industrial buildings and multifamily structures. These sectors tend to remain buoyant due to the city’s outstanding collection of universities and colleges that number in excess of 50 within the city’s core metropolitan area.

This situation attracts plenty of talent to Boston, and although affordability remains an issue, investor demand for its real estate market remains understandably strong.  

6. Dallas-Fort Worth, Texas

The Dallas-Fort Worth metropolitan area has an impressive expected population growth trajectory of 1.8% over the next 5 years and so it earns 6th position on our list of best cities for real estate investment. By allowing the perimeter of this already-large city to expand, land costs there tend to remain moderate. Also, demand for real estate in Dallas-Fort Worth by resident individuals and investors has yet to wane, and property transactions remain active in the metropolitan area. 

7. Orlando, Florida

Orlando is home to the popular Disneyworld tourist attraction and ranks 7th among our best real estate investment choices for 2020. While projected population growth is only 0.9% over the next 5 years, the city remains a strong buy in the multifamily and office building sectors.

The development or redevelopment opportunities and homebuilding prospects continue to be in demand. And a new rail link to Orlando from Miami should increase tourism flows to the city and could boost short-term rental incomes. 

8. Atlanta, Georgia

Atlanta places 8th on our list of top real estate investments in 2020 due to its strong transaction volume seen over the past few years and 1.2% expected 5-year population growth.

Atlanta’s unique culture, its urban core that is ripe for renovation and its mixed-use suburban developments have made the city an increasingly interesting place to live, although land, labor and building cost rises have put pressure on affordability.

Invest in Real Estate Now

The top 8 cities of 2020 are strong real estate investment sites. New real estate investment options mean you can dive into real estate and take a hands-off approach. Take a look at our recommended platforms to add real estate to your investment portfolio.

Frequently Asked Questions

Are real estate investment trusts (REITs) a good option for me?

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Are real estate investment trusts (REITs) a good option for me?
asked
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An REIT owns, operates or finances real estate investments. It pools capital like a mutual fund to purchase commercial, multi-family and sometimes single-family homes.

REITs make it easier for you to invest because you don’t have to personally buy or manage a property. Buy the shares you can afford to get started in real estate now. Learn more about how to invest in REITS with our guide.

answered

What factors should you consider when investing in real estate?

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What factors should you consider when investing in real estate?
asked
1

You need to think about the location, population growth, job market and employers.

answered

What are the best cities for investing in real estate?

1
What are the best cities for investing in real estate?
asked
1

Some excellent markets include Austin, Texas, Nashville, Tennessee and Orlando, Florida.

answered

Accelerate Your Wealth

DiversyFund accelerates your wealth creation by reinvesting cash flows from the properties — the DiversyFund Growth REIT is a public non-traded REIT designed to build wealth by investing in multifamily real estate and intends to build wealth over an approximate 5-year timeline. You don’t have to be an accredited investor to invest in Diversyfund. Open a Diversyfund account today.