Real estate investors, like all buyers and sellers, have experienced the rollercoaster of the fluctuating housing market. Despite sustained investor activity through the end of 2023, 2024 saw a significant shift in sentiment, with many investors growing more cautious.
For those still actively searching for opportunities, a recent analysis by Agent Advice — founded by industry veteran Chris Heller — highlights the top markets based on factors such as annual home price growth, population growth, and personal income increases.
Southern States Lead in Investor Appeal
Agent Advice’s analysis shows that the Southern states are dominating investor opportunities, with all ten top markets located in this region. Notably, four of the top ten markets are in Florida, while North Carolina and Texas each claim two spots.
The top cities for real estate investors include:
- Miami, Florida
- Tampa, Florida
- Charlotte, North Carolina
- Raleigh, North Carolina
- Phoenix, Arizona
- Orlando, Florida
- Austin, Texas
- Nashville, Tennessee
- Dallas, Texas
- Jacksonville, Florida
Miami topped the list due to a strong combination of price and population growth. Phoenix stood out with the highest annual price growth for one-bedroom units, while Tampa, Charlotte, and Raleigh all reported 10% or more in price appreciation. Nashville also shined with a 5% annual increase in personal income.
Risks Linger in Hot Markets
While the Southern markets are brimming with opportunity, some are starting to show signs of cooling. Austin, Dallas, and Phoenix have seen notable declines in home prices since their peaks, and inventory levels are climbing, especially in Phoenix. Florida, once a seller’s paradise, is now shifting toward a buyer’s market.
Existing home sales have dropped 2.5% nationwide between July and August, with the South being hit hardest, seeing a 6% year-over-year decline. Along with the cooling markets, investors in these areas must contend with rising property taxes, and in Florida, rapidly escalating home and flood insurance costs due to increasing natural disasters.
Despite the challenges, investors who navigate these headwinds may still find lucrative opportunities in the South’s top markets.
