Realtor.com recently finished a study of the hottest real estate markets for investors. If you follow local real estate, it’s not suprsing that Memphis came in at #5 on the list. The report looked at 100 of the largest metropolitan areas and found that the leaders were more modestly priced cities in the Midwest and South that have a larger selection of older, lower-priced homes, strong economies, and population growth creating demand for housing. Those characteristics sure sound a lot like Memphis, except for the huge population growth, but that is also projected to change with the huge amounts of money being invested in the core of the city.
Top 10 Real Estate Investment Cities
% of Investment Sales
Deeper Look at the Numbers
While the report states that 16.1% of all Memphis homes sold went to investors, that number is actually likely much higher because the report only took into consideration purchases with a corporate or nonindividual’s name on the deed (like LLC’s). That leaves a whole segment of mom & pop investors out of the equation.
Why Are People Investing in These Cities?
Realtor.com Senior Economist, George Ratiu expanded on what is driving investments in these cities by stating “Most of these midsized cities have strong job growth and lower home prices and a more relaxed lifestyle attracting millennials.”
Overall, investment properties accounted for 7.7% of all home sales in the second quarter. That’s the most the market has seen since 2013 following the low home prices after the Great Recession.