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8 Best States to Invest in Real Estate in 2022

by / ⠀Investment / July 20, 2022
8 Best States to Invest in Real Estate in 2022

Knowing best states to invest in real estate can be tricky, with many variables to consider. Savvy investors must compare a wide range of potential investment opportunities to determine where they will achieve the most likely profits. 

While no one has a crystal ball, some particular metrics can be used to forecast the likelihood of investment success.

Key Metrics to Consider When Investing

No matter what area you consider investing in, the principles of property investing remain the same. Of course, investors want to buy properties in areas that will return to most on their investment. So, how can this be predicted with any real accuracy?

The most important metrics to consider when investing in an area are:

  • High demand for rental properties
  • High average rental incomes
  • Population growth
  • Job growth
  • Median home prices
  • Cost of living 

The first two speak for themselves, while population and job growth indicate a growing area to keep the demand for rental housing up. 

The Best States to Invest in for 2022

Investors and property experts don’t always agree on exactly where the most prime investment opportunities lie. That said, based on the metrics above, here’s our pick of the top eight states to consider for 2022.

To collate this list, we’ve taken the most up-to-date information from official and reputable sources such as census.gov, worldpopulationreview.com, redfin.com, and apartmentguide.com. 

Missouri

Median Property Price: $244,400

YoY median property price growth: 11.8%

Average 2-bedroom rental price: $1,235

Two-bedroom YoY growth: 3.27%

Population Growth: 0.2%

Job Growth: 1.01%

Cost of Living: 87.1

Many businesses and Fortune 500 companies call Missouri home, all supporting the growing economy the state enjoys, certainly. It is also an attractive state for first-time buyers with affordable housing options and solid growth across sales and rental values. 

The cost of living in Missouri is one of the lowest in the nation, too. 

Virginia

Median Property Price: $434,500

YoY median property price growth: 8.8%

Average 2-bedroom rental price: $2,120

Two-bedroom YoY growth: 16.86%

Population Growth: 0.01%

Job Growth: 1.01%

Cost of Living: 100.7

Named by Forbes as the best state for business, Virginia’s economy continues to grow, with a strong tech industry and solid job growth figures. Proximity to Washington D.C. remains a significant drawcard, with Northern Virginia suburbs offering many hotspots for investment.  

North Carolina

Median Property Price: 359,600

YoY median property price growth: 18.8%

Average 2-bedroom rental price: $1,584

Two-bedroom YoY growth: 29.04%

Population Growth: -0.8%

Job Growth: 1.02%

Cost of Living: 94.9

Despite a slight population drop-off, North Carolina’s property affordability, solid job growth, and fantastic rental growth make it one for investors to consider. In addition, the state’s property and cost-of-living affordability, coupled with its mild weather, make it popular with millennials and a hotspot for investors. 

Idaho

Median Property Price: $512,500

YoY median property price growth: 19.4%

Average 2-bedroom rental price: $1,429

Two-bedroom YoY growth: 21.72%

Population Growth: 3.4%

Job Growth: 1.03%

Cost of Living: 92.3

With a significant population increase, Idaho continues to show signs of ongoing growth in its technology-focused economy. Likewise, job growth figures are above average, property and rental growth are solid, and living costs remain under the national average. When thinking about the best state to invest real estate, Idaho often is looked past, but provides numerous opportunities.

Indiana

Median Property Price: 255,400

YoY median property price growth: 12.1%

Average 2-bedroom rental price: $1,208

Two-bedroom YoY growth: 7.15%

Population Growth: 0.3%

Job Growth: 1.01%

Cost of Living: 90

Indiana’s economy is stable and growing. Plus, the state offers attractive property values for investors, coupled with a healthy rental market and a growing job market. 

Florida

Median Property Price: $401,500

YoY median property price growth: 23.1%

Average 2-bedroom rental price: $2,271

Two-bedroom YoY growth: 37.56%

Population Growth: 1.1%

Job Growth: 1.03%

Cost of Living: 97.9

The Sunshine State has long been a favorite with real estate investors, and for good reason. Florida continues to experience significant growth in property and rental values, with a growing job and population figures and a cost of living that remains under the national average. Its tax-friendly status is always a big drawcard, too when looking at the best state to invest in real estate.

Georgia

Median Property Price: $512,500

YoY median property price growth: 19.4%

Average 2-bedroom rental price: $1,666

Two-bedroom YoY growth: 29.34%

Population Growth: 0.8%

Job Growth: 1.02%

Cost of Living: 89.2

Property values have been shooting up in Georgia, but so too have the average rental yields, and the state is experiencing a population and job growth to support it. It’s also the 9th for the lowest cost of living out of all 52 states. 

Texas

Median Property Price: $376,800

YoY median property price growth: 19.8%

Average 2-bedroom rental price: $1,448

Two-bedroom YoY growth: 10.94%

Population Growth: 1.3%

Job Growth: 1.03%

Cost of Living: 91.5

The economy of Texas is fueled by leading universities and colleges, a wide variety of industries, and a wealth of natural resources. In addition, the state’s strong population growth speaks volumes for potential investment opportunities.

Ohio

Median Property Price: $221,100

YoY median property price growth: 10.3%

Average 2-bedroom rental price: $1,213

Two-bedroom YoY growth: 9.06%

Population Growth: -0.2%

Job Growth: 1.00%

Cost of Living: 90.8

In addition to being home to some of the best colleges and universities in the country and with a strong economy, Ohio is a good bet for real estate investment. Although the population has dropped slightly, this is likely to be a temporary Covid-related pattern. Such affordable property prices, solid growth across sales and rentals, and a healthy job growth rate all signal promising investment opportunities. 

Given its housing affordability, Ohio is particularly well suited for first-time investors. Many opportunities are to be found in major metro areas such as Columbus, Cincinnati, Cleveland, and Toledo.

Final thoughts

Wherever you choose to invest, it’s essential to research metrics such as those used above. So, be sure to think ahead and do your research. No matter how ‘hot’ a market may seem, it must have the economic statistics to back it up. Indeed, a growing economy is vital for sustainability, as renters will ultimately go where the jobs are. Also, keep in mind that markets ebb and flow constantly. What is hot today may not be next week. When looking at the best state to invest in real estate, it might be worth asking yourself if the decision is worth sitting on. Or, perhaps not. And if that’s the case, then go for it! 

About The Author

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Rumzz is a digital strategist and content marketer. She enjoys spending time with her family. She loves to go out and experience new moments whenever they came to light. Rumzz discovers satisfaction in investigating new subjects that help to extend her points of view. You can frequently locate her immersed in a good book or out searching for a new experience

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