Key Details:
- Realtor.com® reveals the top 10 U.S. markets for real estate investment in 2024, with Dayton, Ohio ranking at number one.
- These affordable metros offer home prices 21.7% below the U.S. average and rental vacancy rates as low as 4.8%, providing strong opportunities for property investors.
Shifting market conditions are giving real estate investors the green light in many U.S. markets, particularly in two specific regions.
A new report from Realtor.com highlights the top 10 markets for real estate investment in 2024. Five are in the Midwest, led by Dayton, OH, while the other five are Northeastern metros.
A combination of factors contribute to these markets’ ascendancy to top-10 ranking, including:
- Lower-than-average home prices
- Strong rental demand
- Above-average page views on Realtor.com
Investment activity in these 10 markets has grown by 4.4 percentage points since 2019, indicating a rise in investor interest despite higher home prices and mortgage rates.
For buyers interested in investing in rental properties or other real estate, it’s key to know which areas are both affordable and in high demand to be able to capitalize on any investment opportunities, especially with today’s higher prices and rates. With low vacancy rates and strong demand, the markets we’ve highlighted as top markets for investment opportunity offer a great mix of affordability and growth potential. These spots give aspiring investors a chance to tap into long-term growth and set themselves up for solid returns as the market shifts.
Top Real Estate Investment Markets in 2024
Dayton, OH, ranks as the number one destination for real estate investors, largely due to its below-average home prices and rental vacancy rate, along with above-average listing page views
The Top 10 U.S. Markets for Real Estate Investment:
- Dayton, OH
- Rochester, NY
- Cleveland-Elyria, OH
- Pittsburgh, PA
- Knoxville, TN
- Albany-Schenectady-Troy, NY
- New Haven-Milford, CT
- Buffalo-Cheektowaga, NY
- Grand Rapids-Kentwood, MI
- Columbus, OH
Markets in the Midwest and Northeast dominate the list as prime investment areas, largely due to the relative affordability and growth potential of the high-ranking metros.
Affordability, Low Vacancy Rates, and Rising Demand
Home prices in the top 10 markets are 21.7% lower than the national average, making them relatively affordable. These markets also have an average rental vacancy rate of 4.8%, well below the national average of 6.6%, indicating strong rental demand.
Properties in these 10 markets received 1.95 times the average page views per property compared to the national average, signifying heightened buyer interest.
Growing Investor Interest and Strong Returns
In the first quarter of 2024, 13.8% of buyers in these 10 markets were investors. While that’s slightly below the national average of 14.8%, it does reflect a growing trend.
In the top-ranking market, Dayton, OH, 13.7% of buyers were investors in Q1 2024, while the rental vacancy rate stood at 4.7%.
Investment activity in these markets has grown by 4.4 percentage points (ppts) since 2019, proving interest has grown in spite of higher home prices and mortgage rates.
Read the full report for more information, including metro-level data and methodology.
