With the new year underway, many real estate investors are researching the most promising markets for 2022 and 2023. Key factors like population and job growth, affordability, and business climate can indicate locations where real estate investing is likely to pay off. As investors consider where to allocate their capital this year and next, several states stand out as offering strong fundamentals. In this article we will explore key data points investors should analyze when selecting the most favorable markets for real estate investing in 2022 and 2023.
Texas and Florida continue as hot real estate markets
Texas and Florida have ranked among the top growth markets for real estate in recent years. Strong population growth from domestic migration along with a business-friendly tax climate position these states for continued real estate investment success. Metro areas like Austin, Dallas, Houston, Orlando, and Tampa offer particular investment upside.
Southeast and Mountain West markets offer affordability
Many Southeastern and Mountain West states like Georgia, North Carolina, Idaho, and Utah are attracting new residents with their relative affordability and strong job growth. Real estate investors should target metro regions in these states, like Atlanta, Boise, Raleigh-Durham, and Salt Lake City where population and employment gains create housing demand.
Coastal markets made more attractive by remote work trends
Previously expensive coastal states like California, New York, Massachusetts and Washington are now more investable for real estate as remote work unlocks new demand. With workers able to live anywhere, secondary cities and suburbs in these states have seen rising interest from buyers. Savvy investors can capitalize on surging migration to coastal region outskirts.
For real estate investors, market selection will be key in 2022 and 2023. Texas, Florida, Southeastern and Mountain West states appear primed for continued growth, while remote work expands options on the coasts. Understanding fundamental drivers of real estate demand can guide investment decisions.