A recent report focused on various real estate investment opportunities for 2017, has been released by noted firm PricewaterhouseCoopers and its results provide a clear picture for real estate investors looking to expand their portfolios in the next twelve months.
We will share the top 20 markets for 2017 real estate investment that they see the strongest potential in and briefly discuss some factors which shaped the selection process. Here is their top 20 list, derived from the original report:
- Dallas/Fort Worth
- Los Angeles
- Orange County
- San Francisco
- New York (Manhattan)
- Oakland/East Bay
- New York (Brooklyn)
- San Jose
- Salt Lake City
- Tampa/St. Petersburg
For some investors, Austin sitting at the top of the list may sound odd compared to other choices like New York or San Francisco. However, according to PwC’s research, some factors have coalesced in the Lone Star state capital’s favor. First, it operates with a diversified economy; as a haven for tech startups and other industries looking to move in, Austin does not keep all its eggs in any one basket. Furthermore, economically, the city was not hit as hard as many others during the global financial crisis.
Second, this diverse economy has drawn in a well-educated population that continues to grow and is providing a quality labor force. Third, the city’s growing cultural importance and “hip” image has made it highly attractive to the millennial workforce that keeps flocking to it. This combination of a healthy economy plus cultural cache has drawn in a population that’s young, educated, filling in available positions, and most importantly need places to live. While it is a relatively small, highly competitive market, Austin has not been flooded with huge foreign investment yet, so the opportunity for U.S. real estate investors to move in and do well there is still strong.
Looking at the list, one can see that regionally, the West Coast and South have a firm hold regarding overall prospect growth. Regarding the East Coast, only New York (with the aid of its various boroughs like Manhattan and Brooklyn) and Boston show opportunity for secure investment. Given their positions as primary markets in that region, there should be little surprise that they still hold opportunities for real estate growth, as new potential workers will always be looking for employment there which then necessitates places to live.
Otherwise, growth in markets like Austin, Portland, Seattle, etc. suggests continued interest in growing cities with known cultural cache; cities that attract a steady stream of young, educated people seeking both job opportunities and engaging extracurricular activities. These are also markets that have healthy, diversified economies and show no signs of a decreasing population. Despite the intense competition, these markets are worth the time and focus on investigating if you are looking to invest in properties for long-term revenue generation.
As evidenced by this report, there are plenty of still viable, lucrative markets with properties available to invest in as long as you’re willing to put in the work to find the right ones for your business. That begs the question, though – is your real estate business properly set up and ready to take on additional portfolio investments at this time?
Making sure that your business is properly structured for tax and compliance purposes is paramount if you’re considering expanding your investments to multiple markets outside of your home state. Thankfully, Anderson’s team and lawyers, advisors, and CPAs are expert in this arena, with nearly two decades of experience working specifically with real estate investors in these matters.
If you’re looking to expand your horizons in 2017 real estate investment but want to make sure you’re legally and structurally sound enough to do so, then contact us today for a FREE 30-minute strategy session with one of our expert advisors. Thirty minutes of your time is all that’s need to make sure you’re on the correct path to expand your business and revenue success.