Top Fastest Growing Metros in the US and Should I be Looking to Invest in Them?
Despite the coronavirus pandemic, many are deserting giant cities like New York City or San Francisco and looking to settle somewhere else. Rapid economic growth plays a vital part in what makes up-and-coming cities appealing landing spots as well as lucrative investments.
Here is our list of the top five fastest-growing US metro areas and why you should invest in them:
1. Boise, Idaho
In recent years, Boise has been experiencing substantial growth in its population and its home values. Just in the last ten years, its population rose by 12%. In the last five years, home values have risen by 75% on average, and just the last year alone, the average home value in Boise rose by $50,000. On top of that, the people migrating there are young professionals with money to spend. Boise also offers the perfect balance between rural access and an urban feel. Its economy is as robust as ever with plenty of available jobs. The city is a hub for many startups and is home to such giants as HP and Micron. Boise is also voted as the eighth safest city in the world.
2. Tacoma, Washington
Homes are going fast in the Tacoma metro area, with 73.6% of houses sold in October 2020 going off the market in just two weeks. As a comparison, last year that number was only 51.3%. Tacoma offers better investment opportunities than for example the Seattle area, which can be pretty expensive. Cash flow opportunities are also better because the prices of homes are not as high. Between universities, military presence, the port, and proximity to Seattle, Tacoma is a fantastic area for investors looking for a metro area whose economy is being fueled by a diverse mix of industries.
3. Killeen, Texas
Since 2010, Killeen's population has grown by 20%. House values have been steadily growing but the most interesting thing is the number and speed of sales. In 2019, there were 1,186 available houses for sale, and in October 2020 available inventory was down to 450 houses for sale. Killeen is also adjacent to Ft. Hood, one of the largest US Army installations in the country.
4. Spokane, Washington
In recent years, Spokane has been experiencing a surge in housing market activity. Its house values have grown substantially, with the value of a typical house rising by almost 15% in just one year. And the houses are selling fast. In October 2020, more than two-thirds of houses were sold and taken off the market within two weeks. Spokane also has a record of being one of the best long-term real estate investments in the US over the past decade. Among other reasons to invest in Spokane is that Washington State University is fueling growth, its rental market is landlord-friendly, and it has low tax rates for a west coast city.
5. Cleveland, Ohio
Over the last year, Cleveland's housing market activity has seriously heated up. In October 2019, available, for-sale houses were at 8,364, but in October 2020, that number went down to 4,876 available homes for sale, a drop of over 40% in just one year. Most of the homes on the market were sold in just a couple of weeks. More than 50% of the households in Cleveland are occupied by renters, making this market ideal for investors. The diversified economy helps keep the rental market strong. The city ranks among the top 10 US cities for population growth of college-educated millennials. The job market is recovering at a fast rate, and the demand for housing is high while inventory is low.
Now that we know what the fastest-growing metros are, why should you consider them for investing? The number one reason is the basic law of economics, Supply and Demand. If demand goes up (more people moving there), and supply remains relatively constant, price will go up. The supply of retail buildings can also be limited due to other barriers to entry in the market, making your investment that much more valuable.
Do you want to learn more about the fastest-growing metros in the US? For more information, you can reach us at info@cbi-commercial.com.