Norada Real Estate Investments

Benefits of Investing in a Real Estate Syndicate

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A real estate syndicate is a group of investors who pool their funds to buy, manage, and operate real estate. The group is typically led by one or more experienced real estate investors who serve as general partners and are in charge of managing the investment's day-to-day operations. The group's investors serve as limited partners, providing capital for the investment.

The syndication process is simply the aggregation of capital from a group of investors to acquire property. Real estate syndications are seeing new popularity as real estate is increasingly viewed as a fourth asset class in addition to stocks, bonds, and cash. Real estate investment trusts (REITs), many of which have dividend returns of 6 percent or more, are an attractive way to invest in real estate but their publicly traded shares are subject to a significant degree of price volatility that many investors seek to avoid.

By contrast, shares in a private syndicate, typically a real estate limited partnership (RELP) or limited liability company (LLC), are not priced to market daily and in addition, offer the possibility of higher returns than publicly managed REITs. Finally, private real estate syndications offer some tax savings unavailable when investing in a public company.

A real estate syndicate can take different forms, it can be a private or public company, a limited partnership, or a limited liability company, and each of them has its own set of advantages and disadvantages. The main advantage of a real estate syndicate is that it allows individual investors to participate in larger and more expensive real estate deals that they otherwise would not be able to afford.

By pooling their funds, investors can gain access to a diverse portfolio of properties while reducing risk by spreading it across multiple properties. Furthermore, general partners frequently have more experience and resources than limited partners, which can result in better decision-making and higher returns.

Real Estate Syndication Vs REIT

Real estate syndication and REIT (Real Estate Investment Trust) are both ways for investors to invest in real estate, but they have some key differences. A real estate syndicate is a group of investors who pool their money together to purchase, manage, and operate a real estate investment. The group is typically led by one or more experienced real estate investors who act as the general partners and are responsible for managing the day-to-day operations of the investment. The investors in the group act as limited partners and provide the capital for the investment.

On the other hand, a REIT is a publicly traded company that owns and manages a portfolio of real estate properties. REITs allow investors to purchase shares in the company, which gives them ownership of the underlying properties. REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends.

One of the main differences between the two is the level of control and involvement that investors have. In a real estate syndicate, the investors are typically limited partners who provide capital and have little control over the day-to-day operations of the investment. In a REIT, investors are shareholders and have no control over the properties, but they receive regular dividends and may have the ability to vote on certain matters related to the company.

Another difference is the level of liquidity, REITs are publicly traded on the stock exchange, which means the shares can be bought and sold on a daily basis. While in the case of a real estate syndicate, investors usually have to wait until the property is sold before they can receive their share of the profits. Both, Real estate Syndication and REIT have their own set of advantages and disadvantages, it's important to carefully evaluate the investment and consider the risk-reward balance, before making a decision.

Advantages of Investing in a Real Estate Syndicate

While investing in a real estate syndicate has certain disadvantages as compared to direct ownership of the real estate, syndicates do offer significant benefits. These include the following:

  • Access to real estate skills. The most obvious advantage of a syndicate is that the knowledge and skills of a real estate professional are available to nonprofessional investors. Real estate investment is a far more complicated process than might appear at first, requiring skills in determining real estate values, negotiating purchase agreements, financing a purchase, negotiating leases, and managing the property.
  • Increased savings. By pooling the funds of several investors, even a small real estate syndicate can achieve cost savings as compared to an individual investor. A well-capitalized syndicate can make a substantial down payment on one or more properties while still retaining necessary cash reserves. In addition, other things being equal, larger properties tend to be more cost-efficient than smaller ones, since many expenses are lower on a per-unit or square-foot basis.
  • Diversification. A major advantage of syndication is that it enables an individual investor with limited funds to diversify among several different properties. Diversification may well be the most important way to protect against significant losses in real estate.
  • Tailor-Made Investment Positions. Finally, a syndicate can be structured to offer a variety of “investment positions” that differ concerning the priority of return, risk of loss, and tax benefits. Thus, an investor can choose the balance of risk and return that best suits their wishes.
  • Cash Reserves. The need for cash reserves is often overlooked when inexperienced investors buy real estate. Syndication can assure that sufficient capital is available to give the investment staying power, and the ability to withstand economic downturns or temporary shortfalls.

Beginning the Syndication Process

A major consideration to be addressed at the beginning of the planning process is the number of investors the sponsor intends to solicit. In most cases, a syndicate will consist of 10 to 50 investors, often known personally by the sponsor, who may be a real estate broker, attorney, accountant, or someone fully involved in real estate operations. In these cases, no elaborate marketing plan needs to be implemented. In addition, federal securities laws may not apply if the offering is within a single state or otherwise meets the requirements for an exemption. State securities laws may or may not be applicable. Professional counsel should be sought to assure compliance.

Multi-Class Syndications

In a typical real estate syndicate, the investors constitute a single class, each receiving a pro-rated ownership interest in the syndicate. In some cases, however, to broaden the market for syndicate shares, the sponsor may create a multi-class syndicate or paired syndicate. This permits the creation of different classes of investors, each class entitled to a different type of return, just as corporate investors can choose among bonds, common stock, and preferred stock.

Three different approaches to the multi-class syndicate are (1) different classes of interests within the same syndicate; (2) fee/leasehold split in separate syndicates; and (3) equity/loan split in separate syndicates.

In the fee/leasehold approach, separate legal interests in the property are created – fee ownership and a long-term leasehold. Two syndicates are formed. The syndicate owning the fee interest in income property will be attractive to investors wishing to receive a secure cash flow in the form of rent from the leasehold syndicate. The syndicate owning the leasehold then operates the property directly or enters into a net lease with a high-credit tenant. Since no land investment is required, higher returns can be generated but more risk is assumed since the ground rent must be paid in all events.

In the equity/loan approach, instead of a division of ownership between two syndicates, one syndicate (for conservative investors) makes a mortgage loan to a second syndicate (of the equity investors) that owns the property. The lending syndicate receives interest on its loan, which can include some form of participation in future income, while the equity syndicate keeps the balance of income from the property and possible amortization payments as well.

Multi-class syndication is complex and must be expertly handled for economic, legal, and tax consequences. When two syndicates are created, as discussed above, the sponsors must be sure that applicable federal or state exemptions will not be defeated because the offerings are deemed to be integrated.

Houston Real Estate Market: Prices, Forecast, News 2022-2023

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The Houston Housing Market is Cooling

We will discuss the latest Houston housing market trends & forecasts for 2022 and 2023. As the housing market slowdown continues, higher mortgage rates hindered sales of homes in the Greater Houston area in October, according to H.A.R. However, home prices are still well above where they were a year ago. There has been a steady decline in sales and an increase in supply since last October, marking the seventh consecutive month of this trend as the market returns to its pre-pandemic norm.

Houston Home Prices 

  • The single-family median price increased 8.4 percent to $330,500.
  • The average price rose 7.2 percent to $403,712.
  • In March of this year, the average price of a single-family house in Houston surpassed $400,000 – record high of $438,290.
  • Since May 2021, the median price has stayed above $300,000.
  • Townhome/condominium median price increased 3.9 percent to $226,500.
  • Townhome/condominium average price increased 9.3 percent to $269,936.

The Houston Association of Realtors (HAR) reported in its October 2022 Market Update that single-family home sales fell 22.8 percent, with 6,641 units sold compared to 8,597 in October 2021. On a year-to-date basis, the market now trails 2021’s record-setting volume by 6.7 percent. In October, all price segments recorded negative sales.

The 6.6 percent drop in sales was reported among homes priced between $500,000 and $999,999. Because there are fewer properties priced under $250,000, some buyers have shifted to the rental market. The Houston housing market is heading towards more balanced conditions. However, when prices level out and inventory increases, we will see more buyers enter the market in 2023.

Houston Housing Market Trends [Released in November 2022]

Houston Housing Market
Data by HAR. The forecast is an estimate from various sources.

According to the October 2022 Market Update from the Houston Association of Realtors (HAR), the number of single-family homes sold decreased by 22.8 percent, from 8,592 in October 2021 to 6,641 in October 2022. The market is currently 6.7% behind 2021's record-setting volume on a year-to-date basis.

In October, the average price of a single-family home increased by 7.2% to $403,712 — behind the record high of $438,290 recorded in May of this year. The median price increased by 8.4 percent to $330,500, which is below the all-time high of $354,000, which was attained in June 2022. In March of this year, the average price of a single-family house in Houston surpassed $400,000. Since May 2021, the median price has held above $300,000.

October's monthly housing measurements produced mixed results. In addition to the loss in sales of single-family homes, total property sales, total dollar volume, and pending sales all decreased by 23.4 percent. The overall number of active listings (available properties) increased by 43.0 percent.

Months of inventory continue to grow, reaching a 2.8-months supply in October. That is the highest level since July of 2020 when it was 2.9 months. A 6.0-month supply is traditionally considered to represent a “balanced market,” in which neither the buyer nor the seller has an advantage.

On the other hand, townhouses and condominiums experienced their fifth consecutive monthly decline, falling 19.4 percent year-over-year with 548 closed sales versus 680 a year earlier. The average price increased 9.3 percent to $269,936 and the median price rose 3.9 percent to $226,500. Both figures are below the historic highs reached in April 2022. Inventory fell slightly from a 2.3-months supply to 2.1 months.

The HAR's most recent report on the Greater Houston Area Housing Market is available below. It analyses important housing indicators across the Greater Houston region for October 2022.

  • Single-family home sales fell 22.8 percent year-over-year, the seventh consecutive decline of 2022 as the market returns to pre-pandemic levels;
  • All housing segments experienced negative sales in October. The smallest decline in sales Days on Market (DOM) for single-family homes grew from 32 to 43 days;
  • Total property sales were down 22.7 percent with 8,223 units sold;
  • Total dollar volume declined 18.4 percent to a little over $3 billion;
  • The single-family average price rose 7.2 percent to $403,712;
  • The single-family median price increased 8.4 percent to $330,500;
  • Single-family home months of inventory registered a 2.8-months supply, up from 1.8 months a year earlier. That is the greatest inventory level since July of 2020;
  • Townhome/condominium sales experienced their fifth consecutive monthly decline, falling 19.4 percent, with the average price up 9.3 percent to $269,936 and the median price up 3.9 percent to $226,500.
There are the housing sales broken out by different price segments:
  • $1 – $99,999: decreased 42.3 percent
  • $100,000 – $149,999: decreased 34.8 percent
  • $150,000 – $249,999: decreased 41.6 percent
  • $250,000 – $499,999: decreased 18.7 percent
  • $500,000 – $999,999: decreased 6.6 percent
  • $1M and above: decreased 28.0 percent
Houston Housing Market Trends
Source: Har.com

Houston Housing Market Forecast 2022 – 2023

Looking at the current statistics, what are the Houston real estate market predictions? NeighborhoodScout.com's data also shows that Houston real estate appreciated by nearly 95.39% over the last ten years. Its annual appreciation rate has been averaging 6.93%. This figure puts it in the top 30% nationally for real estate appreciation. During the twelve-month period (2021 Q2 – 2022 Q2), the Houston appreciation rate was nearly 16.77%. In the quarter, from 2022 Q1 – 2022 Q, the appreciation rate was 5.42%.

Let us examine the price trends recorded by Zillow over the past few years. Houston has a track record of being one of the best long-term real estate investments in the U.S. Since the last twelve months, the Greater Houston home values have appreciated by 14.7% — Zillow Home Value Index. 

ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The typical home value of homes in Greater Houston is currently $314,051. It indicates that 50 percent of all housing stock in the area is worth more than $314,051 and 50 percent is worth less (adjusting for seasonal fluctuations).

Here is Zillow's home price forecast for Houston, Harris County, and Houston – The Woodlands-Sugar Land. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). ZHVF is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted.

  • Houston-The Woodlands-Sugar Land Metro home values have gone up 14.7% over the past year.
  • 1-year Market Forecast Ending October 2023 is Positive.
  • Home prices are predicted to rise by 0.9% between October 2022 to October 2023.
  • 0.992 – Median sale-to-list ratio (October 31, 2022)
  • 25.0% – Percent of sales over list price (October 31, 2022)
  • 54.3% – Percent of sales under list price (October 31, 2022)
  • 23 – Median days to pending (November 30, 2022)

This indicates that Houston will remain a moderate seller’s market so watch for upward pricing pressure in the near future. Clearly, for the long-term investment, you cannot ignore Houston. Investing in a rental property for the long term would build your equity and also generate cash flow through rental income. If you want to increase your cash flow in 2023, you will find great deals in the Houston real estate market.

Houston Real Estate Market Forecast
Credits: Zillow

Houston has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value. According to many experts, Houston has been in seller mode for several years now and there’s no reason to think that will change drastically in 2023. 

However, the pace of the market is going to be moderate with no rapid price appreciation as seen in the last two years. Although the desire to own a home remains strong, the combination of high home prices and mortgage rates will make it difficult for many first-time buyers to afford one.  Houston and the entire metro area market lack sufficient housing supply, so it cannot shift to a complete buyer’s real estate market, for the long term.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Houston can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. Therefore, in the long term, the Houston real estate market remains skewed to sellers, due to a persistent imbalance in supply and demand.

Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. While the rapid real estate appreciation Houston witnessed earlier in the decade has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push home prices in Houston.

Houston Real Estate Market Statistics (Previous Year)

2021 was a record-breaking year for the Houston real estate market. As reported by HAR, the second year of a global pandemic, shrinking inventory, building supply, labor shortages that slowed home construction, and rising home prices could not keep the Houston real estate market from setting a record year in 2021. Consumers' demand for housing has never waned, and they have paid more for it as the supply of housing has shrunk. Single-family home sales exceeded the record volume set in 2020 by more than 10%, while total dollar volume increased nearly 32% to a record $47 billion.

Single-family home sales in 2021 increased 10.3 percent to 106,229, according to HAR's December/Full-Year 2021 Housing Market Update. For the year, total property sales totaled 131,041, up 13.3 percent from the record volume set in 2020 and only the third time in history that total property sales exceeded the 100,000 mark. Total dollar volume increased 31.8 percent to a record-setting $47 billion in 2021.

It was impossible to know what 2021 would have in store for Houston real estate, especially as the surges in coronavirus variants began affecting our area, but the need for housing never abated and REALTORS delivered,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “Limited inventory and shortages of building supplies and labor on the new construction side also posed serious challenges, but the market powered through it all to achieve a record year. As we enter 2022, inventory and affordability are definite concerns.”

According to local agents, nothing stays on the market for long as buyers are buying homes at a fast pace by taking advantage of the record low mortgage rates. Low mortgage rates and a dearth of homes for sale are two key reasons that help explain why the Houston houisng market will be booming in 2022 as well.

Houston Rental Market Trends 2022

Before the pandemic, the average rent for an apartment in Houston was $1,118, a 2% increase compared to the previous year, according to RENTCafe. The average size for a Houston, TX apartment is 880 square feet with studio apartments being the smallest and most affordable. 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. 48% of the households in Houston, TX are renter-occupied while 52% are owner-occupied. More than 80% of the apartments in Houston fall in the price range of $500 – $2.8K.

The Zumper Houston Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,159 last month. Houston & Pearland were the most expensive cities with one bedroom priced at $1,340. Galveston was the most affordable city with rent at $1,050.

The Fastest Growing Cities For Rents in Houston Metro Area (Year-Over-Year)

  • Galveston had the fastest growing rent, up 11.7% since this time last year.
  • Conroe saw rent climb 11.2%, making it second.
  • Houston & Pearland were tied for third with rents both increasing 8.1%.

The Fastest Growing Cities For Rents in Houston Metro Area (Year-Over-Year)

  • Houston had the largest monthly rental growth rate, up 4.5%.
Houston Rental Market Trends
Credits: Zumper

As of December 11, 2022, the average rent for a 1-bedroom apartment in Houston is currently $1,355. This is an 18% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Houston increased by 4% to $1,329. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 3% to $1,700.

  • Two-bedroom apartment rents average $1,700 (a 17% increase from last year).
  • Three-bedroom apartment rents average $1,925 (a 4% increase from last year).
  • Four-bedroom apartment rents average $2,110 (a 5% decrease from last year).

Some of the most affordable neighborhoods where the asking prices are below the average Houston rent:

  • East Little York, where the average rent goes for $870/month.
  • Greater Eastwood, where renters pay $850/mo on average.
  • Gulfton, where the average rent goes for $1160/mo.

Houston Real Estate Investment Outlook

Investing in Houston real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Houston real estate investment?  Houston is a minimally walkable city in Harris County with a population of approximately 2,112,810 people. It is a diverse city with lots to offer that will cater to the tastes of a variety of potential buyers and tenants.

According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Houston. Other types of housing that are prevalent in Houston include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 45% of Houston's housing units.

Nearly 79,000 single-family detached homes were sold in the first 11 months of 2019, with year-to-date sales running 4.1 percent ahead of last year’s record volume. The total number of homes sold in the entire twelve months of 2018 was 82,229. Residential units, hotels, office buildings, and restaurants; the city is seeing continuous development projects that promise to keep the real estate market strong. Many of Houston’s neighborhoods are some of the most attractive places to live in the whole of Texas, and it’s not hard to see why.

With a great balance of urban regions and open spaces in the suburbs, the potential for development is clear to see, and the natural features of the land are some of the most attractive features you could hope for in an investment district. The Texas real estate market has been pretty quiet for a little under a decade now, but the real estate market in Houston has managed to remain relatively consistent while its surrounding areas have dragged their feet.

Houston has always been a hotbed of buyer activity; just ask the multitude of overseas investors who choose Houston as the city of their choice to invest in real estate. There was a time when Houston seemed immune to the highs and lows of housing cycles, but it now seems to have joined the pace of the national average.

But its rate of appreciation continues to be slightly above the national rate. With an extremely diversified economy and a huge demand for housing, Houston remains one of the top markets in the nation for real estate investing. Houston is one of the country’s top job creators, the home of America’s booming energy industry, is more diverse than New York City, and lets you stretch a paycheck farther than anywhere else in the country. Houston is also one of the hottest real estate markets in the nation.

Top Reasons To Invest In The Houston Real Estate Market
  • Houston is the #1 Market in the US for Job Creation.
  • Housing real estate is affordable.
  • 4th largest city in the US.
  • Its unemployment rate is far below the national level.
  • A paycheck goes farther in Houston than any other major metropolitan area.
  • Houston didn’t experience a housing bubble the way the rest of the country did.
  • It’s home to more Fortune 500 headquarters than anywhere in America except for New York.
  • It’s one of the centers of America’s booming oil and gas industry.
  • Massive international trade gives another big job boost to the rapidly growing city.
  • Houston is called Space City for a reason; it’s home to the NASA Astronaut Corps.
  • The New York Times calls it ‘one of the country’s most exciting places to eat.’
  • A spectacular range of ethnic cuisines, fantastic seafood, and great barbecue.
  • Ignore the Astros. The Texans, Rockets, and Dynamo are all winners.
  • It hosts the world’s largest concentration of health care organizations, with scientists working hard to beat cancer.
  • The city is filled with world-class and unique museums and cultural landmarks, like the Rothko Chapel.
  • The combination of The University of Houston and Rice University means there are a bunch of smart people around.
  • Houston recently passed New York to become the most ethnically and racially diverse city in the US.
  • And finally, it’s a great place for Southern hip hop!
  • There are approximately 1,196 schools in Houston, TX.
  • There are around 490 elementary schools, 256 middle schools, 178 high schools, and 272 private & charter schools.
  • To know more about Houston, read his blog – 17 Facts That Make Houston the Best City in America.

Houston Real Estate Market After Hurricane Harvey

Hurricane Harvey had some fascinating and somewhat surprising effects on the Houston Real Estate Market. Harvey’s devastating economic impacts have a silver lining for homebuyers in Houston. Houston's real estate market forecasts look promising after the hit the city took from Hurricane Harvey in 2017.

Big weather events hit many areas of the USA hard last year, and the costs of repairing the damage have been astronomical. But Houston has shown its trademark resilience, and 2018 is predicted to see real estate growth of 2.8% in the city, meaning now would be a good time to invest.

Hurricane Harvey tremendously impacted the real estate market in Houston, Texas. Houston had some of the largest swings in real estate value. So what were the economic ramifications of Hurricane Harvey on this delicate market? First, people have renewed interest in houses that were located in areas that did not flood.

This isn’t a particularly surprising statistic. Buyers now have confirmation that these areas can survive a catastrophic event and that they won’t be in any danger of damage. A recent trend, though, has been that homes in areas that were damaged by Hurricane Harvey have started to see a pick-up in sales.

Many houses that were damaged are being quickly sold to real estate investors. They saw an opportunity after Hurricane Harvey to buy damaged homes on the cheap in the Houston Real Estate Market. This has, in turn, led to Houston becoming a valuable “hot spot” for the real estate market in the US.

In October alone, 6,381 homes were sold in the Houston Real Estate Market, an increase of 7.5% over the same period last year. Agents are not only selling houses at a faster rate, but they are also commanding a higher price for their sales. Realtors are selling houses in Houston, Texas for over $7,000 or more than in previous years.

Perhaps the largest increase, though, has been in rental marketing. People whose houses Hurricane Harvey damaged have been looking to rent since the hurricane struck in late October. The rental market in Houston is approaching an all-time high. Investors are also intrigued by this statistic as it allows them to make money off of houses they may not be residing in at a given time.

This has further contributed to an increase in the housing market in Houston, Texas. The rental statistics for single-family homes and townhomes/condominiums are staggering. Single-family homes saw an increase of 83.6 percent over 365 days while townhomes and condominiums saw an increase of a mind-boggling 92.2 percent.

It is not surprising, then, that investors have flocked to the area with the idea of making a quick buck. As many have learned, the profit that could be acquired in this area is immense. The housing market in Houston is in an exciting new territory.

Although Harvey’s effects were devastating, the hurricane also contributed to the Houston housing market’s new rise after Harvey. Houston's inspiring efforts to come together and recover show the resilience of the people there and the city’s strength. The government’s quick response to the tragedy and their overwhelming desire to help the people exhibits the city’s importance on a national, and continental, scale.

Houston housing market remained in recovery mode in 2018 following devastating floods from Hurricane Harvey. People living in more expensive cities such as New York, Los Angeles, and San Francisco flocked to cheaper living cities such as Houston, Texas.

Many workers were fed up with the costs in these regions and were having difficulty surviving in areas with labor shortages, rising mortgage rates, and higher lumber costs. All these factors contributed to a significant upward trend in the Houston housing market in 2018.

Good cash flow from Houston investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Houston real estate investment opportunity would be key to your success.

If you invest wisely in Houston real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Houston and want to purchase property to rent out.

The running costs for owning and managing a Houston rental property should not be high. While hiring a property management company you should expect to give up roughly ten percent of the rent for each property they manage. Remember to factor this loss into your calculations when budgeting for a new rental property.

The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Houston investment property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Houston must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Houston might not be the best place to live in.

A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. Houston's real estate prices are well above average cost compared to national prices.

It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there.

When looking for real estate investment opportunities in Houston or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment.

An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Houston is not going to get you $5000 per month on rent.

The asking price of single-family homes in Houston (on Realtor.com) can start from $29,000 and can go up to $29.5M for a luxury property located in the Westside neighborhood. You can find many new construction houses available for sale in Houston.

Neartown – Montrose has a median listing price of $639,000, making it the most expensive neighborhood in Houston. Alief is the most affordable neighborhood, with a median listing price of around $155,000.

Even as Houston's home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain.

The homebuyers won’t be able to outbid real estate investors and would end up renting. As with any real estate purchase, act wisely. Evaluate the specifics of the Houston housing market at the time you intend to purchase.

Here are the top 10 Highest Appreciating Houston Neighborhoods Since 2000 (List by Neighborhoodscout.com)

  1. Lawndale Wayside South
  2. Brittmoore Rd / Shadow Wood Dr
  3. Gulfton South
  4. Woodland Heights
  5. Greater Heights Southeast
  6. Greater Heights East
  7. Downtown Southeast
  8. Near Northside
  9. Second Ward East
  10. Greenway Upper Kirby Area West

Other Texas Real Estate Investment Markets

Apart from Houston, you can also invest in the housing market of Dallas, TX. If you have decided to invest in Dallas, you can either buy a fixer-upper or you may want to buy a Dallas investment property. This market offers a wide range of turnkey investment properties; you just have to find your tenants to rent out the property.

The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates, and high population of young households were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.

The Central, Cielo Vista, and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.

The next one is the San Antonio real estate market. The median home value in San Antonio is $167,600. San Antonio home values have gone up 8.0% over the past year and Zillow predicts they will rise 2.5% within the next year. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of its outsized military presence.

Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment. San Antonio has a dearth of affordable housing because demand is so much greater than the supply.

This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.

The Austin housing market is one hot place to invest in Texas. It isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin real estate market has gained a lot of steam, with home values almost doubling since 2010. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston.

One of the long-term strengths of Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Houston.

Consult with one of the investment counselors who can help build you a custom portfolio of Houston turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Houston.

Not just limited to Houston or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Houston turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Let us know which real estate markets you consider best for real estate investing! 

This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments provides no express or implied claims, warranties, or guarantees that the material is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. This article educated investors on Houston real estate. Buying a rental property needs research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.

REFERENCES:

Market Data, Trends, and Forecasts
https://www.har.com/content/mls
https://www.zillow.com/houston-tx/home-values
https://www.neighborhoodscout.com/tx/houston/real-estate
https://www.littlebighomes.com/real-estate-houston.html
https://www.realtor.com/realestateandhomes-search/Houston_TX/overview

Rental Statistics
https://www.rentcafe.com/average-rent-market-trends/us/tx/houston/
https://www.rentjungle.com/average-rent-in-houston-rent-trends/

Foreclosures
https://www.realtytrac.com/statsandtrends/foreclosuretrends/tx/harris-county/houston

Downtown Houston
https://www.downtownhouston.org/development

Houston After Hurricane Harvey
https://www.houstonproperties.com/hurricane-harvey-impact-houston-realestate
https://www.bizjournals.com/houston/news/2017/10/11/following-harvey-houston-sees-home-sales-rebound.html
http://www.chron.com/business/real-estate/article/Houston-real-estate-market-continues-post-Harvey-12341532.php
https://www.npr.org/2017/11/08/562903267/some-real-estate-investors-eager-to-buy-houston-homes-damaged-by-flooding

Las Vegas Real Estate Market: Prices, Trends, Forecast 2022-2023

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How is the Housing Market in Las Vegas?

The Las Vegas housing market was extremely hot last year. The pandemic housing boom pushed home prices. The current market conditions are moving toward stability, making it an excellent moment for both buyers and sellers to bargain like it's the old days. Las Vegas home values are still historically high for sellers. For buyers, the market is moving; more properties are becoming available, and sellers are lowering their prices. 47% of closings in November were on the market for 30 days or less.

The most recent report from the Las Vegas Realtors revealed that local home values fell for the sixth consecutive month in November 2022. This is a trend that is undoubtedly being felt in Southern Nevada. LVR reported that the median price of existing single-family houses sold in Southern Nevada for the month of November was $430,900, down 2% from October.

However, the median home price is still up 2.6% than it was a year ago. Consider that local home prices are nearly four times higher than they were in January 2012, when they reached their post-recession low. In that era, the median price of a single-family home in this area was $118,000.

  • The median price of previously owned single-family homes in January 2022 was $435,000.
  • The median price of previously owned single-family homes in November 2021 was $420,000.
  • The median price of previously owned single-family homes in November 2020 was $345,000.

There is currently a 4.8-month supply of houses available in Southern Nevada, which is a massive increase of 463.2% from the prior year. Months of supply are a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. 

In November, 63 homes sold for $1 million or more, compared to October’s 97 homes, a decrease of 34 homes. The median sales price in the Luxury Market decreased to $1,350,000 and in October that number was $1,530,000. Last year's price surge cannot be sustained amid the high mortgage rates which dampened the housing demand due to buyer pull pack.

Las Vegas was ranked among the 10 most overvalued of the nation’s largest housing markets, with homes selling for 41.88 percent above their long-term pricing trend, according to an analysis by professors at Florida Atlantic University and Florida International University. The only disadvantage is that buyers and investors buying now in the most overpriced markets are paying near-peak prices and risk being stuck for an extended period of time before realizing solid returns on their real estate investments. While first-time buyers face difficulties entering the market, seasoned owners are snapping up second homes.

According to Nevada Census data, there will be a 1.51% increase in population between 2020 and 2025, as well as a 1.46 percent increase in median income during the same period. Even though builders are bringing more homes to market, demand continues to outnumber supply. Builders are still not building at a rate that meets the needs of homebuyers.

All these factors will lead to less supply and will help keep the single-family home values from crashing in this region. The Las Vegas metro area home values are predicted to rise between 1 to 2 percent (0r may remain flat) over the next twelve months (check the forecast below). The national housing market is also cooling off due to rising mortgage rates which make housing less affordable for many potential buyers. 

Las Vegas Home Listing Prices Continue to Rise

The following Las Vegas housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only. The median list price of homes in Las Vegas, NV was $433K in November 2022, trending up 9.6% year-over-year. The median listing price per square foot is $248. The Paseos has a median listing price of $860K, making it the most expensive neighborhood. 

  • The median list price of homes in West Las Vegas, NV is $304.9K, trending up 8.9% year-over-year.
  • The median list price of homes in East Las Vegas, NV is $292K, trending up 12.7% year-over-year.
  • East Las Vegas is the most affordable neighborhood in Las Vegas.
  • The median list price of homes in North Las Vegas, NV is $414.9K, trending up 9.5% year-over-year.

Southern Nevada Housing Market Trends

Las Vegas Real Estate Market

  • A full summary report published by Summerlincommunities.com (Data by LVR) on Las Vegas Real Estate Market Update shows that 1,521 single-family houses were sold in November.
  • This figure is down 11.8% from October and down 53.5% from November 2021.
  • The median sales price of previously owned single-family homes went from $440,000 to $430,900, down 2% from October.
  • It was still up 2.6% from the prior year.
  • The median sales price of condos and townhomes went from $266,000 in October to $260,000 in November.
  • Which is 2.3% from October, but up 8.3% from the prior year.
  • In November, there were a total of 2,096 new listings, which is down 27.3% from October and down 26.5% from the prior year.
  • There were also a total number of 7,342 single-family houses listed without offers at the end of November.
  • The number of single-family listings is down 7.1% from October, but up 161.7% from the prior year.
  • The housing supply in Southern Nevada increased to 4.8 months of inventory.
  • The housing supply is up 5.3% from October and up 463.2% from the prior year.   
  • Months' supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.
  • 47% of the closings for November were on the market for 30 days or less.
  • In October this number was at 53.7% and in November 2021 76.8% of the homes were on the market for 30 days or less.
Las Vegas Housing Prices
Source: Las Vegas REALTORS®

On a monthly basis, here's how the Las Vegas housing market ended

Las Vegas Housing Market Trends
Source: Las Vegas REALTORS®

Las Vegas Real Estate Market Forecast 2022 and 2023

What are the Las Vegas real estate market predictions for 2022 and 2023? From 2017 to 2018, home values in Las Vegas appreciated by nearly 30.4%. In two years, Las Vegas home values rose significantly due to the low availability of homes and very high demand. It was named the number one real estate market in the USA for 2018 by Realtor.com based on the price and amount of existing homes, new home construction, and local and economic trends.

Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P's Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices). However, in 2019, Southern Nevada’s housing market overall cooled off with slower price growth and slumping sales. It looks almost flat throughout the year in the graph given below. Although overall price appreciation rates were slower in 2019 than in 2018 they greatly varied across different zip codes.

Southern Nevada prices were up 2.6 percent year-over-year in December 2020, compared with 3.8 percent nationwide, according to the S&P CoreLogic Case-Shiller index. The median prices for new homes increased by just 1 percent. Appreciation has been steady and strong in 2021 as the Las Vegas metro home values rose by 26.8% (Dec 2020 to Dec 2021).

As of October 31, 2022, home values in the Las Vegas metro have gone up nearly 13.9% over the last twelve months (Zillow Home Value Index). It represents the whole housing stock and not just the homes that list or sell in a given month. NeighborhoodScout.com's data also shows that Las Vegas real estate appreciated by about 258.95% over the last ten years. Its annual appreciation rate has been averaging 13.63%. This figure puts it in the top 10% nationally for real estate appreciation.

  • Between 2021 Q2 – 2022 Q2, the Las Vegas appreciation rate was about 22.29%.
  • Between 2022 Q1 – 2022 Q2, the appreciation rate was 3.34%.

Here is the home price forecast for Nevada, Clark County, Las Vegas, Henderson, and Las Vegas Metropolitan Area. 

  • Las Vegas-Henderson-Paradise Metro home values have gone up 13.9% over the past year.
  • The latest forecast by Zillow is that they are estimated to remain flat between October 2022 to October 2023.
  • Henderson home values have gone up 12.3% over the past year to $492,623.
  • Paradise home values have gone up 14.1% over the past year to $396,789.
Las Vegas Real Estate Market Forecast
Courtesy of Zillow.com

All these trends and predictions can be positive or negative depending on which side of the fence you are – Buyer or Seller?  This area is skewed to sellers due to a very low level of inventory that can't meet the demand of the rising population. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, it can become a buyer's real estate market if the supply increases to more than five months of inventory.

Currently, the housing supply in Southern Nevada is at 4.6 months. Given how hot the local economy was before the pandemic, the Las Vegas real estate market will remain strong due to a growing population and booming economy – which leads to a persistent imbalance in supply and demand.

For buyers, the mortgage rates are higher than last year. Rising interest rates increase the price of properties, limiting the demand for home purchases. Reduced demand also harms sellers, who must lower the value of their property to attract purchasers. Overall, Las Vegas remains one of the hottest real estate markets in the country, as individuals from all over the world flock to reside here. Real estate is a long-term appreciating asset; nevertheless, buyers must manage their expectations and be conscious of the market's fluctuation.

Las Vegas' unemployment rate, just 3.9% in February 2020, shot up to 34% in April 2020. By June 2020 it had tumbled to 18% after casinos and other businesses were allowed to reopen, state officials reported. Even though these effects on the Las Vegas housing market are deemed short-term, it is yet to be predicted what the potential long-term impact could be.

According to the Bureau of Labor Statistics, as of September 2022, Nevada’s seasonally adjusted unemployment rate was 4.4 percent which was unchanged from July and August 2022. In the three Metropolitan Statistical Areas (MSA), the unemployment rates were 5.3 percent in the Las Vegas area, 3.1 percent in Reno, and 3.4 percent in the Carson area in September 2022.

In Nevada’s counties, the lowest unemployment rate was in White Pine County at 2.4 percent, and Clark County and Nye County had the highest rate at 5.3 percent.  The number of unemployed individuals increased by 820 since August 2022 to 67,284 people, which is 16,471 fewer unemployed people than in September 2021. The labor force in Nevada is currently 1,536,886 people, which is 9,796 more people than in August 2022 and is up 45,878 people since September 2021.

Nevada Unemployment Rate
Courtesy of Nevadaworkforce.com

Las Vegas Real Estate Market: Is It A Good Place For Investment?

Now that you know where Las Vegas is, you probably want to know why we're recommending it to real estate investors. Is Las Vegas a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying rental property in Las Vegas is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Las Vegas housing market's historical and current trends for answers on why to put resources into this market.

Las Vegas is a minimally walkable city in Nevada. It is the 32nd most walkable large city in the US with 583,756 residents. Las Vegas has some public transportation and does not have many bike lanes. Downtown Las Vegas, home to the casinos and hotels, is the city's most accessible neighborhood, but housing is sparse there. In 2018, the Las Vegas housing market was so hot that it outperformed the best U.S. housing markets like Seattle. The Las Vegas real estate market is entirely brimming with new businesses.

It isn't just about casinos, medicine is a growing industry as well. The University of Las Vegas and Zappo's, the internet shoe store, is also based in Vegas. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends. The new businesses are propping up at a much faster rate than the national average.

Las Vegas has a mixture of owner-occupied and renter-occupied housing units. It is a big rental property market. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Las Vegas.  Other types of housing that are prevalent in Las Vegas include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

Las Vegas is the destination point of millions of visitors, the town is famous for its vibrant nightlife, exciting gaming action, and the natural allure of the beautiful desert that surrounds the greater metropolitan area. Tourists pour billions of dollars in Southern Nevada through which thousands of tourism jobs are supported.

Let's learn more about Las Vegas and find out why one should invest in this sturdy real estate market. These things make the Las Vegas real estate market stand out when it comes to choosing a place to invest in 2020 and beyond. Keeping aside the short-term impact of the ongoing pandemic, let's take a look at the number of positive things going on in the Las Vegas real estate market which can help investors who are keen to buy an investment property in this city.

Why Is Las Vegas A Good Place For Real Estate Investment?

THE CITY & ITS DEMOGRAPHICS

  • Las Vegas is a beautiful city of million-lightbulb signs and fantastic architecture.
  • It is an internationally renowned major resort city.
  • It is known primarily for its gambling, shopping, fine dining, entertainment, and nightlife.
  • It is often known as “The Entertainment Capital of the World” – because of its “broad scope of entertainment options including nightlife, shows, exhibits, museums, theme parks, pool parties, and so on.
  • Las Vegas has 68 beautiful parks.
  • It is one of the country's leading vacation destinations, drawing far more tourists than the Grand Canyon or Yellowstone National Park.
  • More than 41 million people visit Las Vegas each year.
  • Over 22,000 conventions are held in Las Vegas every year.
  • It has been one of the fastest-growing major cities in the United States.
  • It is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
  • The current metro area population of Las Vegas in 2020 is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.

THE HOUSING MARKET & PRICES

  • The most prevalent building type in Las Vegas is single-family detached homes.
  • The city has a mixture of owners and renters, with 51.07% owning and 48.93% renting – “Neighborhoodscout.”
  • Las Vegas is in the top 10% nationally for real estate appreciation.
  • Las Vegas real estate has appreciated by 244.86% over the last decade.
  • It amounts to an average annual home appreciation rate of 13.18%.
  • Home values have gone up 14.2% over the past year (ZHVI)
  • The median sold price of homes in Southern Nevada is $430,900.
  • 1-yr forecast: 0% (ZHVF) until October 2023.
  • Las Vegas rental real estate market remains healthy and affordable for most renters.
  • There's also no slowdown on the horizon for the number of people moving to Las Vegas.

THE ECONOMY

  • The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
  • Las Vegas is home to more than half of the 20 largest hotels in the world.
  • There are more than 150 casinos and roughly 150,000 hotel rooms in the Las Vegas valley area.
  • Las Vegas annually ranks as one of the world's most visited tourist destinations – famous for its mega casino hotels and associated activities.
  • A diversified economy is driven by health-related, high-tech, and other commercial interests.
  • The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
  • Mining constitutes the mainstay of the region's industrial sector.
  • Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
  • No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
  • Construction is also a significant component of the economy.
  • The government is the metropolitan area's single largest employer.

These are just some of the highlights that make Las Vegas a great place to live and invest in real estate. The list can go on and on. Before the coronavirus pandemic hit the state, the Las Vegas real estate market forecast was as hot as the desert heat in Nevada. Keeping aside this crisis for a moment, the housing market in this region provides an excellent opportunity for investors. They are expressing confidence in the stable housing prices and the number of available housing units on the market.

New businesses are being created at a much faster rate than the national average. Las Vegas is also a strong rental market. Nearly 40% of the population rents in Las Vegas. Rental properties near these new businesses will benefit greatly due to the increasing tenant pool and the general improvement in economic activity that they bring. The first half of the previous year saw a huge increase in the demand for housing in Las Vegas, Nevada.

The inventory of homes has further decreased from last year. The current local housing inventory in Las Vegas is just over a two-month supply of homes available for sale. The high demand is followed by an increase in population, as well as an overall improvement of the economy in the area. All these factors have had a huge impact on the Las Vegas housing market, which is considered one of the hottest markets in the nation. Las Vegas has experienced several booms in its history, and it saw an incredible real estate bust during the Great Recession.

Las Vegas' recovery hasn't made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn't keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. Let's find out the latest trends and forecasts.

Las Vegas Home Prices Are Low Relative to Recent Highs

There have been articles claiming that Las Vegas is ready for another bust. However, prices are declining somewhat as new housing stock comes onto the market. This explains why the inventory of unsold existing homes doubled at the end of 2018. Yet the demographic trends that keep the Las Vegas housing market so hot aren't stopping.

This means that the Las Vegas real estate market is seeing a lull with a guarantee that the price will start to rise. The Las Vegas housing market is a great place for real estate investment. It remains relatively affordable than the expensive seller markets in the US. When people lose their jobs in great numbers, home prices crash as they did in Las Vegas a decade or so ago.

Homes went from an average price of over $300,000 to less than $150,000. Home prices have recovered, though due to inflation, they remain well below historic peaks. Likewise, Las Vegas foreclosure rates have fallen but they remain high by national standards. Around one in a thousand homes are foreclosed on each month.

Las Vegas Housing Prices Are Rising Slowly but Surely

The wide-open deserts around Las Vegas constrain the Las Vegas real estate market. The federal government owns the vast majority of the state. The Clark County government asked the federal government to allow them to take over 38,000 acres of land and start building housing. Nevada Congressional delegation has to ask the Bureau of Land Management, and they may take years to give their permission if they ever do.

This means that Las Vegas is surrounded by a lot of open lands, but it cannot simply expand to meet demand. This will continue to drive up prices in the Las Vegas housing market. We don't think the Las Vegas housing market is set up for a bust because it isn't overheating. The home values have gone up 1.8% over the past year. That's a healthy growth rate, whereas double-digit price increases are unhealthy. This rate is skewed by the number of new luxury homes coming onto the market and the constant churn at the high end of the market.

Las Vegas Is Landlord Friendly

Unlike many other Western states, the Las Vegas real estate market is landlord-friendly. It isn't difficult to evict non-paying tenants from Las Vegas investment properties. In general, they have five days from the date rent is due to “cure” the problem or eviction can begin. The same time frame is used to correct issues like lease violations, after which the person can be evicted. After those five days, the case can go to court, and these are landlord-friendly. Rulings typically arrive the same day, after which point the tenant has one day to leave the premises.

Landlords don't have to pay interest on deposits. There are no limits on late fees, though the late fees due must be spelled out in the rental agreement. There is no payment grace period set by state law. All of this adds up to the Las Vegas real estate market being a paradise for landlords.

Update: On July 1st, 2019, a new tenant protection legislation named SB 151 officially went into effect. It provides tenants with more time to deal with the consequences of eviction after they have had an eviction notice posted on their homes. They will now have seven judicial days to pay their rent or quit. The previous time frame was five calendar days.

For landlords, this new housing legislation also enables them to utilize an attorney or agent to prosecute the eviction action on their behalf. They will now need to go find a permitted eviction process server to carry out these tasks. Those who oppose SB 151 claim that giving tenants more time to go through the eviction process, will make it more difficult for owners to get their properties back on the rental market.

Las Vegas Job Market Attracts People

The Las Vegas job rate has ranged from half a point to a full point above the national unemployment rate. However, that's better than the unemployment rate in Arizona, Salinas, or the San Fernando Valley. And it is places like that sending de facto refugees to Las Vegas. The diverse economy of Las Vegas includes low-skill but good-paying jobs in entertainment, hospitality, and services. It draws thousands of new residents each year. This growth, coupled with its unusual economic basis, has made Las Vegas one of the wealthiest cities in the country.

Since the 1990s, Las Vegas has had one of the fastest-growing employment bases in the country, benefiting from a large labor pool and a favorable business climate. These conditions enabled city promoters to entice businesses of all kinds to choose Las Vegas over California. Every job-killing regulation in California drives businesses to Oregon and Nevada, too, taking jobs with them. This explains why future job growth for the next ten years is expected to be nearly 40%, well over the 33% expected for the nation as a whole. A growing supply of jobs will propel the demand for the Las Vegas housing market.

Las Vegas Rent Prices Are On the Rise

During the Great Recession, Las Vegas went from a fifth of its residents renting to nearly two-fifths. As the job market and personal credit improved, the area is back to having around 19% of residents choosing to rent. However, rents are on the rise. While homes are being built, many people are unable to afford them. This is because the developers who survived the Great Recession are maximizing their profits by building luxury homes, not the affordable homes that many want.

Due to an improving local economy and ongoing population growth, the demand for apartments remains strong in Southern Nevada. For those who can afford Las Vegas investment properties, this guarantees a large rental population that isn't going to be able to afford the new upscale properties that are coming onto the market.

As of December 11, 2022, the average rent for a 1-bedroom apartment in Las Vegas, NV is currently $1,305. This is a 9% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Las Vegas increased by 2% to $1,125. The average rent for a 1-bedroom apartment increased by 1% to $1,305, and the average rent for a 2-bedroom apartment remained flat.

  • Two-bedroom apartment rents average $1,556 (a 4% increase from last year).
  • Three-bedroom apartment rents average $1,970 (a 1% decrease from last year).
  • Four-bedroom apartment rents average $2,400 (a 5% increase from last year).

The Las Vegas real estate market is a great place to invest in real estate in 2022 based on these trends. There was a short-term decline in the rents but they are rising back. The unemployment rate is also decreasing so it is a great time to snatch up hot real estate deals by selecting the best neighborhoods.

Another report, issued by the Nevada State Apartment Association (NVSAA) shows that Southern Nevada’s apartment market is starting to stabilize, with rents projected to rise more slowly this year than previously projected. The report, produced by the NVSAA based on data provided by CoStar, predicts that apartment rents in Southern Nevada will increase by more than 20 percent from the end of the first quarter of 2022 to the end of the same quarter one year later. The average monthly rent in the first quarter was $1,451, up from $1,198 a year earlier.

Meanwhile, local apartment vacancy rates remain stable, with the average vacancy rate during the first quarter of 2022 at 5.4%. That’s up 0.3% from the same time in 2021. Local apartment construction is also on the rise, with the industry projected to catch up with demand by the end of 2022. The report showed more than 7,000 new local apartment units under construction through the first quarter, compared to about 3,800 units during the same time last year.

The average size for a Las Vegas apartment is 893 square feet with studio apartments being the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. You can, of course, charge much more for a three or four bedrooms single-family home than an apartment.

The most affordable neighborhoods in Las Vegas are Beverly Green, where the average rent goes for $1,061/month, Crestwood, where renters pay $1,061/mo on average, and Francisco Park, where the average rent goes for $1,061/mo. Other good neighborhoods for affordable rentals include Hillside Heights ($1,061), Huntridge Park ($1,061), and John S. Park ($1,061), where the asking prices are below the average Las Vegas rent of $1,471/mo.

The most expensive neighborhoods by Average Rent are:

Las Vegas Neighborhood Average Rent
Mountain Trails $2,591
Sun City $2,591
The Hills $2,591
Red Rock $2,438
Amber Hills $2,335
The Canyons $2,125
The Crossing $2,125
Paradiso $2,036
Summerlin Village $2,036
The Paseos $2,036

California's Loss Is Nevada's Gain

A $475,000 median price may be steep if you're coming from the heartland where a mid-market home costs $150,000 to $200,000. However, tax refugees from California flooding into Nevada find that same house to be an outright bargain compared to the $781,050 price for a comparable property in Los Angeles.

Southern Nevada is one of the cheaper metropolitan areas in the United States, and it is a fraction of the cost of living in California on nearly every front. This explains why you see so many California license plates in Vegas and why it costs $120 to rent a moving truck to go from Vegas to San Francisco but $2000 to come to Las Vegas.

As per the data by Lasvegasrealestate.org, the luxury home market has expanded as 30% of buyers are moving from California to take advantage of Las Vegas' low cost of living. Even the most expensive custom homes from builders such as Blue Heron are found to be a bargain for out-of-state buyers and investors.

Possibly our second-largest market is retiree buyers in 55+ Communities who enjoy the weather, health care, and activities that only Las Vegas can combine in one city at a value not matched in any major city anywhere in the USA.

Nevada Is the Ultimate, Low Tax Locale

While those who own Las Vegas investment properties will need to pay their mortgage if they don't pay cash for the property and ongoing expenses like maintenance and insurance, Nevada offers very low taxes. There is no state income tax.

Nevada's property tax rates are among the lowest in the U.S. The state's average effective property tax rate is just 0.69%, which is well below the national average of 1.08%. Homeowners in Nevada are protected from steep increases in property tax bills by Nevada's property tax abatement law, which limits annual increases in property tax bills to a maximum of 3% for homeowners.

Thus, even if home values increase by 10%, property taxes will increase by no more than 3%. The taxable value of a property is calculated as the cash value of the land (the amount the land alone would sell for on the market), and the replacement cost of all buildings minus depreciation of 1.5% per year since construction.

The assessed value is equal to 35% of that taxable value. Thus, if your County Assessor determines your home's taxable value is $100,000, your assessed value will be $35,000. Tax rates apply to that amount.

There are numerous tax districts within every Nevada county. Hence, when comparing between counties, it is useful to look at average effective rates. Clark County contains almost 75% of the state's residents and includes Las Vegas. The average effective property tax in the county is 0.70%, slightly higher than the statewide average, but still significantly lower than the national average.

If you're planning to buy in Nevada, the most common type of home loan is a 30-year fixed-rate mortgage. This option gives you plenty of time to pay back the loan and your interest rate remains the same for the duration of the loan's life unless you refinance. You can also consider a 15-year fixed-rate mortgage.

It allows you to pay off your loan quicker and comes with a lower interest rate, but your monthly payments will be higher. As we write this, the average Nevada rate for a fixed 30-year mortgage is 3.46%, and for a fixed 15-year mortgage it is 2.83%.

Nevada Real Estate Investment Markets

Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.

According to PwC's annual real estate report, the Las Vegas housing market will enjoy a population growth rate that is well above the national growth rate. This is a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016.

This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. The city will hold this title well into 2020 according to the forecast. Good cash flow from Las Vegas investment property means the investment is, needless to say, profitable.

A bad cash flow, on the other hand, means you won't have money on hand to repay your debt. Therefore, finding the best investment property in Las Vegas in a growing neighborhood would be key to your success. If you invest wisely in Las Vegas real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow.

Your best tenants would be retirees who intend to relocate to Las Vegas and want to purchase property to rent out. The running costs for owning and managing a Las Vegas rental property should not be high. A cheaper neighborhood in Las Vegas might not be the best place to live in.

A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods.

The inventory is low, but opportunities are there. There are 50 neighborhoods in Las Vegas. The Paseos has a median listing price of $666.9K, making it the most expensive neighborhood (Realtor.com). Sunrise is the most affordable neighborhood, with a median listing price of $152K.

Some of the most popular neighborhoods in Las Vegas are Paradise, Enterprise, and Spring Valley. Here you'll find the maximum no. of listings. In Spring Valley, Las Vegas, NV, the home prices range from $44.9K – $18.5M while rental properties are within a range of $795 – $11K.

Even as Las Vegas home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. Millennial homebuyers can't outbid real estate investors and hence end up renting.

As with any real estate purchase, act wisely. Evaluate the specifics of the Las Vegas housing market at the time you intend to purchase.

There are many other markets near Vegas, that you can choose for real estate investing. As a result of an influx of companies and jobs in Northern Nevada, strong housing demand continues to put pressure on the available supply. The Reno real estate market is ideal for investors for several reasons. Supply is limited, and demand is growing.

Rental rates are driven by several competing markets that aren't going to slow down any time soon. Forget owning a couple of condos in Las Vegas and invest in a more affordable, stable real estate market like Reno. Good cash flow from Reno investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won't have money on hand to repay your debt.

Nevada Out of State Investment Opportunities  

On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. The Salt Lake City real estate market was ranked one of Millennials' toughest real estate markets due to limited supply relative to demand. Salt Lake is a “slightly hot” real estate market at the moment.

The economy is strong and the city achieves the lowest unemployment rate at 2.1%. The median days on market is 30.5 days, with inventory moving 6 percent faster than last year and 30.5 days faster than the U.S. overall. Home prices in Salt Lake City are expected to rise by record levels in 2020. A strong job market and a robust economy have contributed to the rising housing costs over the past seven years.

Ogden is another good and affordable real estate market in the neighboring state of Utah. The Ogden housing market is appreciating because people move here for work as often as they do live. For example, there are many good-paying jobs in the IT, life sciences, aerospace, and outdoor products manufacturing industries. There are civil service jobs with the state tax office and the local hospital. And then there's the college. This is on top of Utah's employment growth rate of roughly 3 percent a year.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Las Vegas.

Not just limited to Las Vegas or Nevada but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We're standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Las Vegas turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Latest Market Data, Trends, and Statistics
https://www.lasvegasrealtor.com
http://myresearcher.com/glvar-section-new
https://www.zillow.com/las-vegas-nv/home-values
https://www.lasvegasrealestate.org
https://www.littlebighomes.com/real-estate-las-vegas.html
https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview
https://summerlincommunities.com/las-vegas-real-estate-market-update-august-2020/

LAS VEGAS' ECONOMIC & JOB GROWTH INDICATORS
https://en.wikipedia.org/wiki/Las_Vegas
https://downtown.vegas/visitors-guide/fun-facts

Low taxes
https://smartasset.com/taxes/nevada-property-tax-calculator
Geographical constraints
https://www.reviewjournal.com/news/politics-and-government/clark-county/clark-county-unveils-land-proposal-draws-ire-from-groups

Price growth
https://www.mashvisor.com/blog/las-vegas-housing-market-2019
https://knpr.org/knpr/2018-09/las-vegas-housing-booming-does-mean-another-bust-horizon
https://thenevadaindependent.com/article/las-vegas-appears-to-be-entering-a-steady-housing-market
https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/17/why-las-vegas-luxury-real-estate-is-the-next-big-market-boom/#7b20b1c41543

Landlord friendly
https://www.costellomgmt.com/landlord-tenant-laws-nevada
http://lasvegasgleaner.com/the-rent-is-too-damned-highhttps://www.avail.co/education/laws/nevada-landlord-tenant-law

Loss of California
https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

California refugees
https://finance.yahoo.com/news/hottest-housing-market-2018-163701109.html
https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

Job Market
https://patch.com/california/encino/map-unemployment-rate-drops-in-state-in-may
https://www.sacbee.com/latest-news/article213798654.html

Foreclosure rates
https://www.reviewjournal.com/business/housing/las-vegas-foreclosure-rate-dropping-still-among-highest
https://www.realtytrac.com/statsandtrends/foreclosuretrends/nv/clark-county/las-vegas

Kansas City Housing Market: Prices, Trends, Forecast 2022 & 2023

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The Kansas City housing market is hot and in many ways the envy of housing pundits on both coasts. Home price growth is slowing, but the supply of housing still remains low (less than two months). The residential housing market across the Greater Kanzas City Region remained strong last month according to the latest data from the Kansas City Regional Association of REALTORS® (KCRAR). In October 2022, the average sale price increased by 9.8% to $339,575 while the number of sales was down 23.9% from last year.

Homes sold in an average of 28 days and for 98.1 percent of their initial asking prices indicating that homes are selling for more than the sellers' asking prices. The Kansas City real estate market was already competitive before the coronavirus, with Kansas City home prices rising faster than most U.S. cities.

A lack of inventory across the metropolitan area is the biggest driver of the rising prices. In Kansas City, there are only about 1.7 months of supply of available homes for sale — which is an indicator of Kansas City being a strong seller's real estate market. In the real estate market in and around Kansas City, Missouri, there is still significantly more demand than there is supply. The market will continue to be hot as long as the supply of available homes for sale remains low and mortgage rates remain near historic lows.

Kansas State Housing Market Trends

Kansas City is also in the state of Kansas. It is the third-largest city in the U.S. state of Kansas, and the county seat of Wyandotte County. The following housing market trends are the state of Kansas and the Kansas city located there. “While demand has slowed in recent months, tight inventories remain a problem,” said Kansas Association of REALTORS® president Andrew Mall with Link Realty in Prairie Village. “At the end of September, there were half as many homes available for sale as there were at the same time back in 2019.”

September 2022 Kansas Market Highlights

  • Home sales in Kansas fell by 16.1% in September 2022 compared to the same period last year.
  • National sales fell with sales falling 23.8% over 2021.
  • Home prices continue to increase across the state.
  • The statewide average sale price in September was $283,509 an 8.2% increase compared to last year.
  • Midwest prices rose 6.9% and US prices rose 8.4%.

Kansas City, Kansas home values will end the year up 13.8 percent and then rise by another 6.5 percent next year according to the 2023 Kansas City Housing Forecast published by the Wichita State University Center for Real Estate.

Home prices: The frenzied demand that characterized the market through the early part of this year appears to have eased. Nevertheless, extremely tight inventories will continue to put upward pressure on home prices. Kansas City values should end the year up 13.8 percent before slowing to 6.5 percent in 2023.

Home sales: Total home sales in the Kansas City area should end the year down 8.3 percent at 41,940 units due to a combination of a lack of inventory and softening demand. Sales activity should rebound in 2023, rising 5.6 percent to 44,290 units.

Construction: Single-family permitting activity in the Kansas City metropolitan area slowed over the first half of this year due to supply chain issues and labor shortages. Kansas City should end the year with 6,295 single-family permits, down 10.7 percent from 2021. Permitting activity should drop again slightly in 2023, falling 1.7 percent to 6,185 units.

Missouri Housing Market Trends

According to Redfin, home prices in Missouri were up 7.3% year-over-year in September. At the same time, the number of homes sold fell 7.3% and the number of homes for sale fell 0.84%. Homes in Missouri were selling for a median price of $243,700. On average, the number of homes sold was down 7.3% year over year and there were 8,050 homes sold in September this year, down from 8,671 homes sold in September last year. The median days on the market was 22 days, down 4 days year over year. The average months of supply is 2 months, flat year over year.

The Top 5 Metros in the Missouri Housing Market which have the Fastest Growing Sales Price:

  • Lemay, MO (+33%)
  • Cape Girardeau, MO (+32.4%)
  • Parkville, MO (+28%)
  • Maryland Heights, MO (+25.6%)
  • Waynesville, MO (+23.7%)

Missouri REALTORS® Market Statistics is a monthly statistics report produced by Missouri REALTORS® which includes a statewide video and market summary.

Missouri Year-to-date Figures

  • The Median Residential Property Selling Price (YTD) was 240,000, up 10.9% year-over-year.
  • The number of Listings from Reporting MLSs was 10,338 in September 2022.
  • The number of Residential Properties Sold (YTD) was 65,245, down -9.5% year-over-year.

Missouri Year-to-Year Detail Comparison – September 2022

  • The Number of Homes Sold was 7,609, down 15.6% year-over-year.
  • The Number of Days on the Market was 30, down 20% year-over-year.
  • The Average Selling Price was $287,227, up 8.1% year-over-year.
  • The Median Selling Price was $243,000, up 8.0% year-over-year.
  • The Monthly Dollar Volume was $2,185,507,628, down 8.8% year-over-year.

Missouri Housing Market Report
Source: Missouri REALTORS®

Kansas City, Missouri Housing Market Report

Located on the Missouri River at the confluence with the Kansas River, the city is contiguous with Kansas City, Kansas. But most of Kansas city lies within Jackson County, Missouri. A large, prosperous, self-sufficient, and culturally rich city, it is no wonder why it has seen a continuous rise in its employment, directly impacting the local real estate.

Here are the Greater Kansas City housing market statistics for October 2022 as reported by the Kansas City Regional Association of Realtors (KCRAR).

  • In the Greater Kansas City housing market, the average sales price is up +9.8% to $339,575.
  • Home sales in the Kansas City area totaled 3051 units in October, down 23.9 percent from the same month in 2021.
  • Pending sales were also down by 30.1% to 2770 properties being under contract.
  • Homes that sold in October were on the market for an average of 28 days and sold for 98.1 percent of their original asking prices.
  • The number of active listings increased by 17% year-over-year, which makes the supply equal to 1.7 months (up 30.8% YoY).
  • Months' supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.
  • It is a good indicator of whether a real estate market favors buyers or sellers, and Kansas City is a seller's market.

Kansas City Housing Market Trends
Credits: Kansas City Regional Association of Realtors (KCRAR)

Kansas City, MO Real Estate Market Forecast 2022 and 2033

Kansas City's housing market is one of the most affordable in the nation. It is one of the hottest real estate markets for affordable rental real estate investment. What are the Kansas City real estate market predictions for 2022 & 2023? Based on the FHFA all-transactions home price index (2022 Q2), in Kansas City, MO-KS, house prices rose 14.9% over the past year and rose 2.5% over the last quarter. The cumulative change in the home price index since 2007 is 89.6%.

The Kansas City metro area ranks 62 in FHFA HPI® Top 100 Metro Area Rankings based on the 2022 Q2 home price index. The FHFA home price index measures the average change in home values within a market over time. The index for the Kansas City MSA covers all of the fifteen-county Kansas City metropolitan area, spanning both Kansas and Missouri.

  • According to NeighborhoodScout's data, the cumulative appreciation rate in Kansas City over the ten years has been 95.50%.
  • This equates to an annual average Kansas City house appreciation rate of 6.93%.
  • Kansas City ranks in the top 30% nationwide.
  • During the twelve months, from 2021 Q2 – 2022 Q2, Kansas City's appreciation rate was at 12.30%.
  • Kansas City real estate appreciation rate in the quarter, from 2022 Q1 – 2022 Q2, was at 4.00%, which equates to an annual appreciation rate of 17.01%.

Since the last twelve months, the typical home value in Kansas City metro has appreciated by nearly 11.3% — Zillow Home Value Index. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The typical home value of homes in the Kansas City metro is currently $289,729. It indicates that 50 percent of all housing stock in the area is worth more than $289,729 and 50 percent is worth less (adjusting for seasonal fluctuations).

Kansas City has been a seller’s real estate market, which means that there exists a limited supply of homes in Kansas City, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the last month’s key housing market indicators, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.

As of now Kansas City home prices have reached the highest level in years and upward pressure is expected to continue into the next year even if there is a marginal increase in homes for sale. The inventory can dwindle in 1.7 months if no new homes are listed. High demand will bolster the home-buying market and continue pushing up home price growth even when mortgage rates have topped 7%.

  • Kansas City Metro home values have gone up 11.3% over the past year.
  • Zillow predicts they will rise by 2% between October 2022 to October 2023.

Kansas City Housing Market Forecast
Credits: Zillow

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller?  In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Kansas City can become a buyer’s real estate market if the supply increases to more than five months of inventory. As of now, Kansas City real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.

For buyers in Kansas City Area: Interest rates have made many people consider buying during the pandemic but they are rising now. FreddieMac reported the average 30-year fixed mortgage rate was 6.90% in October 2022. The challenge for buyers will be getting qualified for a loan as well as bearing the burden of higher EMI.

For sellers in Kansas City Area: As there are less than two months of supply of properties for sale at a given time, this has created a market that greatly favors sellers. It’s a good time to sell a home. In conclusion, we can say that it is a strong seller's market seen by far, and won't be any major dip in home values for the foreseeable future. The tight Kansas City real estate market here mirrors wider national housing market trends.

Kansas City, MO Real Estate Investment Overview

Is Kansas City a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Kansas City is a good investment. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023.  Kansas City is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, Kansas City is now emerging as a growing market for real estate investments.

When we refer to the Kansas City housing market, it comprises the Kansas City metropolitan area, which is a bi-state metropolitan area anchored by Kansas City, Missouri. Its 14 counties straddle the border between the U.S. states of Missouri (9 counties) and Kansas (5 counties). It is the second-largest metropolitan area centered in Missouri (after Greater St. Louis) and is the largest metropolitan area in Kansas, though Wichita is the largest metropolitan area centered in Kansas.

Kansas City, MO is a minimally walkable city in Jackson County with a population of approximately 460,377 people. In the past ten years, the annual real estate appreciation rate has amounted to 2.88% in Kansas City, according to NeighborhoodScout.com. Kansas City has a mixture of owner-occupied and renter-occupied housing units. Three and four-bedroom single-family detached homes are the most common housing units in Kansas City. Other types of housing that are prevalent in Kansas City include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

If you are looking to make a profit, you don’t want to buy the most expensive property in the Kansas City real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Kansas City that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.

Top Reasons To Invest In Kansas City Real Estate

  • Kansas City is the largest city in Missouri and is the sixth-largest in the Midwest.
  • Kansas City has long been a favorite of real estate investors.
  • Affordable Turnkey Properties.
  • The largest city in the state of Missouri.
  • The population is expected to grow to 2,200,000 by 2020.
  • The average home price is up 9.8% year-over-year (Oct 2022).
  • 1-year appreciation forecast of 2% (ZHVI).
  • #62 in the U.S. out of the top 100 MSAs – FHFA.
  • The cumulative change in the FHFA home price index since 2007 is 73.4%.

Rents are also growing in Kansas City. As of November 6, 2022, the average rent for a 1-bedroom apartment in Kansas City, KS is $875. This is a 10% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Kansas City remained flat. The average rent for a 1-bedroom apartment increased by 3% to $875, and the average rent for a 2-bedroom apartment increased by 6% to $1,063.

  • The average rent for a 2-bedroom apartment in Kansas City, MO is $1,150. This is a 2% decrease compared to the previous year.
  • The average rent for a 3-bedroom apartment in Kansas City, MO is $1,458. This is a 2% increase compared to the previous year.
  • The average rent for a 4-bedroom apartment in Kansas City, MO is $1,613. This is a 5% decrease compared to the previous year.

Overview of Kansas City & its Real Estate Market

Kansas City is a large, prosperous, self-sufficient, and culturally rich city located astride the Missouri River. In the metropolitan area, the population is estimated at 2.1 million. The median household income in Kansas City is 45,376 and the median home price is $146,300. Kansas City is the largest city in Missouri and is the sixth-largest in the Midwest. It hosts the Kansas City Chiefs as well as the Kansas City Royals. It's home to some of the Best Ribs in America.

The city has over 200 water fountains, making it only second to Rome, Italy, hence the nickname “City of Fountains.” It is also important to remember that only Paris, France has more Boulevards. In 2017, a WalletHub survey for real estate market growth in the United States listed the “Kansas City Real Estate Market” at number 18 out of 300 of the fastest-growing cities in the US.

Kansas City has started to do some major revitalization downtown. More than $6 million has been spent giving the downtown area a facelift and new makeover, including, apartments, offices, and condominiums. These facelifts have also been done in both indoor and outdoor malls, restaurants, and places for concerts, plays, and other forms of entertainment. Kansas City real estate is very affordable; the home prices are near the national average. All of these make Kansas City properties attractively appealing to investors and homebuyers who are looking for gains in cash flow.

Employment in Kansas City

The BLS reported that the unemployment rate for Kansas City fell 0.1 percentage points in September 2022 to 2.6%. For the same month, the metro unemployment rate was 0.2 percentage points higher than the Missouri rate. The unemployment rate in Kansas City peaked in April 2020 at 12.2% and is now 9.6 percentage points lower. You can also compare Kansas City's unemployment with unemployment in other cities.

Keeping aside the impact of the recent pandemic, Kansas City has seen a continuous rise in employment prospects over the last 2 years, a trend that directly impacts the Kansas City real estate market. From 2017 to 2018, the city registered a remarkable 1.9% in terms of overall employment.

This could be further broken down to 3.8% in professional and business services, 3% in terms of government-sponsored employment opportunities, and 1.9% in the trading, transport, and utility sectors. Recent job growth is positive. Kansas City jobs have increased by 1.4%. For the past 20 years, the big growth has been on the Kansas side to the southwest in suburbs like Overland Park, Lenexa, and Shawnee.

The Growth in Kansas City

The national average growth in cities is 4.45%. In Kansas City, in 2010, it was higher than 4.5%. It's growing at the national rate and is expected to grow even faster in the next few years. Between the years 2013-2015, the annual growth was 15,000 then raised to 20,000 between 2015-2016. Kansas City is home to some of the biggest companies, such as H&R Block, Sprint, Hallmark, and BNSF, to help to fuel the attraction of the Kansas City real estate market.

Kansas City is a great attraction for tourists, especially art lovers. Housed by several museums and art destinations, the city is famous for its Jazz Museum as well as the Nelson-Atkins Museum of Art which boasts over 40,000 works of art, vintage antiques, and contemporary works. The influx of tourists into the city has a direct relationship with the growth of the city’s real estate market.

Great Place to Live Due To Rich Culture & Favorable Weather

The city is known for its distinct barbeque cuisine and uniquely crafted breweries, which makes it a preferred destination for foodies. It has more than 100 barbecue restaurants and is known in Missouri as the “world's barbecue capital. The ancient heritage of Jazz music makes it suitable for immigrants who are passionate about music.

The city lies on the shores of the Missouri & Kansas Rivers with a landscape full of fountains. The overall ambiance and accommodating culture are sure to attract more and more residents into the city, which will prove to be a boon for investments in Kansas City Real Estate Market. The weather in Kansas City is beautiful and usually clear and sunny.

September, May, and June are the most pleasant months in Kansas City, while January and December are the least comfortable month. You can almost always count on the 4th of July to be a great day to BBQ and shoot off fireworks and watch your neighbors shoot theirs, creating a competition. The neighborhood fireworks shows have always been as big as the city's, only the last half of the night.

During the shows, everyone in the neighborhood waters the top of their houses for a week straight to avoid catching fire. Where else in America can you find that? Even better, the people are friendly and the weather is inviting. There are nearby lakes for boating, fishing, swimming, and camping. The weather is almost always enjoyable. They get most of their rain in the spring of April and the summer month of June.

Cost of Living in Kansas City

Another great factor that is seen as a boon to the Kansas City real estate market is the cost of living. The cost of living in Kansas City is reasonable and affordable. With the cost of rent and the price you might pay for a house already discussed, there's the cost of day-to-day expenses to consider. A basic lunch around the business district is around $12 unless you go to a fast-food restaurant and order a combo meal, then you're looking at $7.

Milk is around $3.50 a gallon, a 2 lt. A bottle of Coca-Cola is $1.82. These prices are about the same as the national average at –1%. Housing is at 8% below. Kansas City is 15% below Oklahoma and 8% below Indiana. In fact, New York City is 129% above compared to Kansas City, while 14% below Miami, Fl, and 23% below Chicago.

Summary of the cost of living in Kansas City:

  • Four-person family monthly costs: $3,331.71 without rent.
  • A single-person monthly costs: $935.08 without rent.
  • Rent Prices in Kansas City, MO are 32.81% higher than in Wichita, KS
  • Rent Prices in Kansas City, MO are 63.21% lower than in New York, NY.
  • Rent Prices in Kansas City, MO are 26.01% lower than in Atlanta, GA

Rich and Stable Neighborhoods

The city is surrounded by neighborhoods like River Market District as well as the 18th & Vine District and the Country Club Plaza on its north, east & south sides respectively. These vicinities, in combination with the city’s vibrant real estate market, comprise all amenities residents and non-residents alike can take advantage of and put their investments in.

Some of the best neighborhoods in or around Kansas City, Missouri are Waldo, Raytown, The Downtown Loop, Northland, Westwood Hills, Patrician Woods, Chapel, Pendleton Heights, Crossroads, Turner, Westwood, Downtown Kansas City, Ward Parkway, Lake Quivira, Nashua, Shawnee Mission, and Briarcliff-Claymont.

Good Neighborhoods in Kansas City To Invest in Real Estate

  1. The Johnson County of Kansas City: It is high on the list of home buyers as an ideal place to raise a family. It has highly accredited school districts within the county, which include Shawnee Mission, Gardner Edgerton, Spring Hill, Blue Valley, Olathe, and De Soto. Most subdivisions see steady property valuation increases year after year.
  2. The Prairie Village, Kansas City: It is another good neighborhood with low crime rates, mature trees, plenty of quiet neighborhood parks, and accessible community pools.
  3. Leawood, Kansas City: It is a low crime rate area and it’s safer than 79 percent of U.S. cities. The residents have a median household income of $133,702, so they are quite well off. The region is home to the biggest Methodist church in the nation – the United Methodist Church of the Resurrection.
  4. Lenexa, Kansas City: This neighborhood has a median listing price of $394,000. Fifty-four percent report some school education, contrasted with the national average of 22 percent for all cities and towns.

Low median sales prices, which in return, drive a solid rent are another reason to look into the Kansas City real estate market. Add to that the weather, the many activities at your disposal, and the famous “Kansas City BBQ.” There isn't much left to desire when investing in the real estate market. Take a look around, make some calls, and talk to some of the people around Kansas City before you decide.

Good cash flow from Kansas City investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Kansas City real estate investment opportunity would be key to your success. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties.

The neighborhoods in Kansas City must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. As with any real estate purchase, act wisely. Evaluate the specifics of the Kansas City housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Kansas City.

Here are the top ten neighborhoods in Kansas City having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. South Hyde Park
  2. Westside North / Westside South
  3. 18th and Vine and Downtown East / Downtown East
  4. Crossroads
  5. Columbus Park
  6. River Market
  7. Longfellow
  8. Pendleton Heights
  9. Western 49-63
  10. Eastern 49-63 / Rockhurst University

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Kansas City.

Consult with one of the investment counselors who can help build you a custom portfolio of Kansas City turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Kansas City, MO

Not just limited to Kansas City or Missouri but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Kansas City turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

Is It The Right Time To Buy Real Estate? Last year was a big one for the nation's housing market. This year, sales and price growth will continue to be propelled by still-strong housing demand. That growing demand is compounded by younger millennials, who are in their prime buying years. About 4.8 million millennials turned 30 in 2021. These first-time buyers are expected to enter the home-buying to build equity in the US housing market. The wave started in 2020, with 4.7 million Millennials turning 30, an age when many people consider buying a home.

Refinancing your mortgage can be a good financial move. This is especially useful if the new rate would be significantly lower. If you got your initial mortgage a decade ago, you may find that a new rate would be low enough to save you tens of thousands of dollars. Refinancing to the short term can also save you thousands of dollars.

Let us know which real estate markets in the United States you consider best for real estate investing! 

Caveat emptor applies everywhere you buy property. Some of this article's information came from referenced websites. Norada Real Estate Investments makes no express or implied representations, warranties, or guarantees that the information is accurate, reliable, or current. All information should be verified using the below references. Norada Real Estate Investments does not predict the future US housing market.

Sources:

  • https://kcrar.com/media-statistics/market-statistics/
  • https://kansasrealtor.com/news-media/market-stats/
  • https://www.zillow.com/kansas-city-mo/home-values
  • https://www.redfin.com/state/Missouri/housing-market/
  • https://www.kansascity.com/news/local/article244912977.html
  • https://realestate.wichita.edu/data-research/data-by-market/kansas-market/
  • https://www.realtor.com/realestateandhomes-search/Kansas-City_MO/overview
  • https://www.neighborhoodscout.com/mo/kansas-city/real-estate/
  • https://www.fhfa.gov/DataTools/Downloads/Documents/HPI/Fact-Sheets/MSAs/2019Q4/FS-KansasCity-2019Q4.pdf
  • http://www.435mag.com/March-2017/Kansas-City-Real-Estate
  • https://www.corevestmentfinance.com/hot-markets-for-residential-real-estate-investors-2018

Indianapolis Housing Market: Prices, Trends, Forecast 2022-2023

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The lack of available inventory in the Indiana housing markets has remained the dominant storyline for the past several years. Due to the pandemic, the housing market in Indiana is experiencing an “unprecedented” boom. Given the increased mortgage rates, fewer buyers entered the market in November 2022. Despite the hard climate, Indiana's housing sector continues to outpace the U.S.

Since the beginning of June, home sales across Indiana have declined 12 percent below 2021 through November – but nationally, sales have dropped more than 25 percent, according to the data released by the Indiana Association of REALTORS®.  By pre-2020 standards, Indiana's inventory is still so limited that the market still favors sellers.

Homes are selling near full list price on average, more than 7% over the median price of last year. Home values are still stable, even climbing, as we wait for demand to revive in 2023. There are encouraging signs for the future of Indiana real estate even as demand remains sluggish.

Indiana Housing Market Overview – November 2022

Indiana’s housing market continued to cool in November as the statewide total of 6,335 closed home sales finished 27% below November 2021. Average thirty-year mortgage rates dropped from 7% to below 6.5% by the end of the month in response to encouraging inflation news but remain more than double the historically low rates enjoyed by homebuyers last fall.

November also brought 6,342 new listings, 19% below 2021, though Indiana’s active inventory of homes for sale remained above 12,000 for the third consecutive month as sales slowed from the record-setting market of 2021. The state’s median sale price decreased from $237,000 to $232,000.

Indiana Housing Market Trends
Source: Indiana Association of REALTORS®

Indianapolis Housing Market Trends – November 2022

The following are the most recent housing trends in the Indianapolis area as compared with the past year. We shall mainly discuss median home prices, inventory, and growth, which will help you understand the way the local real estate market moves in this region. Indianapolis has been one of the hottest real estate markets in the country for many years. Indianapolis housing market has a mixture of owner-occupied and renter-occupied units.

As per Neigborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Indianapolis. Other types of housing that are prevalent in Indianapolis include duplexes, rowhouses, and homes converted to apartments. Indianapolis single-family homes account for 59% of the city’s housing units.

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only. Indianapolis was a buyer's market in November 2022, which means that the supply of homes is greater than the demand for homes.

The median listing home price in Indianapolis, IN was $235K in November 2022, trending up 9.3% year-over-year. The median listing home price per square foot was $131. There are 106 neighborhoods in Indianapolis. Near Northside has a median listing price of $389.9K, making it the most expensive neighborhood. Martindale – Brightwood is the most affordable neighborhood, with a median listing price of $120K.

Indianapolis is also the seat of Marion County. The latest Housing Market Report (Marion County) from the “Indiana Association of Realtors” shows that inventory remained still tight as of November 2022 even though the supply of homes has increased by 31.3% from last year. The year-over-year comparisons illustrate how November 2022 compared to November 2021.

  • The median sales price increased by 167.9% to $$179,500.
  • The percentage of Original List Price Received increased by 7.8% to 94.9%.
  • New Listings decreased by 40.0%.
  • Closed Sales increased by 80%.
  • Months Supply of Housing Inventory increased by 31.3% to 2.1 months.
  • Inventory of Homes for Sale increased by 22.2%.

Indianapolis Real Estate Market Forecast 2023

What are the Indianapolis real estate market predictions for 2023? Indianapolis housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Let us look at the price trends recorded by Zillow (a real estate database company) over the past year.

The typical home value in Indianapolis is currently $231,170, up 15.9% from a year ago. Indianapolis has been a seller’s market as there exists a limited supply of homes, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the month's supply of inventory, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations.

There are fewer homes for sale than there are active buyers in the marketplace. Like most cities nationwide, Indianapolis has experienced real estate appreciation over the last couple of years. According to NeighborhoodScout, the real estate appreciation rate in Indianapolis in the last quarter (2022 Q1 – 2022 Q2) was around 3.31%, which amounts to an annual rate of 33.97%. During the latest twelve months (2021 Q2 – 2022 Q2), the appreciation rate was 15.86%.

  • The typical home value of homes in Indianapolis-Carmel-Anderson Metro is $274,955, up 14.5% over the past year.
  • Zillow predicts that Indianapolis MSA home values may rise by 1.4% by November 2023 (ZHVF, smoothed and seasonally adjusted).
  • Marion County home values have gone up 16% year-over-year.

Indianapolis Real Estate Market Forecast
Courtesy of Zillow.com

Indianapolis Real Estate Investment Overview

Now that you know where Indianapolis is, you probably want to know why we’re recommending it to real estate investors. When it comes down to the Indianapolis real estate market, it is considered to be an excellent destination for cash flow rental properties. There is a strong and steady year-over-year appreciation of Indianapolis investment properties. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023.

Let’s talk a bit about Indianapolis before we discuss what lies ahead for investors and homebuyers. Indianapolis is also known as the crossroads of America with six interstate highways crossing through the town. However, the transport sector isn't the only thing the city is good for. Construction in Indianapolis seems to be a trend ever since 1849 with America's first Union Station. The construction companies have been stretching their profit margins from the ever-growing Indianapolis housing market.

Why should one invest in this hot market in the state of Indiana? Well, to begin with, Indianapolis has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years. Over the last decade, the cumulative appreciation rate has been 92.94 percent, placing it in the top 30% nationally. This equates to an annual average house appreciation rate of 6.79 percent in Indianapolis, according to NeighborhoodScout data.

If you are looking at buying a house in Indianapolis as a potential investment in 2022 & 2023, you must read it until the end. Although this article alone is not a comprehensive source to make a final investment decision for Indianapolis, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Indianapolis.

Why Is Indianapolis A Good Place For Real Estate Investment?
  • Highest Job Growth in the Midwest
  • Ranked the #1 most affordable place to own real estate. (Forbes Magazine)
  • Unemployment is below the national average.
  • Highest job growth in the Midwest.
  • Properties up to 10% below the market.
  • 1-year appreciation forecast is positive.

Let’s look at the state of the Indianapolis real estate market and the factors driving the market in the short and long term.

Indianapolis's Business-Friendly Economy

The circle city may be the 13th largest city in the nation but that doesn't stop it from carefully drawing out its budget to accommodate its locals. It's one of the few cities running on a surplus balanced budget making it favorable for most business investments. This is due to the low tax levied on business premises making it a viable option for the rental real estate business.

Indianapolis has the highest job growth in the midwest. It has seen a surge in the technology sector ushering in a new business climate for the city. In 2016, over 49 companies chose to expand their firms and relocate opening up branches in the area. This led to over 4,500 unemployment cases being eradicated contributing to the overall growth in the local economy. Low cases of unemployment are a great way of attracting new families moving into the area and another reason for real estate investment.

The state capital has been directed towards funding several diversified sectors including tourism. The city hosts major sporting events like the NCAA basketball championships, and the famous Indy Car Race which attracts huge crowds each year. The Indianapolis real estate market can thrive from this especially in the home rental business during such occasions. Other areas of diversification include pharmaceutical as well as retail and healthcare investments.

Indianapolis Has Affordable Cost of Living

Due to the nature of commerce heavily practiced in the area, it's the most affordable place to be. According to CNN Money, it boasts of an affordability score of approximately 96% with low mortgage rates surpassing Dayton Ohio following it closely. The Indianapolis real estate market has been considered to be among the most stable markets out there. This is due to the city's location. The mid-western city's distance from the coast makes its market much more reliable unlike cities like other cities based off the coast. Their markets change just as the seasons come and go.

Increasing Home Prices in Indianapolis

Probably one of the best news to an Indianapolis real estate market investor is to learn of the rise in home prices. Over the recent past, home values have shot up by over 18% percent with the median home value reaching about $217K, according to local real estate agents. Not only will an investor get his money's worth but also stretch out profit margins as time goes by. A wise investment usually quickly returns the capital pumped into it. Indianapolis realtors have confessed to closing the fastest deals of their lifetime. Properties sell quite fast as they are listed on the market. This is advantageous to an investor as worrying about marketing and advertising is completely done away with.

Rise in Population

The population density in Indianapolis is on the rise with a growth rate of 0.33% according to the latest census conducted. Demographics show that the rise saw up to a 3.9% growth rate of African Americans, replacing the non-Hispanic which accounted for a greater percentage of the population. This diversification is a culmination of the accepting nature of the locals towards people of all backgrounds living side by side and in need of new homes.

Indianapolis is One of The Best Downtowns

According to Forbes, Indianapolis is one of the USA's best downtowns. The Circle city is known for its urban design with several construction projects underway with more contracts generated than they are completed. Improved public spaces and conservation-minded avenues are the things for most parts of the town. For those with a keen eye for real estate investment, this could be a major influence over the Indianapolis real estate market. The average rent for a 1-bedroom apartment in Downtown Indianapolis, Indianapolis, IN is currently $1,455. This is a 1% increase compared to the previous year.

Indianapolis Rental Market Has High Demand

Indianapolis is a College Town with university students choosing to reside off-campus. Moreover, graduates tend to move to the immediate area while starting out creating a huge rental market. For Entrepreneurs, opening up shop also adds to the demand. The average rent for a 1-bedroom apartment in Indianapolis, IN is currently $995.

This is a 4% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Indianapolis decreased by -11% to $999. The average rent for a 1-bedroom apartment decreased by -1% to $995, and the average rent for a 2-bedroom apartment decreased by -9% to $1,110.

  • The average rent for a 2-bedroom apartment in Indianapolis, IN is currently $1,110. This is a 6% increase compared to the previous year.
  • The average rent for a 3-bedroom apartment in Indianapolis, IN is currently $1,450. This is a 2% increase compared to the previous year.
  • The average rent for a 4-bedroom apartment in Indianapolis, IN is currently $1,693. This is a 3% decrease compared to the previous year.

Best Indianapolis Neighborhoods To Buy Investment Properties

Are you considering Indianapolis real estate investment? Maybe you have done a bit of real estate investing in Indianapolis but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Indianapolis offers great opportunities for turnkey real estate investments.

This is especially true for investors who want to invest in the market which is ranked the #1 most affordable place to own real estate (Forbes Magazine). In the Indianapolis real estate market, it is still possible to purchase cash flow turnkey properties that are up to 10% below market value – which means you get the best returns on your investment.

Good cash flow from Indianapolis investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Indianapolis in a growing neighborhood would be key to your success. If you invest wisely in Indianapolis’s real estate, you could secure your future.

The less expensive the Indianapolis investment property is, the lower your ongoing expenses will be. As with any real estate purchase, act wisely. Evaluate the specifics of the Indianapolis housing market at the time you intend to purchase. When looking for the best real estate investments in Indianapolis, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

Some of the best neighborhoods in or around Indianapolis, Indiana are Near Eastside, Far East Side, and South Broad Ripple. Home prices in Indianapolis are well below the national average for all cities and towns in the United States.

Highest Appreciating Indianapolis Neighborhoods Since 2000 (List by Neighborhoodscout)

  • Near Northside
  • Old Northside / Herron Morton
  • Arsenal Heights West
  • Ransom Place
  • N Beville Ave / E St Clair St
  • N Rural St / E 9th St
  • Woodruff Place / Arsenal Heights
  • Fletcher Place
  • Fountain Square
  • Fall Creek Place East

There are some great neighborhoods in Indianapolis where you can consider buying investment properties. Here is a list of some of the best neighborhoods in Indianapolis for real estate investment (Data by Niche.com).

1. Glendale, Indianapolis

According to Niche.com, Glendale is one of the best neighborhoods to live in in the Indianapolis area. The area is suburban with a total population of 4,419. Glendale is a neighborhood located on the north side of Indianapolis, located immediately east of Broad Ripple. Glendale is one of the oldest suburban neighborhoods in Indianapolis and is fairly residential, despite being a heavy commercial district. It is best known as the home of Glendale Town Center.

Median Home Value in Glendale $235,303
Public Schools A- Grade
Median Rent in Glendale $874
Housing B Grade

2. North Central, Indianapolis

North Central is one of the best neighborhoods to live in in the Indianapolis area. It is a suburban area with a population of 5,572. About 26% of the population are renters.

Median Home Value in North Central $309,728
Public Schools B+ Grade
Median Rent in North Central $1,439
Housing A- Grade

3. Broad Ripple Village, Indianapolis

Broad Ripple Village is currently #1 in the best neighborhoods to live in the Indianapolis area. It is one of seven areas designated as cultural districts in Indianapolis, Indiana. Located about six miles (11 km) north of Downtown Indianapolis, Broad Ripple was established in 1837 as an independent municipality and annexed by the city of Indianapolis in 1922. Broad Ripple High School, one of the earliest Indianapolis Public Schools, is located within the Village. The area is suburban with a population of 6,884.

Median Home Value in Broad Ripple Village $233,821
Public Schools B- Grade
Median Rent in Broad Ripple Village $1,374
Housing A Grade

4. Delaware Trails, Indianapolis

Delaware Trails is another best neighborhood to live in in the Indianapolis area. It is a suburban area with a population of 8,174. About 26% of the population are renters.

Median Home Value in Delaware Trails $218,641
Public Schools A- Grade
Median Rent in Delaware Trails $864
Housing A- Grade

5. Allisonville, Indianapolis

Allisonville is another best neighborhood to live in in the Indianapolis area. The area is suburban with a population of 10,175. Allisonville residents enjoy a dense suburban feel, with the majority of residents owning their homes. There are numerous bars, restaurants, coffee shops, and parks in Allisonville. Allisonville is home to a large number of families and young professionals, and residents generally hold moderate political views. Allisonville's public schools are highly regarded.

Median Home Value in Allisonville $284,807
Public Schools A- Grade
Median Rent in Allisonville $1,242
Housing A- Grade

6. Millersville, Indianapolis

Millersville is an Indianapolis neighborhood with a population of 8,800. Millersville is located in Marion County and is considered to be one of the best places to live in the state of Indiana. Millersville provides residents with a dense suburban feel, and the majority of residents own their homes. There are numerous bars, restaurants, coffee shops, and parks in Millersville. Millersville is home to a large number of young professionals and residents who lean liberal. Millersville's public schools are highly regarded.

Median Home Value in Butler-Tarkington $176,736
Public Schools A- Grade
Median Rent in Butler-Tarkington $1,006
Housing A- Grade

Indianapolis Turnkey Properties For Sale

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Indianapolis.

Consult with one of the investment counselors who can help build you a custom portfolio of Indianapolis turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Indianapolis, and have a 3-year appreciation forecast of 10.3%.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Indianapolis turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

On the west of Indiana lies the state of Illinois. In Illinois, Chicago is a hot and sizzling real estate market. Chicago’s real estate market has been one of the slowest to recover since the housing bubble burst at the start of the Great Recession. Home prices were 19% below their pre-crash levels in 2017, and they aren’t expected to hit peak values until 2021.  Chicago is not only home to several corporate headquarters; there has been a recent trend of companies moving their headquarters to Chicago as well.

The steady increase in jobs has contributed to a slow but steady increase in rents. Many businesses are attracted by Chicago’s labor pool, the largest in the nation. As these businesses move into the area and attract relocating professionals, many are forced to rent because they can’t find houses fast enough in the areas they want to live in or simply choose to rent upon relocation in one of the luxury apartments downtown.

On the east of Indiana lies the state of Ohio. In Ohio, we recommend Cleveland for real estate investment. Cleveland’s population is stable at around 400,000 residents. It is doing a decent job of retaining its young people. Why is that something to bring up when discussing the Cleveland housing market? Because it is right next to Detroit, a city that has been shedding people for decades. The Cleveland real estate market is thus bolstered by steady to slow growth, though specific neighborhoods are seeing spikes in their valuations as new employers and attractions move in.

Let us know which real estate markets you consider best for real estate investing!

Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Latest Market Data, Trends, and Statistics
https://www.indianarealtors.com/consumers/housing-data/
https://www.zillow.com/Indianapolis-In/home-values
https://www.neighborhoodscout.com/in/indianapolis/real-estate
https://www.realtor.com/realestateandhomes-search/Indianapolis_IN/overview
https://www.zumper.com/rent-research/indianapolis-in

Why Invest in Indianapolis Rental Market
http://www.cashflowdiaries.com/why-is-indianapolis-such-a-great-city-to-invest-in
https://www.threaltyinc.com/blog/2017/01 /04/why-invest-in-rental-properties-in-indianapolis-in

Best Neighborhoods in Indianapolis
https://www.niche.com/places-to-live/n/allisonville-indianapolis-in

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