Is Baltimore going to be a sizzling real estate market for investors over the next twelve months? According to NeighborhoodScout's data, Baltimore's appreciation rate has been at or slightly above the national average over the last twelve months, at 8.29 percent. Baltimore's appreciation rate in the most recent quarter was 2.61 percent, which equates to a 10.85 percent (annual rate). In comparison to the rest of Maryland, Baltimore's most recent annual appreciation rate is higher than that of half of the state's other cities and towns.

You can either choose to invest in your future or market your home to potential buyers. If you are looking for an affordable real estate market with a high potential for return on investment, you should consider Baltimore, MD. New employers and investments continue to add to the long list of reasons why people desire to live in Maryland. In this article, our focus will be on the current state of the Baltimore real estate market and how it can affect investors and home buyers.

Maryland Housing Market Trends 2021 (Describes August)

Here are the latest Maryland housing market trends. according to the latest report from Maryland Realtors. Statewide, August sales hit 9,740, up 2.9% from the same month a year ago. It shrunk the months supply of inventory to 1.1, which means it will take just a month for the current inventory of homes on the market to sell given the current sales pace.

Maryland is expected to be a tight housing market for a while, favoring home sellers. Housing inventory remains very low compared to the demand from homebuyers. As a result, the median price has reached $375,000, which is 10.3% higher than last August. Homes are spending a median time of 7 days on the market, down from 9 last year. The median represents the middle, with half of the homes spending more time and half spending less.

Among Maryland's 24 jurisdictions, Montgomery County reported the most sales in August, as 1,417 units were sold. Kent County had the fewest, with 41 closed sales. Wicomico County reported the highest median price growth of +30.6% from last year (from $179,995 to $235,000). Homes are selling fastest in Harford County with the median days on market being 5. Montgomery County is the most expensive real estate market in Maryland with the median sales price of $556,250. Allegany County is the least expensive real estate market in Maryland with the median sales price of $135,000.

• 9,740 units were sold in August, up +2.9% year-0ver-year.
• The average sales price was $435,798, up +8.4% year-0ver-year.
• The median price was $375,000, up +10.3% year-0ver-year.
• Total pending sales were 10,408 whereas in Aug 2020 they were 10,036.
• The ACTIVE INVENTORY was 10,119 units whereas in Aug 2020 it was 13,524 units for sale.
• MONTHS OF INVENTORY is 1.1 whereas in Aug 2020 it was 1.8.
• MEDIAN DAYS ON MARKET is 7 whereas in Aug 2020 it was 9.
• NEW LISTINGS were 11,506 whereas in Aug 2020 there were 10,439 new listings.

Baltimore Housing Market Trends 2021 (Describes August)

Because of historically low interest rates, the real estate market in Baltimore is booming. The real estate market is currently performing exceptionally well. Baltimore's housing supply is consistent with the national trend of increased demand for single-family homes. Baltimore currently has only one month's worth of housing inventory available. The delinquency rate in Baltimore reached an all-time high of 9.4 percent during the pandemic, but it is now at 6.6 percent, up 2.3 percent year over year.

State of the Market

• In August, 1,178 housing units were sold in Baltimore County versus 1,130 last year, according to Maryland REALTORS® Monthly Statistics.
• The total number of units sold this month was higher than at this time last year, representing a 4.2% increase over August 2020.
• The median sale price was $300,000, up 5.3 percent or $15,000 more from the previous year.
• It means that sellers are increasing their prices in response to increase in demand.
• The median sale price for Baltimore City was $212,000, an increase of 15.8% or $29,000 more as compared to last year.
• 990 homes were sold in Baltimore City in August versus 940 last year, a 5.3% rise in sales.
• The median days on market were 7 in Baltimore County and 12 in Baltimore City.

Baltimore County Housing Inventory

• The total number of available homes is down by 357 units or 25.7%.
• This August, the total number of active inventory was 1,028, compared to 1,385 in Aug 2020.
• Baltimore County had 1.0 months of supply available, compared to 1.5 in Aug 2020.

New Listings & Pending Sales

• In August there were 1418 homes newly listed for sale in Baltimore County compared to 1212 in Aug 2020, an increase of 17%.
• There were 1,307 current contracts (pending sales) compared to 1,159 a year ago.
• The number of pending sales is 12.7% higher than last August.

Listing Prices

• Baltimore was a seller's market in August 2021.
• According to Realtor.com, in Aug 2021, the median list price of homes in Baltimore County was $300K, trending up 7.2% year-over-year.
• If Median Listing Price is trending up, the market may be “hot” and homes will likely be selling more quickly.
• Sellers have the advantage when prices are going up.
• The median listing price per square foot was $172.
• The median sale price was $300K.
• Sale-to-List Price Ratio: 100%
• Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%.
• The sellers in Baltimore have managed to hold good leverage in these negotiations in the past month.
• On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.

Greater Baltimore Housing Market Trends (August 2021)

Here are the latest monthly real estate trends for Greater Baltimore (the city and surrounding suburbs in Baltimore County) published by Bright MLS, the multiple listing service serving Baltimore and throughout the Mid-Atlantic region. Buyer interest in Baltimore Metro area homes fell nearly 6.5 percent in August according to the Bright MLS | T3 Home Demand Index. Between July and August, the index for the Baltimore Metro market region increased slightly to a rating of 129, indicating a Moderate level of buyer demand.

Demand for more expensive single-family houses and condominiums is considerably greater than demand for any other kind of property. Buyer demand for each kind of house remained relatively stable from the previous month. Inventory increased somewhat for five of the six housing types covered by the Index, but remains relatively low.

In comparison to other categories, August saw a decline in available inventory in the relatively tiny higher-priced condo category. The supply of mid-priced single-family houses was the smallest at 1.1 months, while the supply of higher-priced condominiums was the largest at 2.4 months.

• The Bright MLS | T3 Home Demand Index reported a 129 (“Moderate”) index, up 4% from July and down -6.5% from last August.
• The median sales price ($345K) reached a ten-year high in August. Prices increased 5.9 percent year over year.
• Monthly prices continued to decline, falling -3 percent from June's all-time high ($355K).
• High demand (223 index) continued for single-family detached homes over $590K during the month.
• Townhomes ($275K, +9% YOY, -3% MOM) and condo/co-ops ($255K, +5% YOY, +2% MOM) had their best August in the
  last decade.
• Best August on record (4,585 units sold, in line with the prior month). Townhome sales (1,797 units, +12% YOY, +4% MOM) also best August on record.
• Baltimore County (1,173 units, +7%) August ten-year high.
• New pending sales increased 2% month over month and beat the typical July to August decline of –6%.
• Baltimore County attached home new pending sales (568 units, +4% YOY) all-time high.
• Best August in the last decade. New listings rose 3% month to month and beat the seasonal decline of –4% July to August.
• Median days on the market 7 days (+1 day from July). August saw the first month-to-month increase in four months.
• All home types saw increased by one to two days from the month prior.

Baltimore Real Estate Market Forecast 2021-2022

What are the Baltimore real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. It has a track record of being one of the best long-term real estate investments in the U.S. Since Oct 2011, the typical home value in Baltimore County has appreciated by around 33.7% (Zillow Home Value Index). Baltimore home values have gone up 14.0 percent over the past year alone. The typical value of homes in Baltimore County is currently $304,883.

It indicates that 50 percent of all housing stock in the area is worth more than $304,883 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The supply is exceeding the demand, giving purchasers an advantage over sellers in price negotiations. In other words, there are more homes for sale than there are buyers in the marketplace. Baltimore is a seller's real estate market.

• The typical home value of homes in Baltimore-Columbia-Towson Metro is $347,014.
• Baltimore-Columbia-Towson Metro home values have gone up 13.9% over the past year and Zillow predicts they will rise 8.2% in the next twelve months.
• The typical value of homes in Baltimore County is $304,883, up 14.0% over the past year.
• Baltimore City home values (current = $188,990) have gone up 17.7% over the past year and will continue to rise over the next twelve months.

Here is the Baltimore-area real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast until Aug 2022.

Baltimore Real Estate Investment: Should You Invest in Baltimore?

Now that you know where Baltimore is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Baltimore a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Baltimore 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 2021.

Baltimore looms large in American history. First settled in the 1600s, it was one of the largest cities in the U.S. in the colonial era. Today, it is often thought of as a distant suburb of Washington D.C., an industrial city on the decline. Yet this city is experiencing a turnaround that presents a unique opportunity for real estate investors. The Baltimore real estate market offers a variety of properties for buyers who are looking for a place to call home.

Baltimore is home to around 600,000 people. At first, the Baltimore housing market would seem like a bad investment since the city saw a nearly 5% drop in population from 2000 to 2010. This is a continuation of a decades-long flight from the city; between 1970 and 2000, the total population declined by almost a third. However, there is a significant opportunity in the Baltimore real estate market for investors, and not just because the metropolitan area is home to nearly three million people.

If you are looking to make a profit, you don’t want to buy the most expensive property in the Baltimore 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 Baltimore 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.

According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom row houses are the most common housing units in Baltimore. Other types of housing that are prevalent in Baltimore include large apartment complexes, duplexes, single-family detached homes, and homes converted to apartments. Baltimore has a mixture of owners and renters, with 45.50% owning and 54.50% renting. Let’s take a look at the number of positive things going on in the Baltimore real estate market which can help investors who are keen to buy an investment property in this city.

The Student Market

If you want to invest in the Baltimore real estate market aimed at students, Baltimore is a rich target. The University of Maryland and John Hopkins University are two large pools of students in the Baltimore area, but they aren’t the only ones. Coppin State University is home to around 4000 students, while Morgan State University houses six thousand. The University of Baltimore has five thousand students enrolled, though this college is sometimes confused with the University of Maryland Baltimore campus of similar size. Johns Hopkins has around 20,000. If you’re more interested in the metro Baltimore real estate market, Towson University is also home to around 20,000 students.

The Baltimore housing market for students extends well past the neighborhoods immediately around big schools like Notre Dame of Maryland (5000 students) and Loyola (6000 students). You could buy rental properties around the Maryland Institute College of Art, Goucher College, or Sojourner-Douglass College. Note that the Baltimore housing market near Johns Hopkins also profits from the hospital of the same name, since that is one of the largest employers in the city.

A Huge Population of Working-Class Renters

Nationwide, around a third of the population rents. In Baltimore, just over 40% do. Baltimore stands out for its walkability and public transportation network. This helps explain why around two-fifths of those who rent don’t own a car, so properties in the Baltimore real estate market close to public transit command a premium. Interestingly, one in eight homeowners in Baltimore doesn’t own a vehicle, so they bid up the price of homes near bus and train stops, too. Given the largely working-class population in the city, many of these renters cannot afford homes selling for around $160 a square foot, so they’re guaranteed to rent for the long term. Given the relatively low cost of properties in Baltimore, this creates a surprisingly good return on investment for investors in the Baltimore housing market.

As of September 30, 2021, the average rent for a 1-bedroom apartment in Baltimore, MD is currently $1,295. This is a 9% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Baltimore decreased by -2% to $1,218. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment remained flat.

• The average rent for a 2-bedroom apartment in Baltimore, MD is currently $1,400, a 15% decrease compared to the previous year.
• The average rent for a 3-bedroom apartment in Baltimore, MD is currently $1,650, a 10% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Baltimore, MD is currently $1,900, a 0% decrease compared to the previous year.

Baltimore’s Foreclosure Bounty

Foreclosure has made the news repeatedly for foreclosure abuse and extreme cases that led to the loss of homes. The rules result in people periodically losing their homes due to hundreds of unpaid utility bills. (A $350 water bill can be enough to start the process with the water authority. Baltimore also has a low threshold for foreclosing on properties for delinquent property taxes; the city can have a tax sale due to unpaid tax bills. In Baltimore City, a house may be placed in a tax sale if you are delinquent $750 in property taxes (or other municipal liens, including water bills).

In other counties, a homeowner has their home placed in a tax sale for as little as $250 in delinquent property taxes. This means there is an unusually large number of significantly discounted foreclosures in the Baltimore real estate market. Furthermore, the low thresholds result in reasonably well-kept homes hitting the Baltimore housing market via foreclosure sales after an unexpected budget crisis, not years of neglect by homeowners.

Limited Housing Inventory Causing Steady Appreciation

For those who want to buy a home, the market cannot meet demand. The Baltimore metro area has a low inventory of quality single-family homes relative to demand. This is why the median sales price in the first quarter of 2021 was $305,500, an increase of 11% from the previous year. Sales volume was up 14 percent year over year, but active listings were down, a symptom of declining inventories and faster turnaround. Median days on the market figure was just under 40 days, 8 days less than in 2017. This limited inventory relative to high demand will keep home prices growing for the foreseeable future.

Affordable Entry for Investors

After setting aside the possibility of snapping up homes by buying tax and utility liens, the Baltimore area remains an affordable metro area to invest in. There is a significant price variation. For example, homes in Baltimore City have a median sale price of around $225,000. At the other end of the market, the most expensive suburb of Baltimore, Howard County, had a median home sell for roughly $482K in June 2021. This means you can buy luxury homes in Baltimore’s suburbs that cost less than a fixer-upper in many hot markets.

The Job Hotspots

Amazon has set up several fulfillment centers in Baltimore. They’re taking advantage of Baltimore’s harbor, cheap real estate, and transportation links to the rest of the Northeast. Every one of these centers provides more than a thousand jobs, and the Baltimore housing market in their vicinity becomes hot because people move to where there is work. The Baltimore real estate market around the new industrial parks built to cater to Amazon will boom because we can expect as many jobs from Amazon’s suppliers in those areas as Amazon itself – and those workers will want to live close to work.

Pockets of Revitalization

Eighteen different neighborhoods in Baltimore were identified for renewal. East Baltimore in particular has been targeted for revitalization, and the money is already flowing in for projects. New infrastructure built by the city includes enhanced bus stops, dedicated bus lanes, rail improvements, and road improvements. They’re also tearing down old abandoned industrial buildings to open up large construction sites and giving tax breaks for new construction.

Baltimore Investment Properties

Investing in Baltimore 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 Baltimore real estate investment? The Baltimore real estate market has been in decline for years, but several spots offer significant returns. And there are signs that the city is starting to turn around. Good cash flow from Baltimore investment properties means the investment is, needless to say, profitable.

On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding a good Baltimore real estate investment opportunity would be key to your success. If you invest wisely in Baltimore 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 Baltimore and want to purchase property to rent out. The running costs for owning and managing a Baltimore 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 Baltimore investment property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Baltimore 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 Baltimore 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.

Some of the popular neighborhoods in Baltimore are Guilford, Riverside, Mount Vernon, Fells Point, Federal Hill-Montgomery, Brooklyn, Canton, Inner Harbor, Charles Village, Belair-Edison, Bolton Hill, Roland Park, Remington, Homeland, and Locust Point.

Even as Baltimore's home prices have reached new heights, they are still near to the national average, and 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 Baltimore 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 Baltimore. If it is your first time investing in Baltimore real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property, and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your research or hiring a real estate investment specialist for guidance.

For most investors, buying or selling real estate 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 Baltimore.

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

Not just limited to Baltimore or Maryland 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 Baltimore turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Maryland is bounded on its north by the state of Pennsylvania. Philadelphia is the largest city in Pennsylvania and the second largest on the East Coast. It is the sixth biggest city in the United States. The Philadelphia real estate market offers an ideal mix of affordable properties you can snap up and a large population of renters who aren’t going to buy homes any time soon. You won’t face the same hostility as a landlord as you might in New Jersey or New York, whether renting to long-term tenants or tourists.

Another hot real estate where you can invest for the long term is Harrisburg, PA. Baltimore is connected to Harrisburg through the BALTIMORE-HARRISBURG EXPRESSWAY. The expressway functions as an important commuter route between the Baltimore Beltway and the Cockeysville-Hunt Valley area and has aided commercial and industrial development along this corridor. Harrisburg has a more favorable legal and tax climate, and it is stable. That makes it a good choice for real estate investors as long as you are investing in rental income instead of massive capital gains. And you could still earn a lot of money with fix-and-flip in the Harrisburg housing market.

In the same state, you'd find the city of Pittsburgh, which is home to approximately 90 diverse and eclectic neighborhoods and many of them offer convenient access to downtown and urban amenities. The overall stability of Pittsburgh’s economic outlook has contributed significantly to the gains seen in the real estate market. Pittsburgh is seeing an incredible renaissance, unlike many other Rust Belt cities. It is attracting new residents, redeveloping its downtown. And it is an excellent place to invest in real estate while it is still in the early stages of its rebound.

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

Remember, caveat emptor still applies when buying a property anywhere. 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

Housing Market Data, Trends, and Statistics
https://www.brightmls.com/
https://www.zillow.com/baltimore-md/home-values
http://www.mdrealtor.org/Resources/Publications/Monthly-Housing-Statistics
https://www.redfin.com/city/1073/MD/Baltimore/housing-market
https://www.realtor.com/realestateandhomes-search/Baltimore_MD/overview
https://www.brightmls.com/press-release/july-2021-housing-market-update-washington-dc-baltimore-metro

Demographics
http://graphics.wsj.com/baltimore-demographics/

Inventory
http://www.rbintel.com/blog/baltimore-area-housing-market-kicks-2018-lowest-inventories-2005

Luxury market
https://www.bizjournals.com/baltimore/news/2018/06/19/take-a-glimpse-inside-the-modern225-north-calvert.html/

Revitalization
https://www.baltimorecountymd.gov/Agencies/planning/neighborhoodresponse/commrevitalization/
https://foxbaltimore.com/news/local/east-baltimore-neighborhoods-get-30m-grant-for-revitalization

Foreclosures
http://www.baltimoresun.com/news/opinion/editorial/bs-ed-tax-sales-20170604-story.html
http://www.baltimoresun.com/news/opinion/oped/bs-ed-tax-sale-reforms-20141028-story.html
https://www.realtytrac.com/statsandtrends/foreclosuretrends/md/baltimore-city-county/baltimore/

The Kansas City real estate market is very hot and in many ways the envy of housing pundits on both coasts. Despite the COVID pandemic causing huge unemployment and impaired consumer confidence in real estate buying and selling, the Kansas City housing prices are soaring. Based on the FHFA all-transactions home price index, typical home values in the Kansas City MSA in the 4th quarter rose by 7.3 percent compared to the same quarter in 2019.

The residential housing market across the Greater Kansas City Region remained strong throughout 2020 according to year-end data from the Kansas City Regional Association of REALTORS® (KCRAR). Closed sales were up 6.3% for the year, indicating a good buyer demand. The average sale price increased by 10.4% to $272,623 in 2020.

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. But in Kansas City, there is only about one month of supply of available homes for sale — which is an indicator of Kansas City being a strong seller's real estate market.

The first half of 2021 continued a trend that began in 2020, in which high demand combined with limited inventory resulted in a spike in prices in the 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 City Housing Market Trends 2021 (Most Recent – August)

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 August 2021 as reported by the Kansas City Regional Association of Realtors (KCRAR).

• In the Greater Kansas City housing market, the average sales price is up +8.7% to $308,179.
• Home sales in the Kansas City area totaled 4359 units in August, up 2.3 percent from the same month in 2020.
• Pending sales were down 6.2% to 4,383 contracts.
• Homes that sold in August were on the market an average of 18 days and sold for 101.4 percent of their original asking prices.
• The number of active listings has dropped by 21.9% year-over-year, which makes the supply equal to 1.1 months.
• 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 particular real estate market is favoring buyers or sellers.

Kansas City Real Estate Market Forecast 2021-2022

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 2021 & 2022? Based on the FHFA all-transactions home price index, in Kansas City, MO-KS, house prices rose 16.9% over the past year and rose 4.0% over the last quarter. The cumulative change in the home price index since 2007 is 66.5%.

The Kansas City metro area currently ranks 56 in FHFA HPI® Top 100 Metro Area Rankings. 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.

Let us look at the price trends recorded by Zillow over the past few years. Since Sep 2011, the typical home value in Kansas City metro has appreciated by nearly 81% — 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 $253,659. It indicates that 50 percent of all housing stock in the area is worth more than $253,659 and 50 percent is worth less (adjusting for seasonal fluctuations).

Kansas City is a sizzling hot 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.

According to NeighborhoodScout's data, the cumulative appreciation rate over the ten years has been 64.97%, which ranks in the top 30% nationwide. This equates to an annual average Kansas City house appreciation rate of 5.13%. Kansas City real estate appreciation rates in the latest quarter were at 2.51%, which equates to an annual appreciation rate of 10.41%.

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 1.1 months if no new homes are listed. Low mortgage rates will bolster the home buying market and continue pushing up home price growth.

• Kansas City Metro home values have gone up 17% over the past year and Zillow predicts they will rise 11.2% in the next year.
• Kansas City home values have gone up 18.9% over the past year and will continue to rise at a similar pace.
• The typical value of homes in Jackson County is $198,942, up 18.8% over the past year.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until August 2022. 

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers took their homes off the market. Active listings of homes in the Greater Kansas City area totaled 4300 at the end of August, representing a 1.1 months' supply, down 31.3% from last year.

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. And that’s not going to happen. Therefore, Kansas City real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.

According to the U.S. Bureau of the Census, a total of 732 single-family permits were issued in the Kansas City metropolitan area in March 2021, up from 408 in March 2020, an increase of 79.4 percent. Year-to-date, 1686 single-family permits have been issued, up from 1120 over the same period in 2020.

For buyers in Kansas City Area: The market is red hot & very competitive at the moment so they should be prepared to look at a listing and make a serious offer above list price on the first day it hits the market. Interest rates have made many people consider buying during the pandemic. FreddieMac reported the average 30-year fixed mortgage rate was 2.84% in August 2021. The challenge for buyers will be getting qualified for a loan. If you’ve been laid off, it’s going to be harder to get approved.

For sellers in Kansas City Area: As there is less than a month of supply of properties for sale at a given time, this has created a market that greatly favors sellers. It’s a great 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 trends.

Kansas City 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 2021.  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 on 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.
• Median home price is up 18% year-over-year.
• 1-year appreciation forecast of 10-15%.
• 2020's Annual home appreciation rate in Kansas City MSA was 7.3% – FHFA House Price Index (HPI).
• #56 in the U.S. out of top 100 MSAs – FHFA.
• The cumulative change in the FHFA home price index since 2007 is 66.5%.

Disclaimer: Covid-19 may have had an impact that has not yet been reflected in our reports. When referencing the data on this page, please keep in mind that the data may not accurately depict the current market reality.

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, 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 these serve towards making 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 0.2 percentage points in March 2021 to 4.5%. For the same month, the metro unemployment rate was 0.3 percentage points higher than the Missouri rate. The unemployment rate in Kansas City peaked in April 2020 at 11.7% and is now 7.2 percentage points lower.

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 that 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 Missouri & Kansas River 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 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 about the cost of living in Kansas City:

• Four-person family monthly costs: $3,105.72 without rent.
• A single person monthly costs: $896.33 without rent.
• Rent in Kansas City is, on average, 10.56% higher than in Kansas City, KS.
• The cost of living ranks 105^th out of 465 cities in the world.
• Kansas City has a cost of living index of 67.00.

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. Southwest Blvd / W 31st St
2. E 19th St / Main St
3. E 39th St / Troost Ave
4. E 18th St / Prospect Ave
5. Missouri Ave / Forest Ave
6. Troost Ave / E 55th St
7. Westport
8. Genessee St / W 9th St
9. W 46th Ter / J C Nichols Pky
10. Truman Medical Center School for Nurse Anesthesia / E 25th St

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 Invest In Real Estate? – The timing to buy or invest in real estate is as good as it has ever been in recent history. Interest rates will likely stay low in 2021. On April 28, 2021, the Federal Reserve Open Markets Committee (FOMC) decided to leave monetary policy unchanged despite an economy that is acknowledged to be accelerating. That means near-zero interest rates and $120 billion in monthly bond purchases are here to stay a while longer as the economy convalesces from the Covid-19-induced recession.

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 s are in their prime buying years. About 4.8 million millennials are turning 30 in 2021. These first-time buyers are expected to enter the home-buying to build equity and take advantage of low relatively mortgage rates. 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.

Not only the rates are at historic lows right now, but lenders charge lower rates on shorter terms. But your monthly payments will be higher. Also, do note that there are upfront costs associated with mortgage refinancing, such as appraisals, legal fees, and taxes, so you’ll want to be sure the savings outpace the refinance price tag in a reasonable amount of time.

According to the Federal Housing Finance Agency, more than 2 million lower-income households that could have saved money from refinancing to a lower rate did not – or were unable to – take advantage of the opportunity to refinance. In the newly announced initiative, homeowners with loans backed by Fannie Mae or Freddie Mac that have not missed a monthly payment in the last six months will qualify for more favorable refinance terms. Other restrictions also apply. To qualify, borrowers should have an income at or below 80% of the area median income. With this initiate, FHFA estimates that borrowers who take advantage of the new refinance option could save an average of between $100 and $250 a month.

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

REFERENCES

Latest Market Prices, Trends & Forecasts
https://kcrar.com/media-statistics/market-statistics/
http://kcrar.com/august-2020-market-reports
https://www.zillow.com/kansas-city-mo/home-valueshttps://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

Home Price Appreciation
https://www.littlebighomes.com/real-estate-kansas-city.html
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

Foreclosures
https://www.realtytrac.com/statsandtrends/ks/wyandotte-county/kansas-city

Reasons to invest
http://www.435mag.com/March-2017/Kansas-City-Real-Estate
https://www.corevestmentfinance.com/hot-markets-for-residential-real-estate-investors-2018
http://kcrar.com/Websites/kcrarar/images/2019%20PDFs/2019%20Market%20Reports/November/HMLS_MMI_2019-11.pdf

Last year was a record-breaking year for the entire Indiana real estate market. Not surprising is the fact that Indianapolis house prices are also on the rise in the year 2021. Demand is still outpacing the supply, the new construction is slow, and competition for quality homes remains tough. The lack of available inventory in local housing markets across Indiana has remained the dominant storyline for the past several years.

Because of strong buyer demand, fueled by low mortgage rates, prices are rising steadily, making now an excellent time to be a seller or current homeowner. Due to the pandemic, the housing market in Indiana is experiencing a “unprecedented” boom. At the end of July 2021, just 8,874 homes were in active status statewide. That is down 24.6 percent from the same month last year. The percent of original list price received at sale was 100.7 percent, up 3.0%.

Other year-over-year comparisons for the Indiana housing market (July 2021 – Statewide):

• Closed sales decreased 6.5% to 9,585.
• YTD closed sales increased 7% to 54,134.
• Median sales price increased 15.5% to $223,000.
• YTD median sales price increased 13.9% to $205,000.
• New listings increased 5.6% to 11,428 units for sale.
• YTD new listings increased 3.1% to 63,597 units for sale.
• Months Supply of Housing Inventory decreased by 31.1% to 1.1 months.

Indianapolis Housing Market Prices & Forecast 2021-2022

We shall now discuss some of the most recent housing trends in the Indianapolis area and compare them 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.

Indianapolis (Marion County) is currently a hot seller’s real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The shortage of supply and an increase in the demand for housing will push the prices higher in the Indianapolis housing market. While an increase in housing prices is beneficial for homeowners, it is not always beneficial for homebuyers.

According to Realtor.com, in August 2021, the median list price of homes in Indianapolis, IN was $205K in August 2021, trending up 10.8% year-over-year. The median listing price per square foot was $115. There are 104 neighborhoods in Indianapolis. Allisonville has a median listing price of $384.5K, making it the most expensive neighborhood. Near Southeast is the most affordable neighborhood, with a median listing price of $67.5K.

Indianapolis is the seat of Marion County. The latest Housing Market Report (Marion County) from the “Indiana Association of Realtors” shows that inventory remained very tight in July 2021. The supply of homes has not increased in tandem with the surge in demand, resulting in continued upward pressure on home prices. Indianapolis & the entire of Marion County is a seller’s real estate market. The year-over-year comparisons illustrate how July 2021 compared to July 2022.

• Median Sales Price increased by 18.3% to $217,750.
• New Listings increased by 8.8% to 1,906 units for sale.
• Closed Sales decreased by 0.2% to 1,637 units.
• Months Supply of Housing Inventory decreased by 23.1% to 1.0 months.
• Inventory of Homes for Sale decreased by 10.8% to 1,433 units for sale on MLS.
• Percent of Original List Price Received increased by 3.2% to 101.0%.

Indianapolis Real Estate Market Forecast 2021 – 2022

What are the Indianapolis real estate market predictions? 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 few years. Since Sep 2011, the median home price in Indianapolis has appreciated by roughly 96.5% (Zillow Home Value Index).

The typical home value in Indianapolis is currently $192,802, up by 17.6% from a year ago. Indianapolis is 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 was around 2.17%, which amounts to an annual rate of 8.95%.

• The typical home value of homes in Indianapolis-Carmel-Anderson Metro is $229,575, up 17.2% over the past year.
• Zillow predicts they will rise 12.5% in the next twelve months.
• Indianapolis home values have gone up 17.6% over the past year and will continue to rise in the next twelve months.
• Marion County home values have gone up 17.6% over the past year and will continue to rise in the next twelve months.

Here is the Indianapolis real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 12.5% until July 2022.

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 2022.

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 55.93 percent, placing it in the top 30% nationally. This equates to an annual average house appreciation rate of 4.54 percent in Indianapolis, according to NeighborhoodScout data.

If you are looking at buying a house in Indianapolis as a potential investment in 2021 or 2022, 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.

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. In fact, 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, 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 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 in thing 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 in the immediate area while starting out creating a huge rental market. For the Entrepreneurs, opening up shop also adds to the demand. The average rent for a 1-bedroom apartment in Indianapolis, IN is currently $935. This is a 1% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Indianapolis decreased by -7% to $850. The average rent for a 1-bedroom apartment increased by 2% to $935, and the average rent for a 2-bedroom apartment increased by 1% to $1,000.

• The average rent for a 2-bedroom apartment in Indianapolis, IN is currently $1,000. This is a 3% increase compared to the previous year.
• The average rent for a 3-bedroom apartment in Indianapolis, IN is currently $1,470. This is an 18% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Indianapolis, IN is currently $1,799. This is a 24% increase 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.

There are 127 neighborhoods in Indianapolis. 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. Near Northside has a median listing price of $319.9K, making it the most expensive neighborhood. Near Northwest is the most affordable neighborhood in Indianapolis, with a median listing price of $41,900.

There are some great neighborhoods in Indianapolis where you can consider buying investment properties. Here is the 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 the Indianapolis area. The area is suburban with a total population of 5,334. 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 in nature, despite being a heavy commercial district. It is best known as the home of Glendale Town Center.

2. North Central, Indianapolis

North Central is one of the best neighborhoods to live in the Indianapolis area. It is a suburban area with a population of 8,012.

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 8,100.

Delaware Trails is another best neighborhood to live in the Indianapolis area. It is a suburban area with a population of 9,111.

5. Allisonville, Indianapolis

Allisonville is another best neighborhood to live in the Indianapolis area. The area is suburban with a population of 14,124. 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.

6. Millersville, Indianapolis

Millersville is an Indianapolis neighborhood with a population of 10,794. 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.

7. Highest Appreciating Indianapolis Neighborhoods Since 2000 (List by Neighborhoodscout)

• E Michigan St / N Oriental St
• Central Ave / E 20th St
• N Meridian St / W 16th St
• Indianapolis / Indiana U-Purdue U-Indianapolis
• Madison Ave / E Morris St
• E 25th St / N College Ave
• E 46th St / N College Ave
• E 38th St / N College Ave
• N Meridian St / E 25th St
• N Beville Ave / E 10th St

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 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.

Another good real estate market is in the city of Akron, Ohio. Akron has been known as the “Rubber Capital of the World” for more than a century. It is home to around 200,000 people. However, the Akron real estate market is much larger than this. Include the suburbs and small towns that surround it, and its real estate market contains roughly 700,000 people. The Akron real estate market is notable for having an affordable multi-family market. Townhomes and condos start at 30K for a one-bedroom and hover around 30K per bedroom.

This is why a five-bedroom townhome costs around 150,000 dollars. A duplex with two four-bedroom units could be purchased for around 100-300,000 dollars, depending on the neighborhood. Five and six-bedroom properties can be found in the multi-unit market, too. Large duplexes and triplexes with this many bedrooms are perfect for families with many children as well as inter-generational households.

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

Remember, caveat emptor still applies when buying a property anywhere. 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