In her recent piece for InmanNews, Veronika Bondarenko suggests that property investors look to smaller cities with strong job markets rather than traditional investment cities and locations. Why? Continued and ongoing price increases in those traditional locations.

Look to cites experiencing population growth, job growth and positive economic projections suggests Bondarenko. And Holly Tachovsky, CEO and founder of BuildFax, backs up those suggestions.

Tachovsky told Inman via Bondarenko, “Affordability concerns have put external pressures on traditionally popular markets like New York. Instead, we’re seeing an uptick in migration to markets in Nevada, Colorado and Arizona.

Here are Tachovsky’s top 2019-2020 property investment targets:

  • Orlando FLA
    • Orlando has developed and is developing additional prime retirement communities in this tourist dependent city filled with sandy beaches.
    • All real estate professionals are suggesting that investors move quickly here in order to get in on the action before it’s too late.
  • Las Vegas
    • According to realtor.com’s latest housing market forecast, Las Vegas is seeing rapid home value increases due to rapid job relocations
    • This area is expected to see a +7.9% increase in sales prices by the end of 2019.
  • Phoenix
    • Tachovsky recommends that investors look to specific neighborhoods in Phoenix…”older, more established neighborhoods
    • She told Inman to “watch home prices and to watch rents…you’ll develop a second sense about good deals and expected rents…” by doing ample research.
  • Denver
    • Denver’s home values grew by +5% in this last year and more increases are anticipated due to population growth.
    • Population estimates are expected to reach 3M residents by 2020.
    • Investment experts believe there is still time to get in on the action before over saturation becomes an issue in the Mile High City.
  • Cleveland
    • Lower home prices and strong job market growth have attracted +$19B property investment dollars in the last 10 years.
    • Interestingly enough, there is less competition from other investors in Cleveland as many of those investors have been first attracted to Denver and Las Vegas.
  • Texas – almost anywhere
    • According to the US Census Bureau, 7 of the 15 cities experiencing the most significant population growth are in the state of Texas and as a result, the state’s economy is growing faster than anticipated.
    • Austin attracts young, highly educated workers
    • Dallas and Houston attract families and older residents who seek a lower cost of living.
    • In an earlier interview with Inman, JP Piccinini of JP & Associates Realty said, “The housing markets in these Texas cities continues to be the juggernauts (because) they deny the overall housing market as it cools down.