As the 4th largest city in the U.S., Houston’s population grew 12.4% between 2010 and 2015, the most among 381 metro areas. This population increase, combined with affordable rents, supported a rental population spike of 37% between 2006 and 2014. The share of renters in single-family homes, meanwhile, grew from 28% in 2006 to 34% in 2014. These are all good signs for investors, as Houston has a lower risk of vacancy.
One thriving renter base for investors consists of Houston’s high concentration of college students. In fact, there are more than 315,000 students enrolled in over 100 local colleges. Even, despite low energy prices taking a toll on the overall Houston economy, its renter pool should remain stable until the local job market has a chance to rebound.
If Houston were an independent nation, it would rank as the world’s 30th largest economy (houstontx.gov)
Home to the Texas Medical Center, the largest medical center in the world, with a local economic impact of $10 billion
Home to more than 5,000 energy related firms
23 Fortune 500 companies
Boasting both a robust GDP and the world’s busiest airport – Hartsfield-Jackson Atlanta International – Atlanta is a major player when it comes to U.S. economies. Named as one of the U.S.’s top 10 economies by city, this deep South metropolis is also home to major corporate conglomerates, including: Coca-Cola, Turner Broadcasting, Home Depot, and Delta Airlines.
Other factors combine to make Atlanta a city ripe for investing. Its sprawling metro includes assets in suburban locations with immediate cash flow; the city also features neighborhoods with relatively easy access to major thoroughfares and school districts (these typically meet the criteria of buyers seeking immediate returns). Investors with a longer time horizon can acquire urban core properties that tend to appreciate even more quickly.
Strong mix of white and blue collar jobs across numerous sectors in Atlanta metropolitan area
#5 in Best Places for Business and Careers (forbes.com)
Leisure and hospitality sector are strong drivers of renter demand
Home to 26 Fortune 500 companies
A robust economy, favorable business conditions, and a large pool of working millennials are among the factors which distinguish the city of Austin – and Silicon Valley has taken notice. In fact, several major Silicon Valley firms continue to maintain a significant presence in this Texas market. This, combined with the fact that local apartment development is set to explode, makes Austin a logical choice for investors.
Yearly employment growth in Austin has hovered at 4% in the metro area for 45 consecutive months, one of the longest stretches among comparable cities and many of Austin’s jobs are well-paying tech positions, attracting millennials and making it a city of the future. As a large segment of the millennial population prefers to rent – and delay homeownership for an extended period of time – this represents another favorable condition for investors.
Austin’s unemployment rate of 2.9% in April 2016 was the lowest among large metropolitan areas
A strong job market and low cost of living resulted in 16.6% population growth between 2010 and 2015
Apple, IBM, and Dell employ thousands of Austin residents
The city is also home to Google, Facebook, Intel, and Samsung
If there’s any U.S. city deserving of being called “all-American” it’s Dallas. Its rich history and tradition make it one of the most iconic areas in the country and its lofty status continues in part thanks to its tremendous economic success. Just how successful is its economy? Dallas/Ft. Worth/Arlington had a combined GDP of $504.36 billion in recent years. To put that in perspective, if this region were a state, it would rank #9 among all others in the United States!
There’s more good news for investors: since the 2009 recession, employers in Dallas/Fort Worth have created almost 600,000 new positions and nearly every employment sector is in positive territory over the same timeframe. Just as promising, the local population grew by 10.5% between 2010 and 2015, providing a solid renter base for real estate investors; many of these are millennials who are attracted to the area’s relatively low cost of living. What does the future hold? Continued re-location and expansion of major companies in the area promise sustained economic success for this American sweetheart city.
21 Fortune 500 companies headquartered in North Texas (bizjournals.com)
26% of population earns an annual average of $100,000
Leading international distribution and logistics center
Boasts a world class international airport that aids its tourism sector