Invest out West in These 3 Markets
Real estate in many western cities has caught the attention of investors in search of growing markets. These three markets have very different things to offer depending on your strategy.
Gold rushes, open land, and a new beginning encompass many of the reasons Americans moved west in the 1800s. Today, the west still symbolizes untapped opportunity–if you know where to look.
Everyone wants to know the next up-and-coming market.
Real estate investors are well aware of the allure of California markets. However, there are other flourishing markets where real estate opportunities abound. There are still markets that offer exciting upside including optimal costs of living, lower taxes, growing populations, job prospects, and more. All of this points towards continued growth in Las Vegas, Seattle, and Denver.
Here are some reasons why you should consider these western markets when looking for your next investment opportunity.
Las Vegas, Nevada
As the most populous city in Nevada, Las Vegas is a metropolitan known for being the entertainment capital of the world. Las Vegas spent most of its existence growing. In 1900, the city’s population was less than 5,000. Today the Las Vegas metro area is home to over 2.3 million people. It’s a prime real estate target for investors for several reasons.
- There’s no state income or corporate tax.This attracts businesses to the state and potential residents in search of employment. Retirees with fixed incomes settle in Vegas to take advantage of the tax laws and weather. As an investor, this may benefit your business twofold: from a tax perspective and from the influx in population looking for housing.
- Tourism. Another advantage is that Las Vegas is a major tourist attraction with people coming into the city. To cash in on this, some investors pursue short term rentals where people come to stay for conventions, major sporting events, world-famous casinos, restaurants, and much more.
- “Affordable” housing prices.When compared to a California market, houses appear more affordable. House prices have reached an average of about $447,500 according to Zillow. This is an increase of 30% over the past year, showing the power of appreciation in this market which is above the national average. Whether you buy and hold or flip, there’s upside based on the price trajectory.
The combination of its business-friendly tax laws, its status as a top tourist destination, and price point make it an exciting place to invest in real estate.
Seattle is yet another booming market in the west with upside for investors. Washington state has no income tax and also offers favorable opportunities for businesses. The city’s metro area population is also attracting new residents, which means that there are more potential renters and buyers in the market. Here are some key reasons Seattle is poised for continued success as a real estate market.
- A major innovation center. The city is home to a number of large companies that are always looking for talented workers. Seattle’s strong economy is due to the fact that it is home to some of the world’s largest companies, such as Amazon, Starbucks, Boeing, and Microsoft. These companies bring in a large number of high-paying jobs, which drives up the demand for housing.
- A diverse economy. While this city is a major tech hub, it also has a booming life sciences industry along with one of the key international ports in the United States. With a variety of industries calling Seattle home, it offers investors a hedge during an economic downturn in a given field.
- A college town. Seattle has a combination of excellent colleges and job opportunities, which creates excellent career paths for young adults. Some excellent colleges in Seattle include the University of Washington, Seattle Pacific University, and Seattle University. These schools offer a variety of degrees that can lead to careers in the tech industry, healthcare, business, or any number of other fields. Colleges also offer an opportunity to rent to students– the average rent is around $2300 for just under 700 square feet of living space.
It’s important to note that Seattle home values average $980,000. On one hand this may seem expensive to those investing in Texas. Those investing in San Francisco, where $1.6 million is roughly the average house price, may view Seattle as a great value play.
Our team ranked Denver as one of the top 10 markets to consider in 2022.
Going back to the topic of gold rushes, Denver real estate has appreciated 20% year to date according to Zillow. In fact, if you’d purchased a house there in 2016 for $396,000 that same property would now be worth $653,000. Even so, people keep flocking to the city with builders looking to meet the demand: Denver is in the top 10 metros for new construction.
The city’s job market is strong, with a number of industries, such as healthcare, technology, aerospace, and finance, providing many high-paying jobs. Denver is also known for having a lower unemployment rate than a majority of the United States.
Sundae helps you invest out of state
With Sundae’s Marketplace and an Edge membership, real estate investors could tap into the rapidly accelerating potential of western U.S. markets. Sundae provides investors with tools and resources that break the barriers of long-distance investing. Sift through auction style listings with title reports, external and internal property photos, 3D floor plans and much more. Let our investor advisors help you every step of the way!