Real Estate Investors Are Buying Up Homes Like Crazy in Florida, Arizona and Tennessee
Photo from Pexels
Purchasing homes in Tennessee, Florida, and Arizona could prove to be a great investment. Learn more about investing in real estate here.
The real estate market’s been exploding the past few years. First, it had to do with difficulties brought on by COVID-19. Then it was in response to its imminent departure.
As a result, every single facet of the real estate industry has been booming as we transition into the next normal. The number of leases increased by 9.2%, a 14.6% improvement over 2020.
Some areas have been emerging as leaders in this rising trend. Homes in Tennessee, Florida, and Arizona have been particularly popular among real estate investors.
Let’s find out why.
If you’ve been thinking about investing in real estate with homes in Florida or homes in Arizona, here’s what you need to know!
Real Estate Investors Are Buying Homes In Tennessee
Great weather and an affordable cost of living are just a few of the features that are driving investors to purchase homes in Tennessee for their portfolios. It’s also known for its rich culture, especially in cities like Nashville. From music lovers to historians to curiosity seekers, there’s something for everybody in Tennessee.
There’s a lot more than tourist attractions to Tennessee, though. These other factors have a lot more to do with why real estate investors are so keen on homes in Tennessee.
11 of the companies found in the Fortune 500 are from Tennessee. The economy is booming and it’s only going to keep growing, judging from the real estate trends and investors’ enthusiasm. It also has one of the lowest unemployment rates in the entire United States.
Life during COVID-19 has caused many of us to reconsider where and how we live and work, as well. Remote work and digital collaboration have become the norm for the last 2+ years. It proved to a lot of young professionals that you truly can work from anywhere there’s a high-speed internet connection.
Places like Tennessee, with their excellent weather and affordable cost of living, are sure to be some of the first places to blow up. If you’ve been thinking of seeking out a property as an investment opportunity, homes in Tennessee would be an excellent place to start.
Why Real Estate Investors Are Buying Homes In Florida
Real estate investors aren’t solely swooping in on inexpensive homes, either. Even mid-priced houses are being grabbed as investment opportunities.
This may be one cause for the boom in popularity in Florida real estate. Homes in Florida are always popular, but Florida real estate has reached a whole new level of popularity these last few years.
This is in part due to the fact that numerous cities in Florida have been voted some of the best places to live in the United States.
No matter who you are or what they’re looking for, there’s some kind of Florida real estate to match your needs. Of course, the incredible weather and gorgeous landscape is one of the main draws.
These conditions also make for one of the United States’ most vibrant tourist destinations. This, in turn, is partially responsible for the state’s strong economy.
It’s also a reason why now is a good time to invest in Florida real estate, as many are sure to be traveling now that lockdowns are being lifted.
What Kind Of Homes In Arizona Should You Invest In?
The Southeast isn’t the only area of the country that’s been experiencing rapid growth thanks to the real estate boom. Arizona’s been seeing big gains in its real estate market, as well. It’s another great place to look for would-be real estate investors.
If you’re thinking of investing in homes in Arizona, single-family homes are a hot commodity in today’s real estate market. Single-family homes make up 74.8% of properties bought by real estate investors.
Condos and co-ops have been declining somewhat, accounting for only 15.4% of investment property purchases. This is down from 17.8% in 2020.
Multifamily sales are diminishing, as well. Multifamily units currently only make up 3.8% of real estate sales for investment purposes. Multifamily sales accounted for 4.7% in 2020.
Houses in the sunbelt are some of the most popular and prized properties for investment properties from real estate investors. There have been massive surges of real estate investment in Jacksonville, Florida, and Atlanta, Georgia. Phoenix isn’t far behind, with 28.4% of home sales going to investors.
This is causing a massive surge in housing prices in sunbelt areas. They’re also popular choices for those moving to the United States for the first time. If you’re thinking of investing in real estate in Phoenix, you’d better act fast before you get priced out of the market.
Why Single-Family Homes Make Great Investments
COVID-19 caused all manner of confusion for the real estate market. Some were predictable and some were so complex they were difficult to visualize.
These considerations caused house prices to rise 15% in a single year. This is actually down a few points from Q3 of this year. Rental prices are also on the rise, with an increase of 14% over 2020.
There is still a shortage of houses available, as well, due to the pandemic. This is one reason for the rising prices. A flurry of investors investing in real estate is also helping to drive up prices.
With a scarcity of available houses, there are going to be more people looking to rent. This makes it an ideal time to invest in real estate if you’ve been thinking of becoming a landlord.
Real estate investors bought nearly $50 billion in homes for investment in Q4 2021. That’s up from $35 billion just a year earlier.
The average home price has increased by 10%, as well.
There’s no telling how the real estate market is going to react as we begin to transition into a post-pandemic world. If you’re wanting to take advantage of the opportunities from this very particular moment you’ll want to act quickly!
Ready To Invest?
Real estate is one of the best investments you can make, no matter who you are. Whether you’re looking to start an Airbnb or purchase homes in Tennessee to convert into rental properties, we’ve got a loan for you.
Apply now and begin your real estate investment adventure today!