Many overseas property investors dream of investing in, or even moving to, the USA. However, affordable US property markets where you are likely to make a profit can be difficult to find.
There are the obvious choices (where your family and friends live, the biggest cities in America, the hotspots always featured online), but if you’re looking to widen your search, NeighborhoodX , a real estate research and analytics firm, have come up with a top ten affordable US property markets to consider.
1 – Dorchester, Boston MA
The first affordable US property market on the list is Dorchester. This once-independent city is now a neighbourhood of Boston. It has been desirable in parts, but recently more neighbourhoods have gained popularity. Of particular interest are Uphams Corner, Codman Square, Fields Corner and Mattapan. These areas offer potential benefits similar to the South Bronx but are a little riskier. After all, they were hit hard by foreclosures during the financial crisis that began in 2007-2008.
2 – Kensington, Philadelphia PA
Kensington is close to Northern Liberties and Fishtown, which are both very desirable areas in Philadelphia. Kensington has a mix of low purchase prices and reasonable rental yields, however, like Dorchester, MA, it was hit hard during the financial crisis, making it less of a sure thing than areas just outside of New York City.
3 – South Bronx, NY
Affordable US property market lists don’t normally include New York, but if you dream of living in the Big Apple, consider looking north of 110th Street. You’ll be close to Yankee Stadium, and you’ll get to enjoy much cheaper rent: While the average asking price of an apartment in trendy parts of Manhattan is just shy of $2,000 per square foot, the cost drops to between $200 to $500 per square foot in the South Bronx. Plus, the commute time is comparable to living in parts of Brooklyn.
4 – Austin, San Antonio, El Paso and Fort Worth in Texas
Real estate site, Trulia, named these four cities in their recent roundup of the 10 Hottest Real Estate Markets. That’s an impressive four Texas cities out of a total of ten in the US! Trulia cited bustling job markets, pleasant weather, culture and beautiful outdoor spaces as some of the positive attributes of these cities.
5 – Lakeland and Deltona, Florida
Realtor.com names these two Florida cities to its list of places to watch this year. Both are within driving distance from Orlando proper and the ever-popular theme parks of Disney World and Universal Studios. The housing prices are increasing, but it’s still currently an affordable US property market.
6 – Fort Lauderdale, FL
Fort Lauderdale has always been a secondary market to Miami, but its great beachfront location is cited, with plenty of ‘class A’ office space and luxury hotels like the Four Seasons and the W Hotel, as signs as a potential upswing. It looks as though a lot more is coming to the area, so now could be the time to invest.
7 – Sunnyside, NY
Now that Long Island City has been almost totally tapped out, the more affordable nearby Sunnyside, with its amazing rental prices rates and a burgeoning town centre could be the next big thing.
8 – Nashville, TN
Nashville has seen tremendous growth over the last decade and more Millennials are moving to the ‘urban-light’ neighbourhoods surrounding Nashville centre. This means that demand is likely rise now that more affordable outer areas are being sought after.
9 – Denver, CO
Real estate site, Curbed, also called out Nashville in their roundup of the top real estate markets to watch. One of their other picks was Denver, Colorado. A developing transit system and a boom in residential, entertainment and business construction should make Denver attractive to buyers in the near future.
10 – Seattle, WA
Just because Amazon is looking for a second home, you’d be wrong to assume that Seattle is maxed out, according to Curbed. Quite the contrary. Amazon is planning a great deal of development, and the city plans to resolve current transit and housing challenges in the coming years.
Affordable US property markets with potential can be difficult to come by, and they may not stay affordable for long.