Investing in Real Estate: Insights from Allison Montgomery on Five Fast-Growing Cities
In the ever-evolving landscape of real estate, understanding where to invest can be the key to building wealth. Allison Montgomery, a seasoned real estate agent, investor, and owner of Buy My House, has her finger on the pulse of the national market. Her company specializes in connecting sellers with local cash buyers, providing her with a unique coast-to-coast perspective on real estate trends. Montgomery has identified five rapidly growing cities that present significant opportunities for investors looking to capitalize on appreciation in the coming years.
1. Boise, Idaho: A Rising Star
Boise has emerged as a beacon for real estate investors, consistently ranking high for quality of life and economic growth. According to Montgomery, the city has experienced a staggering 218% home appreciation over the past decade, with an average annual growth rate of 12%. This upward trajectory is fueled by a diverse economy, particularly a burgeoning tech sector that attracts new residents.
In March, Redfin reported that home prices in Boise surged by 10.9% compared to the previous year. Montgomery highlights several factors that make Boise an attractive investment location: a potential home value growth of 2% or more in the next two years, an increasing job market, affordable housing options, and high demand. For those looking to invest in a city with a bright future, Boise stands out as a prime candidate.
2. Seattle, Washington: The Competitive Market
Seattle is another city that Montgomery believes is poised for continued growth. Known for its strong economic prospects and vibrant labor market, Seattle has become a hotspot for real estate investment. The city’s housing market is described as “very competitive,” with Redfin reporting an 11.5% increase in prices over the past year.
Despite its median sale price of $818,000, the demand remains high, with homes selling in an average of just 10 days. Montgomery notes that the combination of a buoyant economy and consistently high rental occupancies makes Seattle an appealing option for investors looking to enter a thriving market.
3. Tulsa, Oklahoma: Affordable Growth
Tulsa has caught Montgomery’s attention due to its significant increase in new home construction, a key indicator of economic health. In Q2 of 2023, newly built homes constituted 33% of single-family homes for sale, reflecting a robust housing market. The city has seen a record number of home starts, with 447 homes beginning construction in 2023 alone.
Despite its rapid growth, Tulsa remains accessible for budget-conscious buyers, with average home values around $200,000. Montgomery points out that the city experienced 12.3% year-over-year growth, making it an attractive option for real estate investment, especially for those priced out of more expensive markets.
4. San Antonio, Texas: A Buyer’s Market
San Antonio is gaining traction as one of the fastest-growing metros in the nation, particularly among younger generations. A Zillow Group study indicates that more Gen Zers are moving to Texas than any other state, with San Antonio leading the charge. Montgomery describes the city as a vibrant locale with a rich history and over 300 days of sunshine each year.
Currently, San Antonio is classified as a buyer’s market, with home prices down 1.8% from the previous year and properties lingering on the market for an average of 62 days. With an average home value of $257,711, San Antonio offers a compelling opportunity for investors looking to enter a growing market without breaking the bank.
5. Charlotte, North Carolina: The Hottest Market
Charlotte has consistently ranked as one of the hottest housing markets in the country, and for good reason. Montgomery notes that the city is experiencing a 45.2% job growth increase expected over the next decade, driven by major employers like Bank of America, Wells Fargo, and Amazon.
The Charlotte area added 135,000 residents between 2020 and 2023, solidifying its status as a rapidly growing metro. With Zillow ranking Charlotte as the No. 7 hottest housing market of 2024, it’s clear that the city is a prime target for real estate investors looking for significant appreciation potential.
Conclusion: The Future of Real Estate Investment
As the real estate market continues to evolve, insights from experts like Allison Montgomery can provide invaluable guidance for investors. The cities of Boise, Seattle, Tulsa, San Antonio, and Charlotte each present unique opportunities for growth and appreciation. By understanding the dynamics of these markets, investors can make informed decisions that align with their wealth-building goals.
Whether you’re a seasoned investor or just starting, these five cities offer promising prospects for those looking to navigate the complex world of real estate. With the right strategy and insights, the path to financial success through real estate investment is within reach.