Countless millionaires built their fortunes from a single property, and you can too. But when choosing a state, remember that location is everything.
Explore: 15 Cheapest, Safest Places To Live in the US
Related: 3 Things You Must Do When Your Savings Reach $50,000
“Investing in real estate has long been considered a reliable avenue for building wealth,” said Mike Qiu, owner of Good as Sold Homebuyers in Seattle. “While the real estate market can be unpredictable, certain states have consistently demonstrated promising potential for real estate investment. In the next five years, several states are expected to offer lucrative opportunities due to factors such as population growth, economic prosperity and favorable policies.”
If you’re looking for a place to start your journey to real estate wealth, the following five states should be at the top of your list.
Mark Severino, owner of Best Texas House Buyers, makes no secret about his favoritism for his home state — but he backs it up with facts.
“Clearly, I am biased to promoting building wealth in Texas,” said Severino, who offered three reasons “why Texas is the best state to buy a property in and build wealth over the next five years.”
First is rising property values.
“The median existing single-family home price in Texas has been on a steady incline since at least the year 2000,” said Severino. “When the national price goes down, the dip in Texas lasts for only a short time and then regains value. This allows for tremendous appreciation for property owners with the right investments.”
Second is perpetual population growth.
“More than half a million people move to Texas every year,” said Severino. “The number of people who leave is significantly less, making the net population growth in Texas through domestic migration positive every year in the hundreds of thousands. This funds the need for housing as well as locks in value as demand remains steady.”
Finally, the Lone Star State is known for its favorable landlord laws.
“Compared to other states, Texas has greater property protection rights, a faster eviction process, and laws that generally favor landlords when a dispute with a tenant arises. This is important to property owners as it allows a level of assurance that their investment is provided greater protection than in other states. This also makes it easier to manage and profit from the property portfolio.”
Housing Market 2023: These 15 Cities Are Poised for the Most Stable Growth and Are Likely To Keep Their Value
Like Severino, Qiu is partial to his home turf, which in his case is in the Pacific Northwest.
“With its dynamic tech industry and thriving economy, Washington State has become a magnet for real estate investment,” said Qiu. “The Seattle metropolitan area, in particular, has witnessed significant growth and offers a wide range of investment opportunities, including residential and commercial properties. The presence of major tech companies further contributes to the region’s real estate appeal.”
North Carolina has been adding residents at a feverish pace for years, and in 2022, its population grew faster than all but two other states.
“The Tar Heel State has garnered attention for its steady population growth, affordable housing options, and diverse economy,” said Qiu. “Cities like Charlotte, Raleigh, and Durham boast strong real estate markets fueled by factors such as job growth, low cost of living, and high quality of life. These factors, combined with North Carolina’s business-friendly environment, make it a favorable state for real estate investment and wealth accumulation.”
Qiu will get no argument from Ryan Fitzgerald, an experienced North Carolina Realtor and the owner of Homes Raleigh.
“On my home turf in Raleigh, North Carolina, the rapid growth is nothing short of impressive,” said Fitzgerald, who was named a 30 under 30 Realtor by Realtor Magazine. “A family I assisted in buying a home five years ago has seen their investment nearly double thanks to affordable properties, high quality of life, and strong job growth in tech and health care sectors.”
The absence of Florida on this list might feel like a glaring omission considering it’s been the country’s relocation destination of choice since the pandemic. But GOBankingRates spoke with several experts who feel that the market in the Sunshine State is saturated, overpriced and due for a correction — and that the next big thing might be a standout Mid-South state.
“Tennessee has recently emerged as a sought-after destination for real estate investment,” said Qiu. “Cities like Nashville and Memphis are experiencing rapid growth, driven by factors such as affordable housing, a favorable tax environment and a thriving music and entertainment industry. These factors position Tennessee as an attractive state for investors seeking to capitalize on its upward trajectory.”
Aaron May, a Realtor with Coastal Luxury Real Estate Partners, agrees.
“Tennessee has gained attention in recent years as a state with a favorable business environment and a low cost of living,” said May. “Nashville, in particular, has seen remarkable growth, fueled by its vibrant music and entertainment industry. With no state income tax and a steady influx of young professionals, the real estate market in Tennessee holds promise for the future.”
The Centennial State offers a unique blend of snow-capped mountains, arid desert, booming cities — and excellent opportunities for making money in real estate.
“Colorado’s breathtaking landscapes and recreational opportunities have propelled its real estate market to new heights,” said Qiu. “With cities like Denver, Boulder and Colorado Springs witnessing a surge in population growth, the state presents an attractive investment environment. Furthermore, Colorado’s flourishing tech industry and robust job market contribute to its real estate appeal. Investors seeking to capitalize on this growth can explore various residential and commercial opportunities.”
May cited many of the same factors as Qiu when naming Colorado as a winning market, including population growth and a strong economy. He also touts the state’s unique brand of blended lifestyles.
“Cities such as Denver and Boulder offer a mix of urban amenities and natural beauty, making them desirable for both residents and investors,” said May. “Additionally, the state’s commitment to sustainability and renewable energy adds to its long-term prospects.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Real Estate Agents Say: Buy Property in These 5 States To Be Rich in 5 Years