Real estate investors today look for the following characteristics in a city-scape that make it a good investment destination in their eyes.

Healthy population growth
Healthy job growth
Healthy home price growth

The current home-buying trends that have emerged in 2016 seem to support this theory too. Based on these traits and some other economic factors, we have compiled an exhaustive list of 10 US cities that are riding high on the investors’ list of best buy cities for 2016. Take a look!

Michigan’s second largest city, Grand Rapids, checks all the right boxes and that’s why it finds itself on the top of every major real estate list in 2016. Currently ranked as the 14th most affordable city in US, Grand Rapids registered the highest job growth (3.9%) among 100 US metro areas. The reason for this is the diverse economy that exists here in full flourish. In addition to the historic furniture industry, it is now home to important industries such as aerospace, automotive, consumer goods manufacturing, health care and IT. Also, it boasts of a very healthy 3.1% population growth rate which by itself is interpreted as a solid testament to people wanting to move in here.

Key Figures:

Population Growth: 3.1%
Annual Job Growth:3.9%
Average Home Price: $154,348

Florida was the worst hit US state during the recession, so much so that every 1 out of 6 homes was rendered vacant due to foreclosures. Today the scenario has changed though, and how! Registering a much higher population growth (3.1%) than the national average (2.3%), Tampa is one of the better success stories in the US. Most of the houses that were once foreclosed have now been renovated and rented or bought. The average home price also is a fairly low $193,000 which makes it that much more lucrative for the retirees and those looking for a second property to invest in.

Key Figures:

Population Growth: 3.1%
Annual Job Growth:2.6%
Average Home Price: $193,000

When the rest of the US was reeling into the Great Recession, Texas remained very much unperturbed by the disaster. It was but natural that cities of Texas took charge of the US economic recovery, and San Antonio leads that charge. The average home price is a reasonable $200,522 but that is going to change rapidly, according to a projected 26% growth rate over the next three years. Most of the financial firms and data centers in the US are located here and the year-on-year job growth (3.7%) is among the highest in the country. As a homeowner, it is fairly easy to sell your house in San Antonio with ease, because real estate inevstors from all over the country are looking for good deals in this market regularly; and better yet, they have cash.

Key Figures:

Population Growth: 6.1%
Annual Job Growth:3.7%
Average Home Price: $200,522

Yep. Vegas boasts of a job growth rate which is more than double the national average (4.8% as compared to 2.3%). This means that more people will be shifting base to the city and they will look for houses to rent. Moreover, Las Vegas remains one of the top financial and commercial centers of Nevada and the US. The world renowned Strip has more to show than gambling and a most vibrant nightlife, and the investors know it.

Key Figures:

Population Growth: 2.6%
Annual Job Growth:4.8%
Average Home Price: $196,000

Austin is another Texan city on this list that promises a very profitable year ahead for property investors. Three factors contribute to its success – a healthy job growth rate (3.3%), strong population growth (6.2%) and an anticipated average home price growth rate of 27% over the next three years. The live-music capital of the World, Austin, is also home to offices of the top most tech companies – Apple, Dell, IBM, Samsung. With a thriving job scenario and a flourishing economy, Austin real estate sits pretty in the investors check list.

Key Figures:

Population Growth: 6.2%
Annual Job Growth:3.3%
Average Home Price: $281,000

Yet another city from the Sunshine State to make this list. Orlando is the youngest non-college town in Florida and unlike Tampa, is not dependent on the retirees and vacationers to register economic development. Instead, the prospect of a healthy job growth rate and low unemployment rate is what brings people, more specifically, investors here. It also helps that the entertainment giants such as Universal Studios and the Disneyland are there to attract millions of tourists every year.

Key Figures:

Population Growth: 6.7%
Annual Job Growth:3.7%
Average Home Price: $202,809

San Diego boasts of a very healthy rating on Zillow’s Market Health index for 2016. The reason being that it registered a whopping 41% increase in home construction projects, while at the same time housing demands seem to have gone through the roof. There used to be a limited supply of homes for sale in San Diego, but with all the new single and multi-family home constructions under way, it has risen rapidly among the nation’s 10 hottest real estate markets. Notably, it is also the second-most affordable metros in the US where you can own a median priced house at just $103,165. If you’re looking for someone to buy your house fast in San Diego, a large pool of investors are no doubt standing by ready to make an offer, because the competition for deals is fierce here.

Key Figures:

Population Growth: 6.6%
Annual Job Growth:3.7%
Average Home Price: $218,770

Last of the three metropolitan cities in Texas on this list, Dallas continues to show strong economic development even as the year progresses. Post the Great Recession, the entire Gulf Coast has witnessed a solid boom in petrochemical construction projects, leisure and hospitality. Dallas is but a helpful beneficiary to that cause. The annual job growth rate has been pegged at a strong 3.5%, which is not completely unrelated to an even stronger population growth rate of 6.2%. Housing supplies will continue to face shortage in the US, which means housing prices are bound to rocket in coming years. Dallas is a healthy option for investors as homes average a cheap $211,000 here as compared to rest of the USA.

Key Figures:

Population Growth: 6.2%
Annual Job Growth:3.5%
Average Home Price: $211,000

The capital city of Louisiana has been traditionally rich in architecture, culture and education. However, lately it has made great strides in developing job-creating industries across a diverse portfolio. Separating itself from the gas and chemical industry that heavily featured in its economic setting, Baton Rouge is now home to a thriving healthcare, technology, arts and culinary scene. It has been ranked No.2 in US by Business Facilities magazine, for growth potential in terms of tech sector growth and innovative partnerships.

Key Figures:

Population Growth: 1.1%
Annual Job Growth:3.3%
Average Home Price: $154,000

Boise is one of the most livable mid-sized cities in the US mainly due to a perfect blend of culture, economic development and family-oriented facilities it provides. Boise is ranked No.2 in the nation for best cities to raise a family in. With a resurgence of fast-growing technology companies in the city, it has become one of the hotspots for property investment currently. It has affordable median house prices ($191, 953), low unemployment rate (2.6%) and a healthy population growth rate of 5.9%.

Key Figures:

Population Growth: 5.9%
Annual Job Growth:2.0%
Average Home Price: $191,953

To Sum It All Up

The data doesn’t lie. You can’t go wrong choosing a market to invest in that has strong, stable population growth as well as steady job growth. These two economic indicators fuel every real estate market and they are just a few of the many indicators that home value estimate sites like Zillow, Trulia, and Redfinlook at when adjusting their automated algorithms.

Wait, There’s More

What we haven’t discussed is that finding a good real estate market to invest in is old half the battle. Sourcing deals with equity is the “crucial” next step to take after you’ve honed in on a hot market. One of the most cost effective and easiest ways to break into a market that’s chalk full of investor competition, is to simply buy motivated seller leads directly from the source…online lead aggregators.

Of course that’s barring the fact that you can find a lead seller that will sell you exclusive leads that were generated from organic sources like google. That’s hard to find, but not imppossible. Sure, we gladly sell them here, but there are several other reputable companies that do what we do.