Looking for U.S. Real Estate Emerging Markets? Here’s Where to Start

Anyone who’s been following our blog knows the importance of identifying and targeting U.S. real estate emerging markets. Chasing rock-bottom prices without taking a look at the growth and recovery potential in the local market is a rookie mistake that’s easy to make. If you’re not looking for genuine U.S. real estate emerging markets that have promising job growth, available inventory and diversified economies, you’re putting yourself at risk of getting stuck with a property in an area that might not see a recovery for a long time, if ever.

Recent real estate headlines have been positive. We’re seeing recovery across the country, increased interest from investors and encouraging signs of job growth. All of these act as indicators for US real estate emerging markets, so let’s take a look at some of the recent numbers to chase down the best opportunities the current housing markets have to offer.

When identifying US real estate emerging markets, you’re going to be focused on two major elements: job growth and availability of inventory.

Areas With Job Growth

US Real Estate Emerging MarketsOne of the key factors in hunting down U.S. real estate emerging markets is job growth. Areas with recovering employment are ideal for investors – this is a sign of economic improvement as a whole and speeds up the appreciation of local real estate, which is good news for your bottom line. Unemployment is dropping in 344 out of 372 metropolitan statistical areas cataloged by the U.S. Bureau of Labor Statistics, which bodes well for those on the hunt for U.S. real estate emerging markets (which should include everyone reading this!!).

To get an idea of which cities are experiencing the fastest job growth, take a look at this slideshow from CNBC. This is a good first step in identifying U.S. real estate emerging markets, but keep in mind that it’s only half the story. We need to take a look at the whole picture to unearth the best investment opportunities.

Finding Inventory

Between investors looking for profits and first-time home buyers, competition for properties is heating up, especially in these emerging markets. In particularly popular areas such as Phoenix (which is hot right now, both literally and figuratively) you could be competing with up to 20 offers or more. So, finding an area with enough available inventory is just as important as following job growth trends.

Bloomberg reports that short sales have surpassed foreclosures for the first time. To me, this says that you need to get into the game sooner rather than later. The US market is working its way through distressed inventory, and with big Wall Street players catching on to the potential profits in property investing, competition is only going to get fiercer. Start today. Not tomorrow. Today. US real estate emerging markets are out there, and opportunities abound. Find them. Take them.

Where to Look

US Real Estate Emerging MarketsWall Street Journal’s Market Watch released a list of the 10 top U.S. cities for real estate investment. I highly suggest checking out the article in full. These candidates for U.S. real estate emerging markets include:

  1. Tucson, AZ
  2. Austin, TX
  3. Kansas City, MO
  4. Baltimore, MD
  5. Fort Worth, TX
  6. Salt Lake City, UT
  7. San Jose, CA
  8. Raleigh, NC
  9. Milwaukee, WI
  10. St. Louis, MO

Check out the whole article here: Top 10 U.S. Cities for Real Estate Investment.

Of course, all the insider U.S. real estate emerging markets knowledge in the world is useless if you don’t have a solid understanding of how to invest in U.S. property in the first place. As Canadians, we deal with a specific set of legal and tax-related complications that don’t apply to American investors. Understanding the process is crucial. If you’re ready to get started, contact us today.

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