I Have Lived in 4 US Cities: These Are the Best 5 Real Estate Investments You Can Make

Investing in real estate is one way to build wealth, and while many are waiting on the sidelines for the market to improve before buying, it might be a great time to grab an investment property. But knowing which city will give you a nice return is key, and GOBankingRates spoke with Yawar Charlie, a senior real estate agent, director of Aaron Kirman Group’s estates division, and a cast member of CNBC’s  “Listing Impossible,” to get the scoop on where to invest. 

The luxury real estate agent has lived in four major U.S. cities, owns a home in Harrisburg, Pennsylvania and has extensive knowledge of the market. “I’ve had the chance to tour in over 45 cities across the country, giving me a broad perspective on the unique vibes and real estate potential of different areas,” he explained. 

According to Charlie, the following cities should not be overlooked when considering investment properties. 

While Los Angeles is one of the most expensive cities to live, Charlie said it’s “a no-brainer,” to invest. 

“It’s a global hub for entertainment, tech, and culture,” he stated. “The property values keep climbing, and there’s always a demand for luxury homes, which makes it a solid long-term investment.”

Other reasons to invest:

• High resale value: “The average homes sell for about 1% above list price and go pending in around 38 days,” per Redfin.
• High property values: “In May 2024, Los Angeles home prices were up 11.0% compared to last year, selling for a median price of $1.1M,” according to Redfin. 
• High rent demand: 44.5% of people rent in LA, so there’s no shortage of tenants to occupy a rental. 
• High rates of appreciation: According to Gatsby Investment, “From November 2018 through November 2023, the median home price in LA increased by 46%. This is an average appreciation rate of 9.2% per year.”  

Austin has long been a favorite destination for visitors, but now it’s become a profitable city in which to invest in real estate.  

“The tech boom has turned Austin into a real estate hotspot,” Charlie said. “The city’s growth in the tech sector, combined with its vibrant culture and music scene, makes it a magnet for young professionals and investors alike. It’s like Silicon Valley, but with better BBQ.”

Other reasons to invest:

• High property value: According to Redfin, The median sale price of a home in Austin was $585K last month, up 3.5% since last year.
• Favorable tax incentives: Texas does not have a state income tax and lower property taxes, making the state’s housing more affordable.

The Raleigh housing market is hot and for good reason. 

“Known as the Research Triangle, this area boasts a strong job market driven by tech and research industries,” Charlie explained. “The affordable cost of living and high quality of life are attracting more people, driving up property values. It’s the Southern charm with a dash of tech-savvy brilliance.”

Other reasons to invest:

• High resale value: Many homes can be sold for 2% above the list price, per Redfin. 
• High appreciation rate: “The median sale price of a home in Raleigh was $442K last month, up 7.5% since last year,” per Redfin. 

“With its sunny weather and growing economy, Phoenix is appealing for both investors and new residents,” Charlie said. “The housing market is relatively affordable compared to other major cities, but it’s heating up fast. It’s the place where your real estate investment will rise as quickly as the temperatures!”

Other reasons to invest:

• High property value: “In May 2024, Phoenix home prices were up 5.7% compared to last year, selling for a median price of $463K,” per Redfin. 
• Tax friendly: Arizona does not have an estate or inheritance tax. In addition, the property taxes are .63 percent of a home’s assessed value, which is relatively low compared to many other states.

According to Charlie, Nashville is an ideal city to invest in because “it’s becoming a major player in healthcare, finance, and education.” Plus, the tourism and entertainment industries keep the short-term rental market buzzing.”

Other reasons to invest:

• Renter’s Market: As an investor, the rental opportunity is lucrative in Nashville. “With many new companies opening in Nashville, a wealth of young professionals are being attracted to the city,” per Brentwood Square Management Services. “Many of them don’t have the financial capability to purchase or qualify for a mortgage.”
• High appreciate rate: “Nashville home prices were up 8.0% compared to last year, selling for a median price of $480K,” per Redfin.