12 Cities You Shouldn’t Overlook If You’re Investing In Real Estate

If you are feeling some money burning in your pocket — and thinking not about how you can spend it, but how you can grow it — then the real estate game might be worth checking out. There are a lot of cities on the rise currently that are excellent choices for putting your money into and getting a sizable return on investment.

Here are 12 cities you should not overlook if you’re investing in real estate.

Boise’s economy is strong, the cost of living there is low and life quality is high, according to Yosef Adde, an investor and real estate agent who now owns I BUY LA. 

“Despite this, it remains uninteresting for many investors who concentrate on bigger cities,” Adde explained. “This has led to a rise in housing demand due to an influx of technology companies and young professionals, thereby making it an attractive market for real estate investment.”

Daniel Cabrera, the owner and founder of Sell My House Fast SA TX, thinks that San Antonio is a hidden gem amongst the other big Texan cities.

“San Antonio is an overlooked market with strong job and population growth. Housing costs are still affordable compared to other large metro areas in the state,” said Cabrera. “As an investor with 15 years of experience in San Antonio, I’ve found deals with strong returns.”

Fayetteville has a fast-growing economy thanks to the University of Arkansas and Walmart headquarters, according to Garrett Ham, the CEO of Weekender Management, a company specializing in short-term rental management.

“Housing demand far exceeds supply, especially for workforce rentals near campus and downtown,” Ham explained. “For investors, the lack of available housing plus a sizable student population spells opportunity.”

“Columbus has many features that make it unique from other cities, such as a strong economic base, a racially-mixed population and rich art culture,” said Adde.

“The city has several colleges and universities, as well as Fortune 500 companies, which means that there is always a market for rental properties,” Adde continued. “Most investors choose Chicago or other major Midwest cities over Columbus due to its poor appreciation rates and high cost of entry.”

Oklahoma City has a fast-growing economy focused on energy, aerospace and healthcare, in Cabrera’s professional view.

“However, its real estate market isn’t on most investors’ radars,” Cabrera said. “Housing costs are very affordable, and it offers opportunities for cash flow and equity growth over the long run. I’ve invested in Oklahoma City and been pleased with returns.”

Ham commented on how Wichita is home to major employers, like Koch Industries, yet remains affordable.

“Job and population growth drive demand for commercial real estate, especially light industrial,” said Ham. “Existing properties often require renovation, allowing value-add investors to tap into Wichita’s growth.”

Adde highlighted that the combination of southern charm with economic opportunity makes Birmingham special among all U.S. metropolitan areas.

“Young professionals and families are increasingly moving into the city because of low living expenses coupled with ongoing urban revitalization initiatives,” said Adde. “Real estate prices are still relatively low, providing ample opportunity for appreciation. Alabama’s traditionally lower profile in national markets accounts for its overlooked status.”

Cabrera said Tulsa “is revitalizing its downtown and has a low cost of living. … Demand for housing is strong, especially rentals, but there’s a lack of available inventory.”

In Adde’s professional opinion, Tulsa is going through a renaissance with infrastructure investments and efforts to attract remote workers using incentive programs.

“Affordability combined with cultural attractions and a pro-business climate make it an odd but wise choice for real estate investment,” Adde said. “Dallas is often preferred over Tulsa by most investors because of its size.”

Cabrera added, “For investors seeking cash flow through rentals or fix-and-flips, Tulsa presents an overlooked chance for strong returns at a low entry point.”

Ham said Prescott has the ability to attract both families and retirees with its stunning natural scenery, with industries like healthcare and tourism fueling job growth.

“For investors seeking residential or commercial properties, Prescott offers a chance to get in early on a market that will soon get more competitive and expensive,” he said.

Like Silicon Valley, Adde noted that Raleigh is part of the Research Triangle and experiencing a tech boom.

“Due to [the] presence of universities in the area offering technical courses, besides affordable housing, there is usually a pool of highly skilled workers from which employers can choose their new employees each year,” said Adde.

“Thus, some buyers looking to live near these research facilities will find Raleigh more appealing,” Adde explained.

“Spokane gets attention when Seattle prices escalate, causing spill-over effects between these two Washingtonian cities located close by one another, geographically speaking,” Adde said.

While Spokane offers the same amenities as any other urban town around, the cost of living is relatively low, he added.

“Despite being little known as an option on the West Coast to many investors, Washington’s real estate market for this city has been growing progressively,” Adde said.

“Grand Rapids boasts one of the most vibrant downtowns in America, a strong healthcare industry and excellent craft beer establishments,” Adde said.

He explained that this indicates that there are several industries where people can invest their money in order to earn returns within a short period of time.

“People who have not been impressed by what Detroit has to offer tend to overlook Grand Rapids, even though its quality of life and growth potential make it one of the Midwest’s best-kept secrets,” Adde said.