If you’re wondering which housing markets make the best investments heading into 2025, the suburbs are where the action is. By being able to afford a big concerns about buyers, lower-priced suburbs—typically under $250,000—have seen an increase in new residents.
The good news for prospective investors is that, according to a recent report by GoBankingRates.comthese pockets of real estate gold are being distributed outside across the country and represents some of the fastest growing areas.
The Seduction of the Suburbs
The latest The Harvard Study found that in contrast to the demographic movement of previous generations in the 2000s and early 2010s, young people in their 20s and 30s are the driving force behind the move to the suburbs today. The reason? Cities are more expensive to live in.
“While there is extensive research and discussion about millennial preferences for walkable urban areas, we found that the areas with the greatest increase in early millennials were suburban and coastal metropolitan areas,” said Riordan Frost, senior research analyst at Harvard’s. Joint Center for Housing Studies and one of the authors of report about millennial migration with collaborators Whitney Airgood-Obrycki and Hyojung Lee.
Before we get into the top five, it’s worth looking at the current state of the housing market.
As you can see, cash flow is something hard to come on shopping, and prices they are still high. That’s why finding affordable suburbs can indeed open the door to quality shopping.
Top Five
To qualify for GoBankingRates.com’s list of hot urban marketseach area needs 9% or great population change from 2020 to 2022 and was required to be part of a metropolitan area with a population of at least one million. All home values had to be under $500,000, with all data collected as of Aug. 13.
There are five of the top 50 listed cities are testedthe first thing that becomes obvious is the diversity of location and prices.
1. Mooresville, North Carolina
- July 2024 home value: $480,430
- 2020 population: 38,498
- 2022 population: 50,025
- Two-year percentage change in population: 29.94%
- Average rent: $2,273
A suburb CharlotteMooresville tends to lean toward the higher price side, with homes closer to $500,000. However, a Zillow search shows an abundance of homes, even new three-bedroom communities, for less than $250,000.
Mooresville is only a 30-minute drive (28 miles) to Charlotte, the center of banking and financial services as well as the manufacturing, energy, and automotive business.
2. Hamtramck, Michigan
- July 2024 home value: $167,930
- 2020 population: 21,704
- 2022 population: 27,842
- Two-year percentage change in population: 28.28%
- Average rent: $1,050
Your money goes a long way in Hamtramck, which has many affordable three- and four-bedroom homes less than $200,000. I Detroit The suburb is only 15 minutes (six miles) from the city, allowing residents to enjoy urban living while being a hop, skip, and a jump away. to jump away from the action of the city.
3. Buckeye, Arizona
- July 2024 home value: $407,118
- 2020 population: 74,467
- 2022 population: 95,042
- Two-year percentage change in population: 27.63%
- Average rent: $1,995
In Buckeye, a Phoenix suburb, you can buy a stylish, renovated farm less than $400,000. Buckeye is a 40-minute drive to Phoenix, now the fifth largest city in America and one of the fastest growing cities in the country. Despite the fear extreme heat and lack of waterpeople are drawn to Phoenix for healthcare, leisure and travel, technology, education, e-commerce, and financial career opportunities.
4. Union City, Georgia
- July 2024 home value: $259,054
- 2020 population: 21,976
- 2022 population: 26,869
- Two-year percentage change in population: 22.27%
- Average rent: $1,829
In another affordable district, it’s easy to pick up a stylish new or newly renovated three-bedroom home. $250,000. Just 27 minutes (17 miles) away Atlantathis it is a major commuter town it allows you to work from home and still go to business meetings, socialize in the city, or travel every day.
5. Canyon Lake, Texas
- July 2024 home value: $461,779
- 2020 population: 26,338
- 2022 population: 32,035
- Two-year percentage change in population: 21.63%
- Average rent: $1,688
It exists about 40 miles from the city San Antonio-like most of Texas-Canyon Lake requires a long drive to get anywhere. However, San Antonio and its suburbs are booming. According to the Census Bureau, the municipal area is one of the areas cities are growing rapidly in the US, it adds 22,000 citizens by 2023 alone.
As the name suggests, Canyon Lake is a great place to cool off the Texas heat. There are 8,200 hectares of water in the central area Texas’ It’s Hill Country, which means water sports are a big draw. Campgrounds and marinas make it a great place for family activities. Natural appeal skews the prices of many homes mid to high $400,000s, but they are there too many decent houses in the $200,000-$300,000 range.
Gen Zers Are Moving to Cities in Cars
Interestingly, while millennials and older generations are moving out of cities, Gen Zers are moving in. Between 2021 and 2022, more than 42% of people moved there. New York City it was Gen Zers, by the way Census Bureau data. In addition, Major metropolitan areas, including New York, are experiencing a loss of population across all generations, except for Gen Z.a report exhibitions.
If cities are so expensive, how can Gen Zers buy them? Using modern terms, living together. However, roommates are usually only available to married couples or couples without children. For those who want to start a family, i urban areas are always struggling, and in doing so, they changed the image of their parents’ suburbs with bars, restaurants, gyms, and recreation centers.
Final thoughts
The traditional concept of cash flow you have tested hard during the recent rise in housing prices and interest rates. I 1% is the rule because investing has been seen as pointless for a while. However, in certain ones urban markets, like those mentioned here, of course just about what can happen if you ignore median house prices and hunt around the edges for deals.
The suburbs are great places to have rental properties. They combine mostly of families who make stable renters because they live there to be in a decent school. So, they they are encouraged to pay rent and stay in the school district again not disrupt their children’s health and education while they are close to the big city for work. The most sought-after urban areas often retain their desirable status for these reasons, ie that investors there should be no problem filling the vacancy when one tenant eventually leaves.
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A Note About BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BiggerPockets.
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