clock menu more-arrow no yes mobile

Filed under:

Dallas named best U.S. city for residential real estate investors

An analysis of real estate prices and gross rents identified the best places to buy and rent out buildings

With the U.S. housing market bouncing back and construction surging, you may be thinking that the time is right to get in on a little real estate investing. To get your ideas flowing, online real estate hub BiggerPockets analyzed the country’s 50 biggest real estate markets to find which ones provide the best and worst returns.

For the second year in a row, Dallas, Texas, was crowned the best market for investors, showing unleveraged returns of 20.7 percent. Dallas was followed by Portland, Oregon, which had significant home value appreciation of 14.6 percent year-over-year. Denver, Colorado, rounded out the top three with 13.8 percent appreciation. Other prime contenders for investment were Miami, Florida; Tampa, Florida; Seattle, Washington; Nashville, Tennessee; Atlanta, Georgia; Houston, Texas; and Austin, Texas.

But not every city had such good fortunes. The ten worst real estate investing markets had low rents relative to home value and experienced low or negative appreciation. With real estate prices falling 2.57 percent year over year, Indianapolis, Indiana, was deemed the worst market in the country in this analysis.

The bottom five markets is rounded out by Washington, D.C.; Hartford, Connecticut; Baltimore, Maryland; and New York City. Los Angeles and San Diego also made it onto the list of ten worst markets.

Via: Construction Dive