Investing in real estate by purchasing your own home can be a great long-term investment option. While buying a home in most markets and planning on owning it for a long period of time is almost always a great option, there are some real estate markets across the country that are now considered undervalued and provide more potential. The following five real estate markets are poised to experience higher than average increases in real estate values over the next 5 to 10 years. Detroit, Michigan One city that has had one of the hardest hit real estate markets over the past two decades has been Detroit. Detroit was one of just a few cities that actually saw value declines during the real estate bubble. While they have had a lot of issues with foreclosures, it appears that the city is rebounding. Detroit is no longer in bankruptcy and has seen a lot of urban revitalization. Part of this has included tearing down vacant homes all over the city and replacing the land with parks and commercial properties. Orlando, Florida Another city has it considered underpriced compared to other cities across the country is Orlando. Orlando was one of the fastest growing cities during the housing bubble. Once the bubble burst, many condo owners saw their property values fall dramatically. The city was further hit by a slowdown in the travel industry during the recent recession. Now that this has recovered, the demand for housing is starting to increase. The median value in the city is still only around $150,000, which makes is very affordable for someone new moving into the area. Chicago, IL While Chicago is best known for being the third-largest city in the country, its real estate market is considered one of the best values today. In 2016, the median price for a home in Chicago grew by about 4% to a median price of $228,000. At the same time, unemployment in Chicago is continuing to reduce and more people are moving back into the city. This is making more and more neighborhoods turn into expensive communities with a lot of local amenities. St George, Utah Another city that is considered to be undervalued are various urban and growing areas of Utah. While Salt Lake City and Park City have continued to have strong real estate markets, many of the best places to live in Utah are now considered to be in other areas of the city. The St. George, Utah area is located in the southwest part of the state and is considered one of the fastest-growing communities in the country. The city has an expanding local economy and still relatively affordable housing prices. In the coming years, St. George is expected to see continued above-average increases in its real estate home prices. New York When most people think of New York City, they think of the glamorous high rises in Manhattan and trendy brownstones in Brooklyn. While the city is full of unique housing projects that are considered the most expensive if the world, the overall city median price is still considered very affordable. Overall, the city of New York City is considered to be undervalued by at least 10%. This is based largely on the fact that the $385,000 median home value is affordable to a large percentage of the population. Furthermore, the city has low occupancy and a lot of outside real estate investors, which are going to continue to increase the demand for housing in the city. In conclusion, buying in owning a home is almost always a better long-term financial option than renting. While owning in most markets is a good idea, there are five real estate markets across the country today that are considered underpriced and offer the most potential upside.
David Glenn is a home improvement expert. He occasionally freelance writes about home maintenance and DIY home repair. He’s also knowledgeable about topics like how to improve social presence and building a reputation online.
