Best states to invest in real estate in 2024

What does it really mean to invest in real estate?

Real estate investment involves the purchase, ownership, management, rental, or sale of real estate for profit. Investors may choose real estate as a strategy to generate rental income, appreciate asset value over time, diversify their portfolio, or leverage tax benefits.

As highlighted by CBRE’s 2024 U.S. Investor Intentions Survey, investor sentiment towards real estate investment in the U.S. has significantly improved. The survey reveals that:

• Over 60% of respondents expect to purchase more real estate in 2024 than in 2023, a stark contrast to the mere 16% who planned to increase their purchases from 2022 to 2023. 

This optimistic outlook underscores the growing opportunities in the real estate market, profiling as an attractive time for investors to capitalize on the anticipated market growth. 

If you want to take advantage of the potential profits of this market, but you’re still missing the tools to make a well-founded decision, here you’ll find both the data and the analysis to choose the best states to invest in real estate.

The 10 best states to invest in real estate in 2024

Investing in real estate can be a lucrative venture, but choosing the right location is crucial for maximising returns and ensuring sustainable growth. Our list of the top 10 states for real estate investment is not solely based on home prices;  it’s also factors in various aspects  such as:

•  Job growth

• Population growth

• Average home values

• Property tax rates

• Overall economic health 

This holistic approach ensures that the listed locations offer sustainable and profitable real estate investment opportunities.

Here we list the most sought-after opportunities for investors to capitalize on the current market trends and  so investors get to make decisions in the real estate sector.

Whether you're a seasoned investor or a newcomer to the sector , these top states provide a balanced and profitable investment landscape you will find appealing.

Here are the best states to invest in real estate in 2024 :

1. Texas

Dallas: 

• Dallas has a booming real estate market with a 7.1% year-over-year home price increase. 

• The average home value is around $306,000. 

• The city also boasts a growing job market with a 3.2% annual employment growth rate over the past year. 

• The average property tax rate in the state of Texas is 1.81%.
  

2. Florida

Miami: 

• Miami's real estate market is thriving with a 6.9% increase in home prices over the past year. 

• The average home value is approximately $414,000. 

• The city's international appeal contributes to its strong rental demand and a population growth rate of 1.8%. 

• Miami saw a job growth rate of 2.4% over the past year. 

• The average property tax rate in the state of Florida is 0.83%.
  

3. Tennessee

Nashville:

• Nashville has experienced a 9.1% increase in home prices year-over-year. 

• The average home value is around $372,000.

• The city's population growth rate is 2.2%, and it boasts a vibrant entertainment industry driving rental demand. 

• Nashville has seen a 3.1% job growth rate over the past year. 

• The average property tax rate in the state of Tennessee is 0.64%.

4. Illinois

Chicago: 

• Chicago remains a major metropolitan area with a 4.5% year-over-year increase in home prices. 

• The average home value is about $270,000. 

• The city has a diverse economy, with consistent rental demand supported by its 2.7 million residents. 

• Chicago experienced a job growth rate of 1.6% over the past year. 

• The average property tax rate in the state of Illinois is 2.27%.

5. Georgia

Atlanta: 

• Atlanta's home prices have increased by 6.2% year-over-year. 

• The average home value is approximately $359,000. 

• The city has a fast-growing population, with a 1.5% growth rate.

• The job market is now consolidated with 2.8% job growth rate over the past year.

• The average property tax rate in the state of Georgia is 0.92%.

6. North Carolina

Charlotte: 

• Charlotte's real estate market is growing, with a 7.5% increase in home prices over the past year. 

• The average home value is around $348,000. 

• The city's population is growing at a rate of 1.9%, supported by its status as a financial hub. 

• Charlotte saw a job growth rate of 2.6% over the past year. 

• The average property tax rate in the state of North Carolina is 0.84%.

Raleigh: 

• Raleigh has seen a 7.8% year-over-year increase in home prices. 

• The average home value is approximately $403,000. 

• The city benefits from a strong technology sector and a 2.1% population growth rate, with a job growth rate of 3.0% over the past year, enhancing its real estate market potential. 

• The average property tax rate in the state of North Carolina is 0.84%.

7. South Carolina

Charleston: 

• Charleston's home prices have risen by 6.3% year-over-year. 

• The average home value is about $404,000. 

• The city's historic charm and tourism-driven economy contribute to its rising real estate demand. 

• Charleston experienced a job growth rate of 2.3% over the past year.

•  The average property tax rate in the state of South Carolina is 0.55%.

Greenville:

• Greenville's real estate market is on the rise, with a 5.7% increase in home prices over the past year. 

• The average home value is around $285,000. 

• The city is a manufacturing and engineering hub with affordable real estate prices. 

• Greenville saw a job growth rate of 2.1% over the past year. 

• The average property tax rate in  the state of South Carolina is 0.55%.

8. Arizona

Phoenix:

• Phoenix continues to attract investors with a 9.2% year-over-year increase in home prices. 

• The average home value is approximately $398,000. 

• The city's rapid population growth rate of 2.3%.

•  A strong job market drive high rental demand, Phoenix is becoming stronger with a job growth rate of 2.8% over the past year. 

• The average property tax rate in the state of Arizona is 0.62%.

9. Colorado

Denver:

• Denver's home prices have increased by 8.4% year-over-year. 

• The average home value is about $549,000. 

• The city has a strong economy, high quality of life, and a 1.6% population growth rate.

•  The job growth rate of 2.2% over the past year is making it more and more a top real estate investment destination. 

• The average property tax rate in the state of Colorado is 0.49%.

10. Nevada

Las Vegas:

• Las Vegas offers a lucrative real estate market with a 7.4% increase in home prices over the past year. 

• The average home value is around $385,000. 

• The city's tourist-driven economy and 1.9% population growth rate contribute to significant rental market potential, with a job growth rate of 3.0% over the past year. 

• The average property tax rate in the state of Nevada is 0.53%.

Choosing the best property: Are agents and MLS the only avenue? 

The MLS is a comprehensive database of properties for sale, managed by real estate professionals, providing detailed information about properties, including price, location, features, and market data.  

Each MLS operates under its own set of rules and procedures. Most impose stringent guidelines on the quality and comprehensiveness of the data that listings must contain. 

This makes MLS a much more reliable and detailed tool than many public access real estate websites. However, investors may encounter some challenges when using MLS, such as:

• Access Restrictions: Access to the MLS is typically limited to licensed real estate agents and they don’t have access to all the possible MLS in US. 

• Complexity: The MLS interfaces and the sheer volume of data can be overwhelming for new investors or those unfamiliar with the platform.

• Data Timeliness: While MLS data is generally more reliable, there can still be delays in updating property statuses, leading to potential discrepancies.

Fortunately, several software solutions have emerged to address these challenges, providing comprehensive platforms that allow investors to access multiple MLS databases and connecting with the best agent to build a strong deal. 

These tools streamline the investment process by offering features such as:

• Consolidated MLS Access: These platforms aggregate data from various MLS databases, giving investors a broad view of available properties.

• Financial Metrics Calculation: The software can automatically calculate crucial financial metrics like cap rates, cash flow, ROI, and other important indicators, helping investors make informed decisions quickly.

• Investment Analysis: Tools are provided to analyze the potential return on investment, factoring in all relevant data points and providing clear, actionable insights.

• Simplified Transactions: These platforms often include features that facilitate making offers and managing transactions, reducing paperwork and administrative burden, and speeding up the overall process. Investors will have a complete overview of the business while working hand by hand with their agent.

By leveraging these advanced software solutions, investors can easily navigate the real estate market, optimize their investment strategies, and streamline transactions, ultimately achieving better outcomes and higher returns.

Rather than create a top ten list as we did above, the software provides personalised insights based on individual goals and the market conditions by considering the profile of the investor and all the critical criteria across different states and cities. This enables the users to close well-rounded deals, efficiently and effectively.