Smart Investing: Buy a Home in a City That People are Moving to
Every investment has some level of risk. There’s no such thing as a sure thing when it comes to investing, but with a smart investment strategy, you can drastically increase your odds of turning an investment into a home run instead of a loss. A long-term investment in the U.S. housing market has traditionally been a good investment, but how do you turn a good investment into a great investment? One key factor is to watch where people, specifically individuals, in their prime working years, are moving.
Why is it important to watch where people are moving to?
Typically, individuals are moving because they are looking for a more desirable job market or a better lifestyle. You often see recent college graduate move to a new city because they got a job offer or because they believe the city provides a good quality of life and the same is true for almost everyone else. When an overwhelming amount of people are moving to a certain location, the location has an overall positive reputation for good jobs, good lifestyle, or both! Buying in an area where people are moving means that there will always be competition for housing with more buyers than sellers existing in the marketplace. When more buyers than sellers exist, all home prices in that marketplace increase, and your investment becomes profitable.
Individuals in their prime working years often have families and are transplanting the whole family to a new location, putting down new roots that will likely stay put for years, decades, or even their entire life. The generation in their prime working years today are Millennials, and SmartAsset recently published a study on where Millennials are moving.
So, where are Millennials moving?
Austin, Texas has been in the top 4 cities where Millennials are moving for the last 3 years. Recently, Austin, Texas snagged the number 1 spot for 2022. It’s easy to see what makes Austin desirable, with a great school system, a lifestyle that promotes numerous family-friendly activities, and a very strong job market, Millennials see Austin as a place they can be successful and successfully raise their families.
The other cities in the top 5 cities Millennials are moving are (2) Denver, Colorado, (3) Dallas, Texas, (4) Raleigh, North Carolina, and (5) Jacksonville, Florida. These cities promote an outdoor lifestyle and have robust job markets. Earlier this year, an analysis of the strongest job markets in the country by the Wall Street Journal and Moody Analytics found that Austin, Texas has the strongest job market in the country, followed by Raleigh, Salt Lake City, Jacksonville, and Atlanta. It’s no coincidence that there is plenty of correlation between job market strength and migration patterns.
How do you buy with confidence in these markets?
The first step to buying with confidence is to understand your budget and the loan you need to obtain to buy your home. Once you have an understanding of your budget, you’ll be able to find a location or neighborhood that fits within your investment strategy. If you are interested in learning more about the home buying process and understanding your budget, LendFriend is here to help. We’re a local lender who has helped thousands of first-time homebuyers, seasoned homebuyers and investors navigate the home buying process. Give us a call at 512.881.5099 or apply now and one of our loan officers will be in touch as soon as we receive the application.
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