Best Places To Invest In Real Estate 2025
Last Updated: February 15, 2o25
Steve Nabity
February 15, 2025
Best Places To Invest In Real Estate 2025
The highly wealthy people on Earth might be thinking about buying a house on the moon. However, an alert real estate professional would immediately say “Location! Location! Location!”. After all, zero gravity might not be great for hanging pictures on the wall.
Knowing what to invest in is important. Knowing WHERE to invest in is also equally important, especially if you are looking to invest in real estate. The winners of the last 10-20 years may not necessarily be the winners of the next 10-20 years. As a business owner or an entrepreneur, you would likely think hard about selecting the right location for setting up your business. Investing in real estate is similar. One has to pick the right asset subclass in real estate along with the right location for a property.
Skyline Point Capital analyzes many factors when evaluating markets to invest in. Some key factors in our decision-making process are population dynamics, employment prospects, climate, affordability, and the demand for housing. This process helps us in evaluate some of the most promising markets for real estate investing.
In this article, we will look at 5 promising cities that we believe will be the best places to invest in real estate for 2025 and beyond. We will also discuss our investment philosophy and how you can start your real estate investing journey.
Phoenix, Arizona
Phoenix has seen steady population growth over the past 3-4 decades. The population has grown from around 789,000 in 1980 to over 1.65 million as of 2023. According to data from the Bureau of Labor Statistics, the number of employed persons in the Phoenix MSA has also been growing steadily.
The demand for housing has been on a long-term uptrend in the Valley of the Sun. The average sale price per sq ft has tripled in the last 8-10 years. Average rents are also on the rise. However, despite this rise, the average rent in Phoenix is still cheap. It was estimated to be around 24% of median household income compared to a national average of 30%. So, with the local economy growing and inward migration, the demand for housing is expected to remain robust.
source: Marcus and Millichap Multifamily 2024 Investment Forecast
Such positive trends indicate that Phoenix could be in a longer-term uptrend. It positions the metro area as one of the best places to potentially invest in for 2025 and beyond. Skyline Point Capital currently does not have an investment in Phoenix but is actively looking at promising markets with strong fundamentals.
Nashville, Tennessee
A growing population will likely lead to a strong demand for housing. The average rent over the last 8-odd years has grown by 60%. Home prices have also doubled during that time.
source: Marcus and Millichap Multifamily 2024 Investment Forecast
The population of the wider Nashville MSA has grown from around 948,000 in 1980 to over 2.1 million in 2023. The growth rate over the past 3 decades has been higher than the national average. Automotive manufacturing and advanced manufacturing play a significant role in the local economy. These sectors are poised to benefit from the reshoring trend and likely policies of the new administration. So, there are a few reasons why we think Nashville, the Music City, could be hitting the right notes in 2025.
Skyline Point Capital invested in Keystone Farms, a luxury 90-unit apartment complex located 20 minutes from downtown Nashville and in close proximity to golf courses and beautiful lakes.
Nashville City
Keystone Farms
Atlanta, Georgia
The Hollywood of the South, the City in a Forest, and the Birthplace of Coca-Cola, Atlanta is known by many names. It is also known for its hot housing market. The Atlanta metro area is expected to be among the nation’s most active for net inward migration. The population growth rate in the Atlanta metro area has been very robust. From around 2.2 million in 1980, the population has grown to over 6.3 million as of 2023.
As per data from the US Bureau of Labor Statistics, the number of employed persons in the Atlanta MSA has grown steadily during the past few decades.
Rents and the average sale price per square foot were on an uptrend till about 2022. Since then, they have been pulling back a bit. However, they are still up significantly from the 2014 and 2015 levels.
source: Marcus and Millichap Multifamily 2024 Investment Forecast
Atlanta has America’s third-largest concentration of Fortune 500 companies and is the global headquarters of several large corporations. IT, Media, and Film Production are growing industries in the Atlanta region.
Atlanta is the sixth-largest metro area in the US and a major economy in the south. We believe that it has the fundamentals in place to perform well over the long term even though the near-term outlook might not look spectacular.
Tampa Bay, Florida
The Tampa Bay market typically comprises Tampa and St. Petersburg. The population of the Tampa Bay area has doubled over 4 decades. It was around 1.6 million in 1980 and close to 3.3 million in 2022. Tampa Bay’s port is the largest in Florida. Finance, retail, and insurance are major contributors to the local economy.
Tampa also has warm weather and scenic beaches. A growing job market, affordable living costs, and favorable weather have driven inward migration. The diverse Tampa MSA economy attracts families while favorable weather appeals to retirees. There is no state income tax in Florida, which is another plus point as far as migration is concerned.
The number of employed persons in the Tampa MSA, as per data from the US Bureau of Labor Statistics, has grown consistently over the last couple of decades.
The average rents and home prices in Tampa have also been in an uptrend over the past 8-10 years. Rents have doubled since 2015 while the average sale price per sq ft has also more than doubled.
source: Marcus and Millichap Multifamily 2024 Investment Forecast
Austin, Texas
The Silicon Valley of the Southwest, Austin is a major tech and startup hub in the Southwest region. It has been a very popular real estate market for investors and renters. Austin has the ability to attract high-quality talent thanks to its educational institutions and brand-name firms that are based out of the city.
Austin also offers a vibrant cultural scene with a lively downtown area, festivals like South by Southwest, and a favorable climate to enjoy outdoor activities. The key driver of Austin’s population growth and its real estate market is the 25-34 age cohort. It accounts for the largest segment of the local population. And this cohort rents while saving for a home. Strong demand from this cohort also leads to strong rent growth.
source: Marcus and Millichap Multifamily 2024 Investment Forecast
The population of Austin has quadrupled from around 250,000 in 1970 to almost 980,000 in 2023. The growth rate has been strong and consistent throughout the past 4-5 decades. Such trends are great for real estate investors looking to earn a yield and capital appreciation.
Omaha, Nebraska
Omaha is the most populous city in Nebraska. It has experienced a steady population growth rate in recent decades. The Omaha-Council Bluffs MSA had a population of 983,969 in 2023 compared to 589,857 in 1980. Located at the convergence of the Platte and Missouri rivers, Omaha has historically been a transport hub. Union Pacific Railroad is headquartered in Omaha. The finance and insurance industry also contributes over $10 billion to the local GDP.
Omaha has a lower cost of living. The city is also known for its steaks. Omaha is home to the University of Nebraska at Omaha and Creighton University. So, there is rental demand from students and young professionals. The population of Omaha grew by close to 19% from 2010 to 2020.
The number of employed persons in the Omaha-Council Bluffs MSA, as per data from the US Bureau of Labor Statistics, has grown consistently over the last couple of decades.
The current unemployment rate for the Omaha-Council Bluffs MSA, as per FRED, is 3%. This is far below the 4.1% unemployment rate for the country. The vacancy rate for multifamily properties is also around 6%, something that markets like Austin cannot match. The absorption has not been completely disconnected from the new supply either.
(https://www.lee-associates.com/wp-content/uploads/2024/07/2024.Q2-Omaha-NE-Office.pdf)
Skyline Point Capital is based out of Omaha and it has the network and expertise to get deals across the line. We have invested in a 24-unit property in Fremont, located northwest of Omaha, The Southport Retail Center, and an event venue called The Barn in the Holler.
(Left: Southport Retail Center Right: The Barn in the Holler)
How to Invest in Commercial Real Estate
Skyline Point Capital works with a wide-range of investors to help them fulfill their financial goals. We have had business owners, entrepreneurs, and other high-net-worth individuals invest with us on deals across the US.
Skyline Point Capital has an established process for evaluating various real estate investing opportunities. Our team of professionals relies on meticulous research and a thorough understanding of the location where we look at deals. We also have a network of trusted property managers who we have worked with on managing our portfolio of properties.
We also place special emphasis on understanding a location’s regulatory landscape as we look to invest in landlord-friendly locations. We are passionate about investing in commercial real estate.
We hope you have a fresh perspective on some of the most promising cities for real estate investing in 2025. Skyline Point Capital has investments in Nashville, Dallas, Houston, Omaha, South Carolina, and Missouri.
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Become A Part of SPC
If you are interested in investing in residential, commercial, or industrial real estate but don’t know how to get started, check out some complimentary resources here. We have compiled them to educate anyone who is interested in real estate investing.
We also encourage you to join the Founders Investor Club. This is not some email list or a social community. Rather, it is made up of serious investors to whom we send information on deals that we are currently working on. That way, you get an idea of the investments we are considering.
We hope you found this article useful. Real estate investing is a great way to enhance a portfolio or achieve financial goals. Happy investing!
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