Best Places To Invest In Real Estate 2025
Best Places To Invest In Real Estate 2025 Last Updated: February 15, 2o25 Steve Nabity February 15, 2025 Wealth Generation with Skyline Point Greater access to real estate investing. Start Investing 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 We covered Nashville in our Best Cities To Invest In Real Estate in 2024 article. Looking ahead to 2025, we continue to believe that Nashville will perform well. The growth in the Music City has been impressive and there is no reason for it to slow down. Job counts in most of the important sectors are at record levels. The economy appears to be as vibrant as the music scene. A high job count points to hiring from within the metro and outside, leading to inward migration. 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,