MARKETS & TRENDS
PRICE SURGE
Mid-Market Stars WHERE ARE YOUR ODDS FOR BETTER RETURNS?
by Ingo Winzer
nvestors (and analysts) most often focus on the big
I
CURRENT JOB GROWTH
3-Year Population Growth
Avg. Home Price thousands
markets. That’s partly because they’re easier to understand, partly because they’re more reassuring. A lot of other inves- tors also own property there. But their very size limits the opportunity for superior returns; you might get lucky with a loca- tion, but otherwise the value of your property is limited by the rate at which the market grows. With an occasional exception, that’s not much. In a smaller market with strong growth, a property can quickly become more valuable because land fills up more quick - ly and builders can’t keep up with the demand. You’ll generally find lower prices there—and less competition. As we emerge from the pan- demic, jobs in business ser- vices are an early indicator for which markets will do well in the future. Here are 10 mid-sized markets that look like good pros- pects for investors. You’ll need to do more homework to invest there, but your odds for better returns are pretty good. •
Business Services
Total Jobs
2% 21% 1.5% $300
Savannah, GA
7% 20% 5.0% $385
Provo, UT
6% 14% -0.9% $310
Port St. Lucie-Fort Pierce, FL
4% 13% -1.9% $353
Durham, NC
4% 12% 0.3% $372
Wilmington, NC
6% 8% 0.7% $397
Crestview-Fort Walton Beach, FL
3% 4% -0.4% $305
Palm Bay-Melbourne, FL
6% 4% 1.4% $258
Fayetteville, AR
5% 3% 2.2% $247
Sioux Falls, SD
1% 3% -0.7% $221
Green Bay, WI
LOCAL MARKET MONITOR, CARY NC
Our Investors Metro Analysis shows the opportunity and risk in 200 local real estate markets at www.LocalMarketMonitor.com. With best rent range in zip codes and job sector analysis.
Ingo Winzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employment and population. Winzer, who has analyzed real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston University. Winzer resides in Cambridge, Mass. www.localmarketmonitor.com
74 | think realty magazine :: december 2021
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