Atlanta ranks No. 7 on Forbes list of best cities to invest in housing

by Megan Donofrio

atlanta-downtown-skyline

Atlanta was placed at No. 7 on a list of the 20 best markets to invest in housing in 2018, compiled by Forbes with data from Local Market Monitor. To determine the cities where a buyer is most likely to see a decent return on their investment, over 300 housing markets were evaluated for growth among population, jobs and home prices.

For those interested in a quick flip, these markets might not be the most ideal. The cities selected by Forbes are places where price growth seems to be most sustainable over the medium to long term, not necessarily where prices will grow the most in the near future.

“High-growth markets are always attractive,” says Local Market Monitor CEO Ingo Winzer. But, “in a few years today’s growth markets may be in over-priced territory. Markets with medium growth can also be a better bet for investors because there’s less competition for choice properties and they can buy at a more favorable price.”

At no. 7, the Atlanta-Sandy Springs-Marietta market shows a three year price growth forecast of 24 percent. Homes in the Atlanta metro area are undervalued by 7 percent compared to the historic ratio of price and local income, with an average home price of $234,249. One-year price growth was set at 8 percent.

Atlanta’s population increased by 4.9 percent over the past three years and saw 5.1 percent growth in jobs in the last two years.

Orlando, Florida ranked No. 1, with three-year home price growth forecast at 35 percent. Last year, home prices in Orlando rose by 9 percent, bringing the average home price in the Orlando area to $247,550. Strong job growth over the past two years (7.1 percent) and steady population growth (7.6 percent) over the past three years have cultivated optimism about the market.

See the other top 10 ranking markets below.

City Average Home Price 3-Year Population Growth 2-Year Job Growth 1-Year Home Price Growth 3-Year Price Growth Forecast
Orlando, Florida $247,550 7.6% 7.1% 9% 35%
Provo-Orem, Utah $266,169 7.2% 6.7% 10% 31%
Jacksonville, Florida $247,809 5.9% 6.1% 8% 20%
Raleigh-Durham, North Carolina $274,980 4.9% 5.8% 8% 26%
Ogden-Clearfield, Utah $246,251 5.1% 5.7% 10% 29%
Nashville-Davidson-Murfreesboro, Tennessee $277,842 6.1% 5.5% 10% 27%
Atlanta-Sandy Springs-Marietta, Georgia $234,249 4.9% 5.1% 8% 24%
Springfield, Missouri $154,557 2.3% 5.1% 5% 14%
Fort Worth-Arlington, Texas $235,398 5.6% 5.0% 11% 26%
Sacramento-Arden-Arcade-Roseville, California $327,073 3.7% 4.8% 10% 33%

 


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