Markets like Denver, Washington, D.C., and Miami, where cultural attractions and scenic beauty abound, are appealing places to live. These sexy markets flourished during the pandemic, but they may be losing steam, according to some accounts. For example, as high earners from the East and West coasts move to Miami, longtime residents are being priced out.
While there are opportunities in sexy markets for investors with plenty of capital to earn profit, high home prices present a significant challenge. What’s more, cash flow may be stronger in smaller, lesser-known markets with affordable real estate, which could draw transplants in droves, according to our research.
Our analysts pulled data on median home price, rent-to-price ratio, population growth, and unemployment rate so we could identify the best opportunities in markets you may have never heard of. These eight markets have strong metrics, with the potential to be the next haven cities for people looking to leave sexy locales behind.
1. Myrtle Beach, South Carolina
- Median Home Price: $336,858
- Rent-to-Price Ratio: 0.67%
- Population Growth: 3.9%
- Unemployment Rate: 3%
Myrtle Beach ranks 18th in the U.S. News Best Places to Live due to the vacation town’s low cost of living and year-round mild weather. Because it’s a tourist destination, it’s also thriving with cultural events and restaurants. For these reasons, it holds appeal for people in a variety of life stages, and the population growth rate is almost four times the national average.
Rents are now cooling, as they are in many areas of the country, but the town was on the top locations for rent gains over the last three years, with a 36% increase, according to Apartment List. And with an average rent-to-price ratio of over 0.6%, you may find deals in the area that reach 0.9% or 1%. Beach houses tend to get more short-term rental revenue than the average property as well.
2. Tallahassee, Florida
- Median…