Allison Montgomery is a real estate agent, investor and the owner of Buy My House. The company — which pairs sellers with local cash buyers — operates nationwide, giving Montgomery a coast-to-coast perspective on the national real estate market that extends beyond any individual metro, state or region.
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If you’re considering purchasing a property with wealth-building in mind, Montgomery has identified five rapidly growing cities where you should “invest in real estate for significant appreciation in the next five years.“
Boise, Idaho
US News and World Report says Boise “consistently ranks highly among other metro areas for its quality of life and fast growth” and is buoyed by a diverse economy with a burgeoning tech industry.
Montgomery thinks the city’s sustained upward trajectory makes it one of the best markets for growing wealth through real estate in the coming years — and plenty of homeowners and investors agree.
“Boise shows the potential to be one of the best places to buy property, with a home appreciation of 218% and yearly growth of 12% on average over the last 10 years,” she said.
Redfin reports that in March, home prices in Boise were up 10.9% over last year alone.
“Factors that make this a great choice for an investment property include a potential home value growth of 2% or more in the next two years, an increasing job market, affordable homes, and high demand,” Montgomery said.
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Seattle
Montgomery also thinks Seattle and its broader metro region is a hotspot poised to get even hotter.
“The city offers strong economic prospects, a buoyant labor market and consistently high rental occupancies,” she said.
Many buyers share Montgomery’s optimism.
Redfin calls the Seattle housing market “very competitive” and reports that prices increased 11.5% in March over the previous year.
Even though it’s an expensive city with a median sale price of $818,000, there’s no shortage of eager buyers — the average home there sells in just 10 days, down from 12 days last year.
Tulsa, Oklahoma
New home construction is a key indicator of a city’s economic health, which is the primary logic behind Montgomery’s third pick.
“Tulsa saw a significant jump in the percentage of newly built homes for sale, with new homes making up 33% of single-family homes for sale in Q2 of 2023,” she said.
But Tulsa is building new homes as quickly as it’s selling them.
In November 2023, the city’s website reported, “The City of Tulsa has seen a record number of home starts in 2023, with 447 homes starting construction this year.”
Despite rapid five-year growth — Zillow says the average home there sold for less than $125,000 in 2019 — the city remains accessible to buyers on a budget who are priced out of places like Seattle. The average home value is still just roughly $200,000 — but it’s a city on the move.
“The housing market experienced 12.3% growth year over year, making it an attractive option for real estate investment,” Montgomery said.
San Antonio, Texas
A Zillow Group study found that more Gen Zers are moving to Texas than any other state by a wide margin and that it’s the No. 2 destination for out-of-state movers across all demographics, behind only Florida.
Out of Texas’s four largest cities, booming San Antonio is gaining the most newcomers of all, according to a local CBS affiliate.
“San Antonio is the nation’s eighth fastest-growing metro, offering plenty of fun activities, history, and over 300 days of sunshine per year,” Montgomery said. “It is currently a buyer’s market, making it an opportune time to invest in real estate.”
Redfin backs up that assertion, reporting that home prices are down 1.8% over last year and the average property languishes on the market for 62 days.
While it’s more expensive than Tulsa, San Antonio’s $257,711 average home value is still roughly $100,000 below the national average.
Charlotte, North Carolina
Zillow ranked Charlotte as the No. 7 hottest housing market of 2024. The year before in 2023, it was the hottest market in the entire country.
It’s nothing new. Charlotte has been a perennial contender thanks to a growing population attracted to its booming economy.
“Charlotte is experiencing job growth, with a 45.2% increase expected over the next 10 years,” Montgomery said. “The city is home to top companies like Bank of America, Wells Fargo, Amazon, and LendingTree, making it an attractive location for real estate investment.”
According to the Charlotte Observer, it’s the No. 6 fastest-growing metro in the country. The Charlotte area added 135,000 residents between 2020 and 2023 alone.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Buy Property in These 5 Fast-Growing Cities To Be Rich in 5 Years
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