Ever since the dawn of the COVID-19 pandemic, the U.S. real estate market has been on a tear. In the twelve months between August 2020 and August 2021, American home prices rose by a national average of 19.8%—the highest annual increase ever recorded.
But this national uptick in housing prices has hardly affected every place in the region equally. Some metro areas, already infamous for their sky-high costs of living, have only grown more unaffordable.
Suffice to say, the housing market is blazing hot and in some areas, far too hot to touch. Put another way, it’s likely best that you keep your distance from these locations.
Your best bet as a real estate investor is likely on up-and-coming yet under-the-radar markets—soon-to-be boomtowns for you to plant your flag before the rest of the country rushes in and starts bidding property values up. Luckily for you, there’s a large and often overlooked swath of the United States that fits the bill.
The American South may not be the first region to come to mind when you think about economic growth and prosperity, but don’t be so quick to dismiss this part of the country. If you thought the South was home to little more than farmers and tiny, dilapidated towns, then you are making a great mistake.
Comprising a few states like Louisiana, Mississippi, Alabama, Georgia, and South Carolina and in addition to parts of Arkansas, Tennessee, and North Carolina—the rapidly-growing Deep South is home to more than 30 million people and counting.
The South-eastern United States is expanding at a fast clip. In the past ten years, large cities in the region like Atlanta have both grown at double-digit rates—causing real estate markets in the area to pick up speed.
What’s to like about the South?
Between rising costs of living and declining quality of life, it’s clear to see why young Americans and the real estate investors at large are eschewing coastal hubs. But why are they drawn to the South in particular?
There are at least a few selling points. On the surface, the climate is arguably more hospitable. In exchange for slightly hotter and drier summers, residents of the Southeast are spared the harsh winters and disruptive snowfalls that burden their compatriots.
The Southeast’s desirability can also be linked to more important structural reasons as well. For starters, housing is extremely affordable.
In addition, the state’s property tax rates are the second-lowest in the country.
A business-friendly environment
This rare combination of modest home values and light property tax burdens makes the South an enticing option for both businesses and individuals considering the rental investment. In particular, businesses see the state’s affordable real estate acquisition and carrying costs as an opportunity to establish and maintain a strong physical presence in the city.
In short, this means a healthy and ever-growing pool of renters who have both the appetite and the means to afford a wide range of accommodations, a set of circumstances that represent strong tailwinds for current and prospective residents in the region.
Combine this with a friendly tax regime, a growing population base, and a burgeoning property market.
Range of Properties you can start with
There are ranges of property investments you can purchase to kick-start building an investment portfolio in the Southern region of the state.
The price range from $200,000 to $350,000 or even more depending on your investment budget, and a sum of between $500 – $1000 will be paid for appraisal which would be charged by the bank for validation of the property.
Let Luvanex Realty Foreign Investors Program Work For You
With a strong team of real estate professionals, including leasing agents, construction supervisors, market operators, property managers, and more; we know our markets like the back of our hands.
We have extensive experience acquiring, rehabilitating, leasing, and managing real estate in Charlotte, North Carolina, Georgia, and Atlanta areas.
We do love to share our expertise with you and can’t wait to see how we can work together to earn you market-beating returns in the South-Eastern region of the United States and beyond!