Titan Properties USA

When it comes to investment predictions, everyone has their own crystal ball about which markets are sure to win and which are sure to lose. Even the hosts of the BiggerPockets On The Market podcast gave their own best guesses (backed by tons of data, of course) in a recent episode.  

We decided to ask two full-time investors with different strategies which markets they think will be big in 2024. Here’s what they told us.

Look to Ohio and Tennessee

Jennifer Beadles is a seasoned real estate investor with 280 doors in 10 markets, including Western Washington; Boise, Idaho; Phoenix; Clarksville, Tennessee; Chattanooga, Tennessee; Irving, Texas; Holland, Michigan; Saint Louis; Indianapolis; and Cincinnati. 

Cincinnati, Ohio

As of May 2023, rent in Cincinnati shot up by 7.9% compared to the previous year, and that’s faster than any other city in the country. The average rent in Cincinnati is currently $1,869. That’s 9% higher than the state average but still 3% lower than the national average. 

Plus, when you look at housing costs overall, Cincinnati is about 18% cheaper than the U.S. average. And utilities? They’re roughly 6% less pricey, which positively affects net operating income (NOI).

Downtown Cincinnati is undergoing a revitalization, with over 20 active redevelopment projects in progress.

In addition to rising rent rates and lower utility costs, the time it takes to lease a unit is short. My units are consistently being rented within the same week, with no noticeable seasonal slowdown.

Clarksville, Tennessee

Having invested successfully in Clarksville since 2018, I’m confident in highlighting it as a prime real estate market for 2024. Just an hour north of Nashville, this city of 153,000 residents is the fifth-largest in Tennessee and shares proximity to Fort Campbell, the second-largest U.S. Army installation, contributing to its dynamic atmosphere.

Key highlights include:

  • Impressive growth: Clarksville has experienced a remarkable 48% population increase since 2000.
  • Affordability: Median rents are $930 per month, with a median household income of $51,000, making it an attractive option for renters and homebuyers.
  • Economic boom: The city boasts strong job growth, highlighted by Google’s $600 million data center project, set to employ over 1,000 people.
  • Investment recognition: Clarksville has been named the 10th best place to invest by Fortune Magazine.

Advantages for investors include:

  1. Tax benefits: Tennessee’s non-income tax status provides financial advantages for investors.
  2. Landlord-friendly environment: Clarksville’s regulatory landscape is favorable to property owners, promoting a thriving rental market. 

Chattanooga, Tennessee

Chattanooga stands out as a prime investment opportunity in 2024, boasting a highly developed logistics infrastructure, the world’s fastest internet speeds, and a rich pool of talent across a three-state region. This city, which ranks as the fourth-largest in Tennessee, with a current population of 179,000, has experienced a noteworthy population increase of 12% over the past 17 years.

Key players in the local job market include:

  • Erlanger Health System
  • BlueCross BlueShield of Tennessee
  • McKee Foods
  • Unum Group
  • Volkswagen
  • Amazon
  • Pilgrim’s Pride
  • University of Tennessee

Having personally invested in Chattanooga since 2019, I’ve witnessed firsthand the remarkable growth in both rental income and property values.

Chattanooga has undergone a significant transformation, shedding its past reputation as the “dirtiest city in America,” according to the EPA. Today, it is recognized as a clean, safe, affordable, and enjoyable city for both work and living. Residents benefit from Tennessee’s status as a no income tax state, and the cost of living in Chattanooga is 9% lower than the national average.

Drawing in approximately three million tourists annually, with 80% coming from within a three-hour radius, Chattanooga’s appeal extends beyond its resident population. Noteworthy is the $3.5 billion investment in the downtown Bend Project, a substantial riverfront redevelopment initiative that adds to the city’s overall attractiveness for investors.

Growing Markets in the South and Midwest

Janelle and Don are out-of-state wholesalers and flippers currently living in Maui, Hawaii. They run their business from afar and have done more than 50 deals remotely, planning to double that next year. On top of managing wholesale deals and flips, they also have 12 doors (10 long-term rentals and two short-term).

Durham, North Carolina

Advantages here include a strong job market, affordable real estate prices, growing population, good quality of life, access to major markets, top-tier universities, and a median list price trending upward by 1.5% year over year.

Atlanta, Georgia

Atlanta is considered one of the 10 most productive states that contribute to the U.S.’s GDP annually. Advantages include a low cost of living, growing population, diverse culture, thriving economy, strong real estate market, and good returns on investment, in addition to great accessibility to other popular cities.

Columbus, Ohio

Here, you’ll find a growing population, strong economy, affordable housing, large student population, strong rental market, great revitalization of neighborhoods, investment in infrastructure, and strong job growth—all with a median list price that’s trending up by 10.7% year over year.

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

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