Where We’d Invest in Real Estate Right Now (9 Markets)

0:00These are the best markets to buy rental properties right now in late 2025. Today, we're telling you where to invest in real estate, whether you live in an expensive area or just looking for a new market with great wealth building potential. This is an absolutely essential decision to get right. So we've looked at all the data and today we're revealing nine of our favorite places in the U.S. to buy properties right now.

0:29Hey everyone, I'm Dave Meyer, head of real estate investing at BiggerPockets. And today's show is a absolute fan favorite. Every single time we do it, we get a ton of positive responses. So we're doing it again. We are running this one back and it's a great time to be making this list of best investing markets because if you've been paying attention right now, the entire housing market is changing. Some areas of the country have more properties for sale and sellers that are more motivated to negotiate on prices than they did the last time we talked about this topic, which was back in April. So I'll share a few markets that I really like right now.

1:09And I also have our regular guests for this show on today. We have Ashley Kerr and Henry Washington here to add their favorite markets to the list as well. Ashley, how are you? Thanks so much for having me back, Dave. I always love getting a good homework assignment. Yeah, we made you do a lot of work for this show. And if anyone hears just some hammering in the background, Ashley's just being a very authentic real estate investor today, podcasting from an active construction site. So please bear with us. Yeah, my live-in flip. These are the realities of being an investor. We're bringing it to you on the BiggerPockets podcast.

1:45Henry, how are you doing?

1:46Brandon Turner:I'm doing well, sir. Thank you very much. Good. Well, I'm glad you're doing well because I'm going to pick on you and make you go first. Before you name your three markets, what was your philosophy about picking markets? Do you have any overarching theory about which markets work in this kind of market we're in right now? My thought process behind selecting these markets were, where are some places that are places where maybe people would enjoy living or major metropolitan areas where you can still find affordability. You can still get cashflow. You can still get growth and appreciation. So I tried to mix it up.

2:21Brandon Turner:Affordable house pricing, so under the national average, and where rents were strong. And then I did a little deeper digging to figure out which ones of these cities were investing into the city themselves in terms of jobs, in terms of infrastructure. Because that shows that, hey, we've got jobs for people, we've got growth for people, and we've got affordable housing and great rents, which is what you're looking for. That's great. So are you saying these are going to be places that are affordable and the average listener will have heard of this city before? Yes. Okay. Absolutely. Maybe just hit us with your first market here.

2:58Brandon Turner:This is a market that I feel like has been like trying to tap me on the shoulder over the past years, either through people I know that invest there. People love visiting this place. I've never been. But looking at the market dynamics, it looks good. That's Columbia, South Carolina. Oh, South Carolina. It's hot right now. Very hot right now. How has it been tapping you on the shoulder? What's it been saying to you? It's been saying that you should come look at real estate here because I know several investors personally who invest in and around the South Carolina area and they say nothing but great things about it.

3:32Brandon Turner:Every time I talk to you about South Carolina. You say great things about it. And I'm a big North Carolina fan in terms of investing. So, you know, I want to check it out. All right. Well, tell us a little bit more about the details here because you said it was affordable. So what's an average price point here? Yeah. So median price is about$250 ,000 for a home. Median rent is$1623 ,000. And so I think with those numbers, you can potentially get cash flow. Now, I'm not saying$1650 ,000 a month covers$250 ,000 mortgage. What I am saying is that with a median price of$250 ,000, you can find things that cost less than that, but you've got pretty strong rents at$1 ,600 on a median rent price.

4:15Brandon Turner:So that's a 0.65 rent to price, which is pretty solid. Vacancies less than 10%, unemployment less than 4.1%, and it's had positive population growth and positive job growth over the past several years. Another reason it's cool, landlord friendly. So you're able to operate as a landlord a little easier in this state than some other states. But other things I like is the median insurance is around three grand and median property tax is less than 1%. So it's pretty solid. I like that. And you are in a market where people like enjoy to visit, where people enjoy to live. You're around other major metropolitan areas.

5:00Brandon Turner:And so I think this is a nice solid pick because you can find cash flow if you look hard enough. It's affordable compared to the types of jobs that are there. If you look at the infrastructure, you've got a$50 million downtown revitalization project going on. So the city is investing more in the downtown area, trying to bring that back to life. You've got a 500 acre innovation district being built and it's being supported by the University of South Carolina. So there's a lot of investment going into the community. There are jobs in healthcare, in government and in technology, all of which are solid sectors to be looking for.

5:39Brandon Turner:Because a lot of the times when you look at job growth, you want to pay attention to the industry those jobs are in because jobs can go away if technology technology improves and maybe jobs get shipped overseas and maybe jobs go away because of AI. So you want to pay attention to the types of jobs because you want jobs that are going to continue to be around. And so I think this is just a solid market. Ashley, what do you think? Are you buying what Henry's putting down or is this just a trash pick? Well, I actually went towards a South Carolina market. I'm headed towards the Carolinas with one of my markets too.

6:13Was it the same one or do you have a rival South Carolina market? I have a rival South Carolina market. Oh, let's hear about that. I was going to go with all three of Henry's. So mine is Greenville. Oh, okay. Tell us about it. Tell us specifically why it's better than Henry's pick. You know, Henry was very prepared today. He went very in depth on this. So just based on that, he may have a better knowledge. He may have a better area. But I went with Greenville, South Carolina. And one of the reasons I looked at this was because I was looking for appreciation. So of the three markets, I found two that I want to look for for appreciation, but a little bit of that affordability.

6:57So the first one was Greenville. And I also agree, like I feel like there's a lot of opportunity on the East Coast. As always, I never want to be on the coast because I don't want to have a super high insurance cost. So Greenville is, I feel, far enough away where it's not going to be hit with crazy insurance. So steady price growth there. There's been recently like 3 % to 4 % year over year. Right now, the median home value is around like$340 ,000. And for rental demand, it's pretty good. It's around like$1 ,700 to$1 ,750 and consistent 2 % to 7 % annual growth for the rental rate there. All right.

7:40I mean, that also sounds like a great market, but Henry, are you going to counter Ashley here?

7:45Brandon Turner:Well, yeah. So I think the thing that makes my South Carolina market better than Ashley's South Carolina market is because people have heard of my city. People have heard of Columbia, South Carolina. So there's that. But in general, South Carolina as a whole is just a good state, especially when it comes to jobs. because as I was doing the research, they're in the middle of a hiring boom right now. And they added almost 9 ,000 new jobs in July alone in the state of South Carolina. So just a strong state in terms of affordability and in terms of potential for cash flow mixed with potential for equity.

8:28Brandon Turner:Like people keep saying you have to pick one or the other. There are markets like this where you can get both. And I think there's a lot of different industries coming in or already there that it's not reliant on just one manufacturer or industry. All right. These both seem like really good markets. I like it. I just think South Carolina generally is going with a lot of trends people seem to want to find. And there's a lot of demand in markets where it is relatively affordable. There's great jobs. But also, I think the high quality of life thing that both of you highlighted about these two markets are really bode well for future growth and a lot of the investment you're talking about.

9:03All right. Well, since each of you have gone, I will just go and throw in one of my markets. And Ashley, I promise we will give you a opportunity to explain your philosophy. But my philosophy for the three markets that I picked were all one trying to protect against downside risk. We're in a weird market right now where certain markets are going to decline, some are going to grow. And so I really wanted to find places that have good long-term potential, but are not at risk of any sort of significant declines. I also want to be able to find on-market cashflow. That is something that is important to me as an investor and that's why I'm recommending it to you.

9:39And therefore my number one market that I am recommending is Des Moines, Iowa. I know not something that we talk about a lot on this show, but did you guys know that Des Moines is actually the fastest growing metro area in terms of population in the Midwest, which does not mean it's fastest growing as like places, some places in Texas or Florida, but I love the Midwest from housing market fundamentals. And it is the fastest growing population in the Midwest. So that's something I really like. The other thing that I like is I think like Henry is kind of cute that your market had like, you know,$50 million investment.

10:15And it's really nice. But in Des Moines, there was a$3 billion for those who are keeping score, which I clearly am. That is 60 times more than Henry's market investment in the downtown area. One of the markets I picked has a billion dollar investment and I thought it was going to blow everyone else away, but that's double mining.

10:35Brandon Turner:What kind of buildings are you building in downtown Des Moines, Iowa? I honestly have no idea, but I will say that between that and the 6 % population growth just since 2020, which is a lot, that might not sound like a lot, but populations don't generally grow all that much. So that one is really good. And then the other thing that I like about Des Moines, which is going to be a little bit controversial, is that prices are somewhat flat. Now, we're in this weird market where you kind of have to decide as an investor, like, do you wanna invest in the markets that are still growing? Or are you trying to find the markets that have good fundamentals, but have a little bit softer pricing?

11:15And for me, because I just love hedging everything, a flat market is basically right in the middle of that. Like, I don't feel like it's growing at an unsustainable rate, but with inventory going up in relatively flat prices, that means you're probably going to be able to negotiate in a market that has a lot of good stuff going on long term. And that means I'm probably going to be able to get some better deals, which is why I like Des Moines.

11:35Brandon Turner:You know, every time I talk to somebody that is an investor that lives in or around Des Moines, they always speak so highly of it. I know absolutely nothing about Des Moines, but it sounds like it's going to be the Dubai of the Midwest if they're spending$3 billion on downtown. That's intense. All right. So we've each given you our cities so far. We have two cities in South Carolina, Henry bringing us Columbia, Ashley bringing us Greenville. I added Des Moines. We've got to take a quick break, but we have six more markets for you right after this. This week's bigger news is brought to you by the Fundrise Flagship Fund.

12:12Invest in private market real estate with the Fundrise Flagship Fund. Check out fundrise.com slash pockets to learn more.

12:21Brandon Turner:Trading at Schwab is now powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk, our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24-7 professional answers and live help and access support by phone, email, and in-platform chat. That's how Schwab is here for you, to help you trade brilliantly. Learn more at schwab.com slash trading. Get business done with the new American Express Graphite Business Cash Unlimited card. With unlimited 2 % cash back on all eligible purchases, unlimited 5 % cash back on flights and prepaid hotels booked through American Express Travel Online, and a flexible spending capacity that can grow with your business, you'll have the confidence to keep building.

13:10Brandon Turner:Apply today and earn a welcome offer of$1 ,500 cash back after you spend$50 ,000 in qualifying purchases on your new card within the first six months of card membership. Terms apply. Learn more at go.amex.com. I get so many headaches every month. It could be chronic migraine, 15 or more headache days a month, each lasting four hours or more. Botox, autobotulinum toxin A, prevents headaches in adults with chronic migraine. It's not for those who have 14 or fewer headache days a month. Prescription Botox is injected by your doctor. Effects of Botox may spread hours to weeks after injection, causing serious symptoms.

13:43Alert your doctor right away as difficulty swallowing, speaking, breathing, eye problems or muscle weakness can be signs of a life-threatening condition. Patients with these conditions before injection are at highest risk. Side effects may include allergic reactions, neck and injection site pain, fatigue and headache. Allergic reactions can include rash, welts, asthma symptoms and dizziness. Don't receive Botox if there's a skin infection. Tell your doctor your medical history, muscle or nerve conditions including ALS Lou Gehrig's disease, myasthenia gravis or Lambert-Eaton syndrome and medications including botulinum toxins as these may increase the risk of serious side effects.

14:14Why wait? Ask your doctor. Visit BotoxChronicMigraine.com or call 1-800-44-BOTOX to learn more.

14:22Brandon Turner:Morning decisions. How about a creamy mocha frappuccino drink? Or a sweet vanilla? Smooth caramel, maybe? Or a white chocolate mocha? Whichever you choose, delicious coffee awaits. Find Starbucks frappuccino drinks wherever you buy your groceries.

14:42Welcome back to the BiggerPockets podcast. I'm here with Ashley and Henry talking about our favorite markets in late 2025. Ashley, let's go to you for your second market. And, you know, we skipped ahead before, so I didn't get to hear about your philosophy for picking these markets. Maybe tell us how you picked these three and then tell us what your second market is. Yeah, so I really went for appreciation, but slow and steady appreciation, almost kind of like what you said, Dave, where it's not super drastic because like Austin, Texas scares me. As in prices went crazy. There was so much growth there.

15:17And now it's just completely, not completely, but it's tanked a bit there. And so I don't want that to happen. So I'm looking for more consistent growth. But cash flow, I do agree, is very, very hard to find in many areas. So for me, I'm looking for a little bit of cash flow, but more for appreciation. And I also want an area that's like Henry pointed out, no one's ever heard of the town that I picked as to somewhere where it is not as obvious of a place. So, I mean, if I named off all of the towns that my properties are in, nobody would hear of them because it's not even, I have two in the city of Buffalo.

15:56The rest are in all these other smaller neighborhoods. So I root for the rural towns for where the cashflow, the opportunity and the appreciation is. So I did go with for my next market is McKinney, Texas, which is outside of Dallas. And it is more well known. It is. It's a very actually a prominent neighborhood. But what I'm looking at is the rural areas outside of McKinney because McKinney is where it's getting this one point five billion dollar like development of like a plaza and all this stuff coming in to that town. So I looked at the outskirts, the neighboring areas of there. I'm looking up the map here because I've heard of McKinney, but I didn't know exactly where it is.

16:38It's not that far outside of Dallas, right? Like this is still within the Dallas metro area. So it's not like you're going completely rural, right? So some of the ones that I looked at that are like neighborhoods of this are Princeton, Texas, Little Elm, Texas, and Lavon, Texas. Someone's going to say I'm saying that wrong. But yeah, like Princeton, Texas is one of the fastest growing cities in the US with 30 % annual population growth since 2023. The population, it doubled from 17 ,000 to 37 ,000. And the same with Little Elm, Texas, it went from 26 ,000 in 2010 to 46 ,000. Little Elm also has a lake there too.

17:22So there's lakefront property, different things like that. So I do like the ability to do different strategies in the market. So if long-term isn't working to switch to short-term. I like it. This reminds me a lot of all of our mutual friend, Kathy Fecky, who has been investing in North Dallas for a very long time. So I feel like I've just been indoctrinated into believing that North Dallas is a good place to invest. And now that you are bringing this one, I'm doubly intrigued. Well, anything that Kathy does, it just puts that golden seal on it. Well, I'm buying it. I like the idea of this. Generally, I like the idea of like, it's not even like a secondary city, but it's almost like satellite neighborhoods to big cities.

18:07A lot of times you're just able to find, if you can really understand the market and study it, you're able to find areas that are in the path of progress, even in a city that's already relatively expensive, like Dallas. Dallas on a national basis, actually, for a big city is not that expensive. But like you can find some markets like this that have the potential to reach maybe the median of the whole metro area but aren't yet there. And if it has strong population growth and strong demand, like there's a pretty good chance that that's going to happen. Yeah. And I think part of it is like you want good quality tenants.

18:40Like I started out buying$20 ,000 duplexes that just were low income areas. they were low quality tenants didn't take care of the place. You know, I spent so much time, you know, dealing with headaches and things like that. And I ended up selling all of those properties. But it was a really big lesson that it's worth it to pay more for a property, maybe have less cash flow, but not have to deal with those kind of headaches that come with some of those$20 ,000 properties. So I like the idea of a higher end city, but finding the people that can't afford to actually live in the city, but want that same good quality of life.

19:20And they'll move outside it just a little bit. And I want to be like that person that's providing that quality housing for somebody who can't afford to live in the city. Awesome. Great pick. Thank you, Ashley. All right, Henry, what's your second market?

19:36Brandon Turner:My second market is Cincinnati, Ohio. Oh, okay. It's been a very popular market the last couple of years. The numbers are strong. I can see why. Median price on a home,$272 ,000. I mean, for a major metro, that's awesome. But median rent, what do you think the median rent is? $1 ,500. $1 ,500. Almost$1 ,900. $1 ,868. The numbers are nuts, man. So that's 0.69 % rent to price, which is amazing. Vacancy, 7%. That's really good. Good. Yeah. Unemployment, 4.9%. That's interesting. I would have guessed higher that. Yeah, absolutely. I mean, I can see why people are choosing to invest here. If you're just looking at pure numbers and you want a city that you've heard of, you want city infrastructure, city jobs like this, I can see why it makes a lot of sense.

20:30Brandon Turner:Because you can like if I see it, I see 272 on the median price with 1800 on the rent. Like I already know there's cash flow on the market. I already know there's absolutely cashflow if I go direct to seller. And to be able to find that without having to go super rule is pretty cool for people. So if you're considering a market and you don't want to be out in the outskirts and you want to be where people are going to live, it's a heavy contender. Five-year price growth, approximately 56%. Landlord friendly, which is what we're looking for. Property taxes at$2.5 or$2 ,600. at the median and property taxes again at about that 1%, which is fairly reasonable.

21:14Brandon Turner:Yeah. 1 % is the average nationally. Yeah. The numbers are strong. And usually you don't see numbers this strong in major metropolitan areas. So I just think that I couldn't overlook it again this time. Well, I would say it's a good market, except that mine is better. Well, let me throw this number out here. I'm going to try to redeem myself So as I dug a little deeper into what's going on in Cincinnati and our people enjoying that place, Cincinnati's spending$800 million on their downtown overhaul. All right. So, I mean, better than$50, not$2 billion. So it is not the Dubai of the Midwest. It's more like the, I don't know, what do you call it?

22:02Brandon Turner:Maybe like the New York City of the Midwest. It's$800 million. And they're doing big upgrades, spending$470 million on renovating the stadium where the Cincinnati Bengals play because the Bengals have agreed to stay through 2036 in Cincinnati. And so that's a good sign for tourism and all of the things that come with having an NFL team in the area. So they're spending money. They've got jobs. They've got job growth. They've got population growth. They've got affordability. And they've got great rents with good cash flow. Yes, I mean, it's a colder market. You've got to deal with that. But if you can get past some of those things, especially if you live near or around the Midwest already and you're looking to get started, you don't have to pick some rural town you've never heard of to be able to afford cash flow.