12 Real Estate Markets With Tons of Buyer Potential

Rising interest rates, inflation, and the threat of recession may make now seem like a less-than-ideal time to invest in anything, much less something as price-sensitive as residential housing. But people will always need somewhere to live.

People will be moving to or staying in locations where they can find jobs, and many cities still offer opportunities for those who know where to look. Here are 12 markets to consider.

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As mentioned, people go where the jobs are, and there are few places where the job market is as hot as Austin's.

Tesla and Oracle are just two of the many big names that have joined hometown computer giant Dell Technologies, turning Texas' capital city and its surroundings into a high-tech haven with a population now over one million.

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Boise, like Austin, has much stronger job and population growth than the national averages. Lifestyle and climate also are driving migration to this capital city, by far the largest market in Idaho. But with a city population of about 236,000 and a metro of about 750,000, Boise is still small by the standards of many major metro migrants here.

Houston is already big. It's the fourth-largest city in the country at about 2.3 million, with a metro area north of seven million -- and it's getting bigger. Three Houston-area counties accounted for 25% of the Lone Star State's total population growth in the past decade. That's a lot of people who need a lot of housing, making Houston a great market for multifamily housing and more.

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Columbia is the state capital and home to a major university and a massive Army base. Despite a diverse, expanding economy, home prices here remain well below the national average -- about $275,000 versus $350,000.

That and ample job opportunities should continue to drive migration to the Midlands of South Carolina, of which Columbia is the anchor. The city itself has about 135,000 residents, while the metro area recently exceeded 800,000.

With no snow or state income tax, the Sunshine State has been a migration magnet for a long time, and that just keeps happening. Tampa is leading the way with particularly strong job growth, creating demand for home purchases and rentals to accommodate a metro population nearing three million as the citizenry continues to grow by about 1% a year.

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The housing market in Las Vegas -- just like its biggest business -- is very boom and bust. Sin City saw a massive meltdown during the Great Recession but now has become one of the nation's hottest markets.

The city's still burgeoning popularity is being fueled by a 2.4% jump in population that started in 2021 and saw the metro area grow to about 2.84 million people this year. All these folks will need housing, making Las Vegas a great place to find the right deals for single-family rentals -- and maybe even a flip.

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Nashville is more than just country music, although that's an incredibly big deal both for this city's nightlife and economy. Healthcare and manufacturing are strong in the Nashville area, where home prices are a bit above the national average, but so is population growth. Nashville has grown by about 15% in the past decade to just over 680,000 residents.

Atlanta marketed itself as Hotlanta for a number of years, and the name still fits. Decent weather, a solid economy that includes headquarters for major companies, including Delta, Coca-Cola, and CNN.

The city has been growing jobs at the rate of 6% a year and is one of the world's largest airport hubs, making it easy to see why metro Atlanta has crossed the six million mark in total population and keeps adding new residents at the pace of more than 100 a day.

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Indianapolis has a lot going for it as a housing market for people looking to escape the high prices of our largest cities.

Typically ranked high for quality of life among major metros, the cost of living in the Indiana capital region is reasonable, jobs are plentiful, and the average home price of about $250,000 is modest by national standards. The city itself has about 890,000 residents and the metro area about 2.1 million, with the strongest growth seen out in the suburbs.

This Northeast Ohio city of about 60,000 can seem off the radar after years of a gutted economy caused by massive steel plant closings. But Youngstown may well be on the comeback.

It's a great location for people looking for cheap city property -- the average home value is around $43,000 -- and who could benefit from the affordability and work-from-home trends.

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Speaking of steel mills, Pueblo is home to the nation's first solar-powered factory of its type, continuing the tradition of producing railway rails in this semi-desert town that dates to the late 1800s. Production begins next year, adding more jobs in a community boasting a popular riverwalk, a creative arts community, and the Colorado State Fair.

A typical home value of about $310,000 makes this one of the more affordable markets of its kind, meaning now could be a particularly good time to invest.

ALSO READ: Why Solar Is The Biggest Renewable Energy Opportunity for Investors

And speaking of steel one more time, Birmingham was once a major steel manufacturing center -- it even has a "Vulcan" statue atop one of the many hills and ridges forming a bowl around Alabama's biggest city. Banking, healthcare, and higher education are now the dominant employers here.

A median listing price of $170,000 makes it a prime spot for investors to pounce on opportunities in some of the city's fast-redeveloping neighborhoods. Birmingham proper has about 200,000 residents, but the metro area tops 1.1 million.

America's population is still growing, and household formation among the very large younger set will help drive continuing demand for single-family homes and multifamily housing. Now is a good time for real estate investors to identify great markets and seize the opportunities.

Marc Rapport has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dell Technologies Inc. and Tesla. The Motley Fool recommends Delta Air Lines and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.