If you have been thinking it’s time to diversify your retirement portfolio, here are 10 of the best markets in the USA to purchase investment real estate.

1. The Top 10 USA Real Estate
Investment Markets
by Safeguard Financial

2. Top 10 Real Estate Investment Markets
More and more wealthy investors are moving away from the stock market in fear of
further loss because of volatility, as documented by recent articles in the Wall Street
Journal.
Interestingly, when asked where they are putting their money, the answer was “cash
and real estate”. In keeping with this investment direction, we have compiled a list of
the Top 10 Best Real Estate markets for investment of retirement funds.
Data has been analyzed based on lender trends, home values in relation to job growth,
unemployment, population and ownership-to-rent ratio. Information has been
correlated from reports released by The Wall Street Journal, CNNMoney, Inman News
and Local Market Monitor. (Appendix A)
If you have been thinking it’s time to diversify your retirement portfolio, here are 10
of the best markets in the USA to purchase investment real estate:
Number 10: Fort Lauderdale, Florida
Average Listing Price: $228,000
Unemployment: 8.2% (June 2011)
Median household income: $33,912
Seen as one of the most expensive areas in Florida, house prices are still expected to
drop with the large amount of housing boom new construction inventory still on the
market. Rents however are on the rise and are expected to rise 10% over the next few
years.
Real estate investors can expect a 2.3% premium over the national average that is
forecast for returns on rentals.
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3. Number 9: Boston, Massachusetts
Average Listing Price: $498,000
Unemployment: 7.1% (June 2011)
Median household income: $33,889
Multi-family homes and apartment buildings are top picks for investors as prices have
increased by only 3% in the last year.
There is an expected 41% decline in construction projects putting further pressure on
the rental market which should increase rental rates over the next few years.
Number 8: Bakersfield, California
Average Listing Price: $183,500
Unemployment: 11.7% (May 2011)
Median household income: $21,496
Bakersfield was seen as the worst performing housing market after the burst of the
housing market bubble. House prices fell almost overnight leading to high foreclosure
rates and delinquencies. Unemployment soared to 15% as local industries depended
solely on the real estate growth of new construction.
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4. Real estate investments are expected to return 2.5% higher than the national average
as unemployment improves and rental rates climb.
Number 7: Orlando Metro, Florida
Average Listing Price: $159,000
Unemployment: 10.8% (June 2011)
Median household income: $35,732
Home to Mickey Mouse and all the other Disney characters, Orlando experienced a
boom-then-bust market over the last five years seeing housing prices fall 43% since
2006. These prices are not expected to rise anytime soon but rents, however, are
expected climb by 17% over the next few years.
Tourism and seasonal workers still flock to amusement parks, but unemployment
remains high and job market poor.
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5. Number 6: Oklahoma City, Oklahoma
Average Listing Price: $137,000
Unemployment: 5.3% (June 2011)
Median household income: $34,945
Oklahoma saw a 15% increase in population according to census data as people are
moving to the metro areas for work and a stronger economy.
Unemployment rates remain below the national average and industries such as oil, gas
and aerospace are attracting a high number of college graduates from the 18
universities in the area.
Number 5: Rochester Metro, New York
Average Listing Price: $78,000
Unemployment: 8.4% (June 2011)
Median household income: $27,123
Rochester experienced a below national average employment rate, but is a city which
has seen a slow-growth pace with a few older corporations headquartered within the
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6. metro such as Kodak and previously Xerox. Rents have remained consistent and are
projected to rise about 15% by 2014.
Number 4: Indianapolis, Indiana
Average Listing Price: $61,000
Unemployment: 8.2% (April 2011)
Median household income: $23,049
With a population growth of 15.2% from 2000 to 2010 compared to the national
average of 9.7%, Indianapolis is a city on the move. With the city offering large
performance-based tax credits to growing business creating jobs, as well as investing
in city infrastructure and improvements, Indianapolis is seeing a large economic
development and strong job growth.
Foreclosure rates in the area remain stubbornly higher than the national average, but
delinquency rates are in decline indicating the drop of foreclosures in the near future.
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7. Number 3: Stockton, California
Average Listing Price: $123,000
Unemployment: 16.7% (June 2011)
Median household income: $45,730
Local housing prices have dropped 57% since the housing market bubble, allowing
single-family homes and investment properties to become more affordable.
Rents are also set to go up 11% over the next three years with a demand in rentals
increasing as the foreclosure and housing market continues to drop.
Number 2: Las Vegas, Nevada
Average Listing Price: $374,000
Unemployment: 13.8% (June 2011)
Median household income: $53,000
With the highest foreclosure rate in the nation, many former homeowners have now
become renters. With a large casino workforce who rent and cannot afford mortgage
payments the home-ownership rate is one of the lowest in the country at 55%.
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8. Unemployment has grown and rents have decreased about 10% since 2007, but rents
are expected to rise and residential investment is predicted to yield at 4.7% above the
national average.
Number 1: Phoenix, Arizona
Average Listing Price: $123,500
Unemployment: 9% (June 2011)
Median household income: $22,209
Home prices soared by double digits annually over three years, until they crashed in
2007, falling 47% since. The foreclosure market is widespread, pushing families out
of their homes and into rental properties. Rents are increasing at an alarming rate.
Estimated at $100 a month increase over the next three years.
The job market is slowly improving and unemployment still remains below the
national average.
Speak to an advisor at Safeguard Financial to take advantage of these markets and
invest into Real Estate with your 401k. Call 877-229-9763 or visit www.ira123.com.
Appendix:
A: http://www.ira123.com/documents/Top_10_Markets_Research_August_2011.pdf
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