Investing in 2023 may look different for investors than in previous years. Inflation and mortgage rates are high, leaving many investors wondering when the market will correct. However, that doesn’t exclude the opportunity to invest in real estate this year. Read along as we go over the best long-term and short-term markets for investing in 2023.
Contents of This Article:
- How to Find Desirable Locations for Investing in 2023
- Top 10 Markets for Long-Term Rentals in 2023
- Best 10 Markets for Vacation Rentals in 2023
- Find Management for Your Investment Property
How to Find Desirable Locations for Investing in 2023
Whether you’re a real estate investor or a Northern Virginia property manager, it’s important to stay up-to-date with market data and research.
Additionally, if you’re looking to invest in real estate this year, it’s essential to recognize potential locations. After all, performing due diligence and analyzing different markets before investing can ensure you’re getting optimal returns.
The first step in your research should be looking at different markets while keeping your investment goals in mind. Whether you’re looking to invest in long-term rentals or vacation properties, it’s important to look at the best markets for each. That way, you better understand which places are worth investing in.
You’ll want to pay attention to the location, price, and potential cash flow during your research. This article will cover the top 10 markets for long-term and short-term rental investing in 2023. Read along to discover the best places to invest this year.
Top 10 Markets for Long-Term Rentals in 2023
When it comes to long-term rentals, there are some specific data that are important to analyze. For instance, you’ll want to discover the average home value for that area. Additionally, it’s important to look at the year-over-year growth and the median rental rates for each location.
Each of these factors can indicate potential growth and profitability for a long-term rental property. So, let’s look at the top 10 markets for long-term rentals and some statistics that show why they’re at the top.
- Atlanta, GA
- Palm Springs, CA
- Tampa, FL
- North Miami, FL
- Chicago, IL
- Dallas, TX
- Orlando, FL
- Carmel, IN
- Naples, FL
- New York, NY
Atlanta, GA
- Median Property Price: $404,263
- Average Long-Term Rental Rate: $2,169
- Year-Over-Year Rent Growth: +$133
Palm Springs, CA
- Median Property Price: $706,891
- Average Long-Term Rental Rate: $4,500
- Year-Over-Year Rent Growth: +$1,250
Tampa, FL
- Median Property Price: $416,722
- Average Long-Term Rental Rate: $2,266
- Year-Over-Year Rent Growth: +$103
North Miami, FL
- Median Property Price: $463,489
- Average Long-Term Rental Rate: $2,500
- Year-Over-Year Rent Growth: +$300
Chicago, IL
- Median Property Price: $310,452
- Average Long-Term Rental Rate: $1,850
- Year-Over-Year Rent Growth: +$300
Dallas, TX
- Median Property Price: $326,938
- Average Long-Term Rental Rate: $2,006
- Year-Over-Year Rent Growth: +$206
Orlando, FL
Orlando, FL- Median Property Price: $385,910
- Average Long-Term Rental Rate: $2,150
- Year-Over-Year Rent Growth: +$50
Carmel, IN
- Median Property Price: $527,275
- Average Long-Term Rental Rate: $2,400
- Year-Over-Year Rent Growth: +$455
Naples, FL
- Median Property Price: $629,267
- Average Long-Term Rental Rate: $5,995
- Year-Over-Year Rent Growth: +$295
New York, NY
- Median Property Price: $782,365
- Average Long-Term Rental Rate: $2,850
- Year-Over-Year Rent Growth: +$350
Best 10 Markets for Vacation Rentals in 2023
If you’re looking to invest in vacation or short-term rental properties, you’ll want to look at a few different factors. For instance, along with the average price of real estate in that area, you’ll want to determine the average rate for a vacation rental. One great resource to find this data is AirDna, which provides accurate data for any market.
That said, looking at the average daily rental rate, the occupancy rate, and the median monthly revenue can give you a better idea of the profitability of each market. Next, let’s go over the hottest markets for short-term rental investing in 2023 and why they’re at the top.
- Portsmouth, VA
- Abilene, TX
- Kansas City, KS
- Springfield, MO
- Cincinnati, OH
- Pleasantville, NJ
- Port Allen, LA
- Bayville, NJ
- Cleveland, OH
- Buffalo, NY
Portsmouth, VA
- Median Property Price: $244,180
- Average Daily Rental Rate: $158
- Occupancy Rate: 60%
- Median Monthly Revenue: $2,200
Abilene, TX
- Median Property Price: $187,225
- Average Daily Rental Rate: $156
- Occupancy Rate: 59%
- Median Monthly Revenue: $2,100
Kansas City, KS
- Median Property Price: $182,482
- Average Daily Rental Rate: $148
- Occupancy Rate: 60%
- Median Monthly Revenue: $2,000
Springfield, MO
- Median Property Price: $222,809
- Average Daily Rental Rate: $134
- Occupancy Rate: 67%
- Median Monthly Revenue: $2,100
Cincinnati, OH
Cincinnati, OH- Median Property Price: $232,884
- Average Daily Rental Rate: $159
- Occupancy Rate: 58%
- Median Monthly Revenue: $2,100
Pleasantville, NJ
- Median Property Price: $181,877
- Average Daily Rental Rate: $239
- Occupancy Rate: 46%
- Median Monthly Revenue: $2,100
Port Allen, LA
- Median Property Price: $189,907
- Average Daily Rental Rate: $161
- Occupancy Rate: 27%
- Median Monthly Revenue: $1,000
Bayville, NJ
- Median Property Price: $442,100
- Average Daily Rental Rate: $481
- Occupancy Rate: 47%
- Median Monthly Revenue: $4,700
Cleveland, OH
- Median Property Price: $111,195
- Average Daily Rental Rate: $148
- Occupancy Rate: 57%
- Median Monthly Revenue: $1,900
Buffalo, NY
- Median Property Price: $211,733
- Average Daily Rental Rate: $162
- Occupancy Rate: 61%
- Median Monthly Revenue: $2,100
Find Management for Your Investment Property
If you plan on investing in 2023, you’ll want to do diligent research to ensure profitability and ultimate success. We’ve gone over some of the best markets for long-term and short-term rentals in 2023, so investors can make educated decisions about where to buy properties.
Once you’ve secured a rental property, you’ll want to think about how to manage it. If you don’t plan on becoming a landlord but want to reap the benefits of rental cash flow, look into property management.
Need More Advice? contact us today!
Bay Property Management Group offers comprehensive services, allowing you to sit back and collect income while we manage your rentals. Whether you own one rental or 100, we can help take care of the day-to-day operations. Contact BMG today to learn more about our services in Baltimore, Philadelphia, Northern Virginia, and Washington, DC.
