The best investor opportunities? Look south 

Like other buyers and sellers, real estate investors have experienced the highs and lows of the turbulent housing market. While investor activity remained elevated through the end of 2023, investor sentiment soured through much of 2024. 

However, for those who are still in the game and looking for deals, a new analysis from Agent Advice — an agent platform founded by industry veteran Chris Heller, formerly of OJO Labs and Keller Williams — ranks a handful of market based on annual home price growth, population growth, personal income, and income growth. 

The South dominates investor opportunity

According to the findings from Agent Advice, the ten best markets for investors are all in the South. Four of the top ten markets are in Florida while two were in North Carolina and another two are in Texas. 

The cities ranked as being the best places for investors are:

• Miami, Florida

• Tampa, Florida

• Charlotte, North Carolina

• Raleigh, North Carolina

• Phoenix, Arizona

• Orlando, Florida

• Austin, Texas

• Nashville, Tennessee

• Dallas, Texas

• Jacksonville, Florida

Other cities in the list led the pack in specific metrics like annual price growth, personal income, and population growth, but a combined score placed Miami at the top. Phoenix led annual price growth for one-bedroom units at 11.5% year-over-year, while Tampa, Charlotte and Raleigh each boast having an annual price growth of 10% or higher. Meanwhile, Nashville led the list in personal income with an annual growth rate of 5%. 

Florida and Texas markets can still be risky

While the list from Agent Advice puts some of the hottest pandemic markets at the top of the heap, there are recent indicators of cooling in some of these markets. Cities like Austin, Dallas, and Phoenix have seen some of the steepest drops in overall home price since their peak while inventory continues to pile up in Phoenix and Florida is quickly shifting towards a buyers market.  

Overall existing home sales fell 2.5% between July and August to a seasonally adjusted annual rate of 3.86 million — down 4.2% compared to a year ago, according to the most recent National Association of Realtors data. But this slowdown was most pronounced in the South, where existing home sales fell 6% year-over-year and 3.9% from July. 

Other issues investors are likely to face in many of these markets are quickly growing property taxes and in Florida, astronomical home insurance and flood insurance prices as extreme weather and natural disasters become more common.