North America, with its economic and cultural diversity, has always been a fertile ground for real estate investments. However, while metropolises like New York, Los Angeles, or Toronto have long dominated the market, new cities are emerging as hotspots for real estate developers. Here are some cities to watch for developers looking for profitable projects for 2023 and beyond.
Cities to Invest in the United States:
Dallas, Texas
Reasons to Invest: Dallas is one of the fastest-growing cities in the U.S. It boasts a thriving economy, a growing population, and a diverse real estate market offering opportunities for both residential and commercial investments. Key reasons include affordable housing, a strong job market, demographic growth, a diverse real estate market, positive real estate trends, and a business-friendly environment.
Real Estate Trends: The median home price in Dallas was $424.9K in January 2023, up 7.6% from the previous year.
Las Vegas, Nevada
Reasons to Invest: Houston stands out as a top choice for real estate investment. As the heart of the American oil and gas industry, the city offers consistent employment opportunities. With a rapidly growing population of over 7.2 million and home to the headquarters of 41 Fortune 1000 companies, Houston showcases a diversified economy with a strong energy sector, a renowned medical center, and an aerospace industry. The city also stands out for its comparatively affordable real estate market, sustained demographic growth, and Texas tax benefits that boost housing demand.
Real Estate Trends: In December 2022, the median listing price of a home in Houston was $340,000, up 3.1% from the previous year. Homes typically sell in 59 days, a rising trend.
Houston, Texas
Reasons to Invest: Houston stands out as a top choice for real estate investment. As the heart of the American oil and gas industry, the city offers consistent employment opportunities. With a rapidly growing population of over 7.2 million and home to the headquarters of 41 Fortune 1000 companies, Houston showcases a diversified economy with a strong energy sector, a renowned medical center, and an aerospace industry. The city also stands out for its comparatively affordable real estate market, sustained demographic growth, and Texas tax benefits that boost housing demand.
Real Estate Trends: In December 2022, the median listing price of a home in Houston was $340,000, up 3.1% from the previous year. Homes typically sell in 59 days, a rising trend.
Atlanta, Georgia
Reasons to Invest: Atlanta has experienced remarkable growth in recent years. With its low cost of living, diverse culture, and good returns on investment, Atlanta is one of the best places to invest in real estate in the U.S.
Real Estate Trends: In January 2023, the median home price in Atlanta, GA was $399.9K, stable compared to the previous year. Atlanta has a balanced market, with homes selling on average after 73 days.
Chicago, Illinois
Reason to Invest: Chicago is the third-largest metropolitan area in the U.S. It has a large population, a diversified economy, and a stable market. Over 50% of the population rents, making it an excellent place for real estate investors.
Real Estate Trends: The median listing price in Chicago was $330,000 in January 2023. On average, homes in Chicago sell after 73 days on the market.
Austin, Texas
Reasons to Invest: Austin has established itself as a top destination for real estate investments due to its booming economy, driven by the influx of tech jobs and major companies like Dell, IBM, and Apple. The city is among the fastest growing in the U.S., with a rate of about 2.5% annually, leading to increased housing demand. Additionally, Austin has a diverse job market, a strong rental market due to its young demographics, and a vibrant cultural scene. Other strengths enhance its appeal, such as its business-friendly stance, the absence of state income tax in Texas, and consistently high rankings in quality of life, making it attractive to both residents and investors.
Real Estate Trends: The median listing price in Austin was $600,000 in January 2023, up 9.1% from the previous year. On average, homes in Austin sell after 62 days on the market.
Orlando, Florida
Reasons to Invest: Orlando, Florida, is a prime destination for tourism and entertainment, making it a favored location for real estate investment. The city offers opportunities in both the long-term residential market and vacation rentals, both providing good returns. Orlando stands out for its mild climate, dynamic economy, and world-renowned attractions, all of which make its real estate market particularly appealing. Several factors, such as a booming job market, affordable cost of living, thriving business community, strong tourism industry, and rapid demographic growth, enhance the appeal of investing in Orlando.
Real Estate Trends: In January 2023, the median listing price of a home in Orlando was $362,000, marking a 9.7% increase from the previous year. The median price per square foot was $226. Properties in Orlando typically sell in an average of 72 days.
Cities to Invest in Canada:
Toronto, Ontario
Reasons to Invest: Toronto stands out for its stability and high growth in the real estate market. This attractiveness is due to several factors. Strict lending guidelines in Canada ensure that only highly qualified buyers can acquire properties, thus ensuring the financial strength of homeowners. Low mortgage default rates confirm this financial robustness. Additionally, the Greater Toronto Area saw a significant increase in immigration, with about 160,000 new immigrants arriving in 2022. The city is also a major tech hub, attracting leading global companies in the tech sector.
Real Estate Trends: Housing demand in Toronto is bolstered by major infrastructure initiatives, especially in public transportation. Currently, several transportation projects are underway or planned to enhance the city’s connectivity. These infrastructure initiatives have the effect of making certain areas of the city more accessible, which should lead to an increase in property values near the new transit lines.
Vancouver, British Columbia
Reasons to Invest: The Vancouver metropolitan area is considered one of the most attractive in Canada, making it a focal point for investment opportunities. The country’s highest real estate prices attest to the value of the local real estate market. Anticipated economic growth suggests continued home appreciation in this region, which could lead to an increase in real estate values next year. Several factors support this growth, including low interest rates and sustained demographic growth.
Real Estate Trends:
Vancouver home prices have seen a steady increase year after year since 2016. However, there have been notable changes in the prices of different property types:
- Single-family homes: Prices for new single-family homes dropped by 16% compared to 2022, and prices for existing homes decreased by 17% year-over-year.
- Townhouses and condos: The median price for townhouses dropped by 14% between 2020 and 2021, while the median price for condos decreased by 12% over the same period.
Montreal, Quebec
Reasons to Invest: Real estate in Montreal is an attractive option for many investors due to its accessible mortgage credit, competitive prices compared to other metropolises, low acquisition fees, strong rental demand, and rental regulations that protect both tenants and landlords. Additionally, Montreal itself offers an exceptional quality of life, marked by a unique blend of North American and European cultures, a stable economy, a safe city, a renowned academic environment, and a welcoming policy for foreign students with affordable tuition fees.
Real Estate Trends: In July 2023, the average sales price of a single-family home in Montreal was $550,000, up 5% from the previous year. The average sales price of a condo was $375,000, up 6% from the previous year. The average sales price of a plex (2 to 5 units) was $700,000, up 4% from the previous year.
Calgary, Alberta
Reasons to Invest: Investing in Calgary’s real estate is currently seen as a promising opportunity for several reasons. Firstly, home prices in Calgary are significantly lower than in major cities like Toronto and Vancouver, making market entry more affordable. Additionally, Alberta residents enjoy tax benefits, including a unique 5% federal sales tax and the absence of a land transfer tax. Calgary also offers a high quality of life, with substantial investments in residential development, local amenities, recreational facilities, and the city’s overall appeal. Lastly, with the rise in living standards and the new work-from-home conditions, Calgary is poised to compete with Canada’s major cities, thus offering a better return on investment for homeowners.
Ottawa, Ontario
Reasons to Invest: Ottawa is a prime destination for real estate investment. Its entry costs are significantly lower than cities like Toronto. Thanks to a strong government presence, Ottawa’s real estate market is stable. The city also benefits from a low unemployment rate, continuous neighborhood expansion, and infrastructure projects such as the LRT. The variety of available properties allows investors to diversify based on their risk tolerance.
The best way to manage your real estate projects
Onyx Technologies helps you develop your real estate project worldwide to allow you to optimize your expenses and maximize your sales revenue. Trust Onyx for all-in-one service.
