Investors in second homes can find a great deal of value in secondary markets.
Although places like Raleigh, North Carolina; Seattle, and Austin aren’t always associated with luxury destinations, they remain exceptionally livable, hip, and tech-driven real estate markets.
Each city has a long-standing university presence, which provides local industry with a perpetual stream of educated talent. In turn, companies look to relocate.
That combination creates a perfect business-building environment.
Seattle is of course home to Amazon, Boeing, and a number of other globally-recognizable employers. Raleigh is next door to Durham’s Research Triangle Park, the east coast hub of big pharma and a fast-growing tech culture.
Austin, TX has long been considered a second Silicon Valley. It’s trendy, “Keep Austin Weird” vibe has been attracting top tech talent for well over the last decade and its residential markets have blossomed as a result.
Other places like Charlotte, NC and Nashville have also emerged as highly attractive real estate investment opportunities, each with more than 100 new residents moving in every day.
Investors looking to move into secondary markets like those mentioned here will be rewarded with consistent occupancy, rising rents, and predictable, positive appreciation.
Land is also highly desirable in these locations as developers are looking capitalize on rising rents and a younger workforce not yet considering the benefits of home ownership.
Essentially, developers and investors recognized these types of markets as places with untapped potential coming out of the Great Recession. They remained largely stable but had not rebounded above a level that kept out new buyers and businesses.
As a result of affordability and room to grow, it wouldn’t be long until they blossomed, and that’s precisely what’s going on today.
Luxury home owners looking to diversify into real estate investment or find tremendous square footage for your dollar would be smart to look around some of these fast-growing, non 24-hour cities.