Financial advisers are increasingly recommending cashing out of these markets now, rather than wait until the market has peaked. Although the stock market has performed well in recent years and the unemployment rate is very low, most job growth has taken place in the lower ends of the income distribution. This means that there should be a steady demand for apartments and cheap housing, while expensive housing markets may start to decline. So, where should investors be looking to for their next opportunities? Here is a list of the most promising real estate markets in 2019:
This city is seeing the largest job growth on the list, at 4.7%. This figure has increased from 3.8% only 6 months ago. With home prices increasing slower than incomes (10% vs. 20%), this market looks due for a solid upward swing. With home prices rising fast, however, investors would be wise to move quickly.
Another Florida town, Jacksonville is seeing 3% job growth and also has relatively affordable housing at its current market levels. The average home price is $270,000, well below average for the best potential markets.
San Diego, CA
This Southern California city is attractive for many reasons. San Diego boasts perhaps the best weather conditions year round of any American city. It also has the biggest difference between home price increase and income increase (7% vs. 21%) on the list. This suggests that although prices are relatively higher ($514,000 average), there is still a lot of room for the market to grow.