Top Cities for Real Estate Investment in the United States

There is no absolute ranking of the best cities or areas in the United States for real estate investment. It all depends on the parameters used to select the cities where to invest. The important thing is that the parameters used to compile the ranking are clear and known in advance, allowing investors to make informed choices about where to invest in America. As always, we emphasize that the ranking presented on this page of ExportUSA's website is purely indicative. We encourage you to conduct your own analyses and research and not to consider what is written as an invitation or solicitation to invest in one area or another of the United States.

Parameters used to compile the ranking of the best cities in the United States for real estate investment

• House Price Index by state in the second quarter of 2022 according to the Federal Reserve Economic Data | FRED | St. Louis Fed; Weight: 20%
• Median property tax according to the latest census data; Weight: 15%
• Average rental vacancy rate; Weight: 15%
• Average house price appreciation rate according to Statista; Weight: 15%
• Average household Debt-to-Income (DTI) ratio according to Federal Reserve data; Weight: 10%
• Consumer price trends according to the Bureau of Labor Statistics (BLS); Weight: 10%
• Cost of living according to Best Places to Live research; Weight: 10%
• Recorded rent-to-income ratio; Weight: 5%

1. Fort Wayne, Indiana
Rent-to-income ratio: 18.12%
Fort Wayne is the largest city in Indiana, offering ample room for growth in real estate investments. The local population of Fort Wayne grew by 0.67% in the last year, making it the fastest-growing city in Indiana. The median home price in Fort Wayne is $199,947, approximately 102% less than the median home price in the United States, which is $617,890. Fort Wayne also recorded a 7.6% decrease in home prices since July, making it an attractive area for investing in America.

2. Toledo, Ohio
Rent-to-income ratio: 14.29%
It is one of the top 10 cities with the lowest cost of living in the United States. The current median sale price of a home in Toledo is $115,462, with most homes selling between 30 and 90 days after being listed. The average appreciation of real estate investments in 2022 was 13.53%.

3. Indianapolis, Indiana
Rent-to-income ratio: 21.51%
The current median sale price of homes in Indianapolis is $229,997, with 38.8% of homes sold below the asking price. This is great news for those looking to get a good deal on a potential income property in America.

4. Cleveland, Ohio
Rent-to-income ratio: 27.7%
The median sale price of homes in Cleveland is $119,920, with 49.4% of homes sold below the asking price.

5.Wichita, Kansas
Rent-to-income ratio: 18.43%
Wichita ranked second among the most recession-proof cities in the United States due to consistent employment growth and an affordable housing market. In 2022, Wichita had a real estate investment appreciation rate of 12.97%.

6. Detroit, Michigan
Rent-to-income ratio: 31.39%
Over the past five years, home values in Detroit have increased by over 122%. Homes in Detroit sell in less than 30 days after being listed. Although homes sell quickly, Detroit is experiencing an average real estate investment return rate of 15.42%.