For real estate investors, it’s relatively easy to look at all the news coming out about the real estate market and lament. You might feel like there’s no place for you anymore, and investing is too hard. Believe us, that’s not the case! Part of the problem is that many of these reports and analyses look at overall medians and averages. 

While these are concise ways to talk about overall trends in the country, investors need to zoom in. The real estate market is not uniform. It varies, and investors must take advantage of it. We found these maps by ResiClub (courtesy of Fast Company) helpful in illustrating this point.

These maps effectively represent median home prices within individual markets across the country. While the $380,000+ median price sounds scary, we must recognize that that number doesn’t reflect every market.

So, what do these maps tell us about the real estate market…and investing?

You’ve undoubtedly poured over the details when looking for a real estate investment market. You’ve analyzed rental rates, median income, sales prices, local economics, and more…but have you asked about the weather?

Location matters, not just because of the economics, housing affordability, or rental demand but because of the climate. 

Both run-of-the-mill weather risks and natural disasters could jeopardize your investment property. If anything, it could be costing you a pretty penny in maintenance and insurance costs! Here’s what you need to consider about the climate as you choose an investment market:

When investing in real estate for the first time, there’s much to consider. Believe us, we know! 

It can be overwhelming. But it’s certainly not impossible.

According to Bankrate and Market Watch, the Sunbelt – specifically the Southeast – is the hottest region for real estate. West Coast and Rust Belt markets have grown cold due to massive price spikes and stagnant job growth, respectively. Meanwhile, 18 of the top 20 markets in the Bankrate Housing Heat Index are in the Sunbelt region.

Stability tends to be an undervalued trait in investment assets. Though this seems counter to the nature of investing, investors are guilty of chasing the highs of the industry. Whether it’s knowing that high risk yields high rewards or simply the human need for a thrill, we’re attracted to high-octane investing.

If you’ve been paying attention to the real estate market news cycle, you’ve seen that the experts are finally seeing a turn in the market. For the past several months, correction efforts from the feds have seemed largely ineffective in bringing down the housing market’s fever.

We’ve become accustomed to tales of a fiercely competitive real estate market. Although that competitiveness has eased in recent weeks as interest rates rise, properties are as expensive as ever. As a result, the competition isn’t ending with the traditional housing market.

Some of the newest real estate markets in our repertoire at REI Nation are in the great state of Alabama: Birmingham, Tuscaloosa, and Huntsville.

With so many investment markets to choose from, figuring where to buy rental properties can be a daunting prospect. While investors can find opportunities just about anywhere, your choice of market can make or break your wealth-building efforts.

We’re well into the new year by now. The real estate market has remained much the same (after all, the turn of the calendar doesn’t change anything overnight!) but there are still big considerations for real estate investors.