Over the past decade, the United States has seen unprecedented buyer demand, price appreciation, and capital influx from all types of investors in the real estate market- from hedge funds to mom-and-pop house flippers.
Real estate wholesalers, though still an emerging crowd, have long been able to carve out a niche within this vast industry. Value-add investors, including fix and flippers, rental property owners, and real estate developers, are continuously seeking out new real estate properties to acquire in order to stay in business.
This creates massive opportunities to capitalize as a real estate wholesaler when the right strategies are followed to create significant value for investors - investors who pay wholesale assignment fees to the tune of $10,000, $20,000, and even over six figures!
On the residential side, there are approximately 142,153,010 housing units across the country with about 64.4% being owner-occupied. That means over 51,000,000 of these housing units are investor-owned.
But one must ask, what cites are the best to wholesale real estate? We believe you can successfully wholesale real estate as a beginner or an expert in any market, however, there are some cities where wholesaling real estate is poised to work exceptionally well.
In this Real Estate Skills exclusive article, we'll reveal the 17 best cities to wholesale real estate across the USA.
Let's dive right in.
In the southeast section of Texas (near Galveston Bay), Houston is one of the state’s largest cities with a globally recognized oil and gas industry with impressive job growth and job market opportunities. When the Houston metropolitan area is referenced, it typically includes three counties – Harris, Montgomery, and Ford, and a population that nearly triples the city alone.
Median Home Value - $315,000 (March 2022)
One Month Net Change in Value – 8%+ (Feb to March 2022)
Days On Market (DOM) – Dropped to 19 days from 30 days in 2021.
Current Population– 2.3 million+ (2020 Census), increasing from 2.01 million in 2010.
Median Household Income - $53,600
Affordability Index – 80
Houston has been included on this list of the best cities to wholesale real estate because of its incredible sustained and recent growth, the current speed at which homes are sold, low median home price, and the above-average availability of distressed properties.
Austin is well known for its educational opportunities, LBJ’s presidential library, a hip, vibrant music scene, and a nightlife unto itself. But Austin’s popularity hit new heights in 2020 when Tesla announced an intention to build an auto plant that would likely impact the job market.
Median Home Value - $624,000 – a record! (March 2022)
Year-Over-Year Net Change in Value – 22%+
Current Population – 961,855, from 790,390 in 2010.
Days On Market (DOM) – 20 Days (March 2022 ABOR)
Median Household Income – $75,582
Affordability Index – Austin/Round Rock – 169.10 (2020)
Austin’s popularity has hit new heights over the last two decades and has an impressive affordability index. With many schools, there are always exciting investment opportunities to find for owner-occupancy or rental investment opportunities.
Dallas is another excellent location to consider wholesaling real estate in 2022. Dallas is the county seat of Dallas County but extends into Colling, Rockwall, Denton, and Kaufman counties.
Median Home Value - $410,200 (March 2022)
Year-Over-Year Net Change in Value – 10.1%+
Current Population – 1.3 million from 1.1 million in 2010.
Days On Market (DOM) – 17 Days, less than the 34 days in 2021.
Median Household Income – $54,747
Affordability Index – 186
Forbes has recognized Dallas among the leading big city for jobs for young professionals – and 3rd fastest growing city in the country. It offers excellent affordability, a strong demand, and a median home value within the nation’s approximate average.
The metro Rochester area in New York (which usually includes six surrounding counties) is the third-largest in the Empire State. Rochester’s Economic Development anticipates Rochester, home to Xerox and Kodak, to be a top metropolitan area for overall growth.
Median Home Value - $165,000 (March 2022)
Year-Over-Year Net Change in Value – 17.4%+
Current Population – 211,328 from 210,565 in 2010.
Days On Market (DOM) – 8 days, the same as last year.
Median Household Income – $37,395
Affordability Index – 195.7 (October 2021)
Rochester remains an affordable market and is often ranked atop those cities regarding the quality of life. Home values have increased by 48% over the past five years. Rochester’s neighborhoods offer varying prices, with the most affordable being Dutchtown.
Atlanta is the crown jewel of Georgia also known as the Peach State. It offers a diverse population, industries, and real estate investments. Atlanta’s airport, ranked as the busiest airport across the globe, with a robust economy.
Median Home Value - $400,000 (March 2022)
Year-Over-Year Net Change in Value – 16.2%+
Current Population – 498,715 from 420,003 in 2010.
Days On Market (DOM) -19 Days, less than the 29 days in 2021.
Median Household Income – $64,179
Affordability Index – 104.7
Despite Atlanta’s incredible recent growth and continued strong demand, the area continues to be affordable for wholesalers and other investors.
Denver has seen some recent growth. In addition to being some of the most beautiful parts of the United States, Colorado is also a flat income tax at the state level (4.55% in 2022), so matter what you earn, the state income tax never varies.
Median Home Value - $589,000 (March 2022)
Year-Over-Year Net Change in Value – 14.4%+
Current Population – 711,463 from 600,150 in 2010.
Days On Market (DOM) - 5 Days, the same as in 2021.
Median Household Income – $72,661
Affordability Index - 59
With a five-day average day on the Market, wholesalers interested in Denver must be ready to act.
Jacksonville is located near the Georgia border and the Atlantic Coastline. This northern Florida city has seen consistent growth in population and home values in the recent past.
Median Home Value - $295,000 (March 2022)
Year-Over-Year Net Change in Value -25.5%+ - Note – a 97% increase over the past decade.
Current Population – 949,611 from 821,784 in 2010.
Days On Market (DOM) -21 Days, less than the 29 days in 2021.
Median Household Income – $55,531
Affordability Index – 93.5 (2021)
The median home value in Jacksonville is about 1/3 less than the national average, which offsets its minor affordability issues. However, Jacksonville’s real estate appreciation rate is within the top 20% of all cities.
Miami is one of the hottest markets. While always a winter playground, Miami’s residential market has been on fire for years – appealing to Americans, Europeans, and South Americans due to its central location and exceptional year-round climate.
Median Home Value - $500,000 (March 2022)
Year-Over-Year Net Change in Value – 28.2%+
Current Population – 442,241, from 399,457 in 2010.
Days On Market (DOM) -52 Days, less than the 71 days in 2021.
Median Household Income – $44,268
Affordability Index – 90
There is tremendous growth and construction in Miami, which may, at a market correction, offer some excellent investment opportunities.
Phoenix has always enjoyed a reputation for those who love outdoor living and retirees. The Phoenix area’s appreciation was the 2nd fastest in 8/2021, registering an annual appreciation rate of 31.8% - only bested by Austin for the same timeframe.
Median Home Value - $447,000 (March 2022)
Year-Over-Year Net Change in Value – 27.7% +
Current Population – 1.6 million, from 1.44 million in 2010.
Days On Market (DOM) - 23 Days, less than the 25 days in 2021.
Median Household Income – $60,914
Affordability Index – 80
Approximately fifty percent of homes sold above their asking price and 33% were bought with cash – a real estate market where cash is king.
Read Also: Is Wholesaling Real Estate Legal in Arizona?
Tampa, which often includes St. Petersburg and Clearwater, is among the most popular destinations, according to United Van Lines. Tampa has become a cultural and entertainment hub on the Gulf Coast.
Median Home Value - $375,000 (March 2022)
Year-Over-Year Net Change in Value – 21.8%+
Current Population – 384,959 from 335,709 in 2010.
Days On Market (DOM) –7 days, about half the time from last year.
Median Household Income – $55,634
Affordability Index – 72
Despite strong demand and double-digit appreciation, the median home price in Tampa remains below the national average. Affordability has become an issue to monitor.
Indianapolis has attracted a lot of attention from wholesalers and investors outside the state of Indiana.
Note that Indianapolis ranks among the top affordable U.S. cities in 2021-Q4 – with 88% of homes available for families earning the area’s median income. The greater metro Indianapolis area is home to more than two million residents – often suburban commuters.
Median Home Value - $222,250 (March 2022)
Year-Over-Year Net Change in Value – 20.1%+
Current Population – 887,642 from 820,445 in 2010.
Days On Market (DOM) -5 Days - less than eight days in 2021.
Median Household Income – $50,813
Affordability Index – 199.9 (2021)
The median home value in Indianapolis is more than 40% below the national average of $392,000, which is probably why the number of days on the Market in 2021 was five!
Orlando, a city in the center of the Floridian peninsula, has been an investor’s haven since Mickey Mouse took up residence decades ago. Orlando is an interesting mix of high-tech employment and tourism.
Median Home Value - $346,500 (March 2022)
Year-Over-Year Net Change in Value – 19.5%+
Current Population – 307,573 from 238,300 in 2010.
Days On Market (DOM) –8 Days, less than 18 days in 2021.
Median Household Income – $55,183
Affordability Index – 148.70
In a matter of ten years, Orlando increased its population by nearly 29%! The Orlando real estate wholesale market ranks among the top in terms of affordability.
San Antonio, located approximately an hour south of Austin, is a great city with tons of history; family-friendly, but it provides many big-city opportunities.
Median Home Value - $283,245 (March 2022)
Year-Over-Year Net Change in Value – 19%+
Current Population – 1.4 million from 1.3 million in 2010.
Days On Market (DOM) - 19 Days, less than 25 days in 2021.
Median Household Income – $53,420
Affordability Index (Bexar County) – 157 (2021)
San Antonio’s real estate market has experienced tremendous growth but is still affordable, with the median home price more than $100,000 less than the national average. Wholesalers should be able to locate great opportunities in San Antonio.
Charleston is located in South Carolina which is among the most charming coastal cities in the southern U.S. Charleston is still affordable, although median home prices have risen above national averages recently.
Median Home Value - $485,000 (March 2022)
Year-Over-Year Net Change in Value – 18.3%+
Current Population – 150,227 from 120,083 in 2010.
Days On Market (DOM) - 39 Days, one-half of the 60 days in 2021.
Median Household Income – $72,071
Affordability Index –167.90
The Charleston region’s population is expanding at three times the pace as the national average, which further indicates the popularity of the area –
Memphis, located along the Mississippi River, is the state’s most populous city. Memphis’s inland port offers a great job market. Tennessee has no state income tax – except for a marginal amount for passive income earned.
Median Home Value - $207,000 (March 2022)
Year-Over-Year Net Change in Value – 36%+
Current Population – 633,104 from 646,889 in 2010.
Days On Market (DOM) - 18 Days, less than 31 days in 2021.
Median Household Income – $41,864
Affordability Index – 193.60
Memphis has scored some of the highest appreciation rates yet remains quite affordable from a historical perspective.
Colorado Springs real estate has seen impressive appreciation and population growth, as much of the state itself.
Median Home Value - $452,000 (March 2022)
Year-Over-Year Net Change in Value - 15%+
Current Population - 478,961 from 416,427 in 2010.
Days On Market (DOM) - 5 days on the market.
Median Household Income - $67,719
Affordability Index - 152
Real estate here is sold in a matter of days, so act quickly in this affordable wholesale housing market.
Median Home Value - $253,000 (March 2022)
Year-Over-Year Net Change in Value – 15.3%+
Current Population – 198,817 from 188,040 in 2010.
Days On Market (DOM) – 6 days, the same number of days in 2021.
Median Household Income – $51,553
Affordability Index – N/A
Median Home Values in Grand Rapids are significantly below national averages, which opens the wholesale playing field for many wholesalers new to the area.
Wholesaling real estate is an investment strategy that has shot to superstardom in real estate investing. The reasons why wholesaling houses has become a wildly popular investment strategy are relatively simple –
Wholesalers search for potential real estate wholesale properties and profit-generating opportunities. Properties are often distressed properties (priced below market value) owned by financially-challenged sellers (i.e., foreclosure). When a wholesaler finds an investment that meets their criteria, they enter a contract with one of the homeowners selling a viable investment – for an agreed-upon price within a specified timeframe.
The executed contract awards the wholesaler (or any buyer) equitable interest as defined by the Doctrine of Equitable Conversion.
Equitable conversion is the legal standard that awards the wholesaler/buyer legal title - ’owner-in-equity’ of the subject property.
This equity ownership is the asset in which you, as the wholesaler, can freely market and sell. Equitable interest is the only asset you hold that can be sold without a real estate licensee, realtor, or the need to become a real estate agent for yourself.
An experienced real estate wholesaler actively networks with various real estate-related professionals, hard money, and traditional lenders, plus a buyers list that would likely - include many cash buyers.
But how does a wholesaler begin to know how to evaluate a real estate deal in a market objectively? Should it be a rental property or a multi-unit? The answer is usually highly personal and depends on the wholesaler’s experience, skill, resources, and professional goals. The good news is that since the digital marketplace has established a stronghold in real estate, wholesaling is no longer largely dependent on one’s physical location. Virtual wholesaling is now available and successfully practiced by many wholesalers.
The Market’s growth rate during the past two years is representative of property values growing on steroids. And while record growth has impressed and awarded investors more than once since mid-century modern furniture was in style, the past 24 months can undoubtedly be viewed as one of the all-time top performance periods. This remarkable real estate growth during recent years was energized by -
What is certain is that this unprecedented growth is unsustainable, although no one can know exactly when a shift in the market will occur.
And a shift may not necessarily be as gloomy as it sounds because, in the world of wholesaling, new market metrics define new opportunities for clever real estate investors who can shift strategies on the fly to align with modified market conditions.
Before you can determine if the market or city is suitable, you need to have a firm understanding of the wholesale process, the laws that govern, and the market specifics in which you plan to operate. The following demographic and economic indicators should be considered when evaluating a market’s investment viability.
Note that the national data included below is a benchmark used by wholesalers considering new investments. Specific market metrics impact differently – depending on the wholesaler, the neighborhood, the market, and the state.
During 2022-Q1, on a national level, demand for real estate has begun to cool, but with a market so on fire, it is still a red-hot seller’s Market.
Succeeding as a wholesaler requires an ability to accurately analyze an investment's viability. Evaluating a possible wholesale investment includes these approaches used by appraisers who follow guidelines issued by USPAP - the cost approach, the sales comparison approach, and the income approach. Wholesalers will find their experience, innate skill, or guidance from a mentor can be quite advantageous when first starting in a new location.
Pro Tip: Market cycles inevitably change. Stay tuned to the Market and adjust strategies as conditions warrant.
Days On Market, which indicates the time it takes for an accepted offer.
The DOM offers an insight into the competitive demand for the subject in its local market. The smaller the DOM, the more likely that demand will outpace supply.
Demographics, like statistics regarding population, area income, and population growth, offer valuable data regarding the area in which you hope to invest. Demographic data can provide trending insights.
Population trends impact demand and thus real estate prices. For example, the Millennial generation is now ranked as the largest, with buying power that cannot be overlooked in investment analysis.
The FED attempts to tame Inflation or encourage growth by making money more (or less) expensive to borrow. The FED’s latest move is designed to cool a red-hot inflationary marketplace.
Lower rates attract more buyers because each dollar buys that much more of a house.
Interest rate changes can significantly influence a person's ability to purchase a residential property. It can impact wholesalers who use mortgage funds as a tool to complete the wholesale deal.
Pro Tip: Wholesaling real estate requires little capital – usually just a small percentage of the agreed-upon price, known as an earnest money deposit that is held in escrow. Interest rates have no impact on the money that is not borrowed.
"This index uses the value of 100 to represent the position of someone earning a population’s median income, with values above 100 indicating that an item is more likely to be affordable and values below 100 indicating that an item is less affordable. Points below 100 indicate that a median family may struggle to qualify for a mortgage on a home in the area, while a value of 100 indicates that the typical family has exactly enough income to qualify."
Affordability is a complex index– dependent on variables like relative income, GDP, interest rate adjustments, and home values, among others. The following graphically shows the somewhat complicated but the interrelationship of these factors.
Successful wholesalers understand the mechanics of wholesaling before diving in headfirst. When you have learned how to wholesale real estate, the many available market metrics can provide incredible insightful information to the trained eye. It is, as they say, hidden in plain sight.
But any way you look at it wholesaling real estate is a very profitable investment technique in many different cities and markets. To properly utilize this technique and learn the strategies that go into this process a wholesaler must seek proper guidance and training to build up a successful career. They must also learn to remain within the legal boundaries when wholesaling houses in whichever city they choose to launch their real estate wholesaling business.
To avoid having to make rookie mistakes, many new real estate investors enroll in wholesale real estate classes to learn how to get into wholesale real estate stat!
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