18 Best States To Wholesale Real Estate (2023 Edition)

A real estate wholesaler's objective is to find wholesale properties or distressed properties from motivated sellers that meet their established investment criteria. This is quite different from flippers with the objective to flip houses as a long-term investment.

This short-term investment strategy offers beginners step-by-step guidance on how to enter the real estate investment realm with minor capital requirements or the need to earn a real estate license, become a real estate agent or Realtor.

Fortunately for real estate wholesalers all over the United States, real estate markets can be measured in almost limitless ways, with easy-to-access metrics that reflect the current moment in time or the identification of a variety of relevant market trends.

Which market conditions demonstrate the best states for real estate wholesalers to have the greatest chances of success? This is discussed below.

• What Makes A State Best For Wholesaling Real Estate?
• 18 Best States To Wholesale Real Estate In 2023
• Final Thoughts

How We Chose The Best States For Wholesaling Real Estate

Real estate market conditions across every state are constantly changing, reacting to topical metrics that influence market value, financing, demand, supply, and the market's overall strength. However, as one would expect, several essential factors indicate a solid playing field for real estate wholesalers in any particular state.

Rising Property Values

A market experiencing price appreciation is among the most basic criteria to evaluate the potential of a wholesale real estate deal. The recent appreciation in home values indicates a strong market, one in which a wholesaler can turn a profit.

In other words, when a wholesaler finds and executes a wholesale contract for a property in a rising market, they have an increased chance to sell/assign the property to a potential buyer which is typically a cash buyer at a higher price simply because the current market is expanding. In a rising market, bargains and discounted properties might be harder to find, but the market’s appreciation and growth offset this challenge.

There are also seasonal price fluctuations that may impact market pricing and demand. But even in falling or weak markets, there are always available properties to wholesale if a real estate wholesaler knows what to look for and how to find it. 

A Growing Population Base

Census data offers valuable insight, but its data can be somewhat outdated as it is updated every decade. Fortunately, current data is available online as the market awaits the next census data set. An increasing population is indicative of a growing real estate demand. Conversely, if the area’s population numbers are falling, this may not be a great place to wholesale unless the property is well priced.

The Strength of the Employment Market

Robust job markets demonstrate a healthy economy which means more homebuyers and higher demand.

Note, though, that the overall economy took a blow when COVID required lockdowns in the public’s interest. And while the Federal Reserve’s latest attempt to quell the inflation that stemmed from COVID stimuli has been met with a lot of skepticism, the economy appears to be incredibly resilient. If for nothing else, the U.S. labor market isn’t ready to go down without a fight. In the last year alone, more than four million jobs have been created, according to the U.S. Bureau of Labor Statistics.

For now, the economy has taken one step back and two steps forward. The threat of a looming recession weighs heavy, but the U.S. economy has proven too strong to take any momentum away from the wholesaling community. 

Low Rental Vacancy Rates

The vacancy rate for rental properties is another valuable insight regarding the quality of the wholesale deal and the market in which it is located.

A rental vacancy rate is defined as follows:

Source

For context, a rental vacancy rate below 4% is considered low. According to the Federal Reserve Bank of St. Louis, however, the rental vacancy rate in the United States is somewhere in the neighborhood of 6.4% and rising. For a better idea of how today’s vacancy rates compare to historical data, here’s a graph tracking nationwide vacancies over the last 10 years:

If rental vacancy rates fall below average, this indicates relatively few units are vacant. A state with a low vacancy rate and a tight rental market may:

• Push rental prices higher
• Motivate renters to consider purchasing rather than renting

Vacancy rates are primarily driven by the market’s supply and demand but may also be influenced by:

• New construction in the area
• Pricing of comps and other related properties
• The desirability of the location
• Unexpected repairs between tenants
• The variety of employment options in the area
• Rising population rates
• The condition of the property, to name a few

A Quick Look At National Real Estate Statistics

Finally, to provide some perspective, consider these national rental statistics that can be used as a comparative benchmark when evaluating each state:

• At $441,445, the median listing price in the United States is up about 9.4% year-to-date and 58.2% over the last six years.
• With approximately 582,032 active listings, the country’s inventory of homes for sale has increased 21.5% over the last year. However, active listings are about half of what they were in 2017 despite the increase.
• The chart below suggests inventory is on the rise because of the Fed’s latest interest rate hike pause:

After years of historic increases, rent growth is starting to decelerate. According to Apartment List’s latest National Rent Report, year-over-year rent growth is 0.9%, its lowest level in the last few years. Following the deceleration, rent growth is now below pre-COVID levels.

According to the U.S. Census Bureau, there are about 334,924,490 in the United States; that’s an increase of 1,698,591 people in the last year, or 0.5%. The number of people living in the U.S. is increasing exponentially, and the growing need for housing will show that the potential for real estate wholesaling remains significant.

Thinking about investing in real estate? Join Alex Martinez at his FREE training to learn how to get started with house flipping and wholesaling!

The 18 Best States To Wholesale Real Estate In 2023

The wholesaling arena continues to offer compelling opportunities in the world of real estate investment. It is an ideal strategy for beginners to venture into, not only due to its lower-risk nature but also for the wealth of hands-on experience it provides. For the highest returns on your investments, here are the 18 best states to wholesale real estate in 2023:

1. California
2. Texas
3. Florida
4. North Carolina
5. Georgia
6. Pennsylvania
7. Illinois
8. Tennessee
9. Ohio
10. New Jersey
11. Maryland
12. Michigan
13. Missouri
14. Virginia
15. Arizona
16. Indiana
17. Colorado
18. Oklahoma

It's crucial to remember that your state's absence on our highlighted list does not equate to a lack of opportunity. In truth, each state presents a thriving marketplace for wholesale properties, teeming with potential. To truly capitalize on its potential and to ensure all actions remain within the legal boundaries, in-depth and comprehensive training is indispensable.

This is where our free training comes in. We provide you with the insights, strategies, and tools to thrive in the wholesaling space. Not only will you learn the basics, but you will also gain insights into advanced strategies used by successful real estate investors.

Don't just survive in the world of wholesaling; thrive in it. Dive into our FREE training today and ignite your journey to becoming a successful real estate wholesaler.

Read Also: Best Markets To Wholesale Real Estate (2023 Edition) 

California

The Golden State is recognized to be the most populous state with the largest economy. More people live in California than in all of Canada. The following represents the most relevant real estate statistics for real estate wholesalers:

• 2023 Population: 38,915,693
• Population Growth Since 2010: 4.46%
• Average Home Value: $737,900 
• Homeownership Rate: 55.3%
• Home Vacancy Rate: 0.7%
• Rental Vacancy Rate: 3.9%
• Year-Over-Year Job Growth (Nonfarm): 2.28%
• Hottest Real Estate Markets: Irvine, Fremont, Oxnard, Elk Grove, and San Jose
• Foreclosure Rate: One in every 3,794 households (14th highest foreclosure rate)

 The state of the California real estate market has resulted in the following historic appreciation rates:

According to Zillow’s California Rental Market summary, the median rent for all property types in California is $2,895, representing a $200 decrease over the last 12 months.

Read Also: California Real Estate Contract: Requirements, Template & FAQs

Texas

The Lone Star State boasts a thriving economy and has offered real estate investors some amazing returns as a wholesale-friendly state. Texas has seen its population grow more than almost any other state (with the exception of Utah) over the last 13 years and has many of the best cities for wholesalers in the southern United States—from Houston to Dallas. The following represents the most relevant real estate statistics for Texas real estate wholesalers:

• 2023 Population: 30,500,280
• Population Growth Since 2010: 21.3%
• Average Home Value: $302,333 
• Homeownership Rate: 63.6%
• Home Vacancy Rate: 0.8%
• Rental Vacancy Rate: 7.9%
• Year-Over-Year Job Growth (Nonfarm): 3.90%
• Hottest Real Estate Markets: Flower Mound, Austin, Fort Worth, and San Antonio
• Foreclosure Rate: One in every 4,526 households (18th highest foreclosure rate)

The state of the Texas real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Texas Rental Market summary, the median rent for all property types in Texas is $1,901, representing a $43 decrease over the last 12 months.

Florida

Coming in as the third-largest state in terms of population, the Sunshine State has seen impressive growth recently and has several cities ranked among the fastest-growing places in the country. While real estate in Florida has seen various fluctuations over the past century, many Americans and international visitors preferred the warmer climate and outdoor lifestyle, especially after mandatory lockdowns. Let’s take a look at what the influx of net migration has done for Florida’s most important housing statistics:

• 2023 Population: 22,661,577
• Population Growth Since 2010: 20.53%
• Average Home Value: $387,537 
• Homeownership Rate: 67.3%
• Home Vacancy Rate: 1.3%
• Rental Vacancy Rate: 7.2%
• Year-Over-Year Job Growth (Nonfarm): 3.53%
• Hottest Real Estate Markets: Cape Coral, Port St. Lucie, Miami, St. Petersburg, and Tampa
• Foreclosure Rate: One in every 2,470 households (4th highest foreclosure rate)

The state of the Florida real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Florida Rental Market summary, the median rent for all property types in Florida is $2,600, representing a $44 decrease over the last 12 months.

North Carolina

North Carolina’s diverse landscape, overall mild climate, and relatively affordable real estate prices have pushed values higher as demand for real property is substantial. The following represents the most relevant real estate statistics for real estate wholesalers in North Carolina:

• 2023 Population: 10,832,061
• Population Growth Since 2010: 13.6%
• Average Home Value: $323,487 
• Homeownership Rate: 65.9%
• Home Vacancy Rate: 0.7%
• Rental Vacancy Rate: 6.3%
• Year-Over-Year Job Growth (Nonfarm): 2.28%
• Hottest Real Estate Markets: Charlotte, Asheville, Raleigh/Durham, Fayetteville, and Winston-Salem
• Foreclosure Rate: One in every 3,683 households (13th highest foreclosure rate)

The state of the North Carolina real estate market has resulted in the following historic appreciation rates:

According to Zillow’s North Carolina Rental Market summary, the median rent for all property types in North Carolina is $1,883, representing a $13 decrease over the last 12 months.

Read Also: How To Find Off-Market Properties In North Carolina (4 Methods)

Georgia

Georgia’s real estate housing market has experienced robust growth like much of the nation. Like many southern locations, Georgia offers a temperate climate and some of the more affordable options for real estate investing and wholesaling. The following represents the most relevant real estate statistics for the real estate wholesalers working in the Peach State:

• 2023 Population: 11,037,723
• Population Growth Since 2010: 13.94%
• Average Home Value: $317,789 
• Homeownership Rate: 64.7%
• Home Vacancy Rate: 0.8%
• Rental Vacancy Rate: 7.0%
• Year-Over-Year Job Growth (Nonfarm): 2.29%
• Hottest Real Estate Markets: Atlanta, Temple, Winder, Savannah, and Kennesaw
• Foreclosure Rate: One in every 3,506 households (12th highest foreclosure rate)

The state of the Georgia real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Georgia Rental Market summary, the median rent for all property types in Georgia is $1,991, representing a $27 decrease over the last 12 months.

Pennsylvania

Pennsylvania’s real estate market has experienced significant growth as suburban homes led the demand for home purchases. Pennsylvania’s real estate is diverse and offers real estate wholesalers many investment opportunities. The following represents the most relevant real estate statistics for the real estate wholesalers working in the Commonwealth of Pennsylvania:

• 2023 Population: 12,931,957
• Population Growth Since 2010: 1.81%
• Average Home Value: $254,722 
• Homeownership Rate: 70.7%
• Home Vacancy Rate: 0.9%
• Rental Vacancy Rate: 5.3%
• Year-Over-Year Job Growth (Nonfarm): 2.38%
• Hottest Real Estate Markets: Allentown, Bethlehem, Philadelphia, West Chester, and Pittsburgh
• Foreclosure Rate: One in every 4,376 households (16th highest foreclosure rate)

The state of the Pennsylvania real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Pennsylvania Rental Market summary, the median rent for all property types in Pennsylvania is $1,500, representing a $39 decrease over the last 12 month.

Illinois

Illinois is a great representation of the American Midwest. Chicago is considered the crown jewel for investors of all the state's metros. Due to the state’s many highly regarded educational institutions, demand constantly facilitates deals of all sorts. The following represents the most relevant real estate statistics for Illinois real estate wholesalers:

• 2023 Population: 12,477,595
• Population Decline Since 2010: 2.75%
• Average Home Value: $247,384 
• Homeownership Rate: 66.7%
• Home Vacancy Rate: 1.3%
• Rental Vacancy Rate: 7.4%
• Year-Over-Year Job Growth (Nonfarm): 1.99%
• Hottest Real Estate Markets: Ottawa, Champaign-Urbana, Edwardsville, Naperville, and Chicago
• Foreclosure Rate: One in every 2,144 households (Highest foreclosure rate in the country)

The state of the Illinois real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Illinois Rental Market summary, the median rent for all property types in Illinois is $1,763, representing a $63 increase over the last 12 months.

Tennessee 

Tennessee offers some of the most affordable real estate in the country. The economy of the Volunteer State is strong and diverse and ranges from autos to music. The state’s diversity offers plenty of opportunities for local wholesalers who can listen to the market. The following represents the most relevant real estate statistics for the real estate wholesalers working in Tennessee:

• 2023 Population: 7,134,327
• Population Growth Since 2010: 12.42%
• Average Home Value: $304,344 
• Homeownership Rate: 67.3%
• Home Vacancy Rate: 0.7%
• Rental Vacancy Rate: 7.3%
• Year-Over-Year Job Growth (Nonfarm): 2.17%
• Hottest Real Estate Markets: Clarksville, Nashville, Chattanooga, and Knoxville
• Foreclosure Rate: One in every 6,736 households (34th highest foreclosure rate)

The state of the Tennessee real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Tennessee Rental Market summary, the median rent for all property types in Tennessee is $1,771, representing an $83 decrease over the last 12 months.

Ohio

Ohio, which translates to ‘Great River’ in Iroquois, is named for the famed river that cuts through the state in downtown Cincinnati. The manufacturing industry in Ohio leads the nation in metals, electrical equipment, appliances, and plastics, among other industries. The diverse and bustling economy promotes a lot of real estate activity. The following represents the most relevant real estate statistics for Ohio real estate wholesalers:

• 2023 Population: 11,747,774
• Population Growth Since 2010: 1.83%
• Average Home Value: $215,956 
• Homeownership Rate: 66.0%
• Home Vacancy Rate: 0.8%
• Rental Vacancy Rate: 5.3%
• Year-Over-Year Job Growth (Nonfarm): 1.51%
• Hottest Real Estate Markets: Grandview Heights, Dayton, Columbus, and Akron
• Foreclosure Rate: One in every 2,478 households (5th highest foreclosure rate)

The state of the Ohio real estate market has resulted in the following historic appreciation rates: 

According to Zillow’s Ohio Rental Market summary, the median rent for all property types in Ohio is $1,200, representing a $100 decrease over the last 12 months.

New Jersey

The Garden State is strategically located between Philadelphia and New York City, with more than one-and-a-half-million commuters leaving the state for these locations. Not surprisingly, New Jersey is among the most urbanized states in the country. Also, eight of New Jersey’s 100 counties are ranked among the wealthiest in the country. The following represents the most relevant real estate statistics for professional real estate wholesalers in New Jersey:

• 2023 Population: 9,255,437
• Population Growth Since 2010: 5.27%
• Average Home Value: $468,096 
• Homeownership Rate: 64.2%
• Home Vacancy Rate: 0.6%
• Rental Vacancy Rate: 3.7%
• Year-Over-Year Job Growth (Nonfarm): 2.05%
• Hottest Real Estate Markets: Barnegat Township, Bayonne, Bloomfield, Hackensack, and Jefferson Township
• Foreclosure Rate: One in every 2,257 households (53rd highest foreclosure rate)

The state of the New Jersey real estate market has resulted in the following historic appreciation rates:

According to Zillow’s New Jersey Rental Market summary, the median rent for all property types in New Jersey is $2,495, representing a $243 increase over the last 12 months.

Maryland

Maryland’s proximity to the nation’s capital offers residents a wide variety of employment options in the federal government. Maryland has the 2nd highest percentage of federal employees. The following represents the most relevant real estate statistics for the real estate wholesalers working in Maryland:

• 2023 Population: 6,154,710
• Population Growth Since 2010: 6.6%
• Average Home Value: $399,914 
• Homeownership Rate: 71.8%
• Home Vacancy Rate: 0.4%
• Rental Vacancy Rate: 5.3%
• Year-Over-Year Job Growth (Nonfarm): 1.34%
• Hottest Real Estate Markets: Frederick, Columbia, Waldorf, Germantown, and Bowie
• Foreclosure Rate: One in every 2,203 households (2nd highest foreclosure rate) 

The state of the Maryland real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Maryland Rental Market summary, the median rent for all property types in Maryland is $1,850, representing a $25 decrease over the last 12 months.

Michigan

The Great Lakes State offers its residents a broad variety of recreation, especially on the water, with over 3,100 miles of coastline and over 900,000 registered boats. In Michigan, real estate prices are below the national average, offering real estate wholesalers unique investment opportunities. The following represents the most relevant real estate statistics for Michigan’s real estate wholesalers:

• 2023 Population: 10,030,722
• Population Growth Since 2010: 1.49%
• Average Home Value: $230,929 
• Homeownership Rate: 74.0%
• Home Vacancy Rate: 0.6%
• Rental Vacancy Rate: 5.5%
• Year-Over-Year Job Growth (Nonfarm): 1.80%
• Hottest Real Estate Markets: Grand Rapids, Wyoming, Livonia, Ypsilanti, and Troy
• Foreclosure Rate: One in every 4,617 households (19th highest foreclosure rate) 

The state of the Michigan real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Michigan Rental Market summary, the median rent for all property types in Michigan is $1,263, representing a $108 decrease over the last 12 months.

Missouri

Missouri offers some of the best wholesaling opportunities as many untapped markets, with average home prices below national averages. Missouri’s diverse population, culture, and landscape is an excellent place to wholesale real estate. The following represents the most relevant real estate statistics for real estate investors in Missouri:

• 2023 Population: 6,186,091
• Population Growth Since 2010: 3.29%
• Average Home Value: $238,445 
• Homeownership Rate: 70.6%
• Home Vacancy Rate: 0.9%
• Rental Vacancy Rate: 7.1%
• Year-Over-Year Job Growth (Nonfarm): 1.67%
• Hottest Real Estate Markets: Glendale, Clayton, Ladue, Creve Coeur, and Battlefield
• Foreclosure Rate: One in every 6,309 households (30th highest foreclosure rate) 

The state of the Missouri real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Missouri Rental Market summary, the median rent for all property types in Missouri is $1,275, representing a $37 decrease over the last 12 months.

Virginia

Like Maryland, Virginia’s proximity to the nation’s capital offers a robust job market for federal employees, with home prices that fall below the national average. The following represents the most relevant real estate statistics for the real estate investors and wholesalers working in Virginia:

• 2023 Population: 8,709,873
• Population Growth Since 2010: 8.86%
• Average Home Value: $372,301 
• Homeownership Rate: 67.4%
• Home Vacancy Rate: 0.7%
• Rental Vacancy Rate: 4.9%
• Year-Over-Year Job Growth (Nonfarm): 2.43%
• Hottest Real Estate Markets: Meadowbrook, Highland Springs, Hopewell, Colonial Heights, and East Highland Park
• Foreclosure Rate: One in every 4,732 households (20th highest foreclosure rate) 

The state of the Virginia real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Virginia Rental Market summary, the median rent for all property types in Virginia is $1,990, representing an $81 decrease over the last 12 months.

Arizona

Arizona has long been a favorite retirement location. However, its recent growth reveals a preference by all ages for the dry, hot climate in the Sonora Desert and the majesty of mountains in the western part of the state. Arizona’s economy ranges from tourism to cattle ranching and copper mining, among other things. The following represents the most relevant real estate statistics for Arizona’s real estate wholesalers and investors:

• 2023 Population: 7,453,517
• Population Growth Since 2010: 16.61%
• Average Home Value: $414,262 
• Homeownership Rate: 68.1%
• Home Vacancy Rate: 1.0%
• Rental Vacancy Rate: 6.2%
• Year-Over-Year Job Growth (Nonfarm): 1.57%
• Hottest Real Estate Markets: Phoenix, Scottsdale, Tucson, Tempe, and Prescott
• Foreclosure Rate: One in every 6,704 households (33rd highest foreclosure rate)

The state of the Arizona real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Arizona Rental Market summary, the median rent for all property types in Arizona is $2,107, representing an $88 decrease over the last 12 months.

Indiana

Indiana epitomizes America’s heartland. Its affordable home prices and strong economy (including the state’s largest – auto industry) combine to offer wholesaling opportunities across the state. Indiana is a sports lover's state with professional sports teams represented across the board. The following represents the most pertinent real estate statistics for the Hoosier State:

• 2023 Population: 6,852,542
• Population Growth Since 2010: 5.69%
• Average Home Value: $233,236 
• Homeownership Rate: 72.6%
• Home Vacancy Rate: 0.8%
• Rental Vacancy Rate: 8.8%
• Year-Over-Year Job Growth (Nonfarm): 2.49%
• Hottest Real Estate Markets: Indianapolis Greater Metro Area, Fort Wayne Metro Area, Evansville Metro, and South Bend
• Foreclosure Rate: One in every 3,101 households (9th highest foreclosure rate)

The state of the Indiana real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Indiana Rental Market summary, the median rent for all property types in Indiana is $1,350, representing a $50 decrease over the last 12 months.

Colorado

Colorado’s mean elevation of 6,800 is the highest of any state – with more than four dozen peaks reaching beyond 14,000 feet. Colorado is also a mining state producing natural gas, coal, gravel, sand, and gold. Colorado is the country’s top skiing destination, with over two dozen ski resorts. The following represents the most relevant real estate statistics for Colorado real estate wholesalers:

• 2023 Population: 5,868,555
• Population Growth Since 2010: 16.69%
• Average Home Value: $549,807 
• Homeownership Rate: 67.4%
• Home Vacancy Rate: 0.3%
• Rental Vacancy Rate: 4.1%
• Year-Over-Year Job Growth (Nonfarm): 0.89%
• Hottest Real Estate Markets: Aurora, Colorado Springs, Denver, Longmont, and Fort Collins
• Foreclosure Rate: One in every 5,817 households (27th highest foreclosure rate)

The state of the Colorado real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Colorado Rental Market summary, the median rent for all property types in Colorado is $2,230, representing a $70 decrease over the last 12 months.

Oklahoma

Oklahoma, the Sooner State, offers real estate wholesalers some of the nation's most affordable real estate opportunities. The economy is one of the top five natural gas producers. The following represents the most relevant Oklahoma real estate statistics for real estate wholesalers:

• 2023 Population: 4,048,375
• Population Growth Since 2010: 7.92%
• Average Home Value: $198,398 
• Homeownership Rate: 68.5%
• Home Vacancy Rate: 0.8%
• Rental Vacancy Rate: 8.6%
• Year-Over-Year Job Growth (Nonfarm): 2.13%
• Hottest Real Estate Markets: Oklahoma City, Edmond, Del City, Yukon City, and Midwest City
• Foreclosure Rate: One in every 3,274 households (10th highest foreclosure rate) 

The state of the Oklahoma real estate market has resulted in the following historic appreciation rates:

According to Zillow’s Oklahoma Rental Market summary, the median rent for all property types in Oklahoma is $1,375, representing a $75 decrease over the last 12 months.

Final Thoughts

Wholesaling remains a promising real estate investment strategy, particularly for beginners eager to make their mark without significant risk. It provides hands-on experience, building connections with lenders and homeowners, and an understanding of diverse investment property types.

Remember, even if your state wasn't highlighted, opportunities abound everywhere. Every state harbors a market ripe for wholesale properties.

Wholesaling, without a doubt, can reap substantial profits in numerous states. However, to truly succeed and stay within the confines of the law, comprehensive training is key.

Ready to step into the world of wholesaling? Join our free training today to kick-start your wholesaling journey and shape your successful career in real estate investment.