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 2022
• California
• Texas
• Florida
• North Carolina
• Georgia
• Pennsylvania
• Illinois
• Tennessee
• Ohio
• New Jersey
• Maryland
• Michigan
• Missouri
• Virginia
• Arizona
• Indiana
• Colorado
• Oklahoma
• Final Thoughts

What Makes A State Best 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. However, as of January 2022, more than 6 million jobs have been created since 2020.

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

A rental vacancy rate below 4% is considered low, with the US average at 7%. The following graph tracks vacancy rates in the U.S. for the past several decades -

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 or,
• Motivate renters to consider purchasing rather than renting.

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

• New construction in the area
• Pricing of comps and other related properties
• The desirability of 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 –

• The median listing price as of December 2021 for active listings was up 10% year over year, at $375000.
• The housing supply is at its lowest level since the 1970s. This is a result of rising building costs, millennial ownership, and real estate professionals and investors flooding the market and buying starter homes.
• Nationwide, inventory took a nosedive and declined 32.6 percent in 2020.

• Since 1980 rental prices have increased an average of 8.8% each year.
• The average rent as of 10/2021 on a national level was $1,164.

Note that the United States population grew at an average annual pace of 7.4% from 2010 to 2020. This metric can be used comparatively for assessing a state’s potential for real estate wholesaling.

The 18 Best States To Wholesale Real Estate In 2022

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

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 -

• 2021 Population - 39,613,493
• Population Growth Since 2010 ~ 6.15%
• Hottest Real Estate Markets – Irvine, Fremont, Oxnard, Elk Grove, and San Jose
• Median Home Price (2021)- $505,000
• Vacancy Rate 2020 – 4%
• Year-Over-Year Job Growth (Nonfarm 2021) – 5.23%

The California real estate market has been working on all cylinders – capping a two-and-a-half-year run that averaged 16.46% each year.

Source

The rental market in California is equally strong with the 2020 Fair Market Rent of a 2-bedroom apartment at $1,614/month – a 116%+ increase over the past two decades. Many areas of California are famous for seven-digit prices, but many reasonably priced locations offer lucrative wholesaling opportunities.

Texas

The Lone Star State boasts a thriving economy and has offered real estate investors some amazing Return-on-Investments as a wholesale-friendly state. Texas, which has seen an 18% increase in population since 2010, 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 -

• 2021 Population - 29,730,311
• Population Growth Since 2010 ~ 17.78%
• Hottest Real Estate Markets – Flower Mound, Austin, Fort Worth, San Antonio
• Median Home Price (2021) – $172,500
• Vacancy Rate 2020 – 8.6%
• Year-Over-Year Job Growth (Nonfarm 2021) – 5.87%

The average annual appreciation rate for Texas properties in 2021 (thru Q3) was 27.83%.

Source

Rents in Texas have increased more than 90% since 2000, with an average in 2020 of $1,091 per month for a 2-bedroom apartment.

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 nation (2021 to 2022). 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. Price appreciation has been double digits during the previous several years.

• 2021 Population - 21,944,577
• Population Growth Since 2010 ~ 16.44%
• Hottest Real Estate Markets – Cape Coral, Port St. Lucie, Miami, St. Petersburg, Tampa
• Median Home Price (2021) – $215,000
• Vacancy Rate 2020 – 7.3%
• Year-Over-Year Job Growth (Nonfarm 2021) - 5.94%

In the past, Florida has enjoyed being a favorite retiree location and boasts the highest percentage of the nation’s senior citizens. Florida added more than 2.6 million new residents since 2010.

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Florida was $1,238 per month, which increased more than 93% since 2000.

North Carolina

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

• 2021 Population – 10,701,022
• Population Growth Since 2010 ~ 11.77%
• Hottest Real Estate Markets – Charlotte, Asheville, Raleigh/Durham, Fayetteville, Winston-Salem
• Median Home Price (2021) – $172,500
• Vacancy Rate 2020 – 5.8%
• Year-Over-Year Job Growth (Nonfarm 2021) -3.3%

During the first three-quarters of 2021, real estate prices appreciated at an annual rate of nearly 30%.

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in North Carolina was $931 per month, which increased nearly 70% since 2000.

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 -

• 2021 Population - 10,830,007
• Population Growth Since 2010 ~ 11.51%
• Hottest Real Estate Markets – Atlanta, Temple, Winder, Savannah, Kennesaw
• Median Home Price (2021) – $176,000
• Vacancy Rate 2020 – 7.1%
• Year-Over-Year Job Growth (Nonfarm 2021) – 4.54%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in the Peach State was $1,049 per month, increasing more than 71% since 2000. In recent years, Georgia’s job market was ranked among the top ten in the nation.

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 -

• 2021 Population – 12,804,123
• Population Growth Since 2010 ~ 0.73%
• Hottest Real Estate Markets – Allentown, Bethlehem, Philadelphia, West Chester, Pittsburgh
• Median Home Price (2021) – $180,000
• Vacancy Rate 2020 – 7.5%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.72%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Pennsylvania rose to $951 which is more than 79% over the past two decades. 

Illinois

Illinois is a great representation of the American Midwest. Chicago is considered the crown jewel of the state and the Midwest. Illinois is home to many highly regarded institutions of higher education. The following represents the most relevant real estate statistics for Illinois real estate wholesalers–

• 2021 Population – 12,569,321
• Population Growth Since 2010 ~ - 2.11%
• Hottest Real Estate Markets – Ottawa, Champaign-Urbana, Edwardsville, Naperville, Chicago
• Median Home Price (2021) – $194,500
• Vacancy Rate 2020 - 7.9%
• Year-Over-Year Job Growth (Nonfarm 2021) – 4.11%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in the Land of Lincoln was $1,020 per month, which increased more than 68% over the past twenty years. 

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 following represents the most relevant real estate statistics for the real estate wholesalers working in Tennessee –

• 2021 Population – 6,944,260
• Population Growth Since 2010 ~ 9.27%
• Hottest Real Estate Markets – Clarksville, Nashville, Chattanooga, Knoxville
• Median Home Price (2021) – $167,200
• Vacancy Rate 2020 – 8%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.95%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Tennessee has risen nearly 80% since 2000 and now averages $904. 

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 others. Ohio real estate prices fall below the national average. The following represents the most relevant real estate statistics for Ohio real estate wholesalers

• 2021 Population – 11,714,618
• Population Growth Since 2010 ~ 1.52%
• Hottest Real Estate Markets – Grandview Heights, Dayton, Columbus, Akron
• Median Home Price (2021) – $145,700
• Vacancy Rate 2020 – 6.1%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.01%

Source

The 2020 Fair Market Rent of a 2-bedroom unit in the state of Ohio was $813 per month, which has risen nearly 58% over the past two decades. 

New Jersey

The Garden State is strategically located between Philadelphia and New York City, with more than ½ million commuters leaving the state to these locations. Despite its name, New Jersey is among the most urbanized states. 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 –

• 2021 Population – 8,874,520
• Population Growth Since 2010 ~ 0.85%
• Hottest Real Estate Markets – Barnegat Township, Bayonne, Bloomfield, Hackensack, Jefferson Township
• Median Home Price (2021) – 335,600
• Vacancy Rate 2020 – 2.9%
• Year-Over-Year Job Growth (Nonfarm 2021) – 5.10%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in the Garden State was $1,376 per month, an 83%+ increase since 2000.

Maryland

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

• 2021 Population – 6,065,436
• Population Growth Since 2010 ~ 4.78%
• Hottest Real Estate Markets – Frederick, Columbia, Waldorf, Germantown, Bowie
• Median Home Price (2021) – $314,800
• Vacancy Rate 2020 – 5.6%
• Year-Over-Year Job Growth (Nonfarm 2021) – 3.58%

Source

The 2020 Fair Market Rent of a Maryland 2-bedroom apartment was $1,401 per month, translating to a rental increase of 103% over the past twenty years. 

Michigan

The Great Lakes State offers its residents a broad variety of recreation, especially on the water with more than 3,100 miles of coastline and more than 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 –

• 2021 Population – 9,992,427
• Population Growth Since 2010 ~ 1.16%
• Hottest Real Estate Markets – Grand Rapids, Wyoming, Livonia, Ypsilanti, Troy
• Median Home Price (2021) – $154,900
• Vacancy Rate 2020 – 6.4%
• Year-Over-Year Job Growth (Nonfarm 2021) – 3.62%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Michigan was $931 per month, which increased nearly 70% since 2000.

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 the real estate investors in Missouri –

• 2021 Population – 6,169,038
• Population Growth Since 2010 ~ 2.89%
• Hottest Real Estate Markets – Glendale, Clayton, Ladue, Creve Coeur, Battlefield
• Median Home Price (2021) – $157,200
• Vacancy Rate 2020 – 6.7%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.77%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in the Show-Me State was $834 per month, which increased more than 72% over the past two decades.

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 –

• 2021 Population – 8,603,985
• Population Growth Since 2010 ~ 7.23%
• Hottest Real Estate Markets – Meadowbrook, Highland Springs, Hopewell, Colonial Heights, East Highland Park
• Median Home Price (2021) – $273,100
• Vacancy Rate 2020 – 6.5%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.42%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Virginia was $1,254 per month – a 93% increase since 2000.

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 others. The following represents the most relevant real estate statistics for Arizona’s real estate wholesalers and investors –

• 2021 Population – 7,796,941
• Population Growth Since 2010 ~ 17.37%
• Hottest Real Estate Markets – Phoenix, Scottsdale, Tucson, Tempe, Prescott
• Median Home Price (2021) – $225,500
• Vacancy Rate 2020 – 5.5%
• Year-Over-Year Job Growth (Nonfarm 2021) – 4.82%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Arizona has increased 78% to $1,101 over the past twenty years.

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 –

• 2021 Population – 6,805,663
• Population Growth Since 2010 ~ 4.86%
• Hottest Real Estate Markets – Indianapolis Greater Metro Area, Fort Wayne Metro Area, Evansville metro, South Bend
• Median Home Price (2021) – $141,700
• Vacancy Rate 2020 – 9.3%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.82%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Hoosier State increased more than 61% to $840 per month over the last twenty years.

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 more than two dozen ski resorts. The following represents the most relevant real estate statistics for Colorado real estate wholesalers–

• 2021 Population – 5,893,634
• Population Growth Since 2010 ~ 16.77%
• Hottest Real Estate Markets – Aurora, Colorado Springs, Denver, Longmont, Fort Collins
• Median Home Price (2021) – $343,300
• Vacancy Rate 2020 – 4.0%
• Year-Over-Year Job Growth (Nonfarm 2021) – 4.54%

Source

The 2020 Fair Market Rent of a Colorado 2-bedroom apartment increased 104% over the last two decades and is now $1,369 per month, which increased nearly 70% since 2000.

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 -

• 2021 Population – 3,990,443
• Population Growth Since 2010 ~ 6.13%
• Hottest Real Estate Markets – Oklahoma City, Edmond, Del City, Yukon City, Midwest City
• Median Home Price (2021) – $136,800
• Vacancy Rate 2020 – 8.4%
• Year-Over-Year Job Growth (Nonfarm 2021) – 2.39%

Source

The 2020 Fair Market Rent of a 2-bedroom apartment in Oklahoma increased by more than 78% since 2000 and is now $814 per month.

Final Thoughts

Wholesaling is a viable real estate investment strategy where beginners can get their feet wet without significant risk. This can give them experience with building connections and working with lenders, homeowners, and types of investment properties when wholesaling houses.

Keep in mind that even if your state did not make the list, it doesn’t mean there's no opportunity. There is always a market for wholesale properties in every state.

Any way you slice it, wholesaling can be a profitable investment technique in many states if the wholesaler seeks proper training to build up a successful career and remain within the letter of the law in the jurisdiction in which they work.