Best U.S. Cities for Property Investment in 2025

Finding promising real estate markets is some of the most important homework you’ll have to do as a long-distance investor. What are some of the best places to invest in real estate in the U.S. this year? What contributes to the best city to invest in real estate? And most importantly, how can you get in on the action? Below, we’ll discuss all of this and more.

Factors to Consider

When looking for the best places to invest in real estate, you want to keep a few important factors in mind. Together, these factors will give you a glimpse into the real estate market and should aid your search for potential states, cities, and renters. They include:

• Population growth. When researching an area’s rental property profitability, the growing population rate for the past few years is a good indicator. If you see a steady increase in population growth, then the area could be attracting new residents with job opportunities or tax benefits. If growth is volatile or nonexistent, then it may be best to pump the breaks and research other factors.
• Booming sectors & job outlook. Your potential future tenants will likely be living there because of work. Find out if there are any successful areas of business as of late and/or what employment in the area looks like. If people seem to have access to steadily paying jobs, or if new jobs in new industries are popping up, then you’re more likely to find reliable tenants willing to pay to live near their higher-paying jobs.
• Real estate market data. You need to understand the market you’re considering investing in. Has it historically performed well? Is it expected to be successful? You’ll want to find the average DOM (days on market), the foreclosure rate, the current median home price, and other metrics that will give you a glimpse into the area. We recommend using a trusted website such as Redfin to find the data you’re after, or that you find a source of news to keep you updated on the investing side of things.
• Management costs: Managing a rental property business can look very different depending on where you and your properties are located. Keep this in mind when you’re looking for the best cities for real estate, and be sure to research state and local laws that may be relevant to you. Expenses like property taxes and passive income tax can make a big impact on your profit, so it’s always best to stay informed.

Best Cities for Real Estate in 2025

With that in mind, we’ll dive into some promising, specific cities that’ll begin your research journey. You’ll notice that most of these cities are located in the Sunbelt – a region of the U.S. that has seen job opportunities and migration rates increase in the past few years and that will likely continue to see growth in 2025.

Dallas, Texas

The continuous and rapid population growth of Dallas easily makes it one of the best cities for real estate investment. Also known as DFW (the Dallas/Fort Worth metroplex), this area saw a population increase of 6.1% between 2020 and 2023. It’s also home to over 20 Fortune 500 companies, and the area has seen a total growth in employment of 11.2% since February 2020. All in all, the DFW continues to promise economic growth for citizens and realtors alike, making it a prime spot for purchasing a residential investment property.

Charlotte, North Carolina

With a population growth of over 20% in the past decade, Charlotte puts itself on the map as another one of the best cities for real estate investment. It’s also a hub for technology and healthcare sectors, so its flourishing job market is sure to promise a continued population influx. Likewise, its housing market is known for staying relatively affordable to both buyers and rental property investors, making it one of the best places to invest in real estate for anyone looking to build low-risk equity.

Austin, Texas

Texas boasts another one of the best cities for real estate with its state capital of Austin. In the past few years, tech companies have flocked to Austin to relocate their headquarters and factories there. Why? Its comparatively lower cost of living (compared to other tech hubs like the San Francisco area) makes it attractive for residents and investors alike, who prioritize affordability and the opportunity to grow equity. Some have begun to call it Silicon Hills and consider it the best city to invest in real estate right now given its promise for continued growth.

Nashville, Tennessee

As another state capital, Nashville has seen an employment growth rate of around and remains an extremely hot spot for tourism. Its tourism sector offers a great short-term rental market for investors, with long and mid-term rentals just as promising. Plus, its entertainment and manufacturing sectors provide consistent employment and economic growth for the area, which is great for mid and long-term rentals. Recent analytics suggest that around 200,000 people will move to Tennessee in the next five years, meaning you won’t have to worry about a shortage of tenants.

Tampa, Florida

With a similarly booming tourism market, the Tampa-St. Petersburg area also promises returns on short and long-term rentals alike. Between 2022 and 2023, Tampa welcomed around 60,000 immigrants into its dynamic city each year. With its mix of beachfront, downtown, and suburban properties, it’s one of the best cities for real estate investment—especially for those looking to diversify their portfolio. Plus, its stable and diverse local economy boasts a variety of booming sectors and ample jobs for its residents.

Getting Started

With your newfound know-how, you’re well-equipped to make it in the real estate markets that 2025 has to offer. Whether you’re a seasoned investing pro or a newbie, make sure that you stay up to date on real estate market trends and news. The more informed you are about favorable environments for rental units, the better you’ll become at finding the best places to invest in real estate!