The Best and Worst Markets for Conservative Real Estate Investors

housing marketIf you're hoping to pick up a housing bargain, a new report that ranks the best and worst markets for conservative residential real estate investors might interest you. Durham, N.C., Indianapolis and Huntsville, Ala., are some of the best locales currently, according to the first Investor Suitability Report by Local Market Monitor, a Cary, N.C., firm that analyzes real-estate trends for lenders, builders and investors. Las Vegas and Orlando, Fla., are some of the riskiest.

The study, which The Wall Street Journal reports on, uses economic data through July 31 for 315 U.S. markets and focuses on single-family homes. Regions that rank highly for investment suitability are those where home prices are unlikely to fall further, Local Market Monitor President Ingo Winzer tells the Journal. They're places where income is growing moderately and where employment is relatively stable.

Places in the "worst" list (several locales in Florida, Nevada and Arizona make the cut here) are ranked thus because home prices there are still falling and the local economy remains shaky.

The report focuses on price-appreciation potential instead of rental income, Winzer explains, since falling home prices usually result in higher vacancy rates and lower rents overall.

Below are the best and worst U.S. markets for single-family real estate investment properties.



1. Durham, N.C.

1. Reno/ Sparks, Nev.

2. Huntsville, Ala.

2. Las Vegas/ Paradise, Nev.

3. Indianapolis, Ind.

3. Orlando/ Kissimmee, Fla.

4. Knoxville, Tenn.

4. Lakeland/ Winter Haven, Fla.

5. Lexington, Ky.

5. Prescott, Ariz.

Increase your money and finance knowledge from home

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Income Investing

Grow your nest-egg.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

It's a great time to own a home in Huntsville Alabama. The prices of Huntsville homes that were already low are now even lower. Don't miss the opportunity available in Huntsville. Once the job situation around the country is corrected, mortgage rates and home prices will be on the rise again.

August 25 2010 at 9:26 AM Report abuse rate up rate down Reply


August 23 2010 at 10:29 PM Report abuse rate up rate down Reply

Isn't it interesting that a socalled socialist economy is eating our lunch. The Germans have the lowest unemployement in 20 years. BMW posted the best sales ever, as well as Mercedes and VW. They have full healthcare coverage, average 5 weeks paid vacation, 14 weeks paid maternity leave etc. For those of you who are going to say, but they have high taxes, they don't have a property tax. The colleges are free and on and on. What do we have, 50 cents of every dollar goes to the Pentagon, the wars, homeland security. It's time we take of the blinders and find a better system, this one only works for the wealthy.

August 23 2010 at 6:40 PM Report abuse rate up rate down Reply
3 replies to Fritz's comment

All these people are blaming Obama for the recession. He just came into office. Where was their intellect when Bush made up a contrived war to invade Iraq in response to the terrorist bombings that happened on his watch and ended up depleting the financial surplus that Clinton established?...

August 23 2010 at 4:15 PM Report abuse rate up rate down Reply
1 reply to rogerduly's comment

You are right. Let's remember to give credit to the Democratic Congress that has been in power for the last 4 years.

August 23 2010 at 7:04 PM Report abuse +1 rate up rate down Reply

the government ought to get the middlemen out of it on mortgages. Just have them lend the money directly. Done correctly, that should generate enough profits to wipe out the deficit. same thing with oil drilling, do it directly and use the profits to drawn down on the overdraft. Of course, banks and others will still have a fair plying field where govt rates are higher than the average of the industry

August 23 2010 at 4:10 PM Report abuse rate up rate down Reply

our ills will not fade or go our optimism sould also be bright and forthcoming. good government or a bad one has been around us since we came to these shores hundreds of years ago. we must renew ourselves everyda and not dispair or give up. things will get better rather than worse i believe. thank you.

August 23 2010 at 1:59 PM Report abuse +1 rate up rate down Reply

I wish Obama would just shutup. Everytime that stupid SOB opens his mouth, the stock market fall 100 points. You stupid liberals need to take an economics 101 course. Socialiam doesn't work.

August 23 2010 at 1:08 PM Report abuse +6 rate up rate down Reply

I never used to think in terms of Demodrats or Republicans causing the country's problems, but, after seeing this Democratic worthless, do-nothing legal/moral, Congress headed by the likes of Pelosi/Reid?Dodd/Frank, directed by The King-OBAMA, I have changed my thoughts. Citizen(?) Obama is systematically destroying the country and our "watchdog" Congress is racing him! For those of you who have difficulty with Chinese, try Muslim, especially, Farsi. 'ol Chuck said it!

August 23 2010 at 12:44 PM Report abuse +13 rate up rate down Reply

Could it be that Bankers/Mortagers/Realtors always have, and always will, CONTROL the housing market, aided and abetted by RE Appraisers!!?? Remember the "No Down" marketing scam - a Federal program to aid minorities? Well, then they moved in, but now the "devil" is demanding his due. With this incompetent, bungling, (boght and paid for yes-man of billionaire George Sorros)questionable American citizen bent on destroying America, those people will suffer even more because the worst is yet to come! 'ol Chuck said it!

August 23 2010 at 12:30 PM Report abuse +8 rate up rate down Reply
3 replies to Chuck's comment
Tom & Susan

I blame a lot of this mess on Washington (under Carter and Clinton) when the idea began to take shape that home ownership was a more of a "right" for all people (to help minorities and low income folks qualify for loans...they made it easier to qualify)than a RESPONSIBILITY and something that takes hard work, saving, scrimping, time and sacrafice. This, in turn affected supply and demand since anyone in their brother could qualify, and home prices artifically went through the roof. Throw in greedy lenders, mortgage brokers, realtors, and ultimately homeowners who were qualifying to buy WAY more than they could afford. It bothers me so that folks like myself that did it the right way...and that now after 10 years of home ownership in Michigan, and putting $40,000 down as a downpayment that our home we bought for 250,000, is now worth 180,000. If we had to sell we would have to bring money to the table. I thank God every day that my husband is still employed...because there simply are no jobs here.

August 23 2010 at 12:08 PM Report abuse +13 rate up rate down Reply
3 replies to Tom & Susan's comment