{"id":187819,"date":"2026-05-08T11:42:31","date_gmt":"2026-05-08T17:42:31","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187819"},"modified":"2026-05-08T11:42:34","modified_gmt":"2026-05-08T17:42:34","slug":"builders-are-building-in-these-11-markets-for-a-reason","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/builders-are-building-in-these-11-markets-for-a-reason","title":{"rendered":"Builders Are Building in These 11 Markets For a Reason"},"content":{"rendered":"

There\u2019s no need to read the tea leaves to try and guess where to invest next\u2014<\/span>just<\/span> follow the money.<\/span> In this case, the money is the hundreds of millions of dollars <\/span>being spent<\/span> by major builders planning large swathes of single-family homes and rental communities across the country.<\/span><\/p>\n

Smaller mom-and-pop investors<\/span>, <\/span>paying<\/span> attention to planned new communities<\/span>, have the opportunity<\/span> to<\/span> benefit from extensive market research, <\/span>glide in on<\/span> the slipstream of corporate <\/span>juggernauts<\/span>, and <\/span>eke out<\/span> lucrative long-term <\/span>investment strategies<\/span><\/a>.<\/span><\/p>\n

The Signals Telegraphed by Big Builders<\/span><\/h2>\n

The top 10 builders aren\u2019t in the gambling business. When they decide to build hundreds of new homes, vast troves of data are analyzed to assess metrics such as household growth, job access, and renter demand to assure stakeholders that their money <\/span>is well spent<\/span>.<\/span><\/p>\n

With the nation\u00a0<\/span>facing a\u00a010 million-home deficit<\/a>, according to White House economists, major developers have been calculating where they believe<\/span>\u00a0new housing is most needed.<\/span> The South and the Midwest appear to be where the action is.<\/span><\/p>\n

Century Communities, the nation\u2019s 10th largest homebuilder, recently announced more than 360 new single-family homes across three developments in the Atlanta metro\u2014Belleview Manor in Fairburn, Hawthorne Reserve in Dallas, and Windsong Estates in McDonough\u2014with prices generally starting in the low-to-mid $400,000s and low $500,000s.<\/span><\/p>\n

“Growth in outer-ring Atlanta suburbs … is being fueled by a mix of in-migration, steady job access across the metro, and a value proposition that still works for many households: more space, newer product, and neighborhood amenities at price points that remain below many closer-in submarkets,\u201d John Gillem, a senior director of market analytics for Homes.com, said <\/span>on the company site<\/span><\/a>.<\/span><\/p>\n

How Smaller Investors Can Take Advantage<\/span><\/h2>\n

For a small investor, those metrics offer an appealing insight because, given current interest rates and housing prices, many would-be homebuyers could still <\/span>be left<\/span> on the sidelines despite moving to these areas for employment and education.<\/span><\/p>\n

Therefore, for potential buyers, the game plan is to rent and save while ensuring their children <\/span>are placed<\/span> in good school districts\u2014an ideal scenario for landlords seeking stability, long-term tenants, and <\/span>appreciating<\/span><\/a> assets in growth corridors.<\/span><\/p>\n

The ever-expanding Houston suburbs are another place where investors will find plenty of tenant interest. Here, The Signorelli Company has broken ground on 359 residences in the Azalea District, the final residential phase of the 1,400-acre Valley Ranch master-planned community in Montgomery County, Texas. Homes start in the $300,000s in a submarket where the median sales price in New Caney over the past year was about $272,990, up 9% year over year, according to <\/span>Homes.com data<\/span><\/a>.<\/span><\/p>\n

Suburban Rentals and New Zoning Are Fueling Apartment Growth<\/span><\/h2>\n

Suburban rentals are a hot commodity following a broader trend of renters shifting from central cities to surrounding communities in search of more space and affordability.<\/span><\/p>\n

Minneapolis became the first U.S. city to eliminate single-family zoning through its<\/span> Minneapolis 2040 Plan<\/span><\/a>, which has led to high levels of activity, stabilized rent growth, and a continued focus on increasing supply. <\/span>ADUs<\/span><\/a> have also been part of the housing reform package that has seen hundreds of new apartment buildings rise.<\/span><\/p>\n

According to research by commercial brokerage Marcus & Millichap, reported by<\/span> REJournals<\/span><\/a> <\/em>last year, development had been robust, specifically in Minneapolis suburban markets, resulting in 8,000 units in 2024 and 3,500 in 2025.<\/span><\/p>\n

As a result, these areas experienced strong rent growth and declining vacancies, reflecting renters’ preferences for quiet, more spacious environments, a solid job market, and new housing supply. <\/span>Greystar\u2019s recent purchase of a 264-unit property in Maple Grove<\/span><\/a> and the<\/span> 180-unit Lyra at Riverdale Station in Coon Rapids by MLG<\/span><\/a>, as reported by CoStar, underscores confidence in the Minneapolis submarkets.<\/span><\/p>\n

The Bigger Picture<\/span><\/h2>\n

For a 30,000-foot overview of new single-family housing development in the U.S., the 2026<\/span> Census.gov<\/span><\/a> website provides a detailed snapshot, while <\/span>Homes.com<\/span><\/a> has released a sample of the nationwide projects that investors could use as a guideline.<\/span><\/p>\n

Property management software company<\/span> TurboTenant<\/span><\/a> echoed the sentiments of large developers, as outlined in their newest projects: The best places to buy rental properties are states that favor low state income tax and a high quality of life, notably the Sunbelt.<\/span><\/p>\n

Other strong investment areas are those with strong housing economies and high housing demand, such as Florida in the Southeast. <\/span>The Midwest can\u2019t be discounted either, <\/span>due to<\/span> its low prices, high yields, and market stability, which <\/span>translates to<\/span> cash flow<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

Using these metrics, here are <\/span>11 rock-solid places to invest<\/span><\/a>:<\/span><\/p>\n