Investing in medium-sized markets

[Teague Anderson]

Hello all,

 I'm curious to hear everyone's opinions on investing in medium-sized markets.  I'm not sure if there's an official designation, but I would consider medium-sized to be a greater metro area population of about 500,000, give or take a couple hundred thousand.  There is a lot of talk on here about the big cities to invest in, but I find myself drawn to smaller markets.  

I'm currently investing in Chattanooga Tennessee, which has a metro population of about 550,000, and it feels like it's right in the Goldilocks zone of size to me.  It's big enough to support large employers, but small enough that you can become well acquainted with all the smaller neighborhoods.

What do you all think are the pros and cons of markets this size?

[Christina J.]

Hi, @Teague Anderson! I'm an investor in Chattanooga...so I may be a little biased! But generally, I would consider the health and diversity of the local and regional economy as a greater factor in investing than the size of the market. I know investors who have done really well in rural communities, small towns, mid-markets and major cities....it really came down to the health of their economy and their own niche / business model. 

Chattanooga (and the surrounding area) is doing quite well, and the investment math here is strong, which is why my husband and I decided to invest locally. A fairly diverse economic foundation gives us confidence that our investments will continue to present a strong ROI.

Hope that helps. Best of luck on your journey!