If you had cash to deploy today: discounted Sun Belt or steady Midwest?
Quick one for the newsletter crowd. Home prices have basically split into two countries right now. A bunch of Sun Belt and Mountain West metros (Austin, Tampa, Phoenix, Denver) are sitting below their 2022 peak and still drifting down, while a lot of Northeast and Midwest markets (Hartford, Columbus, Chicago) keep grinding higher on tight inventory.
So, if you had capital ready to deploy this month, which one would you buy into?
Do you chase the discount in an oversupplied Sun Belt market and bet you can hold through soft rents until it turns? Or do you pay up for a tighter, slower, steadier market and bet on appreciation plus easier tenant demand?
No wrong answer. I want to know which way you lean and, more importantly, why. I'll feature the best replies in Thursday's Brief.
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#1 New Member Introductions Contributor
- Real Estate Agent
- Columbus Cleveland Dayton, OH
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#1 New Member Introductions Contributor
- Real Estate Agent
- Columbus Cleveland Dayton, OH
I'd lean Midwest every time. I'd rather buy in a market with steady tenant demand, limited inventory, and reliable cash flow than try to time the bottom in an oversupplied market. Appreciation is great, but strong cash flow gives you options. Markets like Ohio have continued to make sense because the fundamentals work on day one, and any appreciation is a bonus.