If you’re a real estate investor, choosing the right market is one of the most important decisions you’ll make. Markets constantly evolve, and what worked extremely well a few years ago may not produce the same returns today.

At IPS, we focus on markets that still offer a combination of:

• Population growth
• Job growth and job quality
• Sustainable rental demand
• Manageable vacancy rates
• Strong rent-to-price ratios
• Long-term upside

The goal isn’t simply appreciation—it’s finding markets where the numbers still make sense.

Key Metrics Investors Should Watch

When evaluating a market, IPS closely tracks:

Gross Rental Yield

Annual rental income as a percentage of purchase price before expenses. National average: ~6.1%

Vacancy Rate

Higher vacancy often signals oversupply or weakening demand. National average: ~6.9%

Housing Price Growth

Measures appreciation and long-term market momentum. National average: ~4.6%

Job Growth

New jobs directly impact household formation and rental demand. National average: ~2.9%

Unemployment Rate

Lower unemployment generally supports stronger renter stability. National average: ~4.1%

State Income Tax

States with lower or no income tax continue attracting migration and business growth.

Why Certain Regions Continue Leading

Sun Belt Markets

Cities across Texas, Arizona, Tennessee, and Florida continue attracting residents due to:

• Lower taxes
• Better weather
• Corporate relocation
• Relative affordability
• Strong quality of life

Southeast Markets

Markets like Nashville, Atlanta, and Charlotte continue benefiting from:

• Population migration
• Business expansion
• Landlord-friendly environments
• Long-term rental demand

Midwest Markets

Markets like Indianapolis and Columbus continue standing out because they often offer:

• Lower purchase prices
• Better cash flow
• Lower competition
• Strong workforce housing demand

1. Austin, Texas

Market Snapshot

• Population: ~975,000
• Gross Rental Yield: ~12.2%
• Vacancy Rate: ~4.5%
• Housing Price Growth: ~6.6%
• Job Growth: ~2.9%
• State Income Tax: 0%

Austin remains one of the strongest long-term growth markets in the country due to its technology sector, business climate, and lifestyle appeal. Over the last decade, home values have appreciated dramatically as companies and workers relocated from higher-cost states.

Why Investors Like Austin

• Major tech hub (“Silicon Hills”)
• Strong quality of life
• Corporate relocations
• Long-term appreciation potential

IPS Take

Austin has seen significant apartment construction recently, which has created some supply pressure. Investors today need to focus carefully on submarkets and avoid overpaying.

Areas Worth Watching

• Cedar Park
• Manor
• South Austin
• Select suburban corridors

2. Phoenix, Arizona

Market Snapshot

• Population: ~1.6 million
• Gross Rental Yield: ~9%
• Vacancy Rate: ~4.1%
• Housing Price Growth: ~2.7%
• Job Growth: ~1.7%
• State Income Tax: 2.5% flat tax

Phoenix continues benefiting from migration out of California and other higher-cost West Coast markets. Manufacturing, healthcare, and technology continue fueling job growth throughout the metro.

Why Investors Like Phoenix

• Population growth
• Corporate relocation
• Strong rental demand
• Relative affordability vs California

IPS Take

The East Valley continues outperforming many areas due to stronger schools, infrastructure, and tenant demand.

Areas Worth Watching

• Chandler
• Gilbert
• Queen Creek
• East Mesa

3. Raleigh, North Carolina

Market Snapshot

• Population: ~468,000
• Gross Rental Yield: ~6.4%
• Vacancy Rate: ~8.6%
• Housing Price Growth: ~8.4%
• Job Growth: ~3.8%
• Unemployment: ~2.9%

Raleigh benefits from the Research Triangle, strong universities, healthcare, and technology growth. The city consistently ranks highly for quality of life and economic stability.

IPS Take

Strong long-term fundamentals continue supporting demand, though investors should watch increasing supply in some multifamily sectors.

4. Charlotte, North Carolina

Market Snapshot

• Population: ~875,000
• Gross Rental Yield: ~10.6%
• Vacancy Rate: ~4.2%
• Housing Price Growth: ~3.8%
• Job Growth: ~3%

Charlotte continues expanding as one of the Southeast’s major banking and financial hubs.

Why Investors Like Charlotte

• Strong job creation
• Banking and finance growth
• Population growth
• Strong suburban demand

Areas Worth Watching

• NoDa
• Matthews
• Davidson
• Plaza Midwood

5. Boise, Idaho

Market Snapshot

• Population: ~236,000
• Gross Rental Yield: ~9.3%
• Vacancy Rate: ~2.8%
• Housing Price Growth: ~9.7%
• Job Growth: ~3.9%

Boise remains one of the strongest migration-driven markets in the country, supported by quality-of-life demand and low vacancy rates.

IPS Take

Pricing has risen significantly, so conservative underwriting is critical.

Areas Worth Watching

• Meridian
• Kuna
• Nampa
• Southeast Boise

6. Nashville, Tennessee

Market Snapshot

• Population: ~716,000
• Gross Rental Yield: ~12.3%
• Vacancy Rate: ~7.5%
• Housing Price Growth: ~8%
• Job Growth: ~2%
• State Income Tax: 0%

Nashville continues attracting corporate expansion, healthcare growth, tourism, and inbound migration. Companies like Oracle and Amazon continue helping fuel long-term demand.

Why Investors Like Nashville

• Strong inbound migration
• No state income tax
• Healthcare and tech growth
• Lifestyle-driven demand

IPS Take

Not every deal works anymore. Investors must focus heavily on:

• Submarket selection
• Supply pipelines
• Vacancy trends
• Rent assumptions

Areas Worth Watching

• Smyrna
• Murfreesboro
• Lebanon
• Columbia
• Antioch

7. Salt Lake City, Utah

Market Snapshot

• Population: ~200,000
• Gross Rental Yield: ~9.9%
• Vacancy Rate: ~6.2%
• Housing Price Growth: ~3.8%
• Job Growth: ~2.3%

Salt Lake continues benefiting from outdoor recreation, technology growth, and long-term household formation.

Areas Worth Watching

• Lehi
• Herriman
• Saratoga Springs
• Farmington
• Southern Utah markets

8. Tampa, Florida

Market Snapshot

• Population: ~385,000
• Gross Rental Yield: ~11%
• Vacancy Rate: ~10%
• Housing Price Growth: ~2.2%
• State Income Tax: 0%

Tampa remains attractive due to migration, climate, and tax advantages.

IPS Take

Investors should monitor supply carefully, as elevated apartment construction has increased concessions in certain areas.

9. Indianapolis, Indiana

Market Snapshot

• Population: ~888,000
• Gross Rental Yield: ~16.5%
• Vacancy Rate: ~5.3%
• Housing Price Growth: ~4.6%
• Job Growth: ~2.4%

Indianapolis continues standing out as one of the better pure cash-flow markets in the country.

IPS Take

Lower entry prices and strong rent ratios continue making Indianapolis attractive for long-term investors.

10. Columbus, Ohio

Market Snapshot

• Population: ~906,000
• Gross Rental Yield: ~10.8%
• Vacancy Rate: ~4.1%
• Housing Price Growth: ~5.6%

Columbus benefits from Ohio State University, stable employment, and relatively affordable housing.

IPS Take

Columbus remains one of the stronger Midwest cash-flow markets with stable long-term demand.

11. Atlanta, Georgia

Market Snapshot

• Population: ~499,000
• Gross Rental Yield: ~14.2%
• Vacancy Rate: ~8.3%
• Housing Price Growth: ~6.6%
• Job Growth: ~2.5%

Atlanta continues serving as one of the Southeast’s largest economic hubs.

Why Investors Like Atlanta

• Fortune 500 companies
• Strong transportation infrastructure
• Continued population growth
• Large renter base

Areas Worth Watching

• Alpharetta
• Johns Creek
• Midtown
• North Metro suburbs

Final Thoughts

No market is perfect. Every city has different:

• Supply cycles
• Rent growth trends
• Vacancy pressures
• Affordability challenges

The key is identifying markets where:

• Demand remains sustainable
• Pricing still supports cash flow
• Job growth is healthy
• Population continues growing