A recent study by SoCal Home Buyers analyzed all 50 states to find the best and worst for property investments. Using factors like median home prices, rental yields, property tax rates and cost of living, it created a property investment score to rank each state. When it comes to real estate investing, choosing the right state can make or break your investment.“The key to successful property investment always lies in choosing the right location, location, location,” said property investment expert Doug Van Soest from SoCal Home Buyers. If you’re considering investing in real estate, here are the markets offering the greatest potential.
5 Best States To Invest in Property
These five states are best bets when investing in real estate, according to the SoCal Home Buyers study.
Louisiana
Median listing price: $279,997
Rental yield: 2.06%
Effective property tax rate: 0.62
Cost of living index: 92.1
Property investment score: 93.65
Louisiana is the top state for property investment, scoring 93.65 out of 100. Homes in the state have a median listing price of $279,997, a rental yield of 2.06% and a low property tax rate of 0.62%. The cost of living is also affordable, with an index of 92.1, as compared to the national cost of living index of 100. All of these factors make the state a smart choice for investors who want to keep expenses low while earning good returns, according to property investment expert Van Soest.
West Virginia
Median listing price: $242,450
Rental yield: 2.50%
Effective property tax rate: 0.49
Cost of living index: 115.1
Property investment score: 93.43
West Virginia comes in second for property investment with a score of 93.43. The state has a median listing price of $242,450, a high rental yield of 2.50% and one of the lowest property tax rates at 0.49%. While the cost of living index is higher at 115.1, the combination of affordable home prices, affordable property taxes and strong rental returns makes it a good option for budget-conscious investors, according to Van Soest.
Mississippi
Median listing price: 299,900
Rental yield: 2.13%
Effective property tax rate: 0.62
Cost of living index: 88.3
Property investment score: 91.76
Mississippi also ranks high for property investment with a score of 91.76. The median home price is $299,900, and investors can expect a rental yield of 2.13%. With a low property tax rate of 0.62% and a cost-of-living index of 88.3, it’s a budget-friendly option for those seeking good returns.
North Dakota
Median listing price: $377,000
Rental yield: 1.67%
Effective property tax rate: 0.99
Cost of living index: 92.8
Property investment score: 90.76
North Dakota scores 90.76 for property investment. The state’s median listing price is $377,000, with a rental yield of 1.67% and a property tax rate of 0.99%. Its cost-of-living index is 92.8, offering a reasonably affordable option for investors despite the lower rental yield.
Oklahoma
Median listing price: $302,500
Rental yield: 1.99%
Effective property tax rate: 0.9
Cost of living index: 86.4
Property investment score: 89.81
Oklahoma has a property investment score of 89.81. Homes have a median listing price of $302,500, with a rental yield of 1.99% and a property tax rate of 0.9%. With a low cost-of-living index of 86.4, the state provides an affordable option for investors looking to balance costs with returns.