Are you a real estate wholesaler who’s wondering what the best marketplaces for real estate wholesaling are in 2023?
One of the most effective and profitable methods for investing in real estate is wholesaling. It requires less capital, and beginners with no money can always take advantage of options like transactional financing, which lets them buy investment properties without using their own money.
For a more in-depth look at real estate wholesaling, read my recent article, ‘Real Estate Wholesaling Explained’.
While you’re here, register today for access to my EXCLUSIVE online training course, ‘Learn The Hardcore Facts About Wholesaling Properties’ and discover everything you need to be a successful real estate wholesaler.
The Best Marketplaces For Real Estate Wholesaling In 2023
What’s better? It is a quick real estate investment with a quick return on investment. However, wholesaling real estate is only as profitable as the market in which it operates. If you choose the right location, you’ll make a lot of money. As a result, I’ve compiled a list of some of the best wholesale real estate markets as well as helpful advice on how to choose the best wholesaling market conditions down below.
In 2023, the following are some of the best housing markets for wholesaling:
The Lone Star State is one of the most popular markets in the nation for commercial real estate in general and wholesaling real estate in particular. Texas, which is the second-largest state in the country in terms of size and population, regularly experiences consistent year-over-year job growth thanks to the influx of skilled job seekers and employers.
It’s home to 50 Fortune 500 companies, including McKesson and Oracle, and has a long list of tech titans like Google, Apple, IBM, Tesla, and most recently, Samsung. Even better, Texas has no income tax, making it an even better market for real estate investors and wholesalers looking to make a lot of money.
Have no idea where to begin? Make for Austin. It is one of the best cities in Texas for wholesaling.
It is one of the largest cities in the country that is growing at the fastest rate, has a thriving technology sector, and has reasonable living costs. As a result, there will undoubtedly be numerous opportunities for wholesaling. For wholesalers and realtors interested in exploring the Texas market, the following are some fundamental facts:
- Population in 2022: 29.9 million
- The most popular real estate markets: Dallas, San Antonio, Houston, and Austin
- The median home price in Austin, San Antonio, Houston, and Dallas: $247,210
- Rate of Vacancy in 2022: 8.40%
Also known as the Grand Canyon state, Arizona continues to be one of the nation’s best wholesale real estate markets despite Zillow’s prediction that home prices will rise at a slower rate this year than in 2021.
It’s become a popular destination for retirees to relocate in recent years, but it’s slowly becoming a destination for job seekers, students, and investors looking to take advantage of the state’s zero-income tax benefits, warm weather, abundant employment opportunities, and robust public education system.
As a consequence of this, the state has been experiencing high rates of domestic migration in recent years, with Phoenix, particularly, experiencing the greatest increase in 2021. The city’s population increased by 1.7%, with the majority of newcomers settling in the metropolitan area due to the numerous entertainment and modern lifestyle opportunities, as well as affordable housing options.
As a state with high rates of domestic migration, Arizona guarantees a market for wholesalers’ wholesaling units in addition to low investment property prices and no taxes for wholesalers.
- Population in 2022: 7,408,017
- The most competitive real estate markets: Prescott, Scottsdale, Phoenix, and Tucson
- Median home price: $470,500
- Rate of Vacancy in 2022: 4.6%
One of the best markets for real estate investments, particularly wholesaling houses, has always been Florida. The Sunshine State, which is the third most populous state in the nation, is expected to add approximately 850 new residents per day over the next few years, increasing the demand for residential and commercial properties even further.
However, the increase in population isn’t surprising. Florida has a nickname because it has great weather all year round, attracts international tourists, and is home to numerous global business giants—which means there are often many opportunities for employment and investment.
Florida is a prime location for real estate investing because it is also a state with no income tax and a government that prioritizes development through incentives.
- Population in 2022: 22 million
- Most desirable real estate markets: Cape Coral, Tampa, Miami, Orlando, and Jacksonville
- Median home prices of: $297,390
- Rate of Vacancy in 2022:
- In 2021 (through Q3), Florida’s properties experienced an average annual appreciation rate of 34.03 percent.
With an annual net population gain of approximately 114,000 new residents, Georgia is the eighth most populous state in the nation. Her economy is expected to expand by 4% this year and is home to global conglomerates like Equifax, Aflac, and NCR, making it a popular choice for investors and job seekers.
It’s one of the most desirable places to live and invest because of its job growth, low taxes, and reasonable cost of living. Because of this, the Peach State typically has a limited supply of available homes and a high demand for them, making wholesale real estate investing a pretty viable option.
In the past year, Atlanta’s home prices have skyrocketed and will continue to do so at a steady rate, making it one of the most popular real estate markets in Georgia in 2022 and beyond.
- Population in 2022: 3,970,739
- Real estate markets in high demand: Atlanta, Winder, Temple, Kennesaw, Augusta
- The median home price: $269,441
- Rate of Vacancy in 2022: 6.0%
As more people move from California to Middle Tennessee, Tennessee, which is affectionately known as the Volunteer State, is experiencing significant population growth. The majority of the new residents cite Tennessee’s abundance of natural wonders, ease of access to nature, affordability, and political neutrality as some of the main draws, despite the fact that the reasons for migration vary.
Due to low inventory and high median prices, the housing market in Nashville, in particular, is anticipated to be even hotter throughout the course of 2022. Investigate the region’s wholesale real estate market at this time.
- Population in 2022: 7.05 million
- The most popular real estate markets are: Clarksville, Nashville, Knoxville, and Chattanooga
- Median home prices: $348,000
- Rate of vacancy in 2022: 6.6%
- In 2021 (through Q3), the annual rate of property appreciation in Tennessee was 30.32 percent.
6: New York
The New York market for flippers, wholesalers, and other real estate investors has been fairly favorable over the past two years. Even though there was more inventory than needed between 2018 and 2020, the pandemic in 2020 sparked an increase in demand, which resulted in a steady rise in home prices up until this point.
By the end of the year, housing demand is expected to rise even more as landlords’ pandemic-related rental discounts gradually expire, forcing renters at a disadvantage to consider home ownership.
The Big Apple is a premium destination for wholesale real estate deals in 2022 and beyond because of this, as well as limited inventory and a population that is growing at an ever-increasing rate.
- Population in 2022: 8.85 million
- The most popular real estate markets: Rochester, Brooklyn, and Manhattan
- Median home prices: $759,901
- Rate of Vacancy in 2022: 4.5%
Michigan’s real estate market was severely affected by the pandemic, but it is slowly but surely recovering. The state’s real estate has proven to be fairly resilient in the past, so the recovery is not surprising.
In the most recent quarter of 2021, property values increased by 7.8% and are expected to rise further as a result of low inventory and high demand brought on by the large number of people moving to cities like Detroit in search of better opportunities.
- Population in 2022: 10 million
- The most popular real estate markets: Detroit, Jackson, Flint, and Grand Rapids
- The median home price: $257,986
- Rate of Vacancy in 2022: 4.4%
- In 2021 (through Q3), the average annual property appreciation rate in Michigan was 22.54 percent.
What Are the Best Market Conditions for Wholesaling Properties?
There are a few market conditions that successful real estate investors use to determine a market’s wholesaling viability. Housing markets are typically quite diverse and constantly change. Reviewing property values is an easy way to determine whether a market is suitable for wholesaling.
Also, keep track of the supply of inventory. Due to high demand and rising wholesale property values, wholesaling in a real estate market with limited inventory increases the likelihood of earning a good return on investment (ROI).
The age, gender, race, and ethnicity of a population in a region are all referred to as demographics. Prices and the kind of properties in demand in the wholesaling real estate market are directly impacted by these factors.
For instance, due to their low upkeep and proximity to amenities, condos and detached townhomes are likely to be in high demand in an area with a large population of baby boomers aged 59 and older. Therefore, wholesaling or flipping condo units in these areas is likely to result in substantial profits.
On the other hand, if an area’s population consists primarily of young boomers (those under the age of 50), demand for multigenerational homes with more space will be high.
Millennials and Gen Z
When it comes to Millennials and Gen Z, things are completely different. The former generation values experience, freedom, and convenience, and they frequently purchase homes in culturally infused markets like New York and Atlanta.
On the other hand, potential buyers of Generation Z place a high value on conservatism and are likely to choose homes of a reasonable size that provide the most value for their money.
What It Means
Therefore, prior to investing, research the demographics of an area to determine whether it fits your target audience, even if a wholesale property appears to be profitable and you already have a motivated seller on hand.
Always keep in mind the expansion of the population when weighing demographic factors. The rise in population frequently coincides with an increase in demand, which results in high list prices and, as a result, high profits for wholesaling properties.
The vacancy rate is the proportion of a rental property’s units that are not occupied, as the name suggests. Low vacancy rates indicate strong sales, while high vacancy rates indicate weak rental sales.
When it comes to wholesaling and other real estate investments like it, a market’s vacancy rate matters more.
The high rate means that there aren’t enough rental units or that rental property prices are too high. This means that most people might prefer to buy rather than rent, which makes the market perfect for wholesaling.
Example of Wholesale Real Estate
Wholesaling is one of the most flexible ways to invest in real estate. Investors don’t usually buy properties, so they don’t need as much money. Unlike flippers, who have to do renovations, investors only need to find an end buyer, which means they can make money quickly.
A motivated seller inherits a distressed home from their parents. Despite the property’s sentimental value, the seller lacks the time to make repairs, so they are willing to sell it to the first buyer for $400,000, which is the market value.
If a wholesaler visits such a property, they will negotiate a contract for $400,000 and market it for a profit—probably $430,000 or more, depending on market conditions—to their investor network and other buyer lists.
After they locate an end buyer, such as a flipper or rehabber, and the transaction is concluded successfully, they will receive $30,000 in profit, while the owner will receive $400,000.
Make Money by Wholesaling Real Estate
Wholesaling real estate is a great strategy for experienced real estate investors looking to make a quick buck and beginners looking to enter the real estate investing market. And even though there are some slight drawbacks, the advantages quickly outnumber the cons.
If you’re ready to grab entrepreneurship by the horns and start a lucrative career as a real estate wholesaler, contact my team today! We can teach you everything you need to know to start generating a reliable, steady income that allows you to live the life you deserve.
…Looking for even more ways to build wealth? Don’t forget to secure your spot for my FREE + EXCLUSIVE online training course, ‘Teach Me The Digital Products Game‘ and learn the simplest, most cost-effective ways to create and sell digital products in 2023!