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Home prices in pandemic boomtowns — Austin, Phoenix, and Nashville, to name a few — soared to record highs during the first years of the COVID-19 outbreak as people sought warmer and more affordable cities.
But since mid-2022, prices have returned to earth in many cities.
In an interview with Business Insider this week, Olsen said that the once-high-flying pandemic markets are good places to buy rental properties for the years ahead. That’s because prices in most of these metropolitan areas have corrected meaningfully, yet job growth in them continues to rise, signaling they have strong fundamentals for appreciation going forward.
“Seek out investments in areas that have good legs or have long-run prospects. I always like to look at job growth for that kind of thing,” Olsen said. “If we think about job growth since pre-pandemic and we rank that, you’ll kind of see the stars of the pandemic headlines.”
In addition to appreciation opportunities, Olsen said that the growing labor force in each city should support continued rent growth in the years ahead, meaning cash flow from the properties there should also rise in the future.
Below, we’ve listed the 11 pandemic-darling cities Olsen says she favors. Home-price-change data from Redfin since May 2022 — around when the national median home price peaked — is also included. Context is also included for cities where home prices had a different timeline of peaks and troughs than most of the country.
Year-over-year, non-farm job growth from November 2023 is also included from the Bureau of Labor Statistics. Job growth in all of the cities was higher than the national average of 1.8% over this period.
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This article was originally published by a www.businessinsider.com . Read the Original article here. .