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5 Reasons to Invest in Midwest Real Estate

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5 Reasons to Invest in Midwest Real Estate

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There’s a certain charm to living in the Midwest. Among affordability for real estate investors, the Midwest also has a reputation for friendly people, a low-stress lifestyle, a family-friendly environment to raise children, and a slower pace of life. Here are some of the reasons to get you excited about investing in the Midwest real estate market.

It’s More Affordable to Invest in the Midwest

There’s no doubt that there’s a significant difference in real estate prices in the Midwest versus East Coast cities. Along with lower prices in general, the Midwest features moderate rents as well. Be sure to determine what your goals are before investing in any real estate market. If you’re looking to flip properties, you may be able to get more bang for your buck by purchasing Midwest investment properties. On the other hand, if you’re looking to buy single-family homes with the intent of renting them out, you may find your margins slim. Specifically in the Midwest, consider investing in a multi-property if you’re interested in creating cash flow.

A Slower Pace of Life Means More Stability

Another reason to invest in real estate in the Midwest is the generally slower pace of life. Even if you live in bustling Chicago, you’re surrounded by Midwest sensibilities and an increase in overall stability. People are less likely to move around, and that makes for a more stable tenant. The Midwest is also more family-friendly, leading to a steadier pace of life and, therefore, a more stable tenant.

Sustainable Economic Growth

While the Midwest doesn’t compare to major coastal metropolitan cities, they offer great job opportunities, educational opportunities, and an overall great way of life. It’s also important to note that economic growth is especially present in the Midwest. Jobs and burgeoning economies are attracting more and more millennials looking to purchase homes and raise families.

Lower Costs than Bigger, Bustling Cities

Not only are real estate investment properties cheaper to purchase in the Midwest, but the lower cost of living also attracts more people. Having more people in the area means that there is a higher chance that you’ll be able to rent out any investment properties. With the cost of living rising expeditiously in major cities and with people working from home, there’s been an exodus to lower-cost living cities like the Midwest, making the region an attractive place to invest.

The Midwest is a Landlord Friendly Region

While Illinois is tenant friendly, Indiana is a landlord-friendly state. This means that the leasing laws in place favor landlords over tenants. As a result, the eviction process is straightforward and favorable to landlords. There are few rent control measures in place, easier registration and licensing requirements for landlords, decent returns on investments, and lower property taxes.

Midwest Cities

Midwest Cities for Real Estate Investing:

While Chicago is a premier market for investing, don’t just take our word for it! Savvy investors consider all the options before making their final decision, so let’s head to the Midwest real estate market, searching for cities favorable for real estate investments. We’ll examine the median property price, potential short-term rental income, and potential long-term rental income to see how Chicago real estate compares to other Midwest investment real estate potential.

Chicago, Illinois

Chicago, Illinois

With 9.5 million in the metro population area, the Chicago real estate market is always bustling. Currently, the Chicago real estate market is one of the country’s most undervalued real estate markets. There are several multi-property investment properties in Wicker Park and throughout the city. If you find a realtor who’s experienced with investor real estate they could even show you properties otherwise kept under wraps.

Let’s take a look at real estate data for the Windy City:

  • Median Property Selling Price: $342,000
  • Airbnb Rental Income: $2,713
  • Traditional Rental Income: $2,012

Kansas City, Missouri

Don’t overlook Kansas City when considering real estate investment opportunities in the midwest. The city shows excellent potential for a high return on investment that comes with steady population growth. Additionally, the low unemployment rates in Kansas City have led to many real estate investors wanting to take a chance on this city.

Here are some real estate data on Kansas City:

  • Median Property Price: $201,278
  • Airbnb Rental Income: $2,124
  • Average Rental Income: $1,092

It’s clear that Kansas City is favorable for real estate investments. Specifically, with an Airbnb cap rate of 3.59%, it makes perfect sense to buy an investment property as a short-term rental.

Cleveland, Ohio

Cleveland, Ohio

Cleveland may not be the largest or most populous city in the country, but it has plenty to offer real estate investors. With plenty of real estate developments taking place in the central district, economic activity, life, and people are moving back into the heart of Cleveland.

Among the many advantages of investing in Cleveland’s real estate market is its ability to harbor low-risk investments. With an astonishing 98% occupancy rate, it’s hard to say “no” to an investment property in Cleveland.

Let’s take a look at Cleveland’s real estate market statistics:

  • Median Property Selling Price: $128,000
  • Airbnb Rental Income: $2,146
  • Traditional Rental Income: $1,154

With affordability and growth on the horizon, real estate investors are investing in both Airbnb rentals and traditional rentals within Cleveland.

Indianapolis, Indiana

Indianapolis is the second-largest city in the Midwest and another great place to invest. Additionally, Indianapolis is home to 130 tech companies, making it a growing tech hub. Real estate investors would benefit from buying and holding in this budding tech city.

Let’s check out Indianapolis’ real estate data.

  • Median Property Price: $200,000
  • Airbnb Rental Income: $2,162
  • Traditional Rental Income: $969

The ability for real estate investors to invest in a booming real estate market with an equally booming economy at such an affordable price is a ripe opportunity for plucking.

Des Moines, Iowa

Des Moines is another booming Midwest city, and its increasing population puts Des Moines among the hottest markets in the Midwest real estate market. Successful real estate investors are expecting the Des Moines housing market to keep going upward.

Although real estate agents are always going on about the shift from a seller’s market to a buyer’s market, experts are predicting that this will not happen within the next few years.

Let’s take a look at Des Moines real estate market data derived from Mashvisor’s investment property calculator:

  • Median Property Price: $185,000
  • Airbnb Rental Income: $2,030
  • Traditional Rental Income: $927

Work With Experienced Realtors

In the Midwest, investing in real estate property is an excellent opportunity for up-and-coming investors and experienced real estate investors alike. Work with established real estate agents in each region and neighborhood you’re looking to invest in. If you’ve never lived or are not familiar with the areas you’re looking to invest in, you’ll want to depend on the expertise of the realtors in that area. If you live in Illinois, the Greater Chicagoland area, or NW Indiana and are looking to relocate but need an experienced realtor to help sell your property, Dior Realty Group can assist. This team of experts can also provide you with comps, an analysis of the market, and more to help you effectively sell your home at top market dollar to make your transition go smoothly..

Dior Realty Group can even provide you with off-market real estate. For example, if you’d like to invest in the Greater Chicagoland area, an experienced realtor can show Chicago off-market real estate that is not marketed to the general public. Ready to start your investment journey? Reach out to one of the real estate professionals at Dior Realty Group today.

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