Where to Invest? Metro or small satellite cities.
EXODUS
Over the last year there has been a trend toward the exodus of people from the major metro areas to the small satellite cities and suburban communities. As a result of the pandemic most people who did move stayed close to where they came from, and usually within a 100-mile radius of the metro cities where they grew up.
In America’s densest and most expensive metro regions the picture is apparent and dramatic, the percentage increase in moves are well into the double digits. Developers and builders are seeing a trend in growth in the smaller quainter communities that boast a better overall lifestyle.
US TRENDS
The Blumberg Report stated back in April 2021 that “Dense core counties of major U.S. metro areas saw a net decrease in flow into the city, while other suburbs and some smaller cities saw net gains. In other words, people moved outward. Outward to the suburbs of their own core metro area, but also farther out, to satellite cities or even other major urban centers that might still give people proximity to their region”
Investors and developers are finding these hidden gems as a way to boost their investment portfolios. More emphasis now has been to research these small communities and find development opportunities with huge returns, better appreciation, less competition, and more affordable housing. Finding these hidden pockets of investments in the top cities across the US, are starting to produce lucrative results for the “crowdfunding” and passive investor networks.
Where to buy investment property has drastically changed as well. People are moving from big cities to smaller territorial cities for more space and a better overall lifestyle. Rental properties in big metro areas used to be gold mines for investors. But now that’s all changed; big cities are no longer a safe bet and the smaller cities & communities are seeing huge returns for the savvy developers and investors who have been ahead of the curve.
SUMMARY
What this means for investor is this huge migration makes smaller cities more attractive to savvy investors with more affordable housing, rental property prices and attractive returns. Most ordinary investors don’t want to do the legwork and miss out on these newer opportunities. It produces “real” cash flow and typically provides double digit returns for its investors. These trends are staring to get the deserved attention of industry leaders and mavericks within the investment community.
