Think of the midwestern markets if you’re looking to invest in real estate this year. Live in the Midwest or come from a state such as Michigan, Indiana, or Ohio, but you’ve been thinking about moving elsewhere. The midwestern United States will get you thinking differently. Midwestern real estate markets are ranked among the hottest markets in the U.S. for a good reason!
Renters occupy many more homes in the Midwest region of the United States than homeowners. In many midwest real estate market areas, home prices are relatively affordable yet rising fast. If you’re looking for an investment property this year, be sure to consider smaller cities in regions within the upper Midwest.
Keep reading to learn more about the Midwest markets and know why the midwestern is attractive for investments.
States in the Midwest :
The Midwest refers to the region in the U.S. located between the Western and Northeastern states. This region is also divided into two subregions, West North Central and East North Central, with the Mississippi River lying east of the dividing line as a predictor for real estate markets for each subregion. The exact description of this region may vary, but most sources use these 17 states as markers for identification; these are as follow;
- Illinois
- Indiana
- Iowa
- Kansas
- Michigan
- Minnesota
- Missouri
- Nebraska
- North Dakota
- Ohio
- South Dakota
- Tennessee
Largest Cities in the Midwest
- Chicago
- Cleveland
- Columbus
- Detroit
- Indianapolis
- Kansas City
- Milwaukee
- Minneapolis
- Omaha
- St. Louis
- St. Paul
- Wichita
Why are investors interested in Midwest real estate?
Midwest real estate investors are particularly interested in major Midwestern cities such as Des Moines, Minneapolis, Chicago, and Indianapolis. While prices in these areas may be on the rise relative to other regions of the country, compared with places like New York City and San Francisco, they are still relatively cheap and often offer some of the lowest living costs in the country.
Population growth is particularly strong in some of these regions, largely due to people from bigger cities nearby. Smaller Midwestern towns such as Fargo and Madison also have positive growth trends and relatively low cost-of-living expenses.
Reasons why the Midwest is the best place to buy a house right now
- The Midwest has a lot to offer: lower housing costs (on average), longer commutes, and usually a slower pace of life.
- The Midwest is perfect for families looking for good schools, friendly neighbors, ample parking, walkability, and well-kept small-town main streets.
- These regions also offer low cost of living paired with high salaries, which help keep population growth robust, the job market healthy, and the demand for rent real estate in the Midwest strong.
- Midwestern states are the best place to buy houses due to their diversified economy.
Best Cities in the Midwest Real Estate Market
Compared to the costs of coastal cities like New York, Los Angeles, and San Francisco, the real estate market in the Midwest is looking pretty good. In general, many factors help set the Midwest apart as a more desirable place to buy a home right now. To learn all about these reasons, and many more, check out our new infographic.
Chicago, IL
Home to the University of Chicago, a scientific research and innovation center, Chicago offers a highly diverse cultural and business scene. Located on the shores of Lake Michigan, it’s a perfect place to take advantage of nature while enjoying the city’s amenities.
- Population: 2,693,959
- Population growth: -0.45%
- GDP: $709 billion
- GDP growth: 42%
- Employment growth: 0.89%
- Unemployment: 8.0%
- Zillow Home Value Index: $282,568
- Home value growth: 14.0%
- Average listing price: $349,900
- Average sales price: $342,000
- Average rent 3-bedroom home: $2,200
- Rent growth: 2%
- Renter-occupied households: 46%
- Per capita income: $40,277
- Average household income: $61,811
- Median age: 35.2
Cincinnati, OH
Cincinnati is the largest city in Ohio, the 26th largest city in America, and the second-largest metro area in Ohio. It’s known as “the Queen City .”The population is 303,954 giving it a population density of 1,839 people per square mile.
- Population: 303,954
- Population growth: 0.44%
- GDP: $154 billion
- GDP growth: 54%
- Employment growth: 1.42%
- Unemployment: 5.3%
- Zillow Home Value Index: $211,044
- Home value growth: 19.5%
- Average listing price: $225,000
- Average sales price: (not currently available)
- Median rent 3-bedroom home: $1,485
- Rent growth: 13%
- Renter-occupied households: 54%
- Per capita income: $33,910
- Average household income: $46,260
- Median age: 32.5
Columbus, OH
Columbus is a fast-growing city in the Midwestern United States with approximately 2.1 million residents. It is the state’s capital and largest city. With a strong economy, Columbus is the central hub for financial, educational, and agency services in the middle southern region of Ohio.
- Population: 2,122,271
- Population growth: 0.75%
- GDP: $134 billion
- GDP growth: 56%
- Employment growth: 3.58%
- Unemployment: 5.4%
- Zillow Home Value Index: $213,755
- Home value growth: 18.2%
- Average listing price: $229,900
- Average sales price: $260,800
- Median rent 3-bedroom home: $1,650
- Rent growth: 14%
- Renter-occupied households: 46%
- Per capita income: $36,285
- Average household income: $67,207
- Average age: 36.4
Des Moines, IA
Des Moines, IA, is the capital and the most populous city in the U.S. state of Iowa. Located along the western bank of the Des Moines River, it has served as a strategic political center of Iowa for much of its history.
- Population: 699,292
- Population growth: -0.14%
- GDP: $52 billion
- GDP growth: 58%
- Employment growth: 0.89%
- Unemployment: 3.9%
- Zillow Home Value Index: $175,085
- Home value growth: 13.8%
- Average listing price: $185,000
- Average sales price: $185,000
- Average rent 3-bedroom home: $1,300
- Rent growth: 4%
- Renter-occupied households: 43%
- Per capita income: $37,042
- Average household income: $71,164
- Average age: 36.5
Fargo, ND
Fargo, North Dakota, offers a low cost of living, excellent job opportunities, and some of the lowest home prices in the nation. The economy has seen strong growth over the past year, and new companies continue to build offices and hire workers. All these factors have helped propel Fargo’s population growth rate to 1.44%.
- Population: 246,145
- GDP: $15.5 billion
- GDP growth: 62%
- Employment growth: 1.81%
- Unemployment: 2.7%
- Zillow Home Value Index: $253,306
- Home value growth: 8.5%
- Average listing price: $260,000
- Average sales price: (not currently available)
- Median rent 3-bedroom home: $1,345
- Rent growth: 14%
- Renter-occupied households: 48%
- Per capita income: $36,283
- Average household income: $62,820
- Average age: 33.5
If you’re looking to buy a house, you understand many factors to consider. The Midwest has its benefits—healthy job market, quality of life, low cost of living paired with high salaries—that make it a great area to purchase a home right now. Talk to your realtor about the benefits of buying in the Midwest right now.
