How many times have you glimpsed on an article title that says "Top 5 best cities to invest in"? There's just one problem with these kinds of articles: the "best" is purely subjective.
What the author likes may not be in line with what you like. In this article, we are going to provide you something different.
We are going to feature the best cities wherein buying a home would be a great investment. Furthermore, we are going to list the methodology of how the "best" is proclaimed.
To find the best cities, we gathered data on more than 100 areas. Then, we graded them according to these metrics:
- Six-year median home value change
- One-year median home value change
- Property crime rate per 100,000 residents
- Average effective property tax
Now that you know the method to our madness, here are the best cities to purchase a new home in:
5. Irvine, California
2014 and 2015 have been very good years for Irvine homeowners. Property value experienced a growth of almost 4%. From 2010 to 2015, median property values have risen by 1.64%, which is still good. The only reason why Irvine sits at no. 5 is because of its property tax. It's at 0.81%, which is the highest in this list.
4. Honolulu, Hawaii
Residents of Honolulu have enjoyed an impressive growth for median home values these past few years. From 2010 to 2015, Honolulu's median home values have risen by 8%. In the years 2014 and 2015, the area experienced a 3.4% growth. Another significant benefit of purchasing a home in Honolulu is the fact that property taxes are very low - they are at 0.29%.
3. Aurora, Colorado
If you look at the median home values of Aurora over a long-term trend, they are just average, more or less. The biggest reason why it's on this list is because of Aurora’s short-term medium home value gain. From 2014 to 2015, the price of the median homes jumped by more than 5%. To illustrate that clearly, the average median home was at $179,300 in 2014 while the same median home was valued at $189,100 in 2015. Purchasing a home in Aurora could mean jumping on an early wave as the forecast asserts that median property values will continue to rise in the coming years.
2. Fremont, California
Freemont has recently experienced a rise in property values. One possible reason for this is the area's closeness to San Francisco. The Fremont area saw the biggest increase of median homes in 2014-2015. During that time, median homes went up by 5.58%. However, the short-term value growth is not the only enticing trait of Fremont. The area also has the lowest crime rate in the entire country.
1. Denver, Colorado
If you have purchased a home in Denver, Colorado, then you can be proud of your good investment. According to the data and metrics, home values in the Denver area have increased by 12.6% from 2010 to 2015. The biggest increase was in 2014 - 2015, wherein the property values went up by 5.3%. Furthermore, Denver has probably the lowest effective property tax, which is at 0.54%.