Top 5 U.S. Cities for Real Estate Investment Right Now

Michael Gortenburg Real Estate Investment

Hi everyone! It’s Michael Gortenburg here.

If you’re looking to grow your portfolio or diversify into real estate, these five U.S. cities are showing serious promise in 2025. Anchored by strong job markets, population growth, and favorable housing dynamics, each offers unique value for savvy investors. Here’s where I’d be putting my eyes—and capital—right now:

1. Austin, Texas

Known as the “Silicon Valley of the South,” Austin continues to attract tech giants and startups. With companies like Tesla, Google and Oracle expanding here, the influx of well-paid professionals is fueling housing demand. Though median home prices hover around $450K–$550K, the tight rental market and robust appreciation make it an ideal spot for investment

2. Nashville, Tennessee

Dubbed “Music City,” Nashville is riding a wave of growth across healthcare, tech, and entertainment sectors. With increasing population and limited housing supply, home values are expected to rise another ~19% in the next year. Solid rental demand coupled with affordability relative to major metros makes it a standout .

3. Charlotte, North Carolina

America’s second-largest banking hub is evolving into a multi-industry engine—finance, tech, manufacturing, and healthcare. Housing remains more affordable (median listings around $425K), and rising job numbers are sparking consistent rental demand and appreciation potential .

4. Phoenix, Arizona

Phoenix’s warm climate, low cost of living, and job diversification (tech, healthcare, manufacturing) are fueling rapid population growth. Home price appreciation is strong (about 81% over the past decade), and rental yields are attractive for investors

5. Raleigh–Durham, North Carolina

The Research Triangle’s tech, healthcare, and education-driven job market continues to swell. Raleigh and Durham offer relatively affordable housing compared to Silicon Valley or Boston, making it ideal for long-term investing. Strong rental markets and steady appreciation add to its appeal .

Why These Five?

  • Economic Diversity: Tech, healthcare, finance, and education anchor these markets.
  • Population Surge: Millennials and remote workers continue relocating to these areas.
  • Housing Demand > Supply: Especially strong in Austin and Nashville, helping drive values and rentals.
  • Affordability Meets Growth: Metros like Charlotte and Raleigh offer more entry-level opportunities for long-term growth.
  • Investor-Friendly: Generally favorable landlord laws and strong rental yields (~5–8%).

Each of these cities offers a compelling reason to invest—whether you’re chasing cash flow, long-term appreciation, or a bit of both. Your choice depends on your strategy: high cash yields? Go Phoenix or Raleigh. Eyeing appreciation and scalability? Austin and Nashville shine. Want balance at a lower entry price? Charlotte might be the sweet spot.

What investment strategies are you exploring now? Are you leaning toward rental income, flipping, or a mixed portfolio? Drop your thoughts below or connect with me—I’m always keen to chat real estate!

Michael Gortenburg, Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri.

Also, follow Michael on Medium, Twitter, and Xing.

Why Location Matters More Than Ever in Real Estate Investing

Hi everyone! Michael Gortenburg here.

If you’ve spent any time in real estate as an investor, a homeowner, or even just someone keeping an eye on the market, you’ve probably heard the old saying: “Location, location, location.” It’s a classic for a reason. But in today’s fast-changing real estate landscape, location matters more than ever and not just in the way you might think.

Let’s talk about why picking the right location can make or break your real estate investment.

The Growth Factor: Follow the Development

One of the biggest indicators of a prime real estate location is development. Cities and neighborhoods that are experiencing new infrastructure, commercial growth, and job creation tend to see rising property values.

For example, in Kansas City, areas like the Crossroads District and West Bottoms have transformed from overlooked industrial spaces into highly sought-after residential and commercial hubs. Investors who spotted the potential early saw incredible appreciation.

If you’re considering an investment, pay attention to where new businesses, schools, and transportation projects are being developed. They often signal long-term growth.

The Remote Work Shift: Location Isn’t Just About Downtown Anymore

Not too long ago, proximity to downtown business districts was a top priority for many homebuyers and renters. Now, with remote and hybrid work becoming the norm, more people are looking for space, affordability, and lifestyle perks over being near an office.

That’s why suburban areas like Lee’s Summit and Olathe have become increasingly attractive in the Kansas City metro. They offer more square footage, good schools, and a lower cost of living—all while still providing reasonable access to the city.

For investors, this means that the suburbs and secondary markets are becoming just as competitive as urban cores.

Amenities and Walkability Are Driving Demand

People today want convenience. Whether it’s being able to walk to a coffee shop, access green spaces, or have restaurants and entertainment nearby, neighborhoods that offer walkability and lifestyle perks tend to see higher demand.

Take Brookside and Waldo, for example—both areas in KC that continue to attract buyers and renters because they offer a strong sense of community, access to local shops, and great walkability. These are the kinds of neighborhoods where people want to stay long-term.

As an investor, looking beyond just property prices and focusing on what makes a neighborhood livable can lead to stronger returns.

The Short-Term Rental Boom: Tourist-Friendly Areas Are Goldmines

If you’re investing in short-term rentals (Airbnb, Vrbo, etc.), location is everything. Properties in areas with tourism, major events, or business travel are seeing high demand.

In Kansas City, spots near the Power & Light District, the Plaza, and the stadiums are perfect for short-term rentals because they attract visitors year-round. Whether it’s Chiefs and Royals fans, concert-goers, or business travelers, these areas consistently bring in renters looking for a great location.

Climate and Natural Disaster Risks Are Changing the Game

One thing that investors can’t ignore anymore? The impact of climate and weather risks on real estate.

Flood zones, wildfire-prone areas, and regions with rising insurance costs are making some locations riskier investments. Understanding a property’s climate resilience, insurance requirements, and long-term viability is becoming just as important as price and amenities.

For example, in the Midwest, properties with solid drainage systems, updated roofing, and good insulation are gaining more appeal because they can handle extreme weather shifts better than older, less-prepared homes.

The Bottom Line: Do Your Homework

Real estate investing has always been about timing and strategy, but in today’s market, location plays an even bigger role in determining long-term success. It’s not just about where the best deal is—it’s about where people want to live, where businesses are thriving, and where communities are growing.

So, whether you’re looking at residential, commercial, or short-term rental properties, take the time to study because at the end of the day, a smart investment isn’t just about buying property, it’s about buying in the right place.

What are your thoughts on location and real estate investing? Drop a comment below or connect with me on social media. I’d love to hear your perspective!

Check out my blog about the five reasons why you should invest in real estate!

Michael Gortenburg, Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri.

Also, follow Michael on MediumTwitter, and Xing.

Insights into Entrepreneurship: A Conversation with Michael Gortenburg

Hello, it’s Michael Gortenburg!

Starting on the entrepreneurial journey demands a unique level of determination and resilience to persevere despite challenging odds. Drawing from my experience in the competitive realm of Kansas City real estate market, I’d like to share some key lessons.

Launching your own business is akin to planting a seed. Nurturing it through uncertainties requires unwavering focus. The journey may test your resolve, but remember, success often emerges from the most challenging moments. Stay focused and stay determined.

I have found that business obstacles are par for the course. Conquering them is more art than science. Don’t be overwhelmed; instead, break down challenges systematically. Rome wasn’t built in a day, and your startup won’t be either. Approach each obstacle as a lesson, not a failure.

Signs of success are often subtle. If your product or service is gaining traction, if customers are returning, and if your business is evolving and expanding—these are positive signs. Conversely, if your efforts aren’t generating interest or if financial concerns are mounting, it may be time to reassess.

Now, let’s discuss why Kansas City is a great place for startups. Beyond its strategic location and logistical advantages, the city offers a unique blend of urban vitality and community support. The cost of living is reasonable, and the real estate market holds considerable promise.

Kansas City’s central location makes it an ideal hub. The supportive community, coupled with a diverse cultural scene, provides an environment where businesses can thrive.

Want to find out more about museums and culture? Click here to read my blog on museums.

In conclusion, the road ahead may be challenging but maintaining a strategic mindset and leveraging the unique attributes of Kansas City for entrepreneurs will pave the way for success.

As we delve deeper into the complexities of entrepreneurship, let’s explore why Kansas City isn’t just a place—it’s an entrepreneurial haven.

Strategic Location and Logistics

Kansas City’s strategic geographical location is a logistical advantage. The location provides unparalleled access to major markets without the logistical complexities often found on the coasts. This central positioning streamlines supply chains and facilitates efficient business operations.

Cost of Living and Business Friendliness:

Another reason Kansas City is so appealing is its remarkably affordable cost of living. For startups watching their budget, this is a game-changer. Moreover, the business-friendly environment, moderate taxes, and regulatory support foster a climate conducive to growth and innovation.

Community Support and Networking Opportunities:

Kansas City isn’t just a city; it’s a community. The collaborative spirit here is palpable, with a genuine interest in seeing businesses thrive. Networking opportunities are abundant, making it easier to connect with like-minded individuals and potential collaborators.

Cultural Scene and Quality of Life:

Beyond the boardrooms and office spaces, Kansas City boasts a vibrant cultural scene. From world-class museums and galleries to a thriving music and culinary scene, the city offers a well-rounded quality of life.

Real Estate Potential and Tech Integration:

As a real estate investor, I’ve witnessed the untapped potential in Kansas City’s property market. The city allows for strategic real estate investments with promising returns. Moreover, the integration of technology in various sectors is propelling the city forward.

In conclusion, Kansas City will be a partner in your entrepreneurial success story. From its strategic advantages to the cultural richness and the promising real estate landscape, this city has much to offer. Consider making Kansas City your launching pad—a place where dreams are not just dreamt but realized.

Best regards,

Michael Gortenburg

Michael Gortenburg, Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri. 

Also follow Michael on Medium, Twitter, and Xing