BiggerPockets Real Estate Podcast Summary

Episode: Where We’d Invest in Real Estate in 2025 (If We Could Buy Anywhere)
Release Date: April 30, 2025
Host: Dave Meyer, Head of Real Estate at BiggerPockets
Guests: Ashley Kahr (Co-Host of the Real Estate Rookie Podcast) and Henry Washington (Co-Host of On the Market)

Introduction

In this engaging episode of the BiggerPockets Real Estate Podcast, host Dave Meyer teams up with Ashley Kahr and Henry Washington to delve into the most promising real estate markets for investment in 2025. Responding to listener feedback, the trio shares their top picks across three primary regions in the United States: East, Central, and West. Each guest presents their selected market, supported by comprehensive data and personal insights, offering listeners valuable guidance on where to allocate their investment capital for optimal returns.

Methodology for Selecting Markets

Before diving into specific markets, Dave outlines the selection process used by the hosts to identify their favorite investment locations. The United States is broadly divided into three regions:

• East Region: States bordering the Atlantic Ocean, including Vermont and West Virginia.
• Central Region: Encompasses the Midwest and parts of the South, stretching west to Minnesota, Iowa, Missouri, Arkansas, and Louisiana.
• West Region: Covers everything westward from Texas to the Pacific Ocean, representing about one-third of the U.S. population.

Each market is evaluated based on criteria such as median home prices, rental yields, job growth, population trends, vacancy rates, and overall economic stability. This structured approach ensures that the selected markets offer a balance of affordability, growth potential, and investment security.

East Coast Markets

1. Rochester, New York

Presented by Ashley Kahr

Overview:
Rochester emerges as a standout market on the East Coast, boasting rapid property turnover and strong rental profitability.

Key Highlights:

• Median Home Price: Not explicitly stated, but implied to be affordable.
• Median Rent Price: $1,870.
• Days on Market: Properties average 13 days on market (00:24).
• Rent-to-Price Ratio: 0.77%, indicating robust rental income relative to property costs.
• Insurance Costs: Lower than the national average at $2,100, positioning it favorably against other markets.
• Capital Investments: $335 million invested last year.
• Sales Price Growth: Estimated 9% increase in property prices over the next year.
• Rent Increases: A remarkable 49% rent growth over five years.

Notable Quotes:

• Ashley Kahr [03:10]: "Rochester is averaging properties 13 days on market, which is the best right now in the country."

Investment Insights:

Ashley emphasizes Rochester's suitability for both flipping and long-term rentals. Despite New York State's landlord-unfriendly reputation, the high rent-to-price ratio and significant rent increases make it an attractive option for investors seeking cash flow and appreciation. Henry complements this by highlighting the market's appeal to beginner investors due to the low entry price points and ample opportunities to purchase distressed properties with multiple exit strategies.

Personal Anecdote:

Dave shares his personal connection to Rochester, expressing regret over not investing there earlier despite recognizing its potential. This underscores the importance of timely investment decisions in rapidly appreciating markets.

2. Raleigh-Durham, North Carolina

Presented by Henry Washington

Overview:
Raleigh-Durham stands out as a vibrant, growing market with strong economic indicators and rental demand.

Key Highlights:

• Median Home Price: $383,400 (under the national average).
• Median Rent Price: $1,870 (within 10% above the national average).
• Job Growth: 8% over five years.
• Unemployment Rate: Low at 3.3%.
• Vacancy Rate: Extremely low at 0.08%.
• Population Growth: Positive over the last five years.
• Top Employers: Duke Healthcare, UNC Chapel Hill, IBM.
• Economic Stability: Presence of major universities and tech companies provides a steady influx of renters and job-seekers.

Notable Quotes:

• Henry Washington [07:09]: "I want markets where the median rent was within 10% or above the national average while buying below the national average."

Investment Insights:

Henry outlines his strategic criteria for selecting markets, focusing on affordability, rental income potential, job growth, and population stability. Raleigh-Durham exemplifies these factors, making it ideal for investors aiming for both cash flow and equity appreciation. The area's strong employment base, driven by healthcare, education, and technology sectors, ensures sustained demand for rental properties.

Economic Drivers:

The presence of prestigious institutions like Duke University and IBM not only bolsters the local economy but also ensures a continuous demand for rentals from professionals and students alike. Henry also notes the potential for spillover growth from tech expansions, further enhancing the market's attractiveness.

3. Harrisburg, Pennsylvania

Presented by Dave Meyer

Overview:
Harrisburg offers a balanced investment opportunity with affordable housing, solid job growth, and a diversified economy.

Key Highlights:

• Median Home Price: $185,000 (under $200,000).
• Median Rent Price: $1,400.
• Job Growth: Not explicitly mentioned, but implied to be strong.
• Property Tax Rate: Low at 0.28% (national average ~1%).
• Insurance Costs: Moderate at $3,800.
• Housing Price Growth: 38% increase over the last five years; forecasted 4-6% increase in the next year.
• Capital Investments: Strong economic diversification with government jobs playing a significant role.

Notable Quotes:

• Dave Meyer [11:03]: "Harrisburg has a surprisingly great economy with a 2.9% unemployment rate, well below the national average."

Investment Insights:

Dave highlights Harrisburg as an undervalued gem with substantial appreciation potential. The city's status as the state capital ensures a steady influx of government jobs, contributing to economic stability. Additionally, the diversified economy reduces dependency on any single sector, mitigating investment risks.

Strategic Advantages:

Harrisburg's low property taxes significantly enhance cash flow margins for investors, offsetting higher insurance costs. The strong growth in housing prices over the past five years underscores the city's upward trajectory, making it a compelling choice for both new and seasoned investors.

Personal Connection:

Dave points out his proximity to Harrisburg, allowing for easier on-ground property management and a deeper understanding of the local market dynamics.

Central Region Markets

1. Knoxville, Tennessee

Presented by Henry Washington

Overview:
Knoxville presents a strategic investment opportunity with affordable housing, robust job growth, and a diversified economy.

Key Highlights:

• Median Home Price: $351,000.
• Median Rent Price: $1,400-$2,100.
• Job Growth: Not explicitly stated, but implied to support economic stability.
• Unemployment Rate: Not explicitly mentioned.
• Vacancy Rate: 10%.
• Population Growth: Positive, supported by job and household growth.
• Top Employers: Covenant Health, University of Tennessee, IBM, Tech Sector Expansion.
• Economic Development: Significant investments in infrastructure and technology sectors, including a $114 million investment in Covenant Health Park.

Notable Quotes:

• Henry Washington [16:39]: "Median home price in Knoxville, Tennessee is $351,000, and median rent is $1,400. So you’re not quite at the 1% rule, but there’s plenty of cash flow opportunities."

Investment Insights:

Knoxville's balance of affordability and substantial rental income potential makes it attractive for investors. The presence of major employers and ongoing investments in infrastructure and technology sectors ensure sustained economic growth and, by extension, rental demand.

Strategic Advantages:

Knoxville's role as a college town, hosting the University of Tennessee, provides a stable tenant base beyond college students, including professionals and families attracted by the city's amenities and job opportunities. Henry emphasizes that while college towns often imply rental dependence on students, Knoxville offers broader rental possibilities due to its diversified economy.

Personal Anecdote:

Ashley adds a personal touch by mentioning Colorado Springs' proximity to attractions like Hershey Park, suggesting that Knoxville likely has its own local attractions that enhance its livability and investment appeal.

2. Montgomery, Alabama

Presented by Dave Meyer

Overview:
Montgomery stands out as a top investment market within Alabama, driven by capital investment, job creation, and a favorable housing climate.

Key Highlights:

• Median Home Price: $185,000.
• Median Rent Price: $1,400.
• Unemployment Rate: Low at 3.8%.
• Property Tax Rate: Extremely low at 0.28%, significantly below the national average.
• Insurance Costs: Moderate at $3,800.
• Capital Investments: Highest in Alabama at number one for capital investment and number two for job creation.
• Economic Drivers: Long-standing relationship with Hyundai, expansion of car manufacturing, major Air Force base ensuring economic stability.
• Housing Supply: 3,700 housing units under construction with plans for 8,000 more.

Notable Quotes:

• Dave Meyer [21:42]: "Montgomery is the number one city in Alabama for capital investment and number two in the state for job creation."

Investment Insights:

Montgomery's affordability combined with its strong job market makes it a prime candidate for property investors. The city's ties with major industries like automotive manufacturing and the presence of a significant federal presence through the Air Force base ensure continual economic support and population stability.

Strategic Advantages:

The low property tax rate in Montgomery is a substantial benefit for investors, enhancing overall profitability by reducing holding costs. The planned housing developments indicate a growing market, suggesting that property values and rental demand will likely continue to rise.

Economic Outlook:

Henry underscores Alabama's potential as a "sleeper state" in real estate investing, highlighting its growing aerospace, tech, and manufacturing sectors. This diversification reduces economic volatility and supports a robust rental market.

Personal Connection:

Dave appreciates the under-the-radar status of Montgomery, noting that it hasn't received as much attention as other Alabama cities like Huntsville or Tuscaloosa, thus presenting untapped investment opportunities with lower competition.

3. Fort Wayne, Indiana

Presented by Ashley Kahr

Overview:
Fort Wayne offers a stable and conservative investment environment with steady economic indicators and affordable housing.

Key Highlights:

• Median Home Price: $247,000.
• Median Rent Price: $1,600.
• Vacancy Rate: 1.6%.
• Unemployment Rate: Not explicitly stated, but implied to be stable.
• Economic Drivers: Strong manufacturing base with growing technology sectors.
• Growth Indicators: Noteworthy presence of new tech investments and stable job market.

Notable Quotes:

• Ashley Kahr [23:30]: "Everything was just kind of middle of the road. It seemed less risky, I would say."

Investment Insights:

Ashley highlights Fort Wayne's balanced approach to real estate investing, where the market presents no glaring red flags. The affordability paired with reasonable rental prices ensures manageable investment entry points and steady cash flow. The city's dual focus on manufacturing and technology fosters a diversified economic base, attracting a varied tenant demographic.

Strategic Advantages:

Fort Wayne's status as a conservative market appeals to investors seeking lower-risk environments. The balanced median home and rent prices offer a favorable rent-to-price ratio, while the manufacturing and tech sectors provide employment opportunities that drive rental demand.

Personal Connection:

Ashley mentions the upcoming BPCon speaker, Sarah King, who invests in Fort Wayne, adding credibility and firsthand insights into the market's potential.

Central Region Summary

The Central region markets—Knoxville, Montgomery, and Fort Wayne—each offer unique advantages tailored to different investment strategies. From Knoxville's mix of affordability and job growth to Montgomery's high capital investment and Fort Wayne's conservative stability, these markets provide a diversified portfolio for investors seeking growth, cash flow, and reduced risk.

West Coast Markets

1. Colorado Springs, Colorado

Presented by Ashley Kahr

Overview:
Colorado Springs is identified as a high-potential market despite its higher median home prices, driven by significant housing demand and robust job growth.

Key Highlights:

• Median Home Price: $485,000.
• Median Rent Price: Not explicitly stated, but inferred to support strong cash flow.
• Housing Shortage: Needs to fulfill 28,000 to 39,000 housing units by 2028.
• Job Growth: 10% over five years.
• Population Growth: 5% household growth.
• Key Employers: U.S. Space Command headquarters, microchip technology companies, solar panel manufacturers.
• Housing Demand: High due to spillover from Denver, necessitating significant new developments.

Notable Quotes:

• Ashley Kahr [29:32]: "Five year rent growth is supposed to be 49%."

Investment Insights:

Despite its higher median home price, Colorado Springs presents substantial investment opportunities due to the acute housing shortage and strong job growth. The presence of major employers like the U.S. Space Command and significant investments in technology sectors drive demand for quality housing, suggesting strong appreciation potential and rental income growth.

Strategic Advantages:

The projected need for tens of thousands of new housing units underscores a pronounced supply-demand gap, positioning Colorado Springs as a prime target for both new constructions and value-added investments. Ashley highlights the city's potential for appreciation, akin to Denver's growth trajectory over the past decade.

Personal Connection:

Ashley shares her experience visiting Colorado Springs, noting its rapid growth and aesthetic attractions like the Garden of the Gods, enhancing its appeal as a desirable place to live and invest.

2. Sherman-Denison, Texas

Presented by Henry Washington

Overview:
Sherman-Denison, located an hour north of Dallas, is recognized for its affordability, proximity to a major metro area, and ongoing housing developments.

Key Highlights:

• Median Home Price: $251,000.
• Median Rent Price: $1,572.
• Housing Supply: 3,700 housing units under construction; planning 8,000 more.
• Economic Drivers: Proximity to Dallas, expansion of manufacturing (Texas Instruments), significant developments like Preston Harbor ($6 billion, 3,100-acre development).
• Top Employers: Tyson Foods, Texas Instruments.
• Job Growth: Strong, with new manufacturing plants and tech investments.
• Insurance Costs: Not explicitly stated; implied manageable.
• Property Tax Rate: Not explicitly stated, but Alabama's central markets have low rates.

Notable Quotes:

• Henry Washington [33:14]: "Median home price in Sherman-Denison, Texas is $251,000 with a median rent of $1,572."

Investment Insights:

Sherman-Denison's strategic location near Dallas makes it an attractive investment destination, combining affordability with the economic spillover from a booming metro area. The ongoing construction and planned developments signal robust growth, enhancing long-term property value and rental demand.

Strategic Advantages:

The area's affordability allows investors to purchase new construction homes that can either break even or generate positive cash flow from the outset, minimizing maintenance and capex expenditures. The significant investments from companies like Texas Instruments ensure sustained job creation, bolstering rental demand and economic stability.

Personal Connection:

Henry humorously notes the presence of casinos in Sherman-Denison, adding a layer of lifestyle appeal that can attract a diverse tenant base, from professionals to visitors seeking leisure activities.

3. Twin Falls, Idaho

Presented by Dave Meyer

Overview:
Twin Falls represents a smaller, yet promising market known for affordability, low vacancy rates, and growing rental demand.

Key Highlights:

• Median Home Price: $358,000.
• Median Rent Price: Over $2,200.
• Vacancy Rate: 5%.
• Economic Drivers: Growing job market, expanding industries, absence of major red flags.
• Insurance Costs: Low.
• Property Tax Rate: Low.
• Population Growth: Positive, driven by job opportunities and economic expansion.
• Key Attractions: Natural landmarks like waterfalls, enhancing the city's appeal.

Notable Quotes:

• Dave Meyer [35:17]: "Twin Falls, Idaho has a median rent of over $2,200 with low vacancy rates and strong job growth."

Investment Insights:

Twin Falls' combination of affordability and high rental prices creates an enticing scenario for investors aiming for substantial rental income. The low vacancy rate indicates a strong demand for housing, while the city's natural attractions contribute to its desirability as a place to live and visit.

Strategic Advantages:

The favorable property tax and insurance rates enhance overall investment profitability. Twin Falls' status as a secondary market with room for growth positions it as a low-competition, high-opportunity environment for property investors.

Personal Connection:

Dave expresses interest in Twin Falls' potential for sustained growth, drawing parallels to Colorado Springs' spillover from Denver. The city's natural attractions, coupled with economic growth, suggest a balanced and prosperous investment landscape.

West Coast Summary

The West Coast markets—Colorado Springs, Sherman-Denison, and Twin Falls—each offer unique investment opportunities driven by housing demand, economic growth, and strategic geographical advantages. From Colorado Springs' housing shortage and job creation to Sherman-Denison's affordability near Dallas, and Twin Falls' high rental yields, these markets cater to diverse investment strategies seeking appreciation, cash flow, and market stability.

Conclusion

In this comprehensive episode, Dave Meyer, alongside Ashley Kahr and Henry Washington, explores nine promising real estate markets across the United States for 2025. By dissecting each market's fundamentals—such as affordability, rental yields, job growth, and economic stability—the hosts provide listeners with actionable insights and strategic considerations for building or diversifying their real estate portfolios.

Final Thoughts:

• Data-Driven Decisions: Each market selection is grounded in robust data analysis, ensuring that investment decisions are informed and strategic.
• Diverse Opportunities: From established markets like Raleigh-Durham and growing secondary markets like Twin Falls, investors have a variety of options catering to different risk appetites and investment goals.
• Community and Economy: Emphasizing the importance of local economic drivers, job growth, and population trends underscores the necessity of understanding the broader community landscape when investing in real estate.

Call to Action:

Dave encourages listeners to utilize the insights shared in the episode to evaluate their investment strategies and consider the highlighted markets for future investments. Additionally, he mentions the availability of a comprehensive spreadsheet on BiggerPockets.com to assist investors in their market research endeavors.

Notable Quotes Recap:

• Ashley Kahr [03:10]: "Rochester is averaging properties 13 days on market, which is the best right now in the country."
• Henry Washington [07:09]: "I want markets where the median rent was within 10% or above the national average while buying below the national average."
• Dave Meyer [11:03]: "Harrisburg has a surprisingly great economy with a 2.9% unemployment rate, well below the national average."

This detailed exploration equips real estate investors with the knowledge to identify and capitalize on emerging opportunities across diverse U.S. markets, paving the way toward financial freedom through strategic real estate investments.