There has been a lot of talk about over supply in the housing market as well as shadow inventory recently but for many it feels like we are already facing a housing shortage. So where are these areas which may provide great returns for real estate investing?
Take a look around in the more rural areas surrounding your closest major city for real estate investing opportunities. There has been a lot of migration outwards since the bubble burst as families moved home, sought cheaper places to live and have tried to take advantage of cheap prices on acreage. Take a look a places like Okeechobee, FL. Close in proximity to both West Palm Beach and Orlando for those who don’t mind a commute it has only a handful of rentals available on the market for those looking for someone to live.
Other areas of the country like Miami are seeing a huge boom in transactions with inventory levels dropping 50% since last year. A good part of this is thanks to real estate investing and an influx of foreign buyers. Talk to any Realtors here and you will likely be told that new foreclosures are being sold in just days, well that is if you can actually find one who isn’t too busy to answer your phone calls.
However, no market may be as short on inventory as Willington, ND. According to a report by CNN Money, despite 2,000 new housing units already being added this year masses of workers drawn by six figure salaries from oil jobs can’t find anywhere to stay. Imagine getting a nice 5 figure paycheck every month but not even being able to find somewhere to rent or buy. Some of these workers are paying $600 a month for dorm like housing with shared restrooms. Others have simply resorted to setting up cam in RVs in the local Walmart parking lot.
Real estate investing pros would be wise to look out for areas like this in their own state and join the ranks of investors expecting to receive 200-300% returns by building new housing in Willington.