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According to Statista, there are nearly 20,000 small towns in the United States.
Many of the residents are in decline, losing housing, jobs, and tax bases, and their best days appear to be behind them. But there are also emerging real estate boomtowns that are poised to make homeowners and investors who buy property today rich in less than a decade, or perhaps in half that time.
But how can the average buyer find a rural paradise in the middle of nowhere?
“The key here is knowing what type of neighborhood to look for,” said real estate agent Leonard Ahn, CEO of iPropertyManagement, an online resource for landlords, tenants, and real estate investors. I am. “Typical sites are suburban and rural areas just outside of metropolitan areas, especially cities with major highway construction coming soon. This is because the area is gaining attention as a suburban destination. It’s a clear sign that they’re starting to collect. If you can own property in a town like this before the big development boom hits, you can make a lot of money.”
Here are five towns with populations between 5,000 and 10,000 that have the potential to make real estate buyers rich in 5 to 10 years, according to three real estate agents who know how to find the next big small town.
New Richmond, Wisconsin
The criteria Ahn outlined for finding small towns with the potential to appreciate significantly in five or 10 years led him to a community of about 10,000 people in the Great Lakes region.
“One of the great examples in the upper Midwest is New Richmond, Wisconsin,” he says. “We’re in the northwestern part of the state, just across the border from the twin cities of Minneapolis and St. Paul, Minnesota. Nearby Hudson and River Falls are already experiencing a massive suburban boom, and New Richmond is… It’s next on the list.”
The town’s real estate market has already experienced a mini-boom in the past five years, with median home prices rising from $228,000 in 2018 to $351,000 today.
sandpoint, idaho
Like Anne, Humberto Marquez, a licensed broker with the real estate investment firm Awning, has a knack for spotting up-and-coming enclaves looking to put their name on the map.
“Identifying emerging markets, especially small towns, requires a combination of analysis of current trends, local economic factors, and future growth potential,” he said.
Most recently, his formula led him to a town of 9,000 people in the northwest.
“Set between Schweitzer Mountain Ski Resort and beautiful Lake Pan de Oreille, Sandpoint is a scenic town with great growth potential,” said Marquez. “The town has seen an influx of remote workers and retirees drawn to its combination of outdoor activities and quaint town life. I recently started seeing demand from tourists and seasonal skiers. So, I had an interaction with an investor who was considering a vacation rental property here.”
In the past five years alone, the median home price in Sandpoint has nearly doubled from $303,000 in 2018 to $601,000 today.
Bisbee, Arizona
Over the past five years, the median home price in Bisbee, nestled in the rugged and beautiful Mule Mountains, has increased from $118,000 in 2018 to more than $212,000 today. [6]
But many industry veterans believe the small but lively bohemian border town of 4,911 people has more room to run.
“Bisbee, located in southeastern Arizona, is a historic mining town with unique architecture and a vibrant arts scene,” says Roberts, head broker and sole owner of luxury real estate firm Century 21 St. Maarten. says one Ritika Asrani. “The town’s proximity to the U.S.-Mexico border makes it an attractive destination for retirees and artists seeking an affordable and unique lifestyle. The town’s real estate market shows upward potential. ”
ketchum, idaho
Ketchum’s population is only 3,553, making it even smaller than Bisbee, but the real estate market is at least as dynamic.
Over the past five years, property owners have watched the median home price nearly double, from $700,000 in 2018 to $1.34 million today. But the market seems poised to create even more billionaires in the next five or 10 years.
“Ketchum, in the Sun Valley region, is known for world-class skiing and outdoor recreation,” Asrani said. “The town’s real estate market is booming with an influx of outdoor enthusiasts and remote workers. Ketchum’s real estate market is likely to continue to grow as more people seek a balance between work and play.”
Apalachicola, Florida
Apalachicola’s population is only 2,286 people, less than half the size of Bisbee, but the real estate market is on the rise. The median property owner enjoyed a pandemic-era price increase, with value rising from $167,000 in 2018 to about $308,000 today.
“Apalachicola is a picturesque coastal town in the Florida Panhandle,” Aslani said. “With our focus on preserving our charming historic district and maritime heritage, we are attracting attention from those seeking a tranquil coastal lifestyle. More and more individuals are seeking out waterfront and historic properties. As a result, the town’s real estate market has great investment potential.”
All home values are from Zillow.
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