The Airbnb occupancy rate for short term rentals is an important metric that shows real estate investors the desirability of an Airbnb property.

It can be frustrating when you list your Airbnb for short term rentals and no one shows up. It is almost as if you flushed money down the toilet. As a real estate investor, it is your job to make sure the property’s occupancy rate remains high.

Table of Contents

The Airbnb occupancy rate for short term rentals is an important metric that shows real estate investors the desirability of an Airbnb property.

It can be frustrating when you list your Airbnb for short term rentals and no one shows up. It is almost as if you flushed money down the toilet. As a real estate investor, it is your job to make sure the property’s occupancy rate remains high.

Table of Contents

You want to make sure that your Airbnb rental is not sitting empty. Therefore, there are certain steps you should take to move your Airbnb rental from the red to the black. Also, you want to ensure that your already profitable Airbnb rental continues to make you money by improving its occupancy rate.

In this article, you will discover how to optimize the Airbnb occupancy rate for short term rentals. Also, you will discover how Mashvisor can help using its helpful tools for real estate investors.

What Is Airbnb Occupancy Rate & Why Is It Important for Short Term Rentals?

Airbnb occupancy rate is the percentage of available listings that are booked for a specific time. It provides valuable insight into the demand for short term rentals. The occupancy rate is calculated by dividing the number of occupied listings by the total number of available listings.

A high occupancy rate is a positive indication of a thriving short term rental market and successful Airbnb listings. When the occupancy rate is high, it means that Airbnb’s listings are in high demand and generating a significant amount of revenue. On the other hand, a low occupancy rate means a decline in the demand for Airbnb.

In either case, the occupancy rate provides valuable information for real estate investors to better understand the short term rental market and make informed decisions about the future of their business.

The occupancy rate for Airbnb can vary due to several factors, such as location, time of year, local events, and attractions. But generally speaking, peak travel periods and popular locations tend to achieve occupancy rates.

Why Is the Airbnb Occupancy Rate Important for Short Term Rentals?

The Airbnb occupancy rate for short term rentals is important because it directly affects the rental income that a property can generate.

A high occupancy rate means the property can generate more income from the rental. On the other hand, a low occupancy rate can indicate that the property is not generating as much revenue as it could.

In addition to affecting rental income, the occupancy rate can provide insights into the market demand for short term rentals in a given area. Suppose a property is seeing a low occupancy rate compared to others in the same area. In that case, it may indicate that it is not as competitively priced or is not being effectively marketed to potential guests.

By knowing your occupancy rate, you can make informed decisions about how to market and manage your property. You can do this by adjusting prices, improving the property’s amenities, or running promotions. It can help to increase the occupancy rate of your property and boost revenue.

Related: How to Invest in Real Estate for Beginners in 2023

How to Maximize the Airbnb Occupancy Rate of Your Short Term Rental

To maximize the Airbnb occupancy rate for short term rentals, there are two major things you should take into account. The first is when the Airbnb is new, and the second is when the Airbnb is a few months old. 

When the Airbnb Is New

Here are a few things you can do to optimize the occupancy rate for a new Airbnb:

Location

To optimize the location of your new Airbnb listing, ensure that it is close to shopping centers, grocery stores, restaurants, and other good amenities. Also, ensure that it is easy to get public transportation.

Research the area to determine what guests value most, and place your listing in an easily accessible, convenient location for them. 

Highlight nearby attractions and amenities in your listing description and provide guests with a guide to the local area, like a map or a list of recommended places to visit. 

Listing Optimization

To optimize your Airbnb listing, start by showcasing your property with high-quality photos that accurately show the rooms, common areas, and any special features. 

Write an attention-grabbing title that accurately describes your property and include a detailed and compelling description. 

Don’t forget to price your listing competitively. Also, make your property comfortable and welcoming by making sure the bed is comfortable, the linens are fresh, and it is clean. 

Respond quickly to inquiries and requests to show that you are reliable. Also, encourage guests to leave positive reviews. 

Guest Experience

Providing a positive experience for your guests should be the primary focus when optimizing your Airbnb listing. Clean and comfortable accommodations are key to making sure that guests experience a memorable stay. 

It can be achieved by ensuring that all furnishings and appliances are in good working order and that the space is well-lit and well-ventilated. Also, you can provide extra touches that make the room feel more like a home, like fresh flowers or a welcome basket.

To further enhance the guest experience, add extra amenities like toiletries and basic kitchen supplies. Providing such items can save guests the hassle of needing to buy or bring their own, which can make their stay more convenient and enjoyable. 

Pricing Strategy

Perform a competitive market analysis in order to set prices for your property based on the rates of similar listings in the area. To set competitive prices for your new Airbnb rental, research comparable listings in the neighborhood to get an idea of the going rate.

Use the number obtained from your comparative analysis to set a competitive price and adjust it based on factors such as the time of year, special events, and local demand. Also, try offering discounts for longer stays, off-peak seasons, or last-minute bookings. 

Regularly review your pricing and adjust it as needed to remain competitive.

Related: Rental Comps: What Are They and Where Can I Find Them?

Marketing and Promotion

Use social media and other marketing channels to promote your Airbnb properties for sale in order to reach a wider audience. 

Network with other Airbnb hosts in your area to cross-promote each other’s listings. 

Also, partner with local businesses to offer joint promotions or packages to guests. 

When the Airbnb Is a Few Months Old

If your old Airbnb rental has an occupancy rate of below 90% and you’re already getting a few bookings, here are some tips to help improve that number:

Review Management

Analyze the feedback you receive from guests and respond to any negative reviews constructively. Use the feedback to identify areas for improvement and make changes to improve the guest experience.

Some real estate investors and property managers sometimes ignore the complaints and feedback of their tenants. Or, they pretend that they didn’t get the feedback and allow the tenant to wait weeks before responding. 

It is a poor management style. If you want to increase your occupancy rate, listen to the tenants. Remember, they can leave a negative review of your Airbnb property which will drive potential renters away, thereby reducing your occupancy rate.

Marketing and Promotion

New or old, always re-evaluate your marketing strategy to reach more people who are likely to rent your property.

Re-evaluate your marketing and promotion strategy to make sure it’s reaching the right audience. Consider using new platforms and channels, such as social media and paid advertising, to reach a wider audience.

Guest Experience

To improve the guest experience of your old Airbnb and increase its occupancy rate, focus on providing clean, comfortable, and well-maintained accommodations. 

Offer extra amenities to improve their stay. Respond fast to guest inquiries and requests, and handle any issues efficiently and professionally. 

Also, you can personalize their experience by leaving a welcome note, offering local recommendations, or providing a basket of essentials. 

How to Know How Your Airbnb’s Occupancy Rate Compares to Other Short Term Rentals

Comparing your Airbnb’s occupancy rate to other short term rentals is valuable in assessing your property’s performance and identifying areas for improvement. Fortunately, Mashvisor can help you with this. 

Step 1: Gather Data on Your Property’s Occupancy Rate

To begin, you’ll want to gather data on your property’s current occupancy rate. It will give you a baseline to compare your property against other short term rentals. 

If you’re using professional hosting tools on Airbnb.com, you can find your property’s current occupancy rates in the “Performance” tab, under “Occupancy and rates.”

This will show you the occupancy rate of the property you are looking at, alongside other important information and characteristics.

Related: How to Calculate the Occupancy Rate for Rental Properties

Step 2: Research Other Short Term Rentals in Your Area

Once you’ve obtained data on your property’s occupancy rate, the next step is to research other short term rentals in your area. Start by searching for other Airbnb listings in the same neighborhood as your property to get an idea of what other hosts are offering. Take note of their prices, amenities, and overall guest experience.

Here is where Mashvisor comes to the rescue. 

With its rental comps tool, you can find rental properties for sale similar to your property. Then, use the information you gathered for the next step.

Mashvisor’s Rental Comps tool gives you essential data of short term listings in your chosen area that are similar to your property.

Step 3: Compare Your Property’s Occupancy Rate to Others

With data on your property’s occupancy rate and information on other short term rentals in your area, you can now compare your property’s performance to other rentals. 

Look for patterns and trends in the data to see what factors may be impacting your property’s occupancy rate.

For example, are other short term rentals for sale in your area offering similar amenities at lower prices? Is the guest experience at other rentals more appealing?

Step 4: Identify Areas for Improvement

If your property’s occupancy rate is lower than other short term rentals in your area, find ways to improve. Take a closer look at your property’s listing and think about how you can improve the guest experience.

When you visit Mashvisor’s investment property features page, you will be able to compare the rental strategy of similar properties. 

Gather data on what guests are looking for in a short term rental and use the information to optimize your listing.

Step 5: Make Changes and Track Your Progress

With a plan for improvement in place, it’s time to make changes to your property and start tracking your progress. 

Continuously monitor your occupancy rate and compare it to other short term rentals in your area to see how your property is performing. Also, update your listing as needed and keep gathering feedback from guests to improve their experience.

Fortunately, the process is as easy as ABC when you use the above tools from Mashvisor. With the information you’ll get with such tools, you can easily see how your Airbnb occupancy rate compares to others, and optimize it.

Improve your Airbnb occupancy rate for short term rentals with a 7-day free trial with Mashvisor.

What Is a Good Occupancy Rate for Short Term Rentals?

Note that a good Airbnb occupancy rate for short term rentals can vary depending on factors like the location, season, and the size and type of property. But, on average, a healthy occupancy rate for an Airbnb can range from 50% to 70%.

But, properties located in areas where tourists visit often can achieve high occupancy rates of around 80%-90%. Also, some properties experience high occupancy rates during peak travel and festive periods.

Remember that the industry standard for occupancy rates can change over time. So, it’s always a good idea to stay up to date and monitor the occupancy rates in your specific area. 

Conclusion

The Airbnb occupancy rate for short term rentals is one of the most important metrics to analyze when trying to invest in real estate. It helps to ensure that you do not invest in a property that will not be profitable.

In this article, you learned what Airbnb occupancy rate is and its importance to you as a real estate investor. You also knew how to improve the occupancy rate of your new or old short term rental. 

Then, you discovered how Mashvisor could help you compare the occupancy rate of your Airbnb rental to other similar properties in the area. In addition, you also found out how to improve your occupancy rate using the data you gathered from Mashvisor.

It is to show you that Mashvisor’s tools are the best in the market for any real estate investor looking to improve their occupancy rate fast.

To boost your Airbnb occupancy rate for short term rentals, schedule a demo today with Mashvisor.

One of the major ways of investing in real estate is buying an investment property for Airbnb. How do you invest in the said properties in 2023?

It’s without a doubt that Airbnb properties have changed both the travel and real estate industries. If you’ve booked one while traveling or on vacation, you might wonder what it’s like to own and operate one.

Table of Contents

One of the major ways of investing in real estate is buying an investment property for Airbnb. How do you invest in the said properties in 2023?

It’s without a doubt that Airbnb properties have changed both the travel and real estate industries. If you’ve booked one while traveling or on vacation, you might wonder what it’s like to own and operate one.

Table of Contents

And we understand why you’re interested. Imagine the possibility of making a handsome passive income without having to lift a finger. Besides, you don’t even need to have a lot of knowledge or experience in investing to get started.

But there’s another side for you to consider. Simply buying any Airbnb investment property in any market isn’t a guarantee that you’ll achieve your income goals.

In today’s article, we will look at the right way to invest in investment property for Airbnb.

Pros and Cons of Buying an Investment Property for Airbnb in 2023 

Over the years, buying traditional rental properties has proven financially rewarding. But Airbnb rentals are becoming even more profitable if done right. Let’s look at the pros and cons of investing in Airbnb properties in 2023:

Pros of Buying an Investment Property for Airbnb in 2023

There are many reasons why many real estate investors are considering buying Airbnb investments. The reasons include:

Higher Potential Profits

Airbnb rentals have gained popularity for their potential to provide a higher monthly rental income compared to long term rental properties. While every investment is unique, Airbnb rentals will provide higher profits in high-demand markets.

Let’s look at Los Angeles, for example. According to Mashvisor, the average Airbnb rental income is $3,673, with an occupancy rate of 63.45%. On the other hand, the city’s average long term rental income is $3,100.

As you can see, there’s potential to make well over $44,000 a year with an Airbnb rental property in Los Angeles. It is roughly $7,000 more than you’d make with a long term rental investment in the same market.

Additionally, Airbnb rental investments are expected to remain profitable in 2023. While markets continue to melt and inflation remains high, the demand for Airbnb properties is still high. 

The most recent international travel forecast by US Travel shows that there will be roughly 65 million foreign arrivals in 2023. It is a sign that people will continue to travel and spend money on vacations amid the high inflation. In fact, travel rates in 2023 will beat the rates in the past two years.

It is the number one reason you may want to learn how to buy Airbnb property with no money. 

Passive Income & Cash Flow

Cash flow and income are major reasons investors consider buying real estate investments. Cash flow refers to the amount left after you settle all property expenses. 

A property that offers positive cash flow leaves you with handsome profits after paying for the expenses. With negative cash flow properties, you’ll need to pay for the expenses out of your own pocket. Of course, you want to invest in properties with positive cash flow.

Airbnb rental properties offer excellent cash flow if you invest in the right location. A good location receives a constant flow of visitors so that you enjoy a good occupancy rate across the year. A good occupancy rate means you’ll earn more money than the total property expenses.

The best thing about all of it is that you can charge as much as you want. For example, if you own an Airbnb investment property adjacent to the beach, you can raise the nightly rates once you experience increased demand.

Also, buying an investment property for Airbnb often requires significant effort at the beginning. Once you’ve set up the business, you can get a property manager to take care of the day-to-day property operations for you. It allows you to enjoy a monthly passive income.

Flexibility

Buying Airbnb investment properties gives investors a lot of flexibility. Firstly, as we’ve already mentioned, you get to choose your nightly rates depending on the season and rate of demand. 

You can raise your rates when the demand is high during the peak season or on weekends. Similarly, you can lower the rates when the market is a bit dormant to encourage more bookings. You can also offer discounts for long-term or mid-week bookings.

In short, Airbnb properties allow you to try out different pricing strategies to see which one works best for you.

Secondly, you can rent out the property when you want. Some Airbnb owners pull their properties off the market during the off-season to use them themselves. You can also choose to host your friends or parties on your property.

No Lease Contracts

Many Airbnb property investors enjoy the fact that they don’t need to sign lease agreements with their tenants like they would with long term rental properties. The only situation when you may need to ask your guests to sign lease agreements is if you’re subletting.

Why don’t you need a lease agreement with Airbnb properties?

The terms and conditions on the Airbnb platform are enough to protect you and your property. If one of your guests damages your property or furniture, you can simply contact Airbnb. Then, you can lodge a complaint instead of going through time-consuming legal battles.

If you feel the need to, you can draft an Airbnb property agreement for you and your guests. While it might discourage some potential guests from booking, those who do end up being great tenants.

Cons of Buying an Investment Property for Airbnb in 2023

Like many other good investments, buying Airbnb properties also comes with a few potential drawbacks. Here’s what you need to know about them before investing in 2023:

Higher Upfront Costs

Airbnb property investors often need to spend a lot of money after buying to make their properties appealing and inviting to guests. Guests want a combination of the coziness they get from home and the comfort and cleanliness they get from hotels.

As a result, you need to invest a significant amount of money in furnishing your Airbnb with fine appliances and fancy decor. You must also buy stocks that your guests will appreciate, such as tea, coffee, and snacks.

Also, since you want to keep the job professional, you might need to hire an interior designer. It will ensure that you achieve the intended vibe.

You will also need to employ a professional photographer to take high-quality photos of the property for listing. It is very important, especially in 2023; yet, many investors tend to overlook this aspect.

Higher Operating Costs

While the potential income is significantly higher, the operating costs are also high. You can expect the following expenses:

Remember, the cleaning and maintenance costs are a bit higher since you must clean the property every time a guest checks out. You’ll also have to pay the property manager to ensure everything runs smoothly.

Greater Risk

Airbnb guests are constantly checking out, sometimes as often as daily. It presents a greater risk when it comes to property damage. Some rowdy guests may host parties that leave you with broken windows and doors or stained carpets. 

Unlike long term property tenants who treat your property like their home, Airbnb guests may not feel responsible for maintaining your property or leaving it as they found it.

You can minimize the above risk by vetting your guests and going through the reviews left by previous hosts on their profiles. Also, ask some additional questions before accepting a rental.

Most importantly, get Airbnb property insurance to ensure that you’re covered in case of any damage.

Success Isn’t Instant

With long term rentals, you simply need to market your property, find a long-term tenant, and start earning a consistent monthly income. It isn’t the case with Airbnb properties.

While you might invest in one of the hottest markets for Airbnb rental properties, you might not receive consistent bookings in the beginning.

You first have to build a good reputation as an Airbnb host. It means you must receive a few five-star reviews on the Airbnb platform. More positive reviews get you more bookings. 

Since you’re just starting, you might have to lower your nightly rates than your competitors to attract your first few guests.

Once you have a few five-star reviews and you’re experiencing at least a 90% monthly occupancy rate, you may now adjust your rates to match the demand.

Related: 100 Best Short Term Rental Markets in 2023

5 Steps to Buying an Investment Property for Airbnb

Now that we’ve covered what you need to know about buying an Airbnb property, how do you actually choose the most profitable one? Here’s a step-by-step guide to help you choose the most lucrative Airbnb property.

1. Create a Budget and Line Up Financing

As we’ve seen, Airbnb investment properties require significantly higher startup costs. The best way to go about it is to devise a budget. Decide what you’re willing to pay for the investment property to avoid taking mortgages you can’t afford.

How do you budget well?

Account for all your sources of regular income, savings, and ongoing expenses. It will help you identify the maximum amount you can pay for a property without stretching your pocket.

Once you’ve drafted a budget, stick to it. Don’t fall into the temptation to go buying perfect-looking and luxury properties that are way beyond your budget.

Remember that the actual purchase price isn’t the only property cost you’ll need to cover. Many additional and sometimes hidden expenses come with buying an Airbnb rental property. The expenses include:

As you can see, all the above expenses can add up to a few thousand dollars.

If your budget doesn’t allow you to invest in a lucrative Airbnb property in a good market, you can consider some financing options. Here are some options that are popular with Airbnb rental investors:

Airbnb Loans

Some financial services providers offer Airbnb loans specifically to investors to invest in Airbnb rentals. Such loans may work almost the same way as conventional loans. However, pay close attention to the details since the interest rates, terms, and other conditions may differ slightly.

Home Equity Loans

A home equity loan is also referred to as a second mortgage. It’s a common financing option for investors who already own a primary home and are buying a second investment property. The loan gives you access to a certain amount of money or a credit line to allow you to buy the property.

Keep in mind that you will need to use your primary property as collateral in case you miss payments. To avoid any problems, make sure you can afford the monthly payments before committing to more debt.

Related: 7 Best Loans for Investment Property in 2023

Rental Arbitrage

Rental arbitrage is a great option for investors who want to become Airbnb hosts without necessarily owning the property. It involves renting a property from another owner with the intention of listing it as an Airbnb rental.

The only downside to the rental arbitrage option is that it might require a lot of convincing. Not many property owners would be willing to rent their property for you to host different guests. However, you can generate considerable profits and outearn your rental expenses.

2. Identify Suitable Locations for Airbnb Investment

By this point, you’re already aware that location is one of the most important real estate investment factors. You must learn how to research top markets for Airbnb investments with the return on investment in mind. 

Most Airbnb investors already have a location in mind before they start their research. In most cases, they choose locations that are near where they live. While it may be convenient, the nearby location may not always be optimal for Airbnb rentals.

It is why you need to expand your search and think of markets beyond your city and state. You can consider up to five different cities.

What will you be looking for when searching for the best Airbnb markets?

Favorable Airbnb Laws

In the past few years, many local governments have passed laws to regulate the Airbnb industry. Some have banned such rentals outright, while others have ordinances with strict guidelines.

For example, Las Vegas and Los Angeles don’t allow non-owner-occupied Airbnb rentals. It means you can only rent out an extra room in your primary residence. You can’t purchase a property in these cities purposely for the Airbnb business.

You must research a market’s Airbnb laws and regulations. Make sure not to fall into legal trouble due to something you overlooked.

If the market allows non-owner-occupied Airbnb rentals, dig deeper to learn more about the laws. Look out for details such as:

Tourism Forecast and Statistics

Tourism is another vital factor to consider. Yes, Airbnb rentals can be legal in your desired city, but is the demand enough to make it sustainable?

Here are some questions to ask yourself when carrying out research on local tourism:

Your best bet is with a city that receives a good flow of tourists all year round. For example, Florida received a record number of more than 137 million visitors in 2022, up 12% from 2021. It shows the state is one of the best places to invest in an Airbnb rental property.

However, you also need to consider that you’re also getting competition from hotel rooms and cheap lodgings. 

So, how do you determine that tourists will choose your Airbnb over a hotel room?

Optimal Airbnb Statistics

Besides favorable tourism statistics, the location also needs to have great Airbnb statistics. Here are the statistics you need to watch out for:

That said, you need to use a tool that provides you with all the above statistics under one roof. The best tool for reliable and accurate Airbnb statistics is Mashvisor.

You can sign up and start your 7-day free trial to access all important Airbnb statistics.

3. Spot Profitable Airbnb Neighborhoods

Once you’ve gone through the checklist above, you’ll have narrowed your list down to two or three potential locations. The next process is to carry out an in-depth neighborhood analysis to choose a profitable neighborhood.

Conducting a neighborhood analysis is an important process that many investors tend to ignore. You need to know that different neighborhoods within the same city may yield different returns on investment. 

While such an analysis is important, it’s not a walk in the park for many investors. There are many analytics and metrics involved. If you were to gather the data manually, the market would have already changed by the time you get results. Also, manually calculating data is prone to a lot of human errors.

Mashvisor provides the best tool for neighborhood analysis. Our heatmap analysis tool will help you spot the best Airbnb neighborhoods based on your search criteria. You can set up your search criteria using the following filters:

The heatmap tool is color-coded. It uses different colors to represent different results. The dark blue color is for neighborhoods that perform well based on your criteria, while gray is for dormant ones.

Mashvisor’s real estate heatmap can help you spot profitable neighborhoods for Airbnb investment.

For example, let’s say you want to find neighborhoods with the highest Airbnb return on investment. Simply set what cash on cash return you wish to get from your property. The heatmap tool will mark the neighborhoods that meet your ROI requirements in green.

Related: How to Get Access to Airbnb Data Analytics

4. Search for Airbnb Investment Properties

After spotting a few neighborhoods with a high potential for Airbnb rentals, you can now start the actual search for the properties. For long term rental properties, you can simply check newspaper ads or drive through the neighborhoods looking for “For Sale” signs.

But Airbnb properties are different. Just because a city shows high Airbnb potential doesn’t mean that all properties in that city are good for the business. Many factors influence a property’s Airbnb profitability.

It is why you need to use Mashvisor’s Property Finder. The tool uses Airbnb’s past performance data and predictions to help you find a property that matches your investment and financial goals.

The first step when using the Property Finder tool is to set the location you desire to invest in. Afterward, use the following filters to set your search criteria:

Once you’ve set the filters, the tool will display a list of property listings that fit your criteria. The properties are ranked by order of performance. In short, the properties with the highest ROI are ranked first.

5. Conduct Airbnb Property Analysis

Before reaching out to the property sellers, you might want to wait a bit and carry out a comprehensive property analysis on each of the properties you’re interested in. It is to make sure that the properties indeed come with Airbnb potential.

Many investors will consider opening a spreadsheet and adding all property details to compare (and contrast). But that’s not the right way to do it. You need to use the right tool for this task.

This is where the Airbnb profit calculator comes in. With the tool, you don’t need to worry about data reliability and accuracy. Our data comes from reliable sources, such as the MLS and the Airbnb website itself. Also, the data is as recent as the past 12 months and is from actual Airbnb hosts.

You won’t even need to do much. Simply click on any listing you like, and the Property Analysis page will load. Here, the Airbnb profit calculator displays the following data:

The best thing is that the tool provides metrics for both long term and Airbnb rental strategies. It allows you to perform a quick side-by-side analysis in order to choose the optimal rental strategy.

As for the cash on cash return, you can see the real value of your property based on the financing method. You can use the mortgage calculator and select either cash or mortgage. If you select the mortgage option, be sure to provide the following details:

With the above information, the Airbnb calculator will show different cash on cash and cap rate results.

Making an Offer

At this point, you’re now ready to make an offer. You can run a quick comparative market analysis (CMA) using real estate comps to make a reasonable offer and start working with a local and experienced real estate agent.

Ready to Invest in Airbnb Rentals?

Buying an investment property for Airbnb is a perfect way to build a consistent stream of income in 2023. Many investors love this option due to the high potential income and the flexibility it offers. However, you also need to know that the property expenses could also be higher.

Just because Airbnb rentals are expected to generate good returns this year doesn’t mean that you should invest in just any property in a random location. You need to learn how to do it the right way.

Set up a budget based on your financial situation and stick to it. Don’t bow to pressure and get into loans you can’t afford. Also, realize that your location determines your investment’s profit potential. So, invest in the right city and neighborhood.

Most importantly, use the right tools to carry out your property search and property analysis. Mashvisor is the best tool for this job.

Learn how Mashvisor’s tools can help you invest in the right property by scheduling a demo now.

If you’d like to gain insights into Airbnb statistics for 2023 and see if it’s going to be a profitable year for Airbnb investors, read this guide.

Making a successful investment is rooted in precise data calculation, in-depth research, and experience.

Table of Contents 

If you’d like to gain insights into Airbnb statistics for 2023 and see if it’s going to be a profitable year for Airbnb investors, read this guide.

Making a successful investment is rooted in precise data calculation, in-depth research, and experience.

Table of Contents 

Given the current situation in the US housing market and the constantly changing trends, the demand for Airbnb still increased over the past two to three years. 

More and more investors are interested in adding Airbnb properties to their portfolios, mainly because of their advantages—including passive income, flexibility, and tax benefits.

However, before researching the market and making the final decision, investors need to pay attention to Airbnb statistics for 2023 and get familiar with current trends in real estate. 

On that note, here is some good news: 

Researching and gathering data—one of the crucial elements in investing—is easier with the use of online tools specifically designed for the said purpose, such as Mashvisor.

To find out more about statistics that can help forecast Airbnb profitability for 2023, stick around until the end of this article. 

What Was the US Airbnb Market Like in 2022?

Airbnb managed to make an impression on the whole world; that is a fact. 

It’s safe to say that Airbnb changed how people travel—in more ways than one. It is also worth adding that, according to statistics from The Zebra, Airbnb hosts around half a billion people per year.

When it comes to any kind of investment—including short term rentals—the best indicator of how things are going are the statistics. 

And in the case of Airbnb properties, the numbers speak for themselves. 

Since today’s topic is based on the statistics of Airbnbs, we’d like to start by laying out some facts:

The above statistics indicate the global effect of Airbnb. With the vastness of the US housing market, it’s evident that Airbnb has significantly impacted guests, hosts, and investors.

Making predictions about investing in Airbnb based on the statistics at hand does require an overview of what happened in the year behind us. Trends tend to “stretch out” at times—and it is important to consider historical trends to see the whole picture.

So, without further ado, let’s go through the trends that marked the Airbnb statistics of 2022:

Guests Opting for Longer Stays

It appears that a lot has changed since the pandemic in terms of the statistics related to short-term rentals. 

Before COVID-19, Airbnb bookings that lasted 20 days or longer represented barely 17% of the gross bookings.

However, after the situation began to calm down a bit, certain “changes” took place—one of them being remote work. It may not seem that way, but remote work had a lot of influence on tourism statistics—and Airbnb, in particular.

In 2022, statistics regarding Airbnb witnessed an increase in bookings—primarily due to the flexibility of remote work. 

Older tourists were affected the most by such a change. In fact, they were four times more likely to book trips longer than a week—which is a notable improvement in Airbnb statistics.

Vacation Rentals Over Hotels

Hotels are slowly (but surely) falling into the shadow of Airbnb—and there are many reasons for that, including destination, comfort, and affordability.

The year 2022 witnessed an enormous jump in Airbnb statistics compared to hotels—which only proves our point.  

Besides, it’s important to mention that Airbnbs are a much safer option than hotels. Investors do not skimp on securing their rental properties, boosting confidence among potential guests.

Of course, one of the biggest surprises of 2022 was certainly inflation. When it comes to tourism, it can make or break a market—and affect the guest’s choice of accommodation.

Struggling to survive, the hotel industry was forced to raise their nightly rates. Regarding Airbnb rental rates, investors enjoy more flexibility to price their rental in accordance with trends and nearby competitors.

As you can imagine, it influenced many tourists to go with Airbnb as their go-to choice of accommodation. Additionally, there’s the matter of flexible cancellation policies, which certainly contributed to pushing Airbnb in front of hotels.

Interest in Large Spaces

Moving on with Airbnb statistics that marked 2022, we can’t skip the interest in larger spaces among tourists.

In 2021, approximately 27.3% of bookings were for one room, 24.4% for two rooms—with as much as 38.8% of bookings including three or more bedrooms. 

It could be families with kids, younger people traveling in groups, or professionals who need an office space while on the road; either way, Airbnb in 2022 meant more space for guests.

The math is simple: 

If you decided to invest in a multiple-bedroom Airbnb in 2022, you are already ahead of your one-bedroom competitors. 

We also can’t ignore the statistics tied to the price-per-booking comparison between three rooms in a hotel versus a comfy Airbnb. The latter is generally a more cost-effective option. 

Related: What’s the #1 Airbnb Hosting Calculator in 2023?

What Will the US Airbnb Market Look Like in 2023?

Even though we’re still at the beginning of 2023, we can already see a few Airbnb trends starting to stand out. If we were to focus on the Airbnb statistics that we’ve collected so far, we could use them to get a glimpse of what the market may look like for the rest of the year.

Tourists Staying Near Home

Remember how we said that some real estate market trends tend to “stretch out” and roll over into the next year? 

Well, inflation is one of them. And with gas prices still going strong, tourism is compelled to take a step back.

Granted, the situation is not that bad. But when we look at Airbnb statistics for 2023, we can notice that travel enthusiasts are not willing to pay huge prices for airfares. They would rather spend their vacation somewhere near home.

According to a report issued by WTTC, in 2023, 59% of tourists will likely choose to stay within their country—prioritizing near-home tourist destinations. 

What we can conclude from the above is that tourism is not actually in danger. Those who enjoyed traveling will continue to do so this year. The key thing here is to follow the statistics and choose a profitable investment property within the country.

Pleasant Customer Experience/Flexible Cancellations

Since they are very close, we’ve decided to join these two trends as the next critical markers for Airbnb statistics in 2023.

What puts Airbnb ahead of hotels is the close interaction with the hosts. 

Read the reviews, and you’ll notice that a lot of guests leave comments that mention a more pleasant customer experience when booking Airbnb.

The following statistics justify the popularity of Airbnbs in 2023: 

As much as 63% of tourists say that they would rather pay a higher price if it implies a more pleasant customer experience, according to AirDNA.

Also, when it comes to Airbnb stays, we cannot fail to mention those instances where guests must cancel their stay. You’d assume that it would drive down the booking statistics, but actually, it’s the complete opposite.

The Airbnb Flexible cancellation policy allows a full refund of the booked stay as long as they cancel 24 hours before their check-in. With hotels, you would need to cancel your booking at least seven days prior to check-in, or you would be charged a one-night stay. 

Related: 40 Cities With the Highest Average Airbnb Daily Rate in 2023

Eagerness for New Experiences

Whether it is traveling to a city or the countryside, tourists are always enthusiastic about new experiences. In a sense, the variety of Airbnb locations makes it easier for them to get closer to their dream destinations—and save money in the process.

Since Airbnb rentals can involve many different types of properties, it has significantly affected their popularity—and changed the statistics for the better.

Depending on their preferences, guests can stay at an Airbnb that is close to the beach or in the middle of nowhere and enjoy the beauty of nature and have some peace and quiet. You are not simply giving them a place to stay; you get to sell them a unique local experience.

How to Have a Profitable Year With Your Airbnb Business

Monitoring Airbnb statistics means researching every part of the short term rental strategy—but it also means taking your current situation as an investor into account. That is to say that your current circumstances help dictate the further course of your investment.

With statistics showing that Airbnb investing was profitable in 2022 and that the positive trends will continue in 2023, those interested in short term rentals should not give up.

As long as the statistics look promising, there is hope for a profitable year.

To help investors prosper with their Airbnb investment in 2023—and push the statistics even higher—we’d like to share some tips on how to run a profitable Airbnb business this year.

Price the Property Accordingly

The first thing you should know about running a successful Airbnb business is that you need to put a reasonable price on your nightly stays. Cost-effectiveness is among the key reasons why people opt for renting an Airbnb rather than staying at a hotel, after all. 

On that note, investors shouldn’t ignore the local statistics and data if they hope to generate profits. Your nightly rates should follow the principles of comparative pricing. 

Here are some tactics on how to price your Airbnb:

Take the above-mentioned tactics into account, and the 2023 Airbnb statistics are bound to go in your favor.

Sign up for a 7-day free trial and get instant insight into everything about your Airbnb investment—including what you can do to improve.

Mashvisor’s Airbnb Calculator will help you analyze your property so you can price your rates properly.

Present Your Airbnb Realistically

Naturally, it is your aim to present your Airbnb in the best possible light. However, if you want your Airbnb business to be successful, it’s important to do it in a realistic way.

Low occupancy rates will cause not-so-great Airbnb statistics, which automatically lead to a failed business. It doesn’t mean that you shouldn’t be honest, though. 

Any form of “misrepresentation” of your investment property can drive Airbnb statistics down, as well. That said, you want to put the same amount of effort into representation as you did into your initial research. 

Be sure to include an accurate description of the property, provide some basic details about the space and amenities, and attach high-quality photos. At the same time, be upfront about potential “quirks” and oddities your rental may have.

Offer Discounts

We understand that giving your services away and lowering your prices is probably not on your wishlist. It does not mean that occasional discounts cannot bring you profit, though. 

You see, a chunk of successful Airbnb statistics comes from hosts who offer promotions and discounts for longer stays, for example.

Offering small discount stays can actually ramp up the statistics and the occupancy rates for your Airbnb property—because it can make your property more attractive to potential guests. 

If you would like to include occasional discounts, here are a couple of ideas:

Airbnb allows hosts to create custom promotions, so try out a few different ones to see what works for you. 

Provide Information on Local Highlights

Another way to ramp up your Airbnb statistics and increase the occupancy rates is to provide information about local attractions and highlights in the area. 

Potential guests will undoubtedly do their homework before booking their stay in your Airbnb. That said, you’re also expected to provide some information about the location of your rental property and everything the surrounding area can offer. 

Generally speaking, Airbnb properties that are located in the middle of urban areas, with lots of activities and entertainment options, will achieve better statistics. Of course, it depends on your target demographic, as well. 

Airbnb Statistics 2023: Summing Up

We’ve successfully come to the end of Airbnb statistics 2023. So, at this point, you have a better understanding of how relevant statistics, demographics, location, and prices have all contributed to the rise and popularity of Airbnb throughout the years.

We started off by highlighting crucial statistics connected to the worldwide popularity of Airbnb before moving closer toward the US rental market in particular and discussing some historical trends. 

The 2022 housing market was certainly a profitable one for Airbnb. In fact, the statistics for 2022 indicated an interest in longer stays, the overall popularity of vacation rentals, and a demand for larger spaces. 

So far, the 2023 statistics aren’t bad, either. 

Yes, we’re still under the influence of inflation and other less-favorable factors, but the Airbnb market is standing strong. 

However, it seems that this year, the focus will be on seeking new experiences at near-home tourist destinations. 

In order to run a successful Airbnb business in 2023 and maintain good statistics, it is crucial to price the property fairly and comparatively. You also need to present it realistically and offer discounts when possible.

We would like to remind you that staying on top of things and obtaining insights into the relevant statistics, data, and market trends is easier with Mashvisor’s investment tools.

While we mostly focused on statistics in today’s article, there is one more thing we would like to add before we sign off:

Mashvisor offers a free demo for prospective investors who are looking to upgrade their investment strategy. To learn more, schedule an appointment with one of our Product Specialists and get a free introduction.

Finding the best rental investment property for sale is a crucial step in real estate investing. But many investors don’t know how to go about it.

Investing in rental properties remains a popular way to invest in real estate. Investors love them since they offer a consistent monthly income and price appreciation. They also serve as a hedge against inflation.

Table of Contents

Finding the best rental investment property for sale is a crucial step in real estate investing. But many investors don’t know how to go about it.

Investing in rental properties remains a popular way to invest in real estate. Investors love them since they offer a consistent monthly income and price appreciation. They also serve as a hedge against inflation.

Table of Contents

However, investing in any rental property isn’t an assurance that you’ll generate handsome returns. Building a rental real estate portfolio requires energy, patience, time, and skill. Also, you must be willing to keep changing your strategy to adapt to evolving market conditions.

The first step is always refining how you find your rental property investments. Many investors, especially beginners, don’t know how to find a lucrative rental property with a good return on investment. 

In today’s blog post, we will show you some tried and tested ways to find the best rental investment property for sale.

But before then, how do you actually spot a good rental investment property?

Characteristics of a Good Rental Property

Before you start your search for a lucrative rental investment property for sale, you need to know how to spot one. Here are some important characteristics you should watch out for:

1. Good Location

Location is one of the most vital pillars of a good rental property investment. It can make or break your investment. 

It won’t matter whether you’re investing in a luxury high-end multifamily property or a single family unit for sale. If you don’t get the location right from the beginning, you won’t get the expected returns from your investment.

There are a few indicators that help identify a good location for rental property investment. They include a rising population, a low unemployment rate, and a growing economy. 

Keep in mind that, in most cases, locations with all of the above indicators tend to be more expensive than other markets. However, it doesn’t mean that you should withhold your investment. It can signify that your property may appreciate at a higher rate and generate more returns.

Related: How to Choose the Best Location for Investment Property

2. Housing Demand

Housing demand is another factor intertwined with the location. A good investment location often sees a high demand for rental properties. You don’t want to invest in a property that will sit around vacant for a long time.

Here are some questions to ask yourself to determine an area’s demand for housing:

One way to do this is to find out the location’s price to rent ratio. An area with a high price to rent ratio indicates that renting is relatively more cost-efficient compared to buying a home.

3. Property Prices

Many real estate investors consider property prices as a factor before they invest in a rental property for sale. Property prices are a huge factor in determining your rate of return on investment. You want to invest in a property that’s reasonably priced.

The best way to ensure that the rental property is priced competitively is to check real estate comps. Real estate comps are other recently sold comparable properties that are as similar as possible to the property you’re interested in.

Gathering comps can be a challenge for many real estate investors. That’s why it’s important to use an online real estate platform that’s reliable and accurate. We’ll be looking at one in a while. 

4. Current Property State

It’s natural for used properties to come with some flaws. In most cases, you’re going to need to make some repairs. However, it’s important to ensure that the repairs are minimal and do not cost a lot.

Spending a lot of money on repairs will eat into your profits. If you don’t know how to check the extent of damages, get a property inspection and involve a professional.

Ensure that you set aside a good budget for repairs, just in case.

5. Positive Cash Flow

Cash flow is one of the vital reasons why people invest in rental properties. It is the money left once you’ve settled all rental expenses.

Positive cash flow means that you’re left with a good profit. Negative cash flow means that you’ll need to settle for some expenses from your pocket. The goal is to invest in a property where the rental income is considerably higher than the expenses.

But how do you spot a rental property with positive cash flow? Stick around for that.

Related: How Do You Achieve a Positive Cash Flow in Real Estate?

How to Find the Best Rental Investment Property for Sale

Now that you know what to look out for, let’s look at how to find a profitable Maryland rental investment property for sale. It’s important to note that the best method will vary from person to person, depending on your situation and budget.

That said, let’s dive right in:

1. Online Real Estate Platforms

The automation of most of our daily tasks has made our lives easier. It’s now easier to find potential investment properties for sale online.

Most real estate investors use the MLS database to access rental property listings online. However, the MLS database is limited to licensed realtors. It means that you must work with a real estate agent to find such listings. 

Fortunately, there are many other property listing platforms online, some that pull their listings from the MLS. These platforms give you access to thousands of listings for sale. Choose the website carefully since they have different subscription costs.

These listing sites allow you to access potential rental property investments without leaving the comfort of your house. They also provide you with a wide array of listings to choose from. It’s easy to find different property types with different features going for different prices.

Be careful which site you choose to use since not all are reliable. Some include outdated listings, while others display inaccurate details.

What’s the Best Online Real Estate Platform?

The best online real estate platform is one that gives you access to listings on the MLS, as well as those from other sources. You also want a platform that will also equip you with the necessary tools and analytics to help you decide whether an investment makes financial sense.

This is where Mashvisor comes in. Mashvisor is a one-stop shop for any real estate investor who desires to make smart business and financial decisions.

Our Property Finder will help you search for top-performing rental properties in your city and neighborhood of choice. You can set up your search criteria on the tool using the following metrics:

Mashvisor’s Property Finder

After finding a potential rental investment property for sale, you can use the investment property calculator to conduct an in-depth rental property analysis. The tool helps you to see whether a property makes financial sense by providing you with estimated property metrics, such as:

The best thing about Mashvisor is that it provides you with metrics for both long term and short term rental strategies. It helps you choose the most profitable rental strategy for your investment goals.

Sign up on Mashvisor today and start your 7-day free trial.

2. Leverage Your Network

Word of mouth is one of the best methods any real estate investor and professional can use. Many people planning to sell their homes first notify their family and friends before listing the properties publicly. You can leverage your circle of family and friends to be the first to know.

Simply talk to everyone in your circle. Let your family, friends, neighbors, and colleagues know that you’re looking to invest in a rental property. Be sure about what features you’re looking for so that they can help you find exactly that.

If the word spreads wide enough, chances are that somebody might know somebody who knows somebody who’s selling the exact rental property you’re looking for. Sometimes, you might even find that someone in your circle is selling but has not listed on the market yet.

Once you’ve spread the word, make sure to follow up with your circle from time to time. You want them to know that you’re serious about investing. You can even offer a small incentive for the person who helps you find a good deal.

Using word of mouth is relatively easy. You may also come across good deals since the properties are not yet listed publicly. 

On the other hand, this method may not work if you’re looking to buy urgently or if you have a small network.

3. Look Up Ads

The traditional ways of finding investment properties are still useful. Pursue through newspapers and magazines looking for “Properties for Sale” ads. 

The newspaper listings are usually categorized as houses, apartments, or condos. These properties are also listed as for sale by owner or by an agent. They also include details to help you reach out to the contact person. 

The best thing about such ads is that they face less competition. With the digitization of everything, only about 25% of potential property buyers will look at newspaper listings. There’s also a possibility of buying directly from the property owners.

The potential downsides of this method are that only a few sellers still list in newspapers, and it might also take time.

4. Driving for Dollars

Driving for dollars is a term used to refer to driving around neighborhoods looking for potential off-market deals. It may not be the most efficient method since you’re trying your luck with unlisted properties, but it can certainly help you strike gold.

Besides, you might find some homes with a “For Sale” sign in the front yard. It would be more efficient since you’re sure the property owner is looking to sell.

Remember that the driving for dollars strategy doesn’t assure you of finding a rental property for sale. You may also need to do it several times, which might cost you a lot of fuel.

5. Work With a Real Estate Agent

Hiring a real estate agent is another great way to find find the best rental investment property for sale. Real estate agents help investors, especially beginners, save time, money, and disappointment. 

If you don’t know where to start, real estate agents help you get started on the right footing. They often possess an in-depth knowledge of the local real estate market. They know hot neighborhoods and property types that have high rental demand. 

Remember, since they’re licensed, they also enjoy access to the MLS database. If you work with one, they’ll give you access to local listings on the MLS. It can work for you in a big way since MLS contains listings that you might not find in newspaper ads.

Agents will also use their skills to help you find the best Illinois rental investment property for sale within your budget and negotiate better prices. Since they’re well connected in the local market, they’ll also help you access off-market real estate deals.

The only flipside to such a strategy is that you’ll need to spend more money since they charge a certain fee based on the deal’s value.

Don’t just work with a random agent. Know what you want from them and interview them to see whether they’re a good match. Build a rapport to ensure they prioritize your needs. 

Again, you want to ensure they’re experienced in your local market.

Related: Should Investors Work With Real Estate Agents Near Me?

Final Thoughts

Putting your money in the best rental investment property for sale has always been one of the best ways to invest in real estate. While many beginners may be hesitant to take the first step, finding a profitable rental property isn’t that complicated.

First, you need to know what to look for in a lucrative rental property for sale. The property must be in a good location. A good location is one with a good economy, significant housing demand, and a good population growth rate.

Once you’ve spotted a good location, you can now begin your search for a lucrative rental property. Some strategies to identify one include talking to your network, driving around neighborhoods, looking up newspaper ads, and hiring a real estate agent.

You’re also going to need a good online real estate platform. One that will not only help you access property listings in your desired location but also help you analyze the property to determine its profit potential. The best tool for this is Mashvisor.

Book your demo today and see how our tools will hold your hand.

Do you wish to invest in a rental property for sale in 2023? Here’s a forecast and prediction for the year, what to expect, and how to invest.

At the start of every year, many real estate investors take a step back to take stock of the previous year and what they’ve learned. Many also go ahead and analyze trends they believe will affect investments in the coming year.

Table of Contents

Do you wish to invest in a rental property for sale in 2023? Here’s a forecast and prediction for the year, what to expect, and how to invest.

At the start of every year, many real estate investors take a step back to take stock of the previous year and what they’ve learned. Many also go ahead and analyze trends they believe will affect investments in the coming year.

Table of Contents

Real estate investors favor rental properties in most cases. The idea of earning consistent monthly income and building your investment portfolio is convincing enough. Also, if you obtain financing to purchase the property, you can get your tenants to repay the mortgage for you.

Fairly low risk, rental income, and handsome returns. They sound like a no-brainer, right?

Even then, rental properties may or may no longer be what they’ve always been. 2023 will be an interesting year, especially with the current state of the economy, inflation, and mortgage rates.

Should you take a risk and dive headfirst into the murky waters of rental property investment in 2023? Or should you watch everything unravel from the sidelines?

In today’s blog post, we seek to answer the above questions and help you choose the best course of action when it comes to rental property for sale near me in 2023. We’ll also cover how Mashvisor can help you manage the risks of real estate investing in 2023, so stick around for that as well.

Is Buying a Rental Property Worth It in 2023?

Rental market predictions are quite tough to make right now. It is mainly due to the fact that the Federal Reserve might be compelled to raise interest rates anew to keep inflation in check. However, there are a few trends on that you can base the market forecast.

Here’s what you need to know about investing in a rental property for sale in 2023. We divided the reasons into two major sections:

Why You Should Invest In a Rental Property in 2023

Investing in a rental property for sale will be a good investment in 2023 for several reasons. Here is a breakdown of a few reasons:

Balanced Housing Markets

The 2020 pandemic brought about a rise in interest in small, rural markets. As many companies switched to remote work, many people moved from primary markets to tertiary markets. It was mainly because people were looking for affordable housing with larger spaces.

While remote work is set to continue, companies are also going back to full operation. As such, people are moving back to the cities. Primary markets are set to go back to pre-pandemic levels.

Also, many markets, such as Florida, were described as sellers’ markets in the past two years. The conditions favored sellers, as property prices hit all-time highs and priced out many potential buyers. But, you can expect to see a change in 2023.

Hot markets are expected to cool down. Many real estate markets will also experience different demands. Many markets will neither be sellers’ nor buyers’ markets. It should encourage you to invest in a rental property for sale since such properties will be more affordable, and market conditions will be more favorable.

Related: Buyers Market vs Sellers Market in Real Estate: Everything That You Need to Know

Recovery in the Short Term Rental Industry

The past two years had a devastating effect on the short term rental industry. The inflation and poor economic conditions have led to many people cutting down their spending to stay afloat. One of the areas affected was the vacation and travel sectors.

In 2023, we can expect the short term rental sector to go back to pre-pandemic levels. And there are statistics to support this forecast.

According to US Travel, the monthly travel expenditure in April 2022 in the US surpassed the spending in April 2019 for the first time by 3%.

Travel is one of the core pillars of the Airbnb rental industry. Travelers and vacationers tend to book short term rentals when they travel. More expenditure in the travel industry means more revenue for the vacation rental industry.

It is a sign for you to be creative and invest in short term rentals in a top-performing short term rental market, such as Florida.

Growing Demand for Rentals

Property prices and mortgage rates are expected to stay high in 2023. The said factors will discourage many people from investing in a rental property for sale. It’s a positive sign for real estate investors since it means that you’ll face less competition.

The demand for rental properties will remain high. With Gen Z coming of age, you can expect to see more people looking for properties to rent. Millennials make up the majority of renters in the US. Baby boomers and Gen X, on the other hand, seem tired of all the trouble involved in keeping a house; they’re now going back to renting.

As a rental property owner, it is a sign that you will enjoy a good occupancy rate and low tenant turnover.

Why You Should Not Invest in a Rental Property in 2023

After looking at some factors that may influence you to invest in a rental property for sale, what other things should you keep in mind?

Inflation

Let’s face it; the cost of everything is going through the roof. Families all over the world are doing everything to afford the cost of living, including rent. It is putting a strain on living situations.

To counter such issues, many people are choosing to move in together with other family members or roommates to share the cost of monthly rent. While it may be a downside for a few, real estate investors can view it as an opportunity.

The trend is leading to an increase in demand for larger rental properties. Besides living with family members and roommates, people also prefer larger units. They want something that can support their remote working lifestyles.

As a real estate investor, it is an opportunity for you to invest in a larger residential property for sale. You could choose to invest in a multifamily property with several units or buy a single family property with several bedrooms.

High Property Prices and Mortgage Rates

The main downsides of investing in rental properties in 2023 are the high property prices and mortgage rates.

In November 2022, the median property price in the US rose 11% compared to the same period in the previous year. Though the increase was 16% slower than the annual growth rate seen in June and July, the prices would not be coming down any time soon.

Also, the current high demand for properties but a low supply of housing might push the prices even higher.

As for mortgage rates, the average interest rate for a 15-year fixed-rate mortgage went up from 2.8% in January 2022 to 6.36% in October of the same year. It was the highest recorded rate within the past 15 years.

With the current inflation, you can expect the rates to remain high. The high property prices and interest rates are going to price out many real estate investors. Specifically, those who can’t afford to place a 20% down payment or secure an affordable mortgage will be out of luck.

A Few Tips on Investing in the Current Market

However, you can still invest in the current conditions. Simply follow the following tips:

Related: Adjustable-Rate Mortgage vs Fixed-Rate: Which Is Better for a Real Estate Investor?

The Best Website to Find a Profitable Rental Property

We’ve looked at a number of reasons why you should invest in a rental property for sale in 2023. We’ve also seen some reasons why some investors may choose to sit on the sidelines.

While the positives are enough to convince you to invest your money, it’s not guaranteed that you’ll make substantial returns. Your success is tied down to your ability to find properties with a high yield.

There are thousands of homes for sale in most housing markets at any particular time. The process of analyzing different homes to filter in the most lucrative ones can be challenging, especially for beginners.

Also, there are multiple property listing sites on the internet today. So, which is the best website for smart real estate investors?

As an investor, you want a website that will allow you to find profitable rental properties in any city in the US real estate market. You also want one that’s easy to use, with updated listings, and provides available tools for you to carry out in-depth analysis.

Look no further than Mashvisor.

What Is Mashvisor?

Mashvisor is an online real estate platform that employs cutting-edge algorithms and AI technology to help you find lucrative real estate properties in any market in the US. It’s the best platform for investors looking for properties that match their investment and financial goals.

Mashvisor ticks all the right boxes. It doesn’t just allow you to search for properties across all markets. It also helps you analyze neighborhoods and properties using different crucial metrics, such as occupancy rate, cap rate, and cash on cash return.

In short, it’s a one-stop shop for real estate investors.

Let’s break down some of Mashvisor’s important tools.

Rental Property Finder

You need a good investment property search tool to help you find a lucrative rental property for sale. Mashvisor’s Property Finder is the best tool for the job.

When doing their property search, most investors have an idea of what they want in mind. The Property Finder tool helps you filter out any properties that don’t fit your search criteria and end up with properties that do.

As such, the tool comes with a set of filters that you can use to set up your search criteria. After you’ve set the filters, it then uses machine learning and AI to generate a list of top-performing listings based on your requirements.

The listings are ranked in order based on performance. The properties with the highest profit potential are ranked first.

This tool is the fastest and most efficient way to find profitable rental properties for sale. You don’t need to type “rental properties for sale near me” on Google Search and then go through thousands of listings.

Here are the filters you’ll find on the Property Finder tool:

Related: How to Invest in Real Estate for Beginners in 2023

You can use Mashvisor’s Property Finder tool to find a lucrative rental property for sale.

Real Estate Heatmap

Let’s assume that you now have a list of cities you’d like to invest in. While it is a good first step, it can be a little confusing. It is because different neighborhoods in the same city offer different returns on investment.

It’s always best to narrow down your search for a rental property for sale to specific neighborhoods in a city. Location is important in real estate investing. Narrow down your focus to specific neighborhoods.

Using the Heatmap Tool

Mashvisor will help you carry out in-depth neighborhood analysis. Our heatmap tool gives you relevant visual cues and important analytics. You can use the heatmap to analyze different neighborhoods in a city based on the following criteria:

You can use Mashvisor’s real estate heatmap tool to analyze different neighborhoods in a city based on several metrics, such as listing price, cash on cash return, rental income, and occupancy rate.

Investment Property Calculator

After viewing a few potential properties in your desired neighborhood, you’re not done yet. You must carry out an in-depth rental property analysis since you want to invest in a potentially profitable property.

To do it, you need to perform several calculations to compute various returns on investment metrics. Doing so manually would be tedious and would expose your calculations to errors.

But with Mashvisor’s investment property calculator, you can access all the metrics and analytics with just the click of a button. The tool provides you with an in-depth analysis of all property listings on the platform.

Accessing Property Data and Analytics

You can access the following data and analytics using the investment property calculator:

The best thing is that Mashvisor offers a  7-day free trial for investors looking for a rental property for sale.

You can use Mashvisor’s investment property calculator to conduct an in-depth analysis of all property listings on the platform.

Invest in a Rental Property for Sale in 2023

Rental properties have always been the best option for real estate investors who wish to receive a steady income and build their wealth. The 2023 market, in particular, is quite promising for investors looking for rental property for sale.

Real estate markets, like Florida, are expected to cool down and become more balanced. While property prices may not come down, they’ll stop going up at crazy rates. We’re also going to see an increased demand for short term and long term rentals.

However, you need to prepare yourself to invest amidst inflation, high property prices, and increased mortgage rates. You can do it by saving at least 20% to use as the down payment, securing a 15-year fixed-rate conventional mortgage, and following the 25% rule.

Importantly, you need to use the Mashvisor platform to find lucrative rental properties and carry out comprehensive neighborhood and property analyses.

Schedule your demo now and see how Mashvisor can hold your hand in your investment journey.

As we move more into 2023, let’s see what the forecast for Seattle real estate market is. Find out what’s in store for real estate investors.

Table of Contents 

Since the pandemic,

As we move more into 2023, let’s see what the forecast for Seattle real estate market is. Find out what’s in store for real estate investors.

Table of Contents 

Since the pandemic, the Seattle real estate market has been strong, but things are now shifting slightly. Housing prices in the Seattle region are higher than a year ago, but the market is staying solid.

However, Seattle may experience a steeper drop than other markets, partly because increasing rates can put mortgage payments out of hand when housing prices are already high. If rents stabilize (or remain the same), the forecast may take a turn during the year.

Home prices are expected to stay constant or in 2023 and may decrease moderately. While pricing will remain a critical element, homeowners will have a far better understanding of what a prospective home purchase would cost.

In this article, you can find more about the outlook on Seattle real estate market trends and the reasons why you should invest in the Seattle market. Moreover, Mashvisor provides the latest data on the Seattle market, so stay tuned.

How Was the Seattle Real Estate Market in 2022?

The pandemic and the Fed’s efforts to get the economy back to normal are primarily responsible for the 2022 Seattle real estate market patterns. Particularly, years of government stimulus and historic admiration have driven the local housing industry to areas few could have predicted.

The following Seattle housing market trends have emerged from the shift in dynamics:

1. Trends in Supply

In 2022, with almost 7,200 active listings in the Seattle real estate market, the Emerald City enjoyed just more than two months of inventory. Supply is down somewhat from the previous quarters. However, rising property prices and borrowing rates were predicted to boost inventory levels.

Regarding the 2022 forecasts, home prices were projected to fall modestly as inventory levels rose. As competition for each listing decreased, sellers lost a bit of control over the decisions they made and were sometimes pushed to lower asking prices.

2. Housing Price Trends

The Seattle real estate market’s housing price trends differ from the national averages. Property values around the country have been continuously rising. On the other hand, Seattle real estate has been slightly declining since the second quarter of 2022.

The contrast did indicate that Seattle was somewhat ahead of the trend, with prices peaking sooner than in most other places. If nothing else, Seattle property values have been high for far too long. Consequently, they were more vulnerable to a downturn, similar to what we experienced the previous year.

3. Trends in Interest Rates

Year on year, mortgage rates statistics nearly doubled. In 2022, the average commitment rate for a 30-year fixed-rate mortgage was 6.92%. According to FRED, rates were as low as 2.98% in the fourth quarter of 2021.

The favorable real estate data resulted from the Fed’s attempt to combat inflation, and it was going up throughout the last year.

Related: How to Get the Best Mortgage Rate for Investment Property in 2023

4. Investing Trends

In recent years, low loan costs and strong home prices have moved the Seattle real estate investing community into long term rental properties. Borrowing expenses helped offset high purchase costs, but housing prices limited profit margins on speedy flips.

Moreover, low borrowing rates allowed landlords to boost their monthly cash flow. In addition, Seattle’s real estate market tendencies continued to benefit landlords until prices slightly declined.

What Will the Seattle Real Estate Market Be Like in 2023?

Because of the holiday season, December 2022 recorded the fewest new listings, which was excellent news for purchasers. Additionally, mortgage interest rates were lower than they were a month ago.

Since experts expect interest rates to fall soon, homebuyers are already purchasing at market value with the opportunity to refinance when interest rates go down.

Now, let’s see more about Seattle real estate market forecast, as well as its possible trends for the year.

1. Seller’s Real Estate Market

The following housing market trends and statistics are based on listings for single family homes, townhouse homes, and condos on Realtor.com. Multi-unit buildings, land, and other forms of different property are not included.

In November 2022, the median list price for a property in King County was $840,000, a 12% rise from the previous year. Moreover, if the median listing price rises, the real estate market conditions are likely “hot,” and properties will sell faster.

Regarding the 2023 forecast, sellers will gain as prices rise. Houses in King County were sold for around the asking amount in September, and the ratio of sale-to-list price was 98.63%, according to Norada Real Estate Investments.

2. Seattle Real Estate Market Conditions

Workers at local tech companies like Microsoft and enterprises with large operations in the area, such as Facebook and Google, fuel the Seattle real estate market.

Many of the local employees did not want to work from home (remotely) in small apartments during the pandemic, so they looked for larger residences with office spaces.

In addition, most of them are financially able to compete with other purchasers and drive up the Seattle housing price conditions. Inventory is most limited in the Puget Sound region’s four-county real estate market. Despite a considerable increase in inventory, there are still less than two months of supply.

To summarize the previous month’s figures and statistics, the Puget Sound area remains a seller’s market, with a forecast of fewer than two months of supply. The forecast is a bit below what is needed to meet the number of purchasers.

3. More Apartments in the Seattle Real Estate Market

In 2022, the Seattle region saw a historic number of new apartments completed, and the 2023 forecast says that the trend is expected to continue.

According to CoStar analyst Elliott Krivenko, around 12,000 new market-rate apartments will enter the real estate market in 2023. Many of the luxury skyscrapers coming in downtown and South Lake Union are one of many built in Seattle.

According to CoStar’s forecast, more than 50% of downtown homes give concessions like a free month to lure tenants when rents fall off, compared to only a fifth of homes in the suburbs.

According to Krivenko, the licensing and building of new apartment developments have begun to slow down despite all of the new homes. The forecast will become apparent as time passes, since building permits and construction might take years. He added:

“Expect things to slow down by 2024.”

Should You Invest in the Seattle Real Estate Market in 2023?

Here, we will tell you whether or not you should invest in the Seattle real estate market. But before that, below are the real estate statistics for Seattle, Washington, from Mashvisor’s December 2022 location data:

Pros and Cons of Investing in Seattle Long Term Rentals

You must know what you’re walking into to invest in the Seattle real estate market. Below, you can find key pros and cons when it comes to investing in long term rental in Seattle, Washington.

Pros of Investing in Seattle Long Term Rentals

Here are some advantages of investing in the Seattle real estate market in 2023:

Cons of Investing in Seattle Long Term Rentals

Here are some disadvantages of investing in the Seattle real estate market in 2023:

Related: The Complete Beginner’s Guide to Investing in Long Term Rentals

Pros and Cons of Investing in Seattle Short Term Rentals

It is good to be prepared before you decide to invest in the Seattle real estate market. It’s why we compiled a list of pros and cons regarding short term rentals in Seattle.

Pros of Investing in Seattle Short Term Rentals

See some of the advantages of short term rentals in the Seattle real estate market below.

Cons of Investing in Seattle Short Term Rentals

Below you can find some disadvantages when investing in short term rentals in the Seattle real estate market.

How to Find a Profitable Investment Property in the Seattle Real Estate Market

Due to heightened competition, finding a lucrative investment property in the Seattle real estate market in 2023 might be difficult. It is, nevertheless, doable if you adopt the right approach and tools. This is where Mashvisor comes to help.

1. Complete Your Research

It is critical to conduct research on the market before investing in real estate. Examine the most recent trends and statistics to understand the industry better. If everything goes as planned, it’s safe to contemplate investing in that region.

In such a scenario, you would like to know the median property price in Seattle real estate market. You should also look at the vacancy rate, rental rate, cash and cash return, and cap rate. The figures mentioned above and many more may be found in the Seattle location data previously given above.

In addition, keep up to speed on market regulations and norms so that state and local authorities do not catch you off guard. A skilled real estate lawyer can assist you.

Related: What Is a Good Cash on Cash Return?

2. Locate Good Neighborhoods

Examine the area in which you intend to invest as well. Not every neighborhood is the same. Mashvisor’s real estate heatmap will help you locate top-performing communities based on your desired parameters. It will assist you in determining which location will give you the most return on your investment.

If you choose a decent area on your own, you must thoroughly examine it to determine if the neighborhood has good schools, facilities, and security. However, if you utilize Mashvisor real estate app, you may identify areas with all the necessary amenities.

You can use Mashvisor’s real estate heatmap to search for top-performing neighborhoods based on your preferred property metrics.

3. Identify Profitable Properties

After you choose the best neighborhood, the following stage is to locate lucrative homes to invest in. Mashvisor’s Property Finder tool makes that attainable.

Mashvisor’s Property Finder may assist investors in locating homes in every real estate market in the US. The software reduces the time spent looking for properties, so you don’t need to spend weeks or even months seeking.

Are you ready to invest in the Seattle real estate market? Start searching for profitable properties by taking advance of Mashvisor’s 7-day free trial.

Conclusion

Seattle’s real estate market is decent, with good demand for houses. Seattle is experiencing population growth, which shows little to no signs of slowing. The population expansion may increase the demand for homes and strengthen the local real estate market. As previously said, it is a seller’s market with little inventory and high demand.

For some investors, the Seattle real estate market might be difficult. However, you can avoid the obstacles by utilizing the finest real estate platform, such as Mashvisor. The platform will help you find the most lucrative property available.

To successfully invest in the Seattle real estate market, schedule a demo now.

The Denver real estate market is one of the hottest housing markets in Colorado. What is the forecast for real estate investors in 2023?

Year after year, many real estate investors always look at the Denver real estate market as a potential investment market. With the staggering real estate property prices, rising interest rates, and low housing supply, many investors are wondering what’s in store in the 2023 market.

Table of Contents

The Denver real estate market is one of the hottest housing markets in Colorado. What is the forecast for real estate investors in 2023?

Year after year, many real estate investors always look at the Denver real estate market as a potential investment market. With the staggering real estate property prices, rising interest rates, and low housing supply, many investors are wondering what’s in store in the 2023 market.

Table of Contents

What story does the forecast tell? Are we going to experience low buyer demand? Or, will the home prices increase despite the high interest rates?

We dug through tons of market data and analytics and compiled the following Denver real estate market analysis and 2023 forecast. Read on to find out more.

Denver Real Estate Market 2022 Trends

According to the Denver Metro Association of Realtors Market Trends Committee October 2022 statistics, the average and median property closing prices for September 2022 were the highest for the said month.

The average closing price for a residential property was $671,024, $745,947 for a detached property, and $486,773 for attached units. The median closing price for the same real estate properties was $580,000 for residential properties, $632,000 for detached properties, and $410,000 for attached units.

In September 2021, the average closing price for residential real estate homes in Denver was $618,977. It means that over 12 months, the figure went up by $52,047, representing a year-over-year increase of 8.4%.

The data was gathered from 11 counties in the Denver metro area. The counties include Arapahoe, Adams, Broomfield, Boulder, Denver, Clear Creek, Elbert, Douglas, Jefferson, Gilpin, and Park counties.

From the above trends, what can we forecast for the Denver housing market in 2023?

Related: 3 Interesting Real Estate Market Trends to Expect in 2023

Denver Real Estate Market 2023 Forecast

While property prices in Denver were at all-time highs in 2022, the prices are now starting to become more affordable for buyers. After spending a considerable amount of time as a seller’s market, buyers can expect the market’s characteristics to change.

So, is the Denver real estate market cooling? Is there a bubble waiting to burst?

We forecast that the Denver real estate market is cooling to become a neutral market.

According to Denverite, after about 16 years of being a seller’s real estate market, the market is cooling and beginning to balance out. Also, the typical real estate cycle in the Denver real estate market lasts about seven years. However, it is due to a change in 2023.

Real estate prices may decline as the number of listings increases past 2021 levels to boost the housing supply.

Real estate properties that will be most affected are those in the luxury and premier categories selling for more than $500,000. The said properties are likely to spend more time in the real estate market or see significant price reductions.

On the other hand, properties that are competitively priced and listed below $500,000 will see stable home valuations with minimal or no price reductions.

From the above forecast, should you go ahead and invest in the Denver housing market?

Is 2023 a Good Time to Invest in the Denver Real Estate Market?

According to the forecast, Denver is cooling to become a favorable housing market for real estate investors. It is the first time prices are starting to dip in more than a decade.

However, Denver real estate prices are still high compared to the national average. They’re also expensive from a historical outlook. Fortunately, there are many homebuyer programs in Colorado for first-time real estate buyers. The programs are willing to give you loans and grants to purchase your property.

It isn’t to discourage you from buying real estate properties in Denver. 2023 is a perfect time to invest in the Denver real estate market. There are many reasons to justify that.

5 Reasons to Invest in the Denver Real Estate Market in 2023

We just looked at the Denver housing market trends, forecasts, and predictions. Now that the market is cooling, why should you go ahead and invest in the said city or metro area?

Here are some reasons why you should take investing in the Denver real estate market in 2023 seriously:

1. Rent Prices Are Rising

Urban areas with a high population are experiencing weaker rental prices and declining average rents. On the other hand, suburban areas are seeing small increases in real estate rental rates. It is mainly because working people prefer to live in less dense areas that are less expensive.

The rent prices in Denver are up by 0.8% over the past month. It is a sharp increase of 8.8% compared to the same period in the previous year.

In December, the average rents for a one-bedroom and a two-bedroom real estate apartment were $1,443 and $1,785, respectively. It was the sixth straight month that the prices rose after a slight decline in January 2022.

Interestingly, the year-over-year rate of increase in rental prices in Denver lags behind the state’s average of 10% and the national average of 12.3%.

The encouraging thing about 2023 predictions is the continuing increase in real estate rental prices not only in Denver city but in the entire metro area.

2. Denver Is Landlord-Friendly

Compared to the West, the state of Colorado is relatively landlord-friendly. Denver is a dream market for landlords. And it is due to a number of reasons.

For starters, you don’t need to formally notify your tenants when you want to access the real estate property. Existing laws allow you to promptly begin the eviction process if your tenants fail to rent on time. It protects your investment in the city.

There are no laws that prevent you from rekeying your real estate property’s locks once you’ve evicted tenants. If they’ve violated the lease agreement, give them a formal notice. It gives them a 72-hour period to correct the issue or move out.

If the tenant doesn’t take care of the issue or moves out, you can move to court. Once the case is ruled in your favor, the sheriff gives the tenant a 48-hour period to move out or force them out.

Related: Can a Landlord be Held Liable for Nuisance Tenants?

3. Limited Housing Supply

Denver is home to huge national forests and large mountainous areas. New real estate developments are limited since the housing market can’t expand to uninhabitable areas. It keeps rent prices high compared to other cities like Dallas due to demand.

The median real estate prices for residential properties in Denver hovers around $530,000. While it is a substantial bargain for the large number of investors coming in from places like California, it prices out locals from the real estate market.

The median monthly rent for all properties is $1,100. At such a price, many renters could get a more spacious single family home or condo elsewhere. If you own a three-bedroom detached single family home, you could charge over $2,000 in monthly rent.

The predictions show you that you’ll receive good ROI numbers in the Denver real estate market in 2023.

4. Quality of Life

Cities in Colorado recently appeared in the list of “150 Best Places to Live in the US.” Denver was ranked the second-best city in Colorado.

Denver’s real estate market was a little lower when ranked on value. However, it ranked high on quality of life, employment, and desirability.

The high quality of life in Denver can be attributed to the following factors:

While the above factors may not be enough to bring large numbers of people into the Denver real estate market in 2023, it does play a part. Denver is now the 19th most populous city in the US.

The high quality of life means that rental occupancy rates are high. It is a perfect forecast that you should invest in real estate in Denver in 2023.

5. Strong Economy and Job Growth

Job growth is a direct factor that determines the state of the real estate market. Many professionals move into certain areas to look for opportunities if there’s job growth. It drives up the demand for all types of real estate since the workforce needs a place to stay.

The availability of jobs is one of the top factors why people are moving to Denver in 2023. The unemployment rate in Denver has stayed below the national average for many years.

In 2015, Forbes ranked Denver as the best place for business and careers. In addition, the city ranked 16th for employment growth and 20th for education.

With the massive oil and government sectors and expanding aerospace and technology industries, you can expect the Denver real estate market to continue experiencing such a huge boom in 2023.

Due to all of the above factors, Denver has been one of the fastest-growing cities in the US. A strong economy greatly impacts the condition of the real estate market. Real estate investments give you a great opportunity to participate in the strong growth of Denver’s economy.

Related: 40 Best Places for Buying Investment Property in 2023

3 Best Neighborhoods in the Denver Real Estate Market for Long Term Rental Investment

After the market forecast and predictions, you’re probably thinking of investing in long term rentals in the Denver real estate market. What are the best neighborhoods for long term rentals in this city in 2023?

Here’s our list of the best neighborhoods for long term rental investment in the Denver real estate metro area. The statistics are based on Mashvisor’s December 2022 location report.

1. College View-South Platte

2. Globeville

3. Union Station

As you can see, long term rentals in the Denver real estate market give you a good return on investment.

Start searching for lucrative long term rentals in Denver in 2023 by using a reliable platform such as Mashvisor.

You can use Mashvisor to search for profitable long term and short term properties in Denver, CO.

3 Best Neighborhoods in the Denver Real Estate Market for Short Term Rental Investment

If you want to invest in short term rentals in the Denver real estate market in 2023, here’s a list of neighborhoods we forecast are suitable for short term rentals. The following statistics are based on Mashvisor’s real estate market report from December 25, 2022.

1. College View-South Platte

2. Westwood

3. Globeville

Begin your search for profitable short term rentals in Denver in 2023 today.

Is Denver a Good Place to Invest?

Real estate forecasts and statistics show that investing in the Denver real estate market in 2023 is going to be a wise decision. For a long time, it has been considered a seller’s market, where all factors favored the property sellers.

Forecasts and predictions show that we’re now beginning to see a shift. Housing prices will go down as more properties are listed on the real estate market to meet the demand.

The Denver real estate market should be on your radar since rent prices are going to rise. You can find limited housing supply, meaning that the demand for housing will drive rental rates up. Denver’s laws are also relatively landlord-friendly.

Should you make up your mind to invest in the Denver real estate market in 2023, make sure you carry out your own in-depth research. The best way to conduct a comprehensive real estate market analysis is by using Mashvisor.

Schedule a demo today to see how Mashvisor’s tools can help you in 2023.

Many consider real estate investing a foolproof way to build a consistent flow of income. What can you expect in the real estate market 2023?

The new year is a great time to prospect and forecast real estate investments. Many people often use the period to research and familiarize themselves with hot real estate investment options for the year.

Table of Contents

Many consider real estate investing a foolproof way to build a consistent flow of income. What can you expect in the real estate market 2023?

The new year is a great time to prospect and forecast real estate investments. Many people often use the period to research and familiarize themselves with hot real estate investment options for the year.

Table of Contents

However, the current state of the real estate market and the economy is a bit confusing and can hold back investors from investing their cash. The cost of everything, including mortgage rates and home prices, is on the rise.

Additionally, the past year wasn’t particularly good for real estate investors. Home prices hit all-time highs, then slumped fast. Many expected a housing market crash. As such, when in comes to real estate investing, many investors are hesitating this year.

On the positive side of things, 2023 could be the year we see the market spring back and become profitable again.

Let’s look at the year’s forecast and a few predictions you need to know about the real estate market 2023. We’ll also show you how Mashvisor’s tools can help you in your real estate investing journey.

Will House Prices Go Down in the US in 2023?

No, home prices are still going up in the real estate market 2023. The market won’t crash, but prices won’t come down either.

In November 2022, the national median property price for active listings was $416,000. It represents an increase of 11% compared to the same period in the previous year.

However, it’s not all gloom. The November rate is slower than the 16% annual average growth rate in June and July. It is a forecast that the property price growth rate could be calming down. In short, while home prices are expected to still go up in 2023, the growth will be slightly slower than last year.

In addition, there’s a high demand for housing but a shortage of homes for sale. It is another factor that will lead to an increase in home prices. Yes, the prices may dip from month to month, but they’ll still be higher than they were at the beginning of the year.

As a real estate property seller, it will put a smile on your face. For buyers, here’s some advice for you.

What Do These Predictions Mean for Sellers?

As a real estate property seller, rising property prices mean that you’ll enjoy higher profits. It is good since you’ll need it when purchasing your next investment property.

But it doesn’t mean that higher profits are guaranteed. Make sure you work with an experienced real estate agent who knows the ins and outs of your local market.

Also, don’t be in a rush to sell. Wait for the right time and the right buyer who gives you the right offer. Some buyers will give you a lowball offer. If you aren’t distressed, stay on the real estate market for a bit longer to maximize your property’s value.

Always remember that the least desperate person in any deal always has the upper hand.

Related: Should Investors Work With Real Estate Agents Near Me?

What Do These Predictions Mean for Buyers?

As a buyer in the real estate market 2023, you may worry due to the rising home prices. However, you can still take advantage of the expensive market and position yourself to make handsome profits.

Firstly, you need to determine how much you’re willing to spend to acquire your home. Create your budget and stick to it. Don’t cave into the pressure to buy a property you can’t afford just because you want to beat your competitors. We’ll take a deeper look into this later.

We understand that waiting for the right time to buy a well-priced home may be frustrating. But you’ll appreciate buying a property that brings you profits instead of paying an expensive mortgage out of your own pocket.

Home Buying Tips

Here are some important tips for you to follow when buying real estate properties this year:

Will Mortgage Rates Go Down in 2023?

No, the mortgage rates will not go down in 2023.

In 2021, the average mortgage interest rate was lower than ever. But the rates almost doubled in 2022 and have been going up ever since. What should we expect in 2023?

The Federal Reserve raised interest rates in 2022. As a result, the average interest rate for a 15-year mortgage with a fixed rate went from 2.8% in January 2022 to 6.36% in October. It is the highest it has ever been in 15 years. Similarly, the average rate for a 30-year mortgage with a fixed rate hit 7.08% in October.

As you can already tell, it is why we recommend 15-year fixed-rate conventional mortgages. They generally come with lower interest rates compared to 30-year mortgages. Also, you finish paying up the principal plus interest much sooner. Less repayment time means more savings.

So, what are the predictions for mortgage rates in 2023?

Our predictions are that the rates may hit 7.25% and 8% for 15-year and 30-year fixed-rate mortgages, respectively. The rate at which the mortgage rates are growing will regularize later in the year and range between 5.25% and 6%.

However, there’s certainly no guarantee that the mortgage rates in the real estate market will indeed come down. It’s entirely dependent on whether the Federal Reserve will get inflation under control, prevent a market crash, and contain the aggressive mortgage rate increases.

What Do These Predictions Mean for Buyers?

High mortgage rates mean that real estate properties become less affordable. Again, don’t cave into pressure to buy properties that you can’t afford. Should the market crash, you still want to be in a position to make your monthly mortgage payments.

But don’t let it hold you back, either. If you can afford it, go for it.

Remember to stick to the down payment, monthly payments, and mortgage tips we shared in the previous section.

What Do These Predictions Mean for Sellers?

Higher mortgage rates tend to price out many interested buyers who might not be in a position to afford your property. Your property might have sold like hot cake two or three years ago. Don’t expect the same to happen this year. Your listing could spend more time on the market. Be patient as you listen to different offers.

3 Other Things to Expect From the Real Estate Market in 2023

What other things should real estate investors be on the lookout for in the real estate market 2023? Here are some of our predictions;

1. Will Housing Inventory Stay Low?

We’ve been seeing a shortage of housing supply in the real estate market for a while now. There haven’t been enough listings and homes on sale to satisfy buyers’ demand.

Many experts differ when it comes to housing supply predictions in 2023.

Looking at the trends just before the 2008 housing market crash, you can observe that housing inventory peaked at about twice what you can expect to see in a healthy real estate market. Today, we only have half of what we need, meaning there won’t be a crash.

Current property owners are less likely to trade in their properties with a 3% mortgage rate for a new property with a 7% mortgage rate. In addition, many builders are taking a step back and slowing down on the production of new housing.

As such, we won’t be seeing a boost in housing supply from new housing projects. You can expect the housing inventory to remain low.

On the other hand, current housing trends tell a different story. Since May 2022, housing inventory has been moving up gradually. November experienced the largest month-over-month jump in 2022. The increase was about 46% over the same period in the previous year.

While the trend may be encouraging, it’s important to note that the total number of active listings in November 2022 was still 38% lower than in the pre-COVID era (November 2017-2019).

What Does This Mean for Buyers?

Low housing inventory means that you need to stay on top of your house-hunting game. The best homes are likely to be snatched up fast. Most homes in November 2022 spent 56 days on the real estate market, which is 18 days less than pre-2020 levels.

It means that you won’t have a lot of time to look at multiple potential investments and dilly-dally as you weigh your options. Here are some tips for you:

What Does This Mean for Sellers?

Selling a home in a market with low inventory means that you have less competition. If your property is in a good neighborhood and has some desirable features, you can expect to receive multiple offers.

Keep in mind that higher mortgage rates have priced many buyers out of the real estate market. If your property isn’t the best looking or doesn’t have excellent features, you’ll still receive offers but not as many as you would have a few years ago.

If you’re going to be looking for a new home, make sure you find your next property before you sell. It’s less likely that the new owner of your property will allow you to live on their property before you decide.

2. Are Foreclosures Going to Increase?

The COVID-19 foreclosure moratorium expired in September 2021. The next few months saw a steady rise in foreclosures that might have hit their peak. Foreclosure rates are currently up by 57% from a year ago but went down by roughly 5% between October and November 2022.

While foreclosure rates in November eased down, they were still almost double the rate in the same period in the previous year. In addition, they’re still 80% above pre-pandemic levels.

We can predict that the rates will ease out later in the year as unemployment rates go down. Remember, mortgage rates are also expected to regularize later in the year. As such, we may see fewer foreclosure starts compared to 2022.

Though the rates are still way higher than pre-pandemic levels, the only difference now is that homeowners now enjoy a large boost in home values. Even those struggling to make monthly mortgage payments have equity in their homes and aren’t underwater.

For starters, being underwater describes a situation when you owe more than what your real estate property is worth.

We might not have experienced as many foreclosures as expected once the foreclosure moratorium expired since homeowners now have so much equity.

Again, as a buyer looking to invest in the real estate market 2023, remember to only invest in a property you can afford. Shop around for a 15-year fixed-rate conventional mortgage whose monthly payments will be a maximum of 25% of your monthly income.

3. Will 2023 Be a Seller’s or Buyer’s Market?

For two consecutive years, “hot” and “sellers’ market” were the terms used to describe the majority of real estate markets in the US. It won’t be the case in 2023. Predictions show that different real estate markets will start to experience differences in demand.

Remember, housing inventory is going to stay limited. Homebuyer demand is also expected to remain suppressed by affordability and economic issues. These factors will balance out the market and prevent it from crashing and swaying to one side or the other.

The pandemic saw an increase in buyer demand for properties in suburban and smaller markets due to the desire for more space and flexibility to work remotely. Besides, many people were looking for affordable housing.

This year, many companies, offices, and firms are back to full operation and capacity. Many larger markets will return to pre-pandemic levels and experience increased demand. On the other hand, home prices in the smaller markets will fall.

2023 will be more balanced since there’s a lot of variability in how different markets are adjusting.

Related: Is It a Buyer’s or Seller’s Market in Real Estate? How to Tell the Difference

How to Minimize Your Risk in the Real Estate Market in 2023

We’ve already seen that we can expect the real estate market 2023 to neutralize. While home prices and mortgage rates may not necessarily come down, they’ll stop growing at the current steep rates.

Regardless, if you wish to invest in real estate in 2023, you’ll still need to deal with the consequences of the past two years’ market. For example, home prices and mortgage rates are still going to stay higher than pre-pandemic levels.

That said, here are some tips to help you keep your risk level in control in 2023:

1. Create a Budget

Getting your finances in order and creating a budget is always the first step to minimizing your risk when investing in real estate.

Check your current savings, income, and expenditure and consider how they’re going to change once your invest. Afterward, use your financial situation to determine how much money you can afford to buy a real estate property.

Your budget should include the following:

Though budgeting has always been important, it’s crucial, especially now in 2023. With the inflation rate hitting 7.1% in 2022, knowing how much you’re going to spend while factoring in any unforeseen events is a must.

After all, no investor wants to make the big move only to face foreclosure a few months or years down the line.

2. Invest In the Right Location

Real estate prices, in the long term, tend to follow median household incomes. If median household incomes increase, so do real estate prices.

However, keep in mind that real estate is also bound to bust and crash cycles. There will be times when home prices go way beyond the median household income. Conversely, there will be times when they’ll crash and go lower than they should be.

Your best bet is in cities where the population and incomes are rising, but property prices aren’t as high as the incomes.

Typical investors choose an investment city based on where they grew up, work, live, or simply from conversations with family and friends. Such investments are a huge gamble as they don’t account for the economic prospects in that location.

For example, if a city grows slower than the nominal GDP growth rate, then your investment will perform poorly. Also, if current prices are crashing, then future returns won’t be great.

For your investment to do well, invest in a city that’s growing fast, with a lot of well-paying white-collar jobs, and with reasonable current property prices.

The process may not be everyone’s cup of tea since it involves a lot of work. But Mashvisor makes it easier for you. We regularly publish Top Locations reports in our blog section. It helps you simply find the best investment locations in one guide for you instead of analyzing different reports and analytics.

Related: Why Mashvisor Is the Best Real Estate App for Buyers

3. Add Mashvisor to Your Arsenal

One trend that has defined the real estate space in the past two decades is the spread of technology in the scene. Despite its relatively short history in the industry, technology has now taken over real estate investing by storm.

Technology has changed the way real estate brokers, agents, and property managers go about their business. But the impact has been more significant for investors. This is where Mashvisor comes in.

What Is Mashvisor?

Mashvisor is an online real estate platform that uses machine learning and AI algorithms to help real estate investors find investment properties that match their financial and investment goals.

The platform is a one-stop shop for modern-day investors. It provides you with data and analytics to allow you to predict any market’s or listed property’s performance. You’ll find predictive analytics that gives you insight into future trends and forecasts based on historical and comparative data.

Our heatmap tool will help you conduct a neighborhood analysis. Once you have a few potential neighborhoods in your list, you can use our Property Finder. It will help you search for lucrative property listings in your desired neighborhood.

Afterward, our investment property calculator will help you carry out an in-depth real estate property analysis. You don’t have to worry about data accuracy and reliability since we pull our data from reliable sources, such as MLS, Airbnb, and many others.

One thing that makes us stand out from other online real estate platforms is that we provide you with data and analytics for both long term and short term rental strategies. It allows you to carry out a side-by-side comparison and choose a rental strategy that matches your goals.

Sign up for Mashvisor today and start investing in the real estate market 2023.

You can use Mashvisor’s various tools to start investing in the real estate market in 2023.

Is 2023 a Good Time to Invest in Real Estate?

Yes. Regardless of what’s going on in the real estate market 2023, the market won’t crash. It’s a perfect opportunity to invest. The value of real estate properties will go up even if it’s not by the huge margins seen in the past two years.

With the mortgage rates and property price rising, you’ll need to do a lot of work on your end. You don’t want to end up buying a property you can’t afford. It means you need to budget well and choose the right investment locations.

Above everything, use Mashvisor. We provide a wide array of tools to help you in whatever step of real estate investing you’re in.

Schedule your demo today and see how Mashvisor’s tools can help you.

Is the Miami real estate market cooling down? After two years of expansion, is it still a good idea to buy a property there? Read on to find out.

Buyers, investors, and sellers are drawn to the Florida metropolis for several reasons. Still, it raises the question: “Is investing in the Miami real estate market a smart decision?” Better still, is it a suitable time to purchase Miami real estate?

Table of Contents 

Is the Miami real estate market cooling down? After two years of expansion, is it still a good idea to buy a property there? Read on to find out.

Buyers, investors, and sellers are drawn to the Florida metropolis for several reasons. Still, it raises the question: “Is investing in the Miami real estate market a smart decision?” Better still, is it a suitable time to purchase Miami real estate?

Table of Contents 

Foreign and local real estate investors, notably, find that Florida’s most recognized city can provide a profitable setting for savvy businesspeople. However, simply investing in Miami real estate market without a strategy is insufficient.

You must listen to what the market indicates in the aftermath of the pandemic and convert each critical indicator into a realistic action plan. To bring your plan to fruition, you need to equip yourself with the most valuable tools and updated data available today.

Let’s look at numerous reasons someone would choose to invest in the Miami real estate market, see more about Miami housing market predictions, and some of the best neighborhoods to invest in—with Mashvisor providing all the data.

Miami Real Estate Market 2023 Predictions and Trends

Miami, Florida real estate stories have kept up with the rest of the country. Nevertheless, folowing the Fed Reserve’s determination to tighten housing standards across the board in the US, markets throughout the country may begin to behave autonomously. Higher interest rates and less activity will determine the course of events over the next twelve months.

Although it is too early to predict what Miami’s real estate market will look like in the near future, it is reasonable to understand what the market’s current trends offer interested investors. Here are some Miami real estate market trends projected to continue through 2023.

1. Purchasing a Home in Miami Will Be More Costly

According to Redfin’s real estate data, Miami’s median property price rose 27.4% over the past year. The increase was directly tied to the pandemic’s demand and supply restrictions. However, there is no reason to believe that the same signs will not drive prices upward over the following twelve months.

Although the demand in Miami is falling due to increasing mortgage rates and an expected recession, the city’s 25.2 weeks of supply is insufficient to meet pent-up demand. According to one of Realtor.com’s predictions, home prices might rise another 2.0% by the end of 2023. A housing shortage is seen to drive the prices up.

2. Foreclosures in Miami Will Rise

Miami foreclosures are on the rise. Previously, government help and moratoriums stopped lenders from initiating foreclosure proceedings against delinquent homeowners. However, the said government support is no longer available. The suspensions are due to expire, and owners will be compelled to pay up.

As an outcome, in the third period of 2022, Miami experienced some of the highest foreclosure occurrences. The trend is predicted to continue in the future, as the increased risk of a recession is expected to raise the number of delinquent householders in the area.

It is too early to predict how many foreclosures will begin in the Miami real estate market in 2023, but it is reasonable to anticipate that they will increase.

3. The Best Investment Will Be Rental Homes

Profit margins are down as a result of rising home prices, making rehabs less appealing to investors. Yet, the same variables that reduced profit margins on flips increased the appeal of investment property rental homes.

Rents in Miami, especially, have recently climbed at a quicker rate than housing prices. More significantly, rentals should continue to rise in tandem with housing values. With this 2023 trend, landlords will gain considerably if more people are driven to the rental pool.

As it is still relatively early to say what Miami real estate market will hold this year, we can focus on the current 2023 Miami housing market predictions we’ve discussed.

Related: Florida Housing Market Predictions: What Will Happen in 2023?

5 Reasons to Invest in the Miami Real Estate Market in 2023

As the Fed tightens its grip on the housing market by raising interest rates, activity slows, and perception alters. Nonetheless, we can see noticeable tendencies in the Miami housing market, providing a few good reasons to invest in Miami real estate market.

1. Supply Patterns

According to the latest government data, there are about 11,901 current listings and 25.2 weeks of current inventory in the Miami home market. Despite demonstrating more inventory than most marketplaces, there are still not enough homes in Miami to meet demand.

Even though mortgage applications are decreasing as interest rates rise, demand continues to outstrip supply. Moreover, inventory is projected to increase, but not at a rate that will bring the market back into balance.

Also, it’s unlikely that the market will experience a major crash in the coming months as things improve. Still, with all the statistics in mind, Miami requires some more time to return to normal.

2. Trends for Investors

Before the pandemic, the most common exit option for Miami real estate investors was house flipping. However, rising housing prices nearly erased profitability margins. Now, flipping houses is simply too pricey.

It doesn’t imply that flipping isn’t a feasible exit plan in Miami. It’s that economic indicators favor long term real estate housing market solutions like rental properties, which became profitable in the last two years.

3. Many Prospective Locations

Setting aside the numbers and statistics, Miami is a continuously evolving city, which is why so many people are drawn to it. They value its diversity and limitless chances. You may find the upcoming (and finished) locations interesting if you are among such individuals.

Edgewater in Miami, for example, is now seeing a renaissance. The Miami neighborhood’s newfound recovery comes after it experienced a decline from the late 1990s to the mid-2000s. Nonetheless, it is slowly rediscovering its purpose and witnessing a rush of investment. It is a scenario repeated across Miami, as well as other cities in Florida, as the rest of the US works to return to pre-pandemic levels.

Related: Should You Invest in Land for Sale in Florida?

4. Thriving Tourism

Miami has long been a popular tourist destination. With its warmer months and lovely beaches, it’s a logical choice for anyone looking to rest, unwind, and have fun. Add to it the fact that Miami is one of the country’s fashion capitals and home to several film studios.

That implies that property owners may profit from local and international tourism, which is popular in the area. It might range from renting out vacation homes to starting a business to meet the demand. The possibilities are limitless for Miami real estate investing.

Moving forward, let’s focus on the best long term and short term rental neighborhoods’ statistics for Miami real estate market.

5. Homestead Protection

Homestead protection is another great reason to invest in Miami real estate market. It implies that the house of a Florida citizen is safe from creditors. There are a few exceptions to the said rule (depending on whether the money was earned via a felony and other considerations). Nevertheless, typically, it provides excellent asset protection to people in need.

Moreover, it implies that if you have a documented judgment against you, it cannot be attached to or form a lien on your homestead. Simply stated, a creditor cannot repossess your home if you owe money on a judgment.

Florida’s homestead protection is one of the most powerful asset protection instruments in the US. It is a state constitutional legislation that safeguards the worth of a debtor’s main house. Such a protection commonly leads to judgment debtors migrating to Florida to avoid collection by a judgment creditor.

5 Best Neighborhoods in the Miami Real Estate Market for Long Term Rental Investment

If you’re looking to invest in long term rentals in Miami, Florida, here are the top five neighborhoods according to Mashvisor’s December 2022 location report. The neighborhood’s statistics are listed in order of highest to lowest cash on cash return.

1. North Bayfront

2. Southwest Coconut Grove

3. Upper Eastside

4. Auburndale

5. Shenandoah

If you’re ready to invest in the Florida real estate market, start searching for a profitable long term rental property in Miami now.

You can use Mashvisor to find long term and short term profitable properties in the Miami real estate market.

3 Best Neighborhoods in the Miami Real Estate Market for Short Term Rental Investment

Miami’s neighborhoods are consistently ranked well in terms of environment and quality of life, recently seeing increased employment development and investment in public transit. Of course, they all profit from the bright Miami weather all year round.

Related: The Best Way to Gain Access to Short Term Rental Data

If you’re looking to invest in short term rentals in Miami, Florida, here are the top three neighborhoods according to Mashvisor’s December 2022 location report. The neighborhood’s statistics are listed in order of highest to lowest cash on cash return.

1. Southwest Coconut Grove

2. Overtown

3. Auburndale

Ready to invest in Florida’s real estate market? Start searching for a lucrative short term rental property in Miami now.

Conclusion

For the majority of the past decade, the Miami real estate market was running on all engines. Even in the middle of a pandemic, Miami real estate remains a desirable market. For rental properties, in particular, multiple tailwinds seem in their favor.

With the Miami real estate market, lower borrowing costs, rising demand, and a scarcity of inventory all signal that long term buy and hold tactics are now as appealing as short term ones. Indeed, local investors may discover that the pandemic established a more advantageous market for landlords.

Therefore, the Miami real estate market is favorable for both long term and short term rentals. It is up to you to determine which strategy suits you the best. Of course, with Mashvisor’s real estate app’s thorough analysis, you’ll save a lot of time. Additionally, you can be confident that you’re dealing with reliable, up-to-date data.

Schedule a demo with one of our product experts right now. We’ll give you a thorough overview of our services and gladly answer your questions.

If you want to invest in the Dallas real estate market in 2023, here are the trends and information you should keep in mind before doing so.

 As far as the situation in the Texas real estate market is concerned, it is still a seller’s market. The demand and home prices remain relatively high—despite the decline seen over the past few months.

Table of Contents

If you want to invest in the Dallas real estate market in 2023, here are the trends and information you should keep in mind before doing so.

 As far as the situation in the Texas real estate market is concerned, it is still a seller’s market. The demand and home prices remain relatively high—despite the decline seen over the past few months.

Table of Contents

In the Dallas real estate market, home prices went up by 9.9% in 2022, compared to 2021. Currently, it’s a seller’s market—but it doesn’t mean you should back off from investing in real estate property here.

If you really dive into the available information, you’ll come to find that the Dallas real estate market offer some tempting deals in 2023.

Mashvisor’s gone the extra mile to help you see the big picture and figure out whether you should step into this particular real estate market and invest in short or long term rentals. So, stick around; we have a lot to discuss.

The Texas Real Estate Market: Will It Be Profitable in 2023?

Before getting into the details regarding the Dallas real estate market analysis, we would like to take a moment to look at the bigger picture—the general situation in Texas.

First and foremost, it is important to mention that Texas is the second most populous state in the US. It is a popular destination, especially for young people who want to progress career-wise and enjoy an affordable cost of living.

Because of the breadth and size of Texas, housing trends and home prices in the said real estate market are subject to change—and they greatly depend on the particular city and region.

The suburbs of Dallas, which is our main focus today, and Austin are the most popular areas for investing in real estate in Texas.

Texas Housing Market Trends

Now to paint a clearer picture of the current situation and forecast, here are the most popular trends for the Texas real estate market in 2023.

For one, mortgage rates are on the rise in the Texas real estate market—which should come as a surprise, bearing in mind the situation in the US housing market.

Additionally, Texas is a popular renter’s market right now. The fact that approximately 38% of the Texas housing market is renter-occupied should give investors hope—and motivate them to invest in the local market in 2023.

Texas Housing Market Forecast

Here’s a prediction that might be of the utmost importance to investors:

Buying a house in the Texas real estate market may end in a better deal compared to other states, with the national median sale price being $25,000 cheaper, according to Bankrate.

However, given the soaring mortgage rates, it is clear why some people seem worried about the possibility of not attaining profit here.

The forecast for the Texas housing market looks good, though. According to professionals, the gray cloud will pass, and most importantly, the Texas housing market won’t suffer a crash any time soon.

Related: Will the Housing Market Crash in 2023?

5 Reasons to Invest in the Dallas Real Estate Market in 2023

Now that you know what to expect in the Dallas real estate market, here are the five crucial factors that will likely encourage investors to proceed with their plans.

1. Low Crime Rates

There’s no such thing as a 100% crime-free area. Dallas comes close, though. You can take our word for it:

Dallas is, in fact, one of the safest places in Texas to live in at the moment.

The majority of crimes that occur here are related to petty thefts and cases of vandalism. It is certainly not something that should be ignored, but, at the same time, it is not something that would deter a family from wanting to move there, either.

Of course, there are safer and less safe neighborhoods. Naturally, areas deemed “safe” tend to attract growing families with kids—and the Farmers Market District is one of them.

2. Low Living Costs

Dallas boasts a good living standard at the moment, thanks to the strong local economy.

You might’ve heard that it is expensive to live in Dallas. But generally speaking, it is only 1% more expensive than the national average—which is remarkable for such a developed city in Texas.

We assume that future residents will be most interested in how much they’d need annually to live comfortably. For a comfortable life in Texas, the household’s income needs to be around $58,000 per year.

Add the fact that this state doesn’t impose an individual income tax; it makes life in Dallas, Texas, quite affordable.

Related: Where Can You Find Airbnb Properties for Sale?

3. Home to Technology and Innovation

Another very important thing that sets the Dallas real estate market apart is that it is home to technology and innovation. We can cite the contribution of young professionals finding their way to this amazing city to thank for that.

The population of Dallas consists mostly of immigrants and Latinos. They’re mainly students and young adults who want to make a name for themselves in highly competitive markets.

The youth, coming in increasing numbers to Dallas, also contributes to growing businesses, developments in technology, emerging industries, and the opening of new job positions. Even more so, this influx of the younger population contributes to the demand for short term rentals, too.

4. Population Growth and Job Opportunities

Dallas continues to see an increase in population. In 2022, the Dallas metro population was 6,488,000, up 1.42% from 2021.

The forecast is that the population will continue to grow in 2023. And by 2029, the population is actually expected to increase by 17.9%.

Regarding job opportunities, Dallas, TX, offers a bright forecast for 2023.

Over the past years, the job market’s expanded by nearly 100,000 new jobs. It directly affected the influx of people coming to kick-start their careers in this metropolitan area.

According to Zippia, the jobs currently in demand in Dallas, Texas, include registered nurses, sales associates, senior software engineers, and chefs, to name a few.

5. Interest in Short Term Rentals

A growing interest in short term rentals seems logical now that we’ve already mentioned an influx of students and young professionals, the booming economy, and low living costs. It brings us to Dallas as a tourism hotspot.

The demand for short term rentals among tourists is increasing—and the record was set in 2019 when Dallas was named one of the best places for Airbnb investors.

Being the most popular state for Airbnb listings in the United States makes Dallas a hotspot for prospective investors who want to expand their portfolios with short term rentals in 2023.

The accommodation is comfortable, the rates are generally affordable—and there is a lot to see in Dallas.

Related: The Most Profitable Types of Real Estate Investment for 2023

3 Reasons to Not Invest in the Dallas Real Estate Market in 2023

If you’re considering a career in real estate investing in 2023—and the Dallas market is one of your top three choices—that’s great. However, you should step into the real estate business with your eyes wide open. Here’s what we mean:

You should consider the advantages of investing in the Dallas area—and be aware of the potential risks that come with it.

With that said, we’d like to go over a few reasons why investing in Dallas real estate may not be the right move for everyone.

1. Extremely Hot Weather

The climate in Dallas is characterized by hot and humid summers. This city, on average, sees 234 sunny days a year, with high temperatures that only residents seem to tolerate.

The hottest days here can easily reach 95 degrees Fahrenheit—while the winter tends to be relatively mild, with temperatures in January averaging 47 degrees Fahrenheit.

While some enjoy the sun, others cannot stand the heat. It is one of the reasons why tourists seem to favor spring and early fall—when the weather is not as extreme—to visit Dallas.

It’s a common concern for many investors, too. They are afraid that too few renters would actually enjoy the type of climate in Dallas.

2. Occasional Tornadoes

California experiences earthquakes, Florida sees hurricanes, and Texas—well, the state is known for the occasional tornadoes. Dallas, as well as most of North Texas, is one of the targets of such weather hazards.

If you’re considering investing in a single family home, for example, you’ll notice that there is rarely a house in Dallas built without a basement—precisely for the above reason.

The Dallas area deals with approximately 134 tornadoes on a yearly basis. Even though not all of them are life-threatening, they can still damage properties and cause huge repair bills.

As such, it can be a problem for renters and investors alike.

People who come to stay in Dallas from areas where these extreme weather conditions aren’t as frequent might second-guess their decisions. On the other hand, investors are left to cope with financial responsibilities and the aftermath of a tornado.

3. Traffic Jams

With population growth, economic development, and new jobs, Dallas is becoming a hotspot for professionals—and the frequent traffic jams are there to confirm it.

In some neighborhoods, you can find everything in one place—and the distance is generally walkable. However, a few events and activities—namely, trips related to business, celebrations, and tourist excursions—will require you to travel.

Owning a car certainly makes life easier, but you can expect huge traffic jams on the highway during rush hour. The traffic in Dallas—and the surrounding area—can get crazy sometimes, and it’s certainly a downside to keep in mind.

3 Best Neighborhoods in the Dallas Real Estate Market for Long Term Rental Investment

If you’re interested in investing in long term rentals in Dallas, Texas, in 2023, here are the top three neighborhoods from Mashvisor’s January 2023 location report. The neighborhoods are arranged from those with the highest to the lowest cash on cash return.

1. Farmers Market District

At the top of our list is the Farmers Market District. Considering that it took first place, there is no doubt that it is an excellent choice for investing in long term rentals.

Farmers Market District is a place made for growing families with kids. The Dallas neighborhood is packed with delectable local food, public events, and parks where people can enjoy family leisure time. The district is also known for being home to highly-rated elementary schools—making it a great place for raising children.

2. Oak Lawn

Second on the list of highly-rated Dallas neighborhoods would be Oak Lawn. Like the first location above, the area is one of the better destinations in Texas.

In the said Dallas neighborhood, most residents rent their homes. It comes with a suburban feel, and it’s also considered one of the friendliest communities in Dallas, TX. boasting a handful of coffee shops and hangouts.

Many young professionals decide to live here and work on their careers.

3. Arts District

The Arts District is the third Dallas neighborhood that offers a variety of long term rentals. And, as the name suggests, the area is known for its exquisite, world-class attractions and exhibits. In short, it is a hotspot for culture lovers.

It is one of Dallas’ most unique neighborhoods, with more than 60 beautiful boutiques, coffee shops, bars, and galleries.

Searching for long term rentals you can invest in is a lot easier with a little help from Mashvisor’s tools. Start your search here for the next successful investment to add to your portfolio.

You can use Mashvisor to search for profitable long term and short term rental properties to add to your portfolio.

3 Best Neighborhoods in the Dallas Real Estate Market for Short Term Rental Investment

If you’re leaning more towards investing in short term rentals in Dallas in 2023, here are the hotspots the Dallas real estate market offers, based on our January 2023 location report. The locations are arranged from the highest to the lowest cash on cash return.

1. City Center District

Next on the list of top spots to invest in Dallas real estate is the City Center District. It is the perfect place for tourists who want access to amenities within walking distance. Restaurants, bars, coffee shops—everything is within reach.

It’s not a place exclusively intended for families with kids, though. There are few kind-friendly spaces—and everything’s busy. It’s more suited for vacation, with many bars and restaurants organizing fun game nights and events to attract tourists.

2. Reunion District

The Reunion District is a great place to invest in Dallas’s short term real estate. The number one attraction is, of course, the Reunion Tower—a place where you can take a deep breath and enjoy the view of the entire Dallas skyline.

And to add to it, there’s also the Hyatt Regency Hotel and many highly-rated restaurants and boutiques to visit.

3. Northwest Dallas

Closing the list of places to invest in the Dallas real estate market, there’s the one and only Northwest Dallas.

The place is attractive—especially for tourists looking to go shopping and spend some money. Shopping sprees seem to be one of the most common activities of people who come here on vacation.

In addition, the neighborhood is dog-friendly, the streets are well-lit, and it’s relatively close to uptown. It will help you if you own a car, though.

Start your search for profitable short term real estate property investments with a little help from Mashvisor’s tools.

Last Say on Investing in Dallas Real Estate in 2023

It’s time to conclude today’s topic. So, hopefully, by now, you have the necessary information and insights to decide whether you should invest in the Dallas real estate market in 2023.

We wanted to paint a vivid picture of the conditions and trends in the real estate market. So, we incorporated the situation in the Texas market, referred to important trends, and provided you with an analysis of the Dallas housing market.

The favorable situation for renters and investors—namely, low living costs, low crime rates, a thriving economy, and a growing population—makes the Dallas real estate market stand out based on recent trends and forecasts.

What you should pay attention to, however, are weather conditions.

The Dallas housing market is favorable for both long term and short term rentals—and it is up to you to decide which strategy suits you better.

Of course, with adequate analysis provided by Mashvisor, you’ll save considerable time, and you can rest assured that you will always deal with accurate, up-to-date information.

There’s one more thing we’d like to add:

Schedule a free demo with one of our specialists now. We’ll provide an in-depth introduction to our products and happily answer all your questions.

Investing in real estate is a dream come true for many. But what are the best ways to invest in real estate that will give you a good return?

Many folks dream of owning property of their own and, perhaps, a few others as income properties. But we all know that real estate investing can be quite expensive. Is buying physical property the only option for you to succeed in real estate? Let’s talk about some of the best ways to invest in real estate in 2023. 

Table of Contents 

Investing in real estate is a dream come true for many. But what are the best ways to invest in real estate that will give you a good return?

Many folks dream of owning property of their own and, perhaps, a few others as income properties. But we all know that real estate investing can be quite expensive. Is buying physical property the only option for you to succeed in real estate? Let’s talk about some of the best ways to invest in real estate in 2023. 

Table of Contents 

When it comes to real estate investing, being armed with the necessary information and tools matters a lot. It can actually spell the difference between success and failure. It is why due diligence is very important in any investment venture. You need to know what to expect – both the good and bad – so you can plan accordingly to boost your chances of success. 

It is why a lot of real estate platforms have sprung up online over the past several years. A real estate app, like Mashvisor, for instance, has helped investors make the right investment decisions. A rental platform like Airbnb has allowed homeowners a chance to earn extra income by renting out space. Investment platforms level the playing field for both the rich and the poor. 

Investing in real estate can be nerve-wracking, but when you find the right investment avenue, it can be pretty exciting and exhilarating. It’s just a matter of discovering which one works best for you. 

Related: Real Estate Investing for Beginners With No Money: Is This Possible?

House Flipping

Fix and flips are one of the most popular methods of making money in the real estate market. It involves buying a property, fixing it up, and then selling it for a profit.

There are a few things you need to know before you get started with fix-and-flips. First, you need to have a good understanding of the real estate market in your area. It will allow you to know how much you can expect to make on each flip.

Second, you need to have the financial resources in place to buy a property and make the necessary repairs. For those who don’t have enough extra cash lying around for such an investment, financing can be done through private lenders or traditional financing methods.

On a side note, as far as loans are concerned, you need to do your own research if you want to get the best possible rates on a mortgage. At this point, it will serve you best to connect with local real estate professionals, lenders, and investors. They can give you valuable information that will point you in the right direction. 

Lastly, you need to hire a good contractor that can help you with the repairs. It is important as you want to make sure the property is in good condition before you sell it. The outcome will determine the property’s resell price. 

If you do your homework and make sure everything is right, house flipping can be one of the best ways to invest in real estate in 2023 despite the current economic conditions. 

Rental Properties

Another way to invest in real estate is to buy property directly. It can be a more hands-on approach, and it offers the potential for high returns if you buy the right property and manage it correctly.

However, it’s important to note that direct real estate investing also comes with a higher level of risk. For example, you could end up with a vacant property if you’re not able to find tenants, or you could lose money if the property needs repairs that you weren’t expecting.

One of the best ways to invest in real estate going into 2023 is through rental properties. Rental properties offer a number of benefits, including the potential for rental income and appreciation.

When choosing an investment property, it’s important to do your research and select a property that is in a good location. Ideally, it should also be well-maintained to cut down on repair and rehabilitation expenses. You’ll also want to make sure that you can comfortably afford the mortgage payments and other associated expenses.

There are two ways to invest in rental real estate: long term rentals and vacation homes.  Long term rentals may not give you a more substantial rental income, but you get a steady monthly cash flow from them. Vacation rentals can be a good investment if they’re located in a desirable area and can be rented out when you’re not using them.

No matter what type of real estate investment you’re considering, it’s important to do your homework and understand the risks and potential rewards before making any decisions.

Related: 40 Best Places for Buying Investment Property in 2023 

House Hacking

House hacking is a popular strategy for real estate investors who want to generate income while living in their investment property. 

Essentially, house hacking involves buying a multi-family property, such as a duplex or triplex, and living in one of the units while renting out the other units. This way, the investor can generate rental income to help cover the cost of their mortgage, taxes, and other expenses. 

House hacking is one of the best ways to invest in real estate, as it can help you build wealth over time. The main idea is the investor will benefit from both the appreciation of their property and the rental income it generates. 

Such a strategy works especially well with those who want to start a rental property business and get it listed on short term rental platforms like Airbnb and Vrbo. 

House hacking is becoming increasingly popular among real estate investors, as it can be a great way to get started in the business and expand your portfolio. However, it is important to note that house hacking is not for everyone. It requires a lot of research and preparation to make sure that it is done correctly and that the investor is able to make a profit. 

For those who are willing to put in the work, house hacking can be an excellent way to create passive income while building equity in real estate.

Related: How to Research an Airbnb Market and Quickly Find a Good Place to Buy Rental Property

Real Estate Investment Trusts (REITs)

One way of investing in real estate is to invest in real estate investment trusts or REITs. REITs are companies that own and operate income-producing real estate, such as office buildings, retail centers, and apartments.

REITs offer investors several advantages, including the potential for high dividends and strong capital appreciation. They are a relatively easy way to invest in real estate since they can be bought and sold just like stocks on the stock market.

In addition, REITs are a tax-efficient way to invest in real estate, and they offer diversification. Additionally, they tend to be less volatile than other real estate investments, providing high dividend yields at the same time. They make REITs one of the best ways to invest in real estate in 2023.

There are many REITs to choose from, and it can be difficult to know which one to invest in. However, there are a few REITs that are particularly well-positioned for the future. Such REITs are expected to outperform the market and provide investors with substantial returns.

If you’re looking for some of the best REITs for passive income in 2023, here are some recommendations from US News: 

Whatever you read online, verify it first by doing your own research. It’s always good to hear from experts about their recommendations, but you also need to do your homework.

Online Real Estate Crowdfunding Platforms

If you’re looking for a more hands-off approach to real estate investing, one option is to invest in an online real estate crowdfunding platform. 

An online real estate crowdfunding platform is a marketplace on the internet that allows buyers and sellers to connect and transact real estate-related services. It is a new way to invest in real estate that combines the power of the internet with the opportunities of traditional real estate investing. 

Online real estate crowdfunding platforms allow individual investors to pool their money together to invest in income-producing properties. They are a much more efficient and cost-effective way for investors to access the real estate market than traditional methods of real estate investing. 

The platform takes care of all the legal, administrative, and operational work, so investors can focus on making money from their investments. The great thing about it is that some of the platforms will allow you to invest as little as $500 to get a piece of the action. 

According to finance site NerdWallet, these are the top five real estate crowdfunding sites for 2023: 

Online real estate crowdfunding is one of the best ways to invest in real estate and can be an excellent way to diversify your portfolio and take advantage of the potential for higher yields. However, it is important to understand the risks and do your research before investing.

How to Find a Profitable Real Estate Investment Property

Now that we’ve covered some of the best ways to invest in real estate in 2023, one major concern needs to be addressed and that is finding the best investment properties. 

When you go online, there will always be tons of leads to investment opportunities. However, you need to find the one that meets your investment needs and goals, as well as your budget. 

Fortunately, technological advances have helped level the playing field for regular folks. What once was a playground for the wealthy is now accessible to people like you and me. Real estate platforms abound, and they give you the information you can use to make a decision. 

However, you also need to keep in mind that not all of them offer high-quality information and data that will give you the most accurate ROI projections. When it comes to investment property websites, you should only work with the best platform. It should give you relevant market data and access to tools that will help you find the best income properties for sale in any location. 

The Best Real Estate Site for Investors in 2023

If you’re keen on investing in real estate in 2023, you’ll need the help of a reliable real estate app and website. 

Enter Mashvisor. 

Mashvisor is one of the best real estate platforms you will find online today. It’s been helping thousands of investors find the best investment properties in the most profitable markets in the US. 

As a real estate site, Mashvisor gives users access to a wide range of market data that covers nearly every location in the US real estate market. It acquires data from trusted sources, such as Zillow, Realtor.com, the MLS, and Airbnb, among others. It also keeps its database regularly updated so that you can use the most accurate numbers needed for your ROI calculation. 

Its tools, like the real estate heatmap and investment property calculator, allow you to find the best possible deals on investment properties in the country. You can easily make a proper investment property analysis with the said tools. 

If you want to find the best investment properties in 2023, look no further than Mashvisor.

Get started on your 7-day free trial with Mashvisor today.

Mashvisor’s real estate heatmap lets you find the best possible deals on investment properties across the US and conduct a proper investment property analysis on them.

Wrapping It Up

Despite the current real estate market conditions, real estate investing is still a lucrative avenue to build wealth and equity in 2023. You just need to know the best ways to invest in real estate, so you get a good return on your investment. 

Purchasing physical property can be quite rewarding, but they’re also very expensive, even if you take out a mortgage. The great thing about modern real estate investing is you’re no longer tied down to just buying actual real estate to get involved. REITs and crowdfunding platforms will help get your foot in the door, enough to save up for a property purchase. 

Once you’re ready to buy an investment property, we recommend working with a real estate platform like Mashvisor. Mashvisor’s tools and database will lead you to the neighborhood and property that’s suitable for you. 

Learn more about how Mashvisor can help you find the best deals in profitable markets by scheduling a demo now.

Are you wondering whether you should invest in multifamily real estate in 2023? Read on to find out what the market holds for investors.

There are many ways one can invest in real estate. One of the largest classes of investment properties is multifamily real estate. Investing in multifamily real estate can help you create a consistent stream of passive income, build your portfolio, and enjoy numerous tax benefits.

Table of Contents

Are you wondering whether you should invest in multifamily real estate in 2023? Read on to find out what the market holds for investors.

There are many ways one can invest in real estate. One of the largest classes of investment properties is multifamily real estate. Investing in multifamily real estate can help you create a consistent stream of passive income, build your portfolio, and enjoy numerous tax benefits.

Table of Contents

With the rising interest rates, slumping returns, and predictions for a recession, what does the future hold for multifamily real estate investing? Where do you need to invest in multifamily properties?

In today’s article, we’re going to look at the pros and cons of investing in multifamily properties in 2023. We’re also going to see how you can find profitable multifamily properties in the US housing market.

What Is a Multifamily Real Estate Property?

A multifamily real estate property is a residential property that contains more than one housing unit. The units can be occupied by several tenants. If the owner decides to reside in one of the units, the property is referred to as owner-occupied.

If you invest in a multifamily real estate, you should expect a few key differences compared to investing in a single family home.

For example, tenant turnover and high vacancy rates in a single family home can significantly affect your rental income since you can only accept one tenant at a particular property at a time. It isn’t the case with multifamily properties.

While you require a higher capital investment than with single family properties, multifamily real estate properties assure you of fewer gaps in your monthly rental income and cash flow.

That said, let’s look at the various types of multifamily properties below.

Types of Multifamily Real Estate

There are different types of multifamily real estate properties that you can invest in based on your style, goals, and approach. They include:

1. Apartment Buildings

Apartment buildings are the most common type of multifamily real estate property. The number of apartment buildings in the US real estate market is about 22 million.

The main advantage of investing in apartment buildings is the high tenant turnover. While many people would think of it as a downside, you can always use it as an opportunity to adjust your rental rates to match the current market values.

The only potential downside is that such properties are more demanding in terms of management and upkeep. Unlike smaller rental units, you’ll need to work with a dedicated property management team and also schedule regular maintenance.

2. Duplex, Triplex, and Quadruplex

Duplexes are multifamily buildings that consist of two units. Triplexes and quadruplexes comprise three and four units, respectively. In most cases, the units share walls and are identical.

Such multifamily properties are suitable for newbie investors since the designs feature a smaller number of rental units. Fewer units mean that the multifamily property will be less demanding. You won’t need to dedicate as much time to management and maintenance.

3. Townhomes

Townhouses are multifamily properties that can host two families living in one house but separated by an interior wall. Both families rent their spaces individually and use separate entrances.

Such types of multifamily real estate are suitable for tenants who desire some privacy in a city or metro area. While they share a wall, the units are quite spacious and can include amenities, such as private areas and garages.

Some people refer to such multifamily properties as “garden apartments” due to the private outdoor spaces. If you’re not interested in renting out your investment property, townhomes can be great for buy and hold strategy.

4. Condominium complexes

For investors who desire to own multifamily properties that require less maintenance, condos make suitable investment properties. Most homeowners association (HOA) fees take care of the management and maintenance.

Condos are an excellent multifamily real estate investment opportunity in desirable markets, such as tourist cities or popular destinations. You can invest in one condo in a complex or buy an entire complex.

As mentioned above, choosing the most suitable multifamily real estate property for you depends on your goals and investment style.

For example, if your priority is high returns, you want multifamily properties that will host more tenants to give you a higher monthly rental income. In this case, apartment buildings may be the most suitable investment.

If you want to keep your maintenance costs relatively low, you might decide to put your money in duplexes, triplexes, and quadruplexes. However, such properties are also likely to produce lower returns compared to apartment buildings.

Related: 5 Things You Need to Know About Investing in a Condo

Pros and Cons of Investing in Multifamily Real Estate in 2023

So, what’s it you need to know before you invest in multifamily real estate in 2023? Here are the pros and cons of multifamily properties:

Pros of Multifamily Properties in 2023

Let’s start by looking at some of the positives of owning multifamily real estate properties in 2023:

1. Hedge Against Inflation

Many experts continue to foresee a looming recession in 2023. The coming one could be a bit more severe than the brief one we saw in 2020 when COVID-19 almost brought the global economy to its knees.

According to AI and machine learning algorithms, you can expect the recession to occur by October 2023. How is it an advantage for multifamily real estate property investors?

Firstly, many lenders and financial services providers are reluctant to offer loans and mortgages during a recession. It delays new real estate developments. Remember, the population is still growing, so the demand for housing grows yet it’s not met.

Renters are compelled to continue renting properties as they’re priced out of owning real estate by the high home prices and interest rates. As such, multifamily property occupancy rates tend to remain strong during difficult economic times.

Secondly, multifamily properties offer investors an opportunity to adjust their rental rates as frequently as every 12 months to match the market condition. Multifamily properties offer you the flexibility to reset your pricing to cover rising operation costs and meet demand.

2. Steady Cash Flow

Keeping multiple tenants on your multifamily real estate property stabilizes your monthly cash flow. It is mainly because you lower the chances of experiencing vacancies on your rental property.

If some of your units stay vacant for a while as you keep looking for tenants, you can still continue earning monthly rental income from the occupied units.

For example, if you own a quadruplex and one tenant moves out unexpectedly, your monthly cash flow only drops by 25%. If the same thing happens in a single family unit, you lose 100% of your monthly income.

You’re also likely to get tenants who are looking for multi-year leases. Such leases will help you shorten the gap between vacancies.

However, there’s also a potential downside to it. Multiple tenants can also cause extensive damage to your multifamily property. Since the utilities are used frequently, they might break down faster. You’ll need to replace them or get them maintained frequently.

3. Easier to Finance

The fair market value for multifamily real estate is always significantly higher than that of single family homes. However, it is an advantage when it comes to securing financing.

Many financial services providers are aware of the benefits of multifamily real estate investments. They recognize the multiple tenants and steady rental income you can attract with multifamily properties.

Multifamily real estate properties are less risky for banks and other financial providers since the cash flow means that you’ll afford the monthly loan payments.

As such, investors are able to access diverse financing options with favorable interest rates. In addition, you can even purchase multiple multifamily properties all under one loan.

If you want to access favorable lending terms and requirements, it’s better that you find a lending service that specializes in commercial real estate.

4. Easy to Insure

Investors can choose among a wide range of insurance premiums when getting insurance coverage for their multifamily real estate properties.

Just like financial services providers, insurance providers are also familiar with multifamily properties. They offer diverse policies to cater to both residential and commercial multifamily real estate.

The best thing about it is that if you’re investing in multiple multifamily properties, most agencies will allow you to include all your investments in a single insurance policy. However, you should expect to pay a large insurance premium if you’re investing in a large apartment building or condo complex.

5. Highly Scalable

As an investor, you’re most likely looking to scale and own multiple real estate properties. Multifamily properties are a faster way to scale than single family properties.

With the latter, you’ll need to acquire one real estate property at a time. Keep in mind that the time taken to get financing and repay your debt can also lengthen the time you take to invest.

Multifamily properties are also an excellent entry point into commercial real estate. It is due to the fact that multifamily properties with five or more rental units are considered commercial real estate. You can also benefit from the value additions, such as fitness centers, laundry services, and dog parks.

6. Unique Tax Benefits

Multifamily rental properties offer investors sweet tax benefits. You can benefit from tax deductions, such as:

Any costs that are associated with getting new tenants and ensuring your multifamily investment property stays in top shape can be written off as marketing and maintenance costs.

In the long term, you can also benefit from real estate depreciation and cost segregation tax advantages as your real estate property and appliances continue to age. It can happen despite the fact that the fair market value of your property could be rising.

Keep in mind that the said tax benefits attract many real estate investors, therefore making the multifamily property market extremely competitive.

7. Potential Passive Income

If you don’t want to be involved in the management tasks that come with owning rental property, multifamily properties give you a great opportunity to invest passively.

You can hire a property management agency to find tenants, handle rent payments, schedule maintenance and repairs, and basically handle everything. It will leave you with very little to do when it comes to the day-to-day running of the multifamily property.

Passive investments give you the flexibility to focus on your day job or find the next real estate investment.

Related: How to Make Passive Income with Real Estate: 3 Strategies

Cons of Multifamily Properties in 2023

While there are many benefits to enjoy from multifamily real estate, it’s not all rosy. There are a few potential downsides that you must be aware of before investing your hard-earned cash in 2023. They include:

1. Higher Operational Expenses

When investing in multifamily real estate in 2023, you need to be aware of the operational expenses. While inflation will help you enjoy steady occupancy rates, the downside is that operational expenses and repair costs will rise.

Higher operational expenses mean you’ll need to pay more from your monthly income. It leaves you with less profit. If you’re not enjoying a good occupancy rate, you may even be compelled to pay for the expenses from your own pocket.

2. Higher Initial Investment

Multifamily properties offer investors many benefits compared to single family properties. However, there’s no denying that the upfront cost is considerably higher. Even smaller apartment buildings with two to four units will cost a few million dollars in hot markets such as New York.

Most banks are willing to provide you with financing for multifamily real estate. Keep in mind that you’re still required to raise at least 20% as a down payment. If the purchase price is high, the down payment is high as well.

The said cost factor restricts many newbie investors from investing in multifamily real estate.

3. Stiff Competition

Many real estate investors are aware of the various benefits they get to enjoy from multifamily rental properties. It is causing the interest in such properties to rise, thereby increasing the competition.

When multifamily developers, investors, and even property managers scramble for their share of the cake, the prices will keep going higher. Investors who are able to purchase multifamily real estate properties in cash make it even harder for newcomers to get started.

4. More Management Tasks

If you’ve managed to secure the down payment and looked at ways to beat your multifamily real estate competition, your work is still not yet over. You will still need to manage the multiple units, which will require a lot of attention, time, and maintenance.

You might still be a novice yet to familiarize yourself with multifamily property management or you want to earn passive income. In this case, the best course of action for you would be to hire a property management company to handle all the relevant tasks for you.

How to Look for a Profitable Multifamily Real Estate Property

Have you already made up your mind to invest in multifamily real estate in 2023? How do you actually start from?

Like many other ways of investing in real estate, multifamily properties also require in-depth scrutiny and careful execution.

Here’s a step-by-step process to help you succeed:

Step 1: Start With the Basics

If you’re just getting started in multifamily real estate investing, you might want to dedicate some time to get educated. While you don’t necessarily require a real estate license or any certification, you need to learn the basics of multifamily investing.

Luckily, there’s a ton of readily available multifamily real estate material online for you to consume. There are many YouTube channels, blogs, e-books, and courses to help you get started.

However, the main issue with this is that you may not know which specific platform will serve you best. You may need to sift through hundreds of materials before finding one that works for you.

This is why we recommend Mashvisor. You can check out our real estate blog, YouTube channel, and podcast to find valuable content to help you get started with multifamily properties and any kind of real estate.

Related: How to Start a Career in Real Estate Investing

Step 2: Choose a Top-Performing Multifamily Market

Your location is an important aspect of your investment. It determines how much rental rates you can set, as well as the expenses you must pay for your multifamily real estate property.

It is why you should concentrate on the investment market once you’ve learned some investment basics.

So, how do you actually select the best place to find multifamily real estate?

You can divide the process into two crucial parts: choosing a city and choosing a neighborhood.

Select a City

Many factors go into selecting good multifamily real estate investment cities. Some pointers for you to consider include:

After shortlisting a few cities, it’s time to look for a suitable neighborhood for multifamily property investment.

Select a Neighborhood

For investors to select a profitable multifamily real estate investment city, they must carry out a comprehensive neighborhood analysis. It is important since there are different neighborhoods within the same city where the rental income and return on investment are different.

Carrying out a neighborhood analysis manually can take weeks, if not months. You need to collect copious amounts of data, analyze it carefully, and carry out all the necessary calculations. It can expose your analysis to a lot of errors.

However, Mashvisor allows you to perform a neighborhood search in just a matter of minutes. Firstly, the real estate heatmap allows you to filter out neighborhoods based on:

Once you’ve found where to invest in multifamily real estate using the heatmap, you can perform a deeper analysis using the neighborhood analysis pages. The pages provide you with every single metric and data point you need to analyze a neighborhood.

Mashvisor’s real estate heatmap allows you to search for profitable neighborhoods using metrics such as listing price, rental income, and cash on cash return.

Step 3: Find Lucrative Multifamily Real Estate for Sale

After looking at where to invest, it’s now time to get to the fun part: finding profitable multifamily properties to invest in.

The major issue that many investors face is that multifamily properties aren’t categorized as their own type of real estate. It makes it hard to specify your search for multifamily properties during your search.

However, the listing will tell you what number of units in a particular property. All you need to do is look for properties with two to four units.

You will also need to narrow down your search to properties that match your budget based on the property listing price.

Mashvisor’s Property Finder allows you to search for multifamily real estate properties in any market in the United States. You can customize your search using the following filters:

Once you’ve set up your search criteria, the multifamily real estate property listings will be listed by order of performance. In short, the top-performing multifamily properties will appear first on the search results.

Step 4: Analyze Multifamily Property Listings

By this point, you have a few potential multifamily real estate investment properties. You want to analyze them further to see which one of them matches your financial goals.

Analyzing a multifamily property requires gathering data about closing costs associated with purchasing the property. It also involves knowing the average multifamily property expenses in that neighborhood and calculating the potential income each property can offer.

After completing the said steps, you now need to calculate the return on investment using real estate metrics, such as cash on cash return and cap rate.

As you can imagine, carrying out the said calculations manually would consume a lot of time. So, is there a more efficient way to analyze multifamily real estate properties?

Mashvisor’s investment property calculator gives you access to all crucial numbers and analytics to decide whether a multifamily real estate property makes financial sense or not.

You will access the estimated rental income, as well as the relevant startup and recurring property expenses. Additionally, you will get ready calculations of the cash flow, cash on cash return, and cap rate.

The best thing about the tool is that it provides you with estimates for both long term and short term rental strategies. It allows you to carry out a side-by-side comparison and select the best real estate rental strategy for you.

How can you start using Mashvisor tools?

Simply sign up today and start your 7-day free trial.

Mashvisor’s investment property calculator provides you with the estimated rental income, as well as startup and recurring property expenses, to help you make a sound investment decision.

Mashvisor’s investment property calculator provides you with the estimated rental income, as well as startup and recurring property expenses, to help you make a sound investment decision.

Key Takeaways

There are many ways of generating good returns from real estate. One of them is to invest in multifamily real estate. Multifamily real estate properties are simply properties with multiple rental units, usually numbering two to four.

The main benefit of such types of properties is that they offer a steady flow of rental income since you host multiple tenants. It’s easier to scale your real estate investment portfolio since you buy multiple units at once instead of one property at a time.

Additionally, financial services providers know such properties offer steady cash flow, so they provide financing options at favorable terms.

However, there are also a few potential downsides, such as high operational expenses, high startup costs, and more maintenance requirements.

If you’ve made up your mind to invest in multifamily properties in 2023, Mashvisor can help you choose the best location and property for your financial and investment goals.

Schedule a demo today and see how our tools can help you invest in profitable multifamily properties.

If you want to bring your A-game to the housing market in 2023, you should definitely know more about these three real estate market trends.

Staying one step ahead in any industry—especially in the real estate business—requires you to be flexible, have a keen observer’s eye, and keep track of trends.

Table of Contents

If you want to bring your A-game to the housing market in 2023, you should definitely know more about these three real estate market trends.

Staying one step ahead in any industry—especially in the real estate business—requires you to be flexible, have a keen observer’s eye, and keep track of trends.

Table of Contents

As real estate investors, you’re always on the lookout for profitable deals and properties with potential. That is by no means easy, and it requires a lot of reading and investigating on your part.

Luckily, following up on the current state of the real estate market—and the trends that come and go—can help you create a well-calculated investment plan.

Mashvisor’s always one step ahead—ready to help you get closer to making your investment goals a reality.

And since our platform is committed to supporting investors on their journey, we are ready to cover a crucial topic—one that should be considered during your research:

What real estate market trends can I expect in 2023?

We’ve got it all covered. So, make yourself comfortable—and keep scrolling to find out more about the three leading real estate market trends in the US in 2023.

What Was the Real Estate Market Like in 2022?

Even though 2022 is officially over, and we’ve all turned the calendar to 2023, it does not mean that we shouldn’t take a moment or two to reflect on the previous year and see how it treated the real estate market as a whole.

And with that said, here are a couple of major trends that defined the US real estate market in 2022—and how the said trends affected the wider audience.

Buyer’s or Seller’s Market?

When you look at the US real estate market trends from a broader perspective, you probably can’t help but ask, “Is it a buyer’s or a seller’s market at the moment?”

Each day, real estate agents and professionals wake up to different forecasts, news, and statistics coming from various sources—and it is easy to become overwhelmed.

At a glance, you might be surprised by the increase in the supply of homes for sale this year. But unfortunately, that luck is short-lived:

There’s still a lack of properties in the US real estate market.

And even though we’ve seen some major shifts in the US real estate market—and the trends associated with it—the situation was continuously leaning in favor of sellers.

As it turns out, current real estate market circumstances continue to favor the sellers. On the other hand, home buyers in the US are barely holding it together due to the constantly rising prices, shocking mortgage rates—and, of course, inflation.

Related: Should You Invest In a Seller’s Market or Buyer’s Market?

Home Appreciation

Moving on with this 2022 review, the seller’s market brings more good news for homeowners in the US who are planning on selling their property.

Potential sellers in 2022 were enjoying record levels of home appreciation.

And even with home prices coming down toward the end of the year, about 50% of mortgage holders could still be considered equity-rich.

In other words, their estimated loan balance was less than 50% of their property’s estimated real estate market value.

While we’re on the subject, here are some real estate markets that have shown considerable home appreciation growth:

Fear of Entering the Housing Bubble

We saw some good news throughout 2022. However, as you might be aware, it was not all “rainbows and sunshine” in the US real estate market.

In the year behind us, the word spread that the real estate market is in danger of a “housing bubble.”

The news that sparked this jump scare indicated that house prices were rising out of control. More importantly, mortgage rates were the one factor responsible for spreading the panic among investors—reaching a shocking 7.24% (30-year fixed mortgage) in November 2022.

The housing bubble seemed genuinely scary. If the bubble popped, homebuyers would’ve found themselves in the hustle of prices and mortgage rates that were way out of their budget.

There’s no denying it—the US real estate market was in for a bumpy ride in 2022. But luckily, it was far from the feared 2005 scenario—and we genuinely hope that things stay that way in the year ahead, too.

Read Also: How to Find Rental Rates by Zip Code

3 Real Estate Market Trends to Expect in 2023

So far, we’ve been able to do a quick recap on what the US real estate market looked like in 2022. And now, it is time to take one step further and look at some real estate market trends for 2023:

1. The Digitalization of House Hunting

The COVID-19 pandemic generally brought about negative consequences that could be felt and seen in the US housing market as a whole. But if we look a bit closer, the pandemic also pushed many technological advances, as well.

One of them is digitization.

In the real estate business, it meant a step forward in terms of house hunting. It is already becoming a common thing. Following the pandemic’s onset in 2020, a majority of buyers would purchase their property without even stepping foot in it.

Thanks to the said digitization trends, prospective investors are now able to view an investment real estate property without physically being on the spot.

Of course, it serves as a relief for investors interested in properties located across the country. However, we should add that it doesn’t quite compare to being able to see every corner of the property yourself.

The fact remains that in 2023, we’ll be sure to witness the growing popularity of virtual house tours—and we’re hoping that the 360° tours will speed up the buying process, too.

The online presentations are definitely something that the US real estate market is looking forward to. However, we believe that it won’t replace the hands-on approach and the process of inspecting the property yourself before saying the final “Yes.”

2. More People Moving to the Suburbs

Next, we could see migrations toward the suburbs—yet another important trend influenced by the COVID-19 pandemic and inflation. Let’s explain it in a bit more detail so that real estate investors can actually grasp the idea behind the transition.

Due to the all-encompassing effects of COVID-19 on the US, many people lost their jobs. Moreover, a large percentage of employees were required to work from home.

It took some time for companies to adjust to this new way of working. However, they realized that it was more profitable than bringing employees in, and the work-from-home environment was born.

The pandemic is not the only reason for migration, though. Inflation—which started as the Ukrainian-Russian war progressed—plays a vital role in it, as well.

It is becoming increasingly expensive and demanding to live in the city—and migration from the city to the suburbs is, in that sense, mostly driven by necessity and choice. People who can’t afford to live in major cities—New York, Los Angeles, and Washington, DC, for example—are forced to move to the suburbs; for the wealthy, it is a matter of choice.

3. A Growing Demand for Single Family Homes

Real estate trends are connected and built on each other. With that said, it shouldn’t surprise you that the third trend we expect in 2023 is the rise in demand for single family homes.

It is not just the year 2022 that initiated such a demand, though. Single family homes have been labeled as the best-performing real estate properties since 2019.

Besides, millennials are starting to grow their families; apartments no longer cut it—space or money-wise. They need more space for their children—and furnished single-family homes in the suburbs appear to be “just right” for their needs.

As we mentioned earlier, our platform’s primary goal is to keep real estate investors informed and help them make the right choices.

On that note, we’ll take this moment to recall Mashvisor’s top places to invest in single family homes for sale in 2022:

With the help of Mashvisor’s tools, you’ll get up-to-date insights into whether the statistics on the current “single family home hotspots” have changed or not—and proceed accordingly.

Related: Will There Be a Real Estate Housing Market Correction in 2023?

How to Succeed in Real Estate Investing in 2023

If you hope to step into the real estate market in 2023 confidently, brushing up on real estate market trends is 50% of the job.

The other 50% is your dedication and commitment.

Studying a graph or chart showing the latest real estate market trends will give you a good head start—but what you really need here are suggestions that you can rely on.

That’s why we’ve decided to throw in a few tried-and-true tips:

Diversification Is Key

The first tip that will help you succeed in the real estate market in 2023 is diversification. The reason for this is simple:

A diversified portfolio will help manage risks and potentially improve long-term returns.

What is implied by a diversified portfolio?

In essence, a “diversified portfolio” refers to investing in multiple asset classes. Investors are generally encouraged to switch up their usual investment route.

For instance, you may go from investing only in apartments to adding single family homes to your portfolio in order to “diversify” it.

Alternatively, it can also include shifting from stocks and bonds to real estate investments. Generally speaking, when stocks and bonds go down in value, real estate goes up, and vice versa—which is another great reason to diversify your portfolio.

Related: The Best Website for Your Investment Property Search

Explore Different Markets

The next tip for real estate investors exploring the real estate market in 2023 is to explore as much as possible. With the US real estate market expanding significantly over time, investors are now presented with more opportunities for generating profit.

Change can be scary—and leaving your “comfort zone” is not something you’d do on a daily basis. However, we encourage investors—newbies and seasoned experts alike—to conduct an in-depth analysis of housing markets that show definite signs of potential.

For those eager to get out into the field and put the trends that they’ve been reading about in the paper to the test, here is a list of real estate markets that are bound to make a comeback in 2023, according to a report by Mansion Global:

Manage Risks

The next tip for “upgrading” your current investment strategy and, hopefully, becoming even more successful in 2023 is carefully managing your risks.

Perhaps the year behind us made you feel like you’ve checked all the boxes for a successful succession year—but not all real estate investors will get the luck they anticipate. That’s why it is extremely important that they learn how to manage their risks and come out as winners in 2023.

Here are some simple ways to do it:

Navigating the real estate industry is easier with a tool specifically designed to keep track of market trends—and give you a well-calculated recommendation. Mashvisor does ALL that—and it helps you save precious time.

To learn more about how Mashvisor can help you, sign up for a 7-day free trial now.

Final Thoughts

We’ve successfully concluded the topic of three expected real estate market trends in 2023. We’ve mentioned quite a lot, so let’s just briefly go through the main points and wrap up this guide.

It is impossible to step into 2023 with confidence without stopping for a second to look back at what the market was like last year. We’ve seen interest rates rising, inflation, signs of a housing bubble, and a rocky seller’s market.

We’ve also seen surprising home appreciation rates—which, as you can imagine, wasn’t the most favorable scenario for buyers in 2022.

In 2023, however, real estate investors will be looking at slightly different market trends. The three most notable trends for 2023 are the high demand for single family homes, migration to the suburbs, and the digitization of house hunting.

Regardless of the said trends, real estate investors must continue working on their strategies in 2023. And since the real estate business can be unpredictable at times, you’ll need to take certain measures to ensure success.

Real estate professionals should explore the US real estate market, diversify their portfolios, and, most importantly, manage risks.

With the help of Mashvisor, you’re one step closer to making an investment move that will change your career for the better.

You can schedule a demo with one of our Product Specialists. We’re here to answer all your questions.