In fact, owner-occupied housing wealth increased $9 trillion between the first quarter of 2020 and the first quarter of 2022.

If you missed out on getting into the real estate market prior to the pandemic, it’s not too late to buy property now to maximize your profits in 10 years. The key is to look for areas where prices are still relatively affordable but expected to grow in the future.

The one thing that’s difficult about real estate investments is that information is vague. While there is no crystal ball and no guarantee of gains, the following markets might be good options for real estate investors looking to buy and hold properties over the next decade.

When talking about rental properties, the first things to come to mind may be single family homes, duplexes and the like. However, those are far from the only investment options.

“The asset class I’ve been most excited about is short-term rentals,” says Chuckie Reddy, partner and head of growth investments with QED Investors, a venture capital firm. “This is the new wave of what people want to do.”

Platforms such as Airbnb and Vrbo make it easy to market properties while resources such as AirDNA provide research tools that allow investors to evaluate which regions are best for short-term rentals. Reddy says the key is to look for markets that aren’t already saturated.

Gatlinburg, Tennessee

Gatlinburg, Tennessee, might be one market to investigate. According to AirDNA, Gatlinburg scores 96 out of 100 when it comes to how the market is performing for short-term rentals. The mountain town attracts visitors year-round for skiing, rafting, hiking and a variety of local attractions. Properties in Gatlinburg earn median revenue of $69,000 per year, AirDNA says.

Savannah, Georgia

Real estate investors also shouldn’t overlook types of property that aren’t residential. DeRose says coastal ports are areas that could see demand increase in coming years, and he points to Savannah, Georgia, as one example.

In addition to being a busy port town, Savannah is looking to add manufacturing jobs in 2024 with some expecting employment in the sector to jump 10%. Companies such as Hyundai and Gulfstream are expanding their facilities, which may, in turn, drive up demand for employee housing and fuel growth in rental prices.

Laredo, Texas

When it comes to investing in real estate, look for states that are landlord friendly. Texas is one of those states.

While landlords will pay property tax in Texas, they don’t have to contend with rent controls or potentially onerous eviction policies.

Look for is population growth and future population growth. The Sunbelt is generally a good place for growth.

Laredo, in particular, in primed to see significant growth during the next decade. The Port of Laredo was the busiest port in the U.S. in 2023 with more than $300 billion worth of goods passing through it. Investors looking to cash in on this growing area may want to look into the Neighborhood Empowerment Zone, a program that offers incentives for development.

Huntsville, Alabama

Huntsville, Alabama, has seen tremendous growth in recent years, and that is expected to continue in 2024 with high demand for single-family housing. There has been growth throughout the city. What often happens in growing cities is that hedge funds will swoop in and scoop up properties.

Our advice to investors is to look outside of large growing metros as far as 45 minutes outside the downtown with the understanding that many workers may live there and commute. As long as jobs and economic growth is there, you’re pretty safe.