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September 30, 2024 | 2.5 Minute Read
Over the past few years, smaller metro areas have become hotspots for young professionals seeking a balance of affordability, livability, and career growth. Between July 2020 and July 2024, several metro regions saw significant increases in net domestic migration, offering prime opportunities for savvy real estate investors.
Some of the metro areas that experienced the most growth are:
Austin-Round Rock-Georgetown, TX – Leading with a 3.6% growth rate.
Fayetteville-Springdale-Rogers, AR – Following closely at 3.3%.
Raleigh-Cary, NC – Growing by 2.6%.
Other notable markets included:
Des Moines-West Des Moines, IA – Growth of 1.4%.
Oklahoma City, OK – 1.1% increase.
Madison, WI – A steady 0.6% rise.
These cities have consistently ranked high in livability metrics and have maintained positive net migration. This influx of younger, upwardly mobile professionals—many of whom are relocating from areas with lower income levels—presents lucrative real estate investment potential.
Many of the people moving to these metro areas come from regions with lower median household incomes (HHI):
Raleigh: Newcomers relocate from areas with a median HHI of $66,900, while Raleigh’s local median HHI is $84,000.
Austin: Relocators come from regions with a median HHI of $69,900, while Austin’s median is $85,400.
For real estate investors, this means an influx of residents with higher-than-average earning potential, driving demand for quality rental properties, starter homes, and even investment in multi-family housing to accommodate the growing population.
Not only are these metros attracting more people, but the average age of newcomers is generally lower than the existing population, except in Raleigh, where it’s the same. Des Moines and Oklahoma City saw the largest differences in the median age, which indicates a significant influx of younger residents eager to build their careers and put down roots.
For real estate investors, targeting rental properties or affordable starter homes for this younger demographic can prove highly profitable, as many of these professionals may rent before buying.
All of the top six metro areas with high migration rates excel in both job markets and housing options—two critical factors for young professionals seeking to establish themselves. These cities offer a unique opportunity for real estate investors to:
Capitalize on Housing Demand – With migration driven by career opportunities, many newcomers will seek rental properties before purchasing homes, offering investors immediate cash flow potential.
Invest in Growing Markets – The affordability and growth potential of these smaller metros make them attractive long-term investments, where property values are likely to appreciate as more people move in.
Diverse Property Types – These markets provide opportunities to invest in a range of properties—from multi-family units to single-family homes and even short-term rentals, particularly in cities like Austin and Raleigh, which were among the Top 12 best cities for renters in 2024.
As more young professionals move to these smaller metro areas, they are not only enhancing their careers but also creating a demand for high-quality housing options. Real estate investors can seize this opportunity by positioning themselves in these growing markets, benefiting from both rental income and property appreciation in the coming years.
The migration patterns seen in Austin, Fayetteville, Raleigh, and other growing metros signal a strong opportunity for real estate investors. With a steady flow of younger, higher-earning residents, investors have a chance to capitalize on both short-term rental demand and long-term property appreciation, making these smaller metros prime areas for future real estate growth.
