Real Estate: Which Cities are the next BOOMTOWNS?

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Want to find the next Austin, Salt Lake City, and Nashville? The cities and real estate markets that will be the BOOM TOWNS of 2030 and 2040? Then you need to analyze deep real estate data!
Everyone wants to buy home or investment property in the next hot growth market before anyone else. To be the investor that buys in Austin in the 2000s or Nashville in the early 2010s. But finding the right real estate market early on is easier said than done.
Luckily, Reventure Consulting has established a data methodology for predicting real estate Boom Towns. You should target the cities and metros that have the following characteristics:
1) Economic Growth: strong growth in jobs and wages that provides the fundamental demand for real estate
2) Affordability: relatively cheap rents and home prices that allow you to pay a below market price
3) SPARK: local companies, headquarters, hospitals, and universities that can ignite growth into the future
Two cities meet these criteria: Fayetteville, Arkansas and Huntsville, Alabama. Both of these cities have the ingredients necessary to ignite economic growth and deliver strong returns into the future.
Fayetteville/Bentonville is home to the Walmart HQ as well as the University of Arkansas. The combination of these SPARK drivers has made Fayetteville one of the fastest-growing metros in the country and a good bet to deliver superior real estate returns into the future.
Huntsville has been a long-time location of NASA and has recently attracted firms like Lockheed Martin as well as Amazon's Blue Origin space program. These companies produce high-paying jobs that make Huntsville one of the highest-wage cities in the country.
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#BoomTowns #RealEstate #RealEstateBoomTowns ‪@ReventureConsulting‬
0:00 Where are the Boomtowns?
1:56 Establishing a Methodology
5:13 #1 Fayetteville, Arkansas
7:46 Walmart and University of Arkansas
9:16 Next Level Job Growth!
11:20 Fayetteville = Affordable
12:35 #2 Huntsville, Alabama
15:26 High Wage Jobs
16:52 Huntsville is Special
19:35 Doubling in Construction!

Опубликовано:

24 июл 2024

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Комментарии : 56

@ZachHollenbaugh 2 года назад

Thanks for the video! It helped!!

@jwhiteneck1247 3 года назад

Thank you for the insight

@Daddy99089 3 года назад

i adore you, and you one of the smamrtest people i have watched on youtbe. This covid has brough out the best of us, and seems you one of the best youtubers. I enjoy watching your data driven videos. keep it up

@ReventureConsulting 3 года назад

Thank you R M! Much appreciated!

@bradthomas3188 3 года назад

Good content overall. I think barriers to entry or the amount of readily developable land are better metrics than current permits. With that said, I don't think you go wrong buying below replacement costs which is probably possible in these two markets - especially considering rising costs in labor, materials, and land. It looks like the new construction SFHs in western Huntsville are going for more than twice the price of the city's average home.

@user-jf8ld7rk7f 3 года назад

I totally agree. I visited Huntsville AL twice and I see the city's bright future and capital growth.

@janellalarianne11 3 года назад

Hi there! Where can we see the interactive chart in the Huntsville section for the value/earnings vs. job growth?

@Rogershijianhui 3 года назад

Thank you for the great info again!

@ReventureConsulting 3 года назад

Thank you for watching and commenting!

@koushiksathiamurthy3683 3 года назад

Great video Nick

@ReventureConsulting 3 года назад

Thank you!

@calebbronkema3738 3 года назад

Follow the tech jobs, love your videos, trying to watch 2 a day

@ReventureConsulting 3 года назад

Thanks Caleb! Appreciate the support!

@kjohri 3 года назад

I have heard about Huntsville. Fayetteville was news to me. Great content..

@ReventureConsulting 3 года назад

Thank you! Glad you enjoyed it.

@shabocc 3 года назад

Hi! Huntsville native here. Just found your channel and I really love the attention to the data that you use to drive your points home. As a fellow data-nerd, I appreciate that! Love your presentation of the data, too. Anyway, how do you think Huntsville will fare in the upcoming bubble burst? I live here and want to move temporarily for grad school. I'm considering keeping my home to rent out while I'm away, or sell now if prices are going to crash in a year or 2. For reference, I live in a more affordable area less than 5 minutes from downtown, and just a short *walk* (

@onezero9512 3 года назад

Awesome post. I think you can remove the location specific terms and slightly adjust the numbers (not by much) and use your writeup to describe the entire USA right now. It seems like we are under an economic attack, our land is being bought up right out from under us. Sounds crazy, but not as crazy as the dystopia you spell out. Flip the coin over - how would you invade a country and take it over without firing a single shot?

@ReventureConsulting 3 года назад

Thanks for the detailed post Shanna! You provided a lot of great insight on Huntsville. One thing that does concern me about the local market in Huntsville is new construction. They are permitting new homes at a 25% higher level than they were in the mid-2000s. Wouldn't be surprised if we see a correction. And of course - any time you see the behavior you describe it's a sign that things are frothy. As far as neighborhoods - it seems like Downtown has a lot of room to grow.

@Pingsmingu 3 года назад

What are some suburbs close to Cummings research park in huntsville

@Waltice11 3 года назад

I would love to be able to access your actual charts to see what some of the other dots are. For instance, slightly higher and to the right was another dot that I would like to know about. I find it very informative to be able to look at all of the dots. Just a thought.

@ReventureConsulting 3 года назад

Thanks for the comment Wilson! I am currently working on a subscription platform that offers access to this type of data. Stay tuned!

@mat00meo 3 года назад

Love your channel. I listened to a previous one about Huntsville and Chattanooga and I booked a trip. I just got to Huntsville on Friday, been touring some properties and the areas and will head to Chattanooga tomorrow and stay a few days there to check it out. There is a lot of growth in Huntsville and Madison. The market is too crazy though with very low inventory and houses are gone under contract within a day being on market. Rent seems to be still low and hasn't caught up with high home price yet. Lot of companies and new subdivision development here. Excited to see Chattanooga and Ooltewah to compare. Thank you for sharing the data and insights.

@ReventureConsulting 3 года назад

Thank you for that update! That sounds like a fun trip. Curious to hear your take on Chattanooga. I was there about a year ago and liked what I saw - especially on the riverfront.

@mat00meo 3 года назад

@@ReventureConsulting personally, I like Chattanooga more (way prettier). But I am not moving there so it doesn't matter haha. The rent is better in Chattanooga. It's hilly so not as easy to build in Chattanooga. Chattanooga reminds me of Seattle. Plenty of physical constraints to keep the supply low. I think that is what probably keeps the rental market strong in Chattanooga. In term of growth/appreciation, I feel like Huntsville/Madison will grow faster because of all the economic activities there. My concern is the potential over supply in Huntsville because they still have so much flat farm land there that can easily be turned into new sub divisions. If I invest over there, I will probably only want to buy in locations near jobs (35801 Medical District near DT hospitals and Madison 35758 good schools near Redstone) instead of new sub divisions that can keep sprawling out. I think those outer areas will have to deal with bad traffic later and people will pay more for shorter commute. The market is insane in Huntsville/Madison. We had a few cancelled viewings because the houses went under contract within the first day (or first few hours even) of being on market. Hard to make the numbers work with the cost of homes now in Huntsville with the current competition, higher interest rates, and the current relatively low rent. Huntsville doesn't cashflow well today. Interesting thing I've learned from this trip is that insurance is quite expensive for Chattanooga due to being on a bad GEO score (whatever that is). I got quoted $1100/yr for a $275k property. Right now, neither location is a clear win. Numbers just don't pencil out nicely. Can you do a deep dive analysis into Huntsville / Madison areas?

@ReventureConsulting 3 года назад

@@mat00meo Thank you for all of that local knowledge! I agree one the topography or Chattanooga being more of a supply constraint in the long run.

@Matt90541 3 года назад

Google and Apple are both made a recent announcement that they are opening offices inthe Raleigh/Durham North Carolina area, been one of the top states people move to from New York.

@jeremyreinhold3620 3 года назад

Tyson is huge over there also. Same with cargill and kimbel

@billmcdonald7785 3 года назад

Love your videos. We have been thinking about Bentonville Fayetteville area anyhow. I'm big into mountain biking and there is a ton of money being put into building mountain bike trails to attract the mountain bike tourist to come to the area and ride the trails. In Bentonville the Airbnb market is huge. My time has come to retire so my question is will it be better to wait or just buy the house we want now and pay the higher price.

@ReventureConsulting 3 года назад

That's a tough question. Really depends on if you can find something you like at a reasonable price right now.

@billmcdonald7785 3 года назад

Define reasonable price, we will be able to get something we can afford even at today's prices. Either buy this year or move there and rent so we can fix up and sell our current house.

@JasonBonnerMusic 3 года назад

Is there anyway I can find out more about the towns on your graph near Huntsville?

@ReventureConsulting 3 года назад

Which ones?

@JasonBonnerMusic 3 года назад

@@ReventureConsulting the ones in that quadrant with Huntsville in this video indicating high wages and lower cost for houses. Lol. I bailed on the States (Denver) 3 years ago for Mexico because I thought most the cities were overpriced. Just trying to find the right places to consider. Now I have to consider water too because of the epic 20 year drought that's hitting Mexico and Western US. Interesting times...

@ericsanchez9723 3 года назад

Have you looked into Tulsa and OKC areas? I'm surprised you didn't even mention them. Would love to hear your take on it.

@ReventureConsulting 3 года назад

Not a huge fan of their economic reliance on oil. But it's hard to argue with the value. You can get some good properties for pretty cheap compared to other markets in Tulsa/OKC.

@ericsanchez9723 3 года назад

Thanks for the response!

@tublin4940 3 года назад

From the 2019 Census I have the household income for Denver as $85,641 vs Huntsville $67,157 . Yet the hourly wage seems to be telling a different story? What would you make of the differences, how would you interpret one vs the other, which to use and why? Thanks! (Although by either metric Huntsville is more affordable using House Value / Income)

@ReventureConsulting 3 года назад

This is a great question and one I’m still digging into. First thoughts are that it might have to do with income from capital gains/dividends and potentially household size. Both metrics have their advantages/disadvantages. Income is more correlated with home values, but is reported annually and on a lag. Average hourly wages are reported monthly and real time.

@tublin4940 3 года назад

@@ReventureConsulting thanks!

@shengmei9186 3 года назад

Lots of single family new constructions around Huntsville area. It’s very good for first time home buyers and professionals who relocate there, because of the affordability. Not sure about the rental markets. Do you have any insights?

@mindylee401 3 года назад

how about Raleigh , Durham NC? after apple announced new camp , the market way too high

@ReventureConsulting 3 года назад

Will be covering in a Deep Dive soon!

@Pingsmingu 3 года назад

You mentioned stop buying anything in Austin. I am trying to get a condo in PHX and have made 15 offers above asking. None have clickef. Is It good to wait in PHX?

@ReventureConsulting 3 года назад

That’s a great question! I’m more pro Phoenix than I am Austin, however the market there is starting to get very frothy too. My advice is to put aside FOMO and really contemplate your price range and what you want.

@Pingsmingu 3 года назад

@@ReventureConsulting you mean I should wait?

@kurtkeaner 3 года назад

thoughts on buying in Nashville right now?

@ReventureConsulting 3 года назад

Nashville is starting to look frothy. But it's fundamentals look better than a market like Austin or SLC.

@nikhilcherukuri4975 3 года назад

How do you feel about the Seattle Area. Is it still worth getting into?

@ReventureConsulting 3 года назад

Thanks for the question! I have mixed feelings on Seattle. On one hand it is already very expensive. On the other it has legitimate supply constraints and is already built out. It wouldn't be at the top of my list. But if the right deal came along at the right price I wouldn't say no.

@mat00meo 3 года назад

Seattle is terrible for landlords. It is extremely pro-tenants.

@ReventureConsulting 3 года назад

@@mat00meo Great Point!

@mat00meo 3 года назад

@@ReventureConsulting I own a SFH in Bothell, just north of Seattle. Thanks God it is not within Seattle limit. Sadly, it is still in Washington state. The whole state is pro-tenant. But Seattle is on the extreme. Fortunately, my tenants are great. They have been paying this whole time and take great care of the house. If they move, I will definitely sell to get out of Washington. Suggest anyone who interested in investing in CA, WA and NY to really look into what is going on with all the crazy bills that passed and are being proposed.

@ReventureConsulting 3 года назад

@@mat00meo Thank you for the terrific local insight!

@onezero9512 3 года назад

You mentioned Universities.... Before 2020 I would strongly agree. The future for Universities is questionable. That model has proven to be a scam, most people would have been better off if they had never gone to begin with. Students are now learning online from home nowadays and this trend doesn't look like it's abating anytime soon. I'm not counting schools out completely, they are better than nothing, but look at Tucson AZ. Complete ghost town since the recent problems. I hope these high paying jobs you are talking about stick around. One of the things America excels at is offshoring high paying jobs right after the business model/market is proven. Also, automation is something to consider, it may be that production centers are popping up, but this doesn't really translate directly to actual real jobs for PEOPLE. Corporations show up to city council meetings touting all of the jobs they will bring into the area IF THEY CAN JUST GET PERMITTED to build....fast forward and its 90% automation. FACTS. As always, you brought up a lot of awesome points to consider--thanks for doing this video.

@ReventureConsulting 3 года назад

That's an interesting point. Looking at the data - seems like college enrollment peaked in 2011 and has been declining since. Will be curious to see if COVID hastens that decline, like it did for everything. However, I still think a strong university presence in a city is an advantage. It brings research, wealth, and bohemian attitudes that help an area become desirable.

@onezero9512 3 года назад

@@ReventureConsulting Absolutely no question that colleges are a plus. Just saying that colleges have been on a trend line of loosing the economic impact they once garnered. The same goes for heavy industry with the increased use of automation. It seems like we are at an economic cross roads. The traditional fundamentals seem to be less reliable as future predictors and our job market is being reshaped as we speak. To make matters even more interesting we now have large corporations buying up entire subdivisions and city blocks. Tiny houses didn't gain much traction but co-living arrangements seem to be catching on. In one of your videos you pointed out that single family home ownership was around 68% and went on to point out that historically that number was consistently lower. It's starting to look like that number might be on the way down; kinda waiting to see what happens with this next foreclosure wave. The rental concept looks perilous as long as we keep having eviction moratoriums--I know that varies state to state but the single family home as an investment concept is looking more and more risky the longer this extends.