April 30, 2011 By Larry Arth

The top 5 real estate investment markets in the U.S., both commercial and residential, are cities that are poised for a strong economic comeback. They are the best cities to invest in and are being snapped up by real estate investment pros worldwide.

How do we know? One big indicator is keen interest by foreign investors. In an annual survey by the University of Wisconsin-Madison, researchers found that the U.S. real estate offers the best potential for capital appreciation, scoring four times higher than the second-ranked United Kingdom.

Despite a slow economic recovery, 72 percent of foreign investors plan to invest in the United States real estate market even more in 2011 than in 2010.

Top 5 Commercial Real Estate Markets


Commercial real estate deals abound in the Washington, D.C. area, which remained among the most active during the recession. San Francisco remains a top commercial investment market because of the tech industry that draws investors interested in buys for apartments, warehouses, offices and hotels. Other top commercial real estate markets are Austin, Texas, with its low state taxes; Boston, with its premier educational institutions and high-tech businesses; and New York, which can be affordable over the long term.

Top 5 Residential Real Estate Markets

Strong employment, the condition of the rental market, amount of foreclosures and the levels of growth are key factors determining the best real estate investment markets. Also important are volume of good “buy and hold” properties as opposed to “quick fix and flip” houses. For a first-time home buyer, a good deal is identified by the ability to own a home for less than renting.

These rankings come from US Census data that determine the most suitable places for real estate investors to find stable areas to target for growth.

Texas-Sized Deals

Texas holds three of the five top residential markets. The Dallas-Fort Worth metro area is considered the top residential investment market in the country for 2011, based on high-volume, active real estate regions that attract investors. Houston is the largest city in Texas and the fourth largest in the U.S. and ranks second. San Antonio ranks fourth.

Oklahoma is OK

Tulsa, Oklahoma, identified as the third most desirable place for investing in real estate, is becoming a haven for families, professionals and investors. Low unemployment and low foreclosure rates add to the allure.

Salt Lake – Sweet Deal

Salt Lake City comes in fifth place. Forbes magazine calls it one of the best places for retirees. Reasons include the cost of living, taxes, the relatively low crime rate and opportunities for a positive lifestyle.

The Top 5 Real Estate Investment Markets for both commercial and residential investors appear to be some of the best deals out there.