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Which state is best for real estate investment? Unfortunately, there’s no single right answer, but there are several excellent options.
A state ideal for appreciation may not suit an investor seeking stable rental yield. Likewise, a state with a steady economy doesn’t always offer the highest growth potential.
Good news – AD Mortgage analyzed data across all 50 states and the District of Columbia to create three separate rankings tailored to three distinct investor profiles. The Investment Opportunities by State study equips you to speak with investors with data-backed precision.*
Explore the full report to see which markets best align with your client’s strategy.
Key Findings
This research started with conversations our partners have with investors across the country every day.
“Working with investors in markets across the country gives us a close view of how different their priorities can be. We wanted this research to reflect that reality rather than name a single ‘best’ place to invest.” – explains Max Slyusarchuk, CEO at AD Mortgage.
The study ranks states three times, once for each investor profile. Growth investors are looking for prices and demand to keep climbing. Income investors focus on strong, sustainable rental income. And fundamental investors need a market that holds up over time.
Each ranking combines several factors into a single score on a 0-100 scale, where a higher number indicates stronger conditions for that investor type. The full report breaks down every factor and its weight behind each score.
Growth Investors
South Carolina leads the Growth ranking with a score of 78.13, followed by Idaho at 73.93, North Carolina at 71.37, and Florida at 70.86. These four states form a clear top tier, well ahead of Tennessee in fifth place at 64.43.
The leaders reach the top in different ways:
- South Carolina combines strong home price growth with steady population gains
- Idaho’s growth comes mostly from increasing population from migration
- North Carolina pairs strong home price appreciation with population growth
- Florida pairs population growth with the strongest employment gains among the top four
Income Investors
Idaho tops the Income ranking with a score of 71.01, ahead of Arizona at 65.96, Florida at 63.65, and Utah at 63.17.
Idaho, Arizona, and Utah all have fairly modest rent-to-value ratios, and each earns its place through rising rents, growing renter demand, and manageable ownership costs. In Florida, a stronger rent-to-value ratio drives the ranking, even though it comes with higher vacancy and insurance costs.
AD Mortgage’s DSCR program qualifies deals even when the numbers run tight. For instance, a property with a DSCR below 1 still qualifies for up to 75% LTV, and no-ratio DSCR options go up to 70% LTV. If you’re working with rental-focused clients, use that flexibility to your advantage.
Fundamental Investors
North Dakota leads the Fundamental ranking by a wide margin, with a score of 80.56 against Alabama’s 76.12 in second place. New Hampshire and Vermont round out the top four.
Unlike the Growth and Income leaders, these states stand out for consistency across the board. They maintain affordable housing, stable prices, and steady employment at the same time. North Dakota’s lead comes from combining all of these strengths with the highest economic diversification score in the entire study.
How to Use the Report: Real-Life Scenarios
The real value of this data shows up in the conversations brokers have every day.
Scenario 1: The client doesn’t know the market, but has a goal in mind
Without data on hand, a broker may fall back on general impressions instead of a specific answer. This report matches each investment goal to its own ranking, backed by real data, so that you always have something concrete to point to.
Scenario 2: The client is weighing a few specific states
Sometimes an investor has narrowed the choice to two or three states and wants help comparing them. The reasoning behind each ranking can help answer this question. This report breaks down the specific factors behind each score, so you have more to say than just a number.
Scenario 3: A past homebuyer starts thinking about an investment purchase
Your own client list often holds an overlooked lead – a past homebuyer who now wants to buy something to rent out, without a clear strategy yet. This report can help identify the states to build the conversation around.
Scenario 4: The client wants to invest outside their home state
Remote investing keeps growing, especially among investors priced out of their own market. For you, that’s an opportunity to work with clients anywhere. But, there’s also a risk if you can’t speak specifically about markets outside your usual territory. This report puts real data on any state in front of you, no matter where you’re based.
Conclusion
Every investor client comes with a different goal, and this report provides you with a data-backed starting point for matching an investment strategy with potential markets. Check out the full rankings and explore the maps for each investor type.
*This report is for informational purposes only and does not constitute investment advice.
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