A lot of real estate attention gets placed on large cities, such as those that have benefited from pandemic-era migration trends or bustling job markets. Yet some people still prefer to search for homes in small towns, which can be more affordable than some major cities and offer a slower pace of life.
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However, with the sheer quantity of small towns across the country, it can be difficult to know where to look. One approach is to talk to real estate experts who may have local insights or at least general knowledge that can potentially foreshadow price movements in certain areas.
Here, we’ll examine three of these recommendations. Note that none are technically designated as towns, but for all intents and purposes, based on factors like population, these can be considered small towns to consider buying property in the next five years:
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1. Morganton, North Carolina
As a whole, many real estate experts have their eyes on North Carolina as a growth area, but that’s not just limited to popular places like Raleigh and Durham. Some smaller towns could also be good places to buy in the coming years.
“I would look at towns that are receiving major investments into infrastructure, research, industrial, etc.,” suggested Frank Rohde, CEO at Ownify. In North Carolina, that includes places like Morganton, which is located in the western part of the state and has a population under 20,000.
Part of Rohde’s rationale is that some areas of North Carolina are receiving major grants from the U.S. National Science Foundation (NSF). One of those grants is for the North Carolina Sustainable Textiles Innovation Engine, which is set to receive up to $160 million in NSF funding over the next 10 years.
The grants for this NSF Engine will go toward supporting the textile industry in parts of North Carolina, South Carolina, Tennessee, and Virginia. While Morganton isn’t the center of this funding, it could benefit considering it has a strong textile footprint, such as being home to the Carolina Textile District co-op.
Shelbyville, Tennessee
While Nashville has been booming over the past few years, some towns and small cities in Middle Tennessee are poised to capture some of this growth too.
“As the rising prices in Nashville drive the more budget-conscious home buyers further out, I expect these locations to be an excellent place to park your real estate dollars over the next few years,” said Joe Hafner, broker and owner at Hafner Real Estate.
One place in particular to consider is Shelbyville, which has a population of roughly 25,000. It’s about 60 miles from Nashville and 25 miles from Murfreesboro.
“As the growing population moves south past Murfreesboro, Shelbyville is next in line for an influx of new people and still has a nice supply of affordable homes available,” said Hafner.
Shelbyville is known for hosting the annual Tennessee National Walking Horse Celebration, but it’s becoming more of a destination for reasons other than horses, he added.
“The recently established Nearest Green Distillery sits on more than 300 acres on Highway 231 between Murfreesboro and downtown Shelbyville and represents millions of dollars of investment into the area. For home buyers who seek less expensive property than what’s available in Murfreesboro, Shelbyville has become their primary destination,” said Hafner.
Accord, New York
Accord is technically a hamlet, which is part of the town of Rochester (different than the city of Rochester), located within the Rondout Valley of New York, roughly between New York City and Albany.
Rondout Valley areas like Accord “offer rural charm with scenic views of the Shawangunk Mountains. Residents enjoy a close-knit community atmosphere, complete with local farmers markets, artisanal shops, and a serious foodie scene,” said Angelica Ferguson VonDrak associate broker at Four Seasons Sotheby’s International Realty.
Plus, you can get a mix of the old and the new.
Rondout Valley areas like Accord “are ideal for those seeking a tranquil countryside lifestyle with a rich history. Additionally, Accord is home to the new hospitality hotspot Inness,” she said.
Finding the Right Spot for You
Whether you decide you want to buy property in one of these towns or somewhere else, it’s important to do your due diligence first.
“Be sure to look at the local laws, regulations, and policies, because that drives economic conditions in an area. You want to make sure you’re moving into an area that will continue to grow, otherwise you could be stuck there for longer than you’d like,” said Dr. David Phelps, CEO of Freedom Founders.
Plus, it’s important to be mindful of chasing trends.
“Some of the hot markets are too hot, and so you can’t get the return you want, even though you’ve seen values go up, unless you caught that streaming star early and rode with it. If you’re looking at some of these places now, you’re kind of catching them by the tail, and unfortunately, we don’t know how much of that tail is going to be left,” he said.
And not everyone has the same real estate goals. Some might be looking for a quick ROI on a second home later in life, for example, while others want to buy their first home to raise a family in an area that looks poised for growth.
“The bottom line is that you’ve got to find affordability, but you’ve also got to find an area that will support your situation and goals,” said Phelps.
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This article originally appeared on GOBankingRates.com: 3 Small Towns To Buy Property in the Next 5 Years, According to Real Estate Experts
