Real estate wholesaling is an investment strategy where the wholesaler contracts a home with a seller and then finds an interested buyer. The wholesaler assigns the contract to the buyer and earns a profit based on the difference between the contracted price and the final selling price.
Choosing the right state for real estate wholesaling is crucial for maximizing profits and minimizing risks. A state with strong population growth, high market demand, and a robust job market can offer numerous opportunities for wholesalers.
This article will explore the top 10 states for real estate wholesaling in 2024, considering key factors that affect wholesaling success.
Factors to Consider in Real Estate Wholesaling
Before we explore the best states for wholesaling real estate, it’s important to know what factors make a state a good place for this investment strategy.
1. Population Growth
Population growth is a good sign of a healthy real estate market. In states where the population is growing, there’s usually more demand for housing. This means wholesalers can find buyers faster and have more opportunities to make deals.
2. Market Demand
Market demand is the need for housing in a particular area. When demand is high, properties sell quickly, and there are plenty of buyers looking to make a purchase.
3. Job Opportunities
A strong job market brings people to an area, which increases the need for housing. States with low unemployment and growing industries are usually better for real estate wholesaling.
4. Cost of Living
The cost of living impacts how attractive a state is to new residents. A state with a lower cost of living may attract more people, increasing housing demand.
5. Median Home Prices
Median home prices are a critical factor for wholesalers. When home prices are affordable, it’s easier to find properties that can be bought at a low price and sold for a profit.
6. Average Household Income
Higher average household incomes usually mean higher property values.This means more people can afford to buy homes, which increases demand in the market.
7. Average Property Tax Rate
Property tax rates can impact the profitability of real estate investments.States with lower taxes are better for investors who want to save money.
8. Rental Vacancy Rate
The rental vacancy rate shows how many rental properties are empty. A low vacancy rate means there’s strong demand for rentals, which is a good chance for wholesalers.
9. GDP Growth or GDP
A state’s economic health, measured by GDP growth, shows how well the business environment is doing. States with strong GDP growth are usually better places for real estate investments.
Best States for Real Estate Wholesaling in USA
Based on the key factors mentioned above, the following are the best states to wholesale real estate :
- Texas
- Florida
- Georgia
- Ohio
- North Carolina
- Indiana
- Missouri
- Arizona
- Tennessee
- Alabama
1. Texas
Texas is consistently one of the top states for real estate wholesaling due to its strong economy, significant population growth, and diverse job market. Cities like Austin, Dallas, and Houston have seen rapid expansion in recent years, making them hotspots for wholesalers.
Statistics and Ranking Factors
- Population Growth: 15.3% increase from 2010 to 2020.
- Market Demand: High, with consistent demand for housing in major cities.
- Jobs: Unemployment rate of 3.9%, with significant job growth in tech, energy, and healthcare sectors.
- Cost of Living: 8% below the national average.
- Median Home Prices: $315,000.
- Average Household Income: $68,093.
- Average Property Tax Rate: 1.80%.
- Rental Vacancy Rate: 6.3%.
- GDP Growth: 4.7% in 2023.
- GDP: $2.1 trillion (2022).
Best Cities for Wholesaling in Texas
- Austin: Known for its tech industry and cultural scene, Austin is attracting new residents rapidly.
- Dallas: A business hub with a diverse economy, Dallas offers many wholesaling opportunities.
- Houston: As one of the largest cities in the U.S., Houston’s real estate market is robust, with high demand for both residential and commercial properties.
2. Florida
Florida’s real estate market is booming, driven by a warm climate, no state income tax, and an influx of new residents. Cities like Miami, Orlando, and Tampa are prime locations for real estate wholesaling.
Statistics and Ranking Factors
- Population Growth: 14.6% increase from 2010 to 2020.
- Market Demand: High, particularly in coastal cities and retirement communities.
- Jobs: Unemployment rate of 3.1%, with growth in tourism, healthcare, and tech industries.
- Cost of Living: 2% above the national average.
- Median Home Prices: $355,000.
- Average Household Income: $57,703.
- Average Property Tax Rate: 0.83%.
- Rental Vacancy Rate: 5.9%.
- GDP Growth: 3.9% in 2023.
- GDP: $1.3 trillion (2022).
Best Cities for Wholesaling in Florida
- Miami: A thriving real estate market with international appeal, making it ideal for wholesalers.
- Orlando: Known for tourism, Orlando’s growing population drives demand for housing.
- Tampa: A balanced economy and rapid growth make Tampa a top choice for real estate investment.
3. Georgia
Georgia, particularly the Atlanta metropolitan area, offers a strong real estate market with a diverse economy and a growing population.
Statistics and Ranking Factors
- Population Growth: 10.6% increase from 2010 to 2020.
- Market Demand: Steady, with high demand in urban and suburban areas.
- Jobs: Unemployment rate of 3.2%, with growth in logistics, tech, and film industries.
- Cost of Living: 4% below the national average.
- Median Home Prices: $285,000.
- Average Household Income: $61,980.
- Average Property Tax Rate: 0.91%.
- Rental Vacancy Rate: 6.0%.
- GDP Growth: 4.2% in 2023.
- GDP: $714 billion (2022).
Best Cities for Wholesaling in Georgia
- Atlanta: The economic engine of Georgia, Atlanta’s real estate market is dynamic and diverse.
- Savannah: With its historic charm and growing port, Savannah is attracting new residents and businesses.
- Augusta: Known for its healthcare industry, Augusta offers affordable real estate and steady demand.
4. Ohio
Ohio’s affordable housing market and stable economy make it a favorable state for real estate wholesaling. Cities like Columbus, Cincinnati, and Cleveland offer numerous opportunities.
Statistics and Ranking Factors
- Population Growth: 2.3% increase from 2010 to 2020.
- Market Demand: Moderate, with pockets of high demand in urban areas.
- Jobs: Unemployment rate of 4.0%, with growth in manufacturing, healthcare, and finance.
- Cost of Living: 10% below the national average.
- Median Home Prices: $180,000.
- Average Household Income: $58,642.
- Average Property Tax Rate: 1.57%.
- Rental Vacancy Rate: 7.2%.
- GDP Growth: 2.7% in 2023.
- GDP: $683 billion (2022).
Best Cities for Wholesaling in Ohio
- Columbus: As the state capital, Columbus has a diverse economy and a growing population.
- Cincinnati: With a strong job market and affordable housing, Cincinnati is ideal for wholesalers.
- Cleveland: Despite some economic challenges, Cleveland offers affordable properties and potential for high returns.
5. North Carolina
North Carolina’s economy is growing rapidly, with strong demand for housing in cities like Charlotte, Raleigh, and Durham.
Statistics and Ranking Factors
- Population Growth: 9.5% increase from 2010 to 2020.
- Market Demand: High, especially in tech-driven cities.
- Jobs: Unemployment rate of 3.5%, with growth in tech, finance, and education.
- Cost of Living: 5% below the national average.
- Median Home Prices: $310,000.
- Average Household Income: $56,642.
- Average Property Tax Rate: 0.84%.
- Rental Vacancy Rate: 6.5%.
- GDP Growth: 4.4% in 2023.
- GDP: $592 billion (2022).
Best Cities for Wholesaling in North Carolina
- Charlotte: A financial hub with a growing population, Charlotte’s real estate market is thriving.
- Raleigh: Known for its tech industry, Raleigh offers a strong job market and high demand for housing.
- Durham: Part of the Research Triangle, Durham’s economy is driven by education and healthcare, making it attractive for investors.
6. Indiana
Indiana offers affordable real estate and a stable economy, with cities like Indianapolis providing strong opportunities for wholesalers.
Statistics and Ranking Factors
- Population Growth: 4.7% increase from 2010 to 2020.
- Market Demand: Moderate, with consistent demand in urban areas.
- Jobs: Unemployment rate of 3.3%, with growth in manufacturing and healthcare.
- Cost of Living: 9% below the national average.
- Median Home Prices: $210,000.
- Average Household Income: $57,603.
- Average Property Tax Rate: 0.87%.
- Rental Vacancy Rate: 6.8%.
- GDP Growth: 3.1% in 2023.
- GDP: $438 billion (2022).
Best Cities for Wholesaling in Indiana
- Indianapolis: The state capital, Indianapolis offers a diverse economy and affordable real estate.
- Fort Wayne: With a growing population and affordable housing, Fort Wayne is attracting new residents.
- Evansville: A smaller city with a stable economy, Evansville offers low-cost real estate and potential for growth.
7. Missouri
Missouri’s central location and affordable housing market make it a favorable state for real estate wholesaling. Cities like Kansas City and St. Louis offer diverse opportunities.
Statistics and Ranking Factors
- Population Growth: 2.7% increase from 2010 to 2020.
- Market Demand: Moderate, with strong demand in major cities.
- Jobs: Unemployment rate of 3.5%, with growth in healthcare, manufacturing, and agriculture.
- Cost of Living: 10% below the national average.
- Median Home Prices: $205,000.
- Average Household Income: $56,885.
- Average Property Tax Rate: 0.97%.
- Rental Vacancy Rate: 6.9%.
- GDP Growth: 2.9% in 2023.
- GDP: $361 billion (2022).
Best Cities for Wholesaling in Missouri
- Kansas City: A major transportation hub with a diverse economy, Kansas City’s real estate market is robust.
- St. Louis: Known for its historic neighborhoods and affordable housing, St. Louis offers numerous opportunities for wholesalers.
- Springfield: As a smaller city, Springfield offers affordable real estate and a stable economy.
8. Arizona
Arizona’s warm climate and rapid population growth make it a top state for real estate wholesaling. Phoenix, in particular, is one of the fastest-growing cities in the U.S.
Statistics and Ranking Factors
- Population Growth: 11.9% increase from 2010 to 2020.
- Market Demand: High, particularly in the Phoenix metropolitan area.
- Jobs: Unemployment rate of 3.2%, with growth in tech, healthcare, and tourism.
- Cost of Living: 6% above the national average.
- Median Home Prices: $380,000.
- Average Household Income: $63,221.
- Average Property Tax Rate: 0.66%.
- Rental Vacancy Rate: 5.2%.
- GDP Growth: 4.6% in 2023.
- GDP: $407 billion (2022).
Best Cities for Wholesaling in Arizona
- Phoenix: As the capital and largest city, Phoenix offers a booming real estate market with high demand.
- Tucson: Known for its lower cost of living and growing economy, Tucson is attracting new residents.
- Scottsdale: With its luxury housing market and strong economy, Scottsdale offers high-profit potential for wholesalers.
9. Tennessee
Tennessee’s low cost of living and strong job market make it a favorable state for real estate wholesaling. Nashville, in particular, is a hotspot for real estate investment.
Statistics and Ranking Factors
- Population Growth: 8.9% increase from 2010 to 2020.
- Market Demand: High, particularly in Nashville and surrounding areas.
- Jobs: Unemployment rate of 3.4%, with growth in healthcare, manufacturing, and entertainment.
- Cost of Living: 7% below the national average.
- Median Home Prices: $315,000.
- Average Household Income: $55,833.
- Average Property Tax Rate: 0.68%.
- Rental Vacancy Rate: 6.1%.
- GDP Growth: 3.8% in 2023.
- GDP: $379 billion (2022).
Best Cities for Wholesaling in Tennessee
- Nashville: Known for its music scene and booming economy, Nashville is a top choice for real estate investors.
- Memphis: With its affordable housing and growing job market, Memphis offers strong potential for wholesalers.
- Knoxville: As a smaller city with a stable economy, Knoxville offers affordable real estate and a high quality of life.
10. Alabama
Alabama’s low cost of living and affordable housing market make it a favorable state for real estate wholesaling. Birmingham and Huntsville offer strong opportunities.
Statistics and Ranking Factors
- Population Growth: 3.3% increase from 2010 to 2020.
- Market Demand: Moderate, with steady demand in urban areas.
- Jobs: Unemployment rate of 3.2%, with growth in manufacturing, aerospace, and healthcare.
- Cost of Living: 12% below the national average.
- Median Home Prices: $180,000.
- Average Household Income: $52,035.
- Average Property Tax Rate: 0.41%.
- Rental Vacancy Rate: 7.0%.
- GDP Growth: 2.5% in 2023.
- GDP: $211 billion (2022).
Best Cities for Wholesaling in Alabama
- Birmingham: As the largest city in Alabama, Birmingham offers a diverse economy and affordable real estate.
- Huntsville: Known for its aerospace industry, Huntsville is growing rapidly and attracting new residents.
- Mobile: A port city with a stable economy, Mobile offers affordable housing and potential for growth.
Conclusion
Choosing the right state for real estate wholesaling involves evaluating various factors, including population growth, market demand, and economic conditions. The states listed above offer a combination of favorable market conditions and economic stability, making them excellent choices for real estate investors.
By looking at important data and knowing how local markets work, investors can make smart choices. Checking out specific markets in these top states will help you find the best opportunities and improve your strategy.
