Since the start of the COVID-19 pandemic, the real estate market has seen a shift in which markets are attracting out-of-state real estate investors. As high-density and expensive urban environments are deterring home buyers, people are seeking out more rural and suburban areas.
The following are a few of the most popular markets in the U.S. that are attractive to out-of-state investors.
Illinois: Rock Island County
Rock Island County is along the Illinois-Iowa border and consists of two of the area’s Quad Cities. Rock Island County stands out in the state as the location of Rock Island Arsenal, the country’s largest government-owned weapons manufacturing arsenal.
According to data, out-of-state investors purchased 54% of real estate owned (REO) properties in this Illinois county through online auctions within the first 10 months of 2020. That was a notable increase from 40% in 2019, and the average auction price was around $35.40 per square foot, or $45,719 per property.
New Jersey: Salem County
While Salem County, New Jersey was among the top attractors of out-of-state investors, it was the one county that saw a decrease in investment from 2019. Salem County saw 60% of REO property sales to out-of-state investors through online auctions in 2019, but that number lowered to 56% in 2020. The average price for those properties was $44.90 per square foot, or $70,405 per property.
Salem County is located around 120 miles northeast of the nation’s capital and 45 miles southwest of Philadelphia, with the lowest population of these counties at around 62,385 according to the 2019 census.
Oklahoma: Comanche County
Comanche County performed the best among out-of-state investors in 2020. 75% of REO properties sold via online auctions went to out-of-state investors in 2020, which was a significant increase from 45% in 2019. The average sale was around $20.10 per square foot, or $28,240 per property.
The county is located south of Oklahoma City and north of the Dallas-Fort Worth area, with a population of around 120,749 in 2019.
As the pandemic continues to affect the real estate market, certain rural and suburban locations throughout the U.S. are likely to continue appealing to out-of-state investors and home buyers, as more people look to save money and avoid the crowded nature of large cities.
