Pennsylvania
I’m a Real Estate Investor: Here’s Why I’m Eyeing Harrisburg, Pennsylvania, in 2025
As home values continue to rise around the United States, real estate investing continues to grow in popularity. Even though significant risk is involved, it allows investors to diversify their investment portfolios and potentially revitalize an area they’ve grown to love.
Find Out: 6 Best Florida Suburbs to Buy Property in the Next 5 Years, According to Real Estate Agents
Learn More: 7 Reasons You Should Consider a Financial Advisor To Save More Money
As we approach the fourth quarter of 2024, it’s time to start looking ahead to what 2025 could bring for real estate investors. Because of the upcoming presidential election and some uncertainty about what the Federal Reserve will do with interest rates, there are mixed opinions on what’s to come in 2025.
In a June forecast, CoreLogic believed average home prices across the United States will grow by 3.4% through April 2025. However, Zillow isn’t quite as optimistic, expecting prices to decrease by 1.4% through May 2025.
Even though the real estate market is uncertain, investors will still proceed with upcoming projects. I spoke with a real estate professional who is very optimistic about the future of real estate in Harrisburg, Pennsylvania. Let’s dig in a little further into why this location may be worth investing in.
Earning passive income doesn’t need to be difficult. You can start this week.
Location, Location, Location
One of the most crucial factors in real estate is location. Whether you’re looking for a home to flip or something to hold onto for the long term and rent out, investing in a property in an area where people want to live is crucial to success.
“Just Google Harrisburg and you’ll see why it’s one of the hottest cities in the U.S. and the best place to live in Pennsylvania,” said Avrom Smith, founder of HAS Holdings LLC. “I believe it’s the best-kept secret in Pennsylvania. We’ve done almost a dozen deals in the last 12 months in Harrisburg, with many more on the horizon. Harrisburg, Pennsylvania, is a resurgent city with affordable growth potential.”
A lot goes into finding cities and neighborhoods that check all the boxes. Smith noted that he was attracted to Harrisburg because of its dedication to revitalizing economic growth, making it a city where people want to live.
“Harrisburg has seen significant economic growth in recent years, driven by government, healthcare, education and technology sectors,” Smith said. “This diversification has created a resilient job market and spurred demand for housing.”
Be Aware: 8 Places Where Houses Are Suddenly Major Bargains
Affordable Housing
Pricing is another significant factor for investors. While money can be made no matter how much the property costs, affordable housing allows for a lower barrier of entry for investors.
“One of Harrisburg’s standout features is its affordability compared to major metropolitan areas on the East Coast,” Smith said. “The median home price in Harrisburg is significantly lower than the national average, making it an attractive market for investors and buyers.”
Right now, Zillow shows the average home value in Harrisburg at $249,086.
However, it’s also important to remember that the investment cost is only a small piece of the puzzle. Making sure the investment is going to be profitable is critical to the success of an investment. This means researching the potential price-to-rent ratio, capitalization rate and expected cash flow.
Close to Major Cities
Many East Coast cities are among the most expensive real estate markets in the United States. While living in these locations might be a must for some people, others want to be somewhere more affordable but within a short distance of the action. That’s where Harrisburg fits the bill.
“Harrisburg’s strategic location offers easy access to major metropolitan areas like Philadelphia, Baltimore, Washington D.C., and New York City,” Smith said. “This proximity makes it an attractive option for commuters and businesses, further fueling demand for housing.”
Upgraded Infrastructure
Most people have a visual of where they want to live. It most likely doesn’t include dilapidated buildings and roads filled with potholes. Instead, they want to live somewhere where people care about how it’s perceived. Someplace where developers and government officials care enough to update roads and buildings but also preserve this historic charm. This is what Harrisburg can offer investors and residents.
“The city and state have made substantial investments in infrastructure, including transportation, revitalizing downtown areas, and improving public spaces,” Smith said. “These developments enhance the city’s appeal and contribute to property value appreciation.”
As a real estate investor, there are a lot of things that go into finding the perfect property that will allow you to maximize your potential return. The location will always be a critical factor. Investors want to find a location where property values are attractive, where the city is making necessary infrastructure upgrades to attract homebuyers, and where you’ll have access to other metropolitan areas. This is what makes Harrisburg such an attractive city for Smith.
“Harrisburg is a city that can be overlooked,” Smith said. “The city presents a unique opportunity for real estate investors. With its affordable housing market, revitalized economy, and strategic location, the city offers substantial growth potential and attractive returns on investment.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Real Estate Investor: Here’s Why I’m Eyeing Harrisburg, Pennsylvania, in 2025