America’s East Coast housing market is home to the best real estate to invest in the world. From sunny Florida to New York excitement, we feature the average cost per home, rental prices and cost per square foot. Where do you get the most value for your dollar? Enjoy.
Moving or investing in America’s East Coast might be highly enticing considering its seaside locations, urban areas, and quaint towns. Last week, we compared several U.S. states against popular global cities to help you determine why you should invest in the U.S. . This week, we dive a little deeper and specifically into the East Coast, one of the most popular real estate investment destinations, to help you decide where your next or first U.S. property investment should be. We researched entry-level, mid-level, and high-end real estate from New York to Florida. We compare the prices in seven hot spots up the coast. We compare 2,000 square foot properties while considering factors such as rental income, average purchase price and price per square foot, and return on investment.
Based on our data, the best cities on the East Coast to buy rental property are:
1. Palm Beach, FL
With its strong rental market and its location, Palm Beach makes it one of the best and most popular locations to invest in property. U.S. News & World Report ranked Florida as the 10th best state in the country with regard to education, economy, and stability. Palm Beach home values jumped 28.0% over the past year based on Zillow with no end in sight. Investors can also expect an average of $3,476 in rental income.
| Location | Palm Beach, FL |
| Avg Purchase Price | USD 529,585 |
| Avg Rental Income | USD 3,476 |
| Price Per Sqft | USD 264 |
2. Nashville, TN
The home of Elvis Presley features the trifecta; very affordable real estate, low cost of living, and high employment rate. These are just a few of the reasons why U.S. real estate investors choose to purchase in Nashville. Apart from affordability, single-family homes are a popular choice among renters, with investors earning an average of $3,162 in rental a month. According to Local Market Monitor, Nashville ranked 4th for single-family real estate investment properties.
| Location | Nashville, TN |
| Avg Purchase Price | USD 576,397 |
| Avg Rental Income | USD 3,162 |
| Price Per Sqft | USD 288 |
3. Atlanta, GA
The home of CNN, Atlanta’s economic growth is one of the main reasons why it has a strong rental market. With global companies like Coca-Cola, Delta, AT&T, and many Fortune 500 companies bringing in job prospects, its rental demand is sky-high. Investing in a property in Atlanta has proven to be a great potential value because of it’s low purchase price but high rental yield, on average, $2,344 a month just in rental.
| Location | Atlanta, GA |
| Avg Purchase Price | USD 217,118 |
| Avg Rental Income | USD 2,344 |
| Price Per Sqft | USD 108 |
4. Baltimore, MD
One of America’s original seaports, Baltimore is known as one of the best areas to purchase an investment property for cash flow and appreciation. Given the generally low cost of properties in Baltimore, investors can anticipate getting a good return on investment and a decent rental income, on average $1,928. Furthermore, Millennials flocking to the city are causing a high demand for rentals in hot spots suburbs like Brewers Hill.
| Location | Baltimore, MD |
| Avg Purchase Price | USD 270,510 |
| Avg Rental Income | USD 1,928 |
| Price Per Sqft | USD 135 |
5. Boston, MA
Constantly ranked as one of the best places to live and work in, if you are looking to invest in a metro area in a big city, Boston real estate might be the perfect solution for you. Real estate investors take home on average $2,553 just in rental income.
| Location | Boston, MA |
| Avg Purchase Price | USD 581,216 |
| Avg Rental Income | USD 2,553 |
| Price Per Sqft | USD 290 |
6. Manhattan, NY
New York City is a global center for business, finance, culture, and entertainment. It offers a perfect lifestyle and investment profile to both Americans and foreigners alike. Needless to say, Manhattan’s real estate prices are steeper than average. However, even though Manhattan’s real estate price is relatively high, its profits in the form of capital appreciation is surely something to consider. With Manhattan’s median rent at $3,450, investing in Manhattan is worth a look.
| Location | Manhattan, NY |
| Avg Purchase Price | USD 839,692 |
| Avg Rental Income | USD 5,624 |
| Price Per Sqft | USD 419 |
7. Providence, RI
This vibrant capital city of Rhode Island is home to Ivy League school Brown University, RI School of Design, and Providence College. The number of students Providence draws in every year impacts the real estate market directly. It’s hot rental market makes it ideal for investors, with an average rental at $5,624 a month.
| Location | Providence, RI |
| Avg Purchase Price | USD 209,841 |
| Avg Rental Income | USD 3,454 |
| Price Per Sqft | USD 104 |
Based on the list, here are the most affordable East Coast cities to invest in:
| Rank | Cities | Purchase Price | Rental Income | Price per Sqft |
| 1 | Baltimore | $270,510 | $1,928 | $135 |
| 2 | Atlanta | $217,118 | $2,344 | $108 |
| 3 | Boston | $581,216 | $2,553 | $290 |
| 4 | Nashville | $576,397 | $3,162 | $288 |
| 5 | Providence | $209,841 | $3,454 | $104 |
| 6 | Palm Beach | $529,585 | $3,476 | $264 |
| 7 | Manhattan | $839,692 | $5,624 | $419 |
The most affordable East Coast city is Boston, with its average purchase price at $270,510, and the most expensive, of course, is the bustling Manhattan at $839,692. However, investors should not be put off by the higher property prices; let us show you why.
Comparison of the most expensive property vs. the least expensive property on the East Coast:
| City | Purchase Price | Loan Amount | Loan Tenure | LTV | Monthly Repayment | Rental Income |
| Baltimore | 270,510 | 202,882.5 | 30-year fixed | 75% | $894.13 | 1,928 |
| Manhattan | 839,692 | 629,544 | 30-year fixed | 75% | $2,774.49 | 5,624 |
Lets break it down further to understand the profits:
| City | Rental income after monthly repayment | # of years to repay loan | Total profits at the end of repayment period |
| Baltimore | $1033.87 | 30 | $372,193 |
| Manhattan | $2,849.51 | 30 | $1,025,823 |
Apples to Apples, we can deduce that even though Manhattan has a higher purchase price, with amortization and capital appreciation, investing in Manhattan gives you significant appreciation and profits.
Ready to invest in East Coast real estate?
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Next week … We travel to the Hawaiian Islands for a comprehensive look at the Aloha State real estate market! Aloha.
