El Paso gives investors enough reasons to try out its real estate market. The city is one of the safest in the country. It is also an area that is undergoing development. Here are some reasons why the El Paso market can provide lucrative business in 2020.
An Inexpensive Market
An average home in El Paso is cheaper by 40% when compared to other cities in Texas. For example, regular houses cost about $130,000 and upscale homes go for about $300,000.
This is less expensive when compared to homes that one can find in Dallas and other hot markets. The affordable market gives investors, especially newbies, the opportunity to enter the market easily.
On average, rental homes can fetch up to $800 every month. The profit could be more for investors who rent their homes in neighborhoods that have higher rent prices. For example, Mountain View has high rental rates because the district is home to numerous military families and Army veterans. This population can pay up to $1,600 to be in the proximity of military medical facilities and workplaces.
A Strong Job Market
Since El Paso has low crime rates, it draws people from across the state and the globe who plan to move with their families. Moreover, the job market is very diverse, with people working in the healthcare, manufacturing, finance, and hospitality industries. Raytheon and other defense contractors also employ a good number of El Paso residents.
As a chief inland border crossing, the city has several Border Patrol, DEA, and Customs jobs. With an unemployment rate of 4%, the Sun City boasts several call centers that employ over 10,000 people. The job market has also grown by 1.9% over the past 12 months, promising a bright future for real estate market investors.
An Education Center
El Paso is home to the University of Texas campus. As one of the biggest institutes in the state, it has around 20,000 students. In total, the city has 17 colleges and universities. Some of them include El Paso Community College, Southwestern University at El Paso, Vista College, and Brightwood College. Since most of the students prefer living off-campus, real estate investors get remarkable profits from the renters.
High Rental Demand
Although El Paso’s real estate market is inexpensive, the demand for rental property is high. Those who work or study in the city prefer renting spaces until they save enough to buy properties.
Therefore, you can split a three-bedroom house into three housing units and earn a decent income from it.
A Landlord-Friendly Market
Potential investors are certainly going to appreciate how landlord-friendly Texas is. It is very easy to evict non-paying tenants or those who don’t comply with lease conditions. Although the law permits tenants to appeal the eviction, they are obliged to pay rent within five days of the court ruling. The landlord can contact the sheriff to evict those who have not appealed, paid the rent or vacated.
A Redeveloping City
El Paso is undergoing several changes to ensure a better life for its residents. Moreover, a lot of construction and renovation works are taking place. With more affordable properties under construction, it’s a good idea to rush into the market before prices start shooting up.
The Cost of Living is Low
El Paso is continuously attracting more people to live there because of the low cost of living and low crime rates. A 2018 survey revealed that El Paso was the cheapest area to live in. Residents can enjoy high-quality housing, food, movies, and entertainment without breaking the bank.
An Attractive City
El Paso’s scenic landscape boasts a variety of flora and fauna. For example, the pretty Franklin Mountains is an excellent outdoor destination for hiking, mountain biking, and rock climbing. Here, visitors can see a wide range of wildlife.
Besides, the city is abuzz with numerous cultural attractions. The El Paso Museum of Art is home to over 7,000 pieces of art that primarily focus on Mexican, American, and European Art from the 12th century. Therefore, investing in accommodation for visitors to the city can be rewarding.
Nice Transportation Network
El Paso boasts an extensive public transportation network that provides easy access to the area and other regions in Texas and the rest of the world. The city is home to the El Paso International Airport, connecting it to West Texas, Northern Mexico, and Southern New Mexico. The airport serves at least 2.8 million passengers every year.
The city also boasts other airports, including Biggs Army Airfield, Horizon Airport, Dona Ana Airport, and Las Cruces International Airport. Also, El Paso has several railways and highways. The transportation network positively impacts the city’s real estate market.
El Paso’s median age is 33, which is lower than the US median of 40. This is because many young people are migrating from Central America, Mexico, and the neighboring rural areas.
Better still, a third of El Paso residents are less than 20 years old. With the likelihood that most of these young people will stay for work and raise families in the city, the housing market will soon experience a surge in demand.
A Large Military Market
Cities with military bases typically have a large renting population. For El Paso, Fort Bliss creates a high demand for rental properties since it is one of the biggest Army bases in the country. Additionally, Biggs Army Airfield, as well as the Beaumont Army Medical Center, call the Sun City home. The two are major employers in the city.
Since El Paso is an ever-evolving city, a real estate investment can be lucrative. The city has numerous options for investors to choose from, from new houses to renovated buildings. Aside from the safe environment drawing families from across the state to settle in the city, El Paso also boasts a large military market.
Moreover, the Sun City is home to a large population of renters who prefer buying homes only after they have saved enough to do so. Also, the fact that the majority of El Paso’s population consists of young people means that the market has a bright future. Better still, the Sun City is a landlord-friendly city. All these reasons show that an El Paso real estate investment can prove to be profitable in the long run.