Where We’d Invest in Real Estate in 2026 (If We Could Buy Anywhere) - BiggerPockets Real Estate Podcast Recap

Podcast: BiggerPockets Real Estate Podcast

Published: 2026-01-16

Duration: 39 min

Summary

In this episode, the hosts reveal nine promising real estate markets for investment in early 2026, focusing on areas with solid cash flow potential and affordability. The discussion emphasizes the importance of choosing the right market for successful investing.

What Happened

Dave Meyer, the head of real estate investing at BiggerPockets, kicks off the episode by highlighting the critical decision of selecting the right market for real estate investment in 2026. Joined by Ashley Kerr and Henry, each host presents three markets they believe offer significant profit potential based on current data and trends. With varying regional characteristics, they emphasize the need to adapt investment strategies to local conditions.

Henry starts by discussing Hattiesburg, Mississippi, a college town with a median home price of $192,000 and a median rent of $2,200. He notes the strong cash flow potential due to a favorable rent-to-price ratio of 0.76 and a low vacancy rate of 6%. Henry also points out the presence of major employers, including a university and healthcare systems, as well as new job opportunities from FedEx's logistics facility. He describes Hattiesburg as a 'base hit or a double market' with solid economic fundamentals.

Ashley follows with her choice of Ocala, Florida, which she argues is a hidden gem due to its central location and ongoing development, including a new 263-acre sports complex. She highlights Ocala's average home value of around $267,000 and a rent range of approximately $1,300 to $1,500. The conversation touches on Florida's potential for climate migration and economic growth, with Ashley noting that for every person leaving Ocala, about 3.3 are moving in, indicating robust demand and population growth.

Key Insights

Key Questions Answered

What makes Hattiesburg, Mississippi a good investment market?

Hattiesburg stands out due to its solid cash flow potential, with a median home price of $192,000 and a median rent of $2,200. This results in a rent-to-price ratio of about 0.76, which indicates that investors can find properties that generate income. Additionally, the low vacancy rate of 6% and the presence of stable employment opportunities, including a university and healthcare systems, further solidify Hattiesburg as a viable investment option.

Why is Ocala, Florida considered a promising market in 2026?

Ocala is positioned as one of the fastest-growing metros in the U.S. due to significant new development, including a large sports complex. Its average home value is around $267,000, with rents varying between $1,300 and $1,500. The city's central location between major airports makes it attractive for both residents and businesses, and the ongoing influx of people moving into the area underscores its growth potential.

How do local employment opportunities impact real estate investments?

Local employment opportunities are crucial for real estate investments because they drive demand for rental properties. In Hattiesburg, for example, the presence of the university and healthcare sectors provides consistent job growth, which in turn supports a stable rental market. Investors should always consider the economic fundamentals of a market, as strong job prospects typically lead to lower vacancy rates and enhanced cash flow.

What are the key factors to consider when selecting a real estate market?

When selecting a real estate market, investors should look at the rent-to-price ratio, median home prices, and local vacancy rates. Additionally, understanding the economic landscape, including job growth and major employers in the area, is vital. This comprehensive approach helps investors identify markets that offer solid cash flow potential and future appreciation.

How does weather and climate affect real estate investment decisions?

Weather and climate significantly impact real estate investment decisions, particularly in areas prone to natural disasters. For example, Ocala's central location in Florida offers better protection from hurricanes compared to coastal cities, which can influence insurance rates and investor confidence. Moreover, trends such as climate migration show that people are increasingly moving within states to avoid extreme weather, creating opportunities in markets like Ocala.