6 Delaware Cities Topping the Real Estate Market Charts
A successful real estate investment is all about putting that InstaLend hard money loan where the best location in Delaware is. The East Coast state is strategically positioned on this side of the Atlantic Ocean. It has a generally strong economy due largely to the diverse communities that emigrate from all parts of the world to this part of the US.
In other words, Delaware shall always remain a land of possibilities for real estate investors. Despite being the second smallest state, it does cover about 2,489 square miles.
Thus, we will limit our real estate exploration in Delaware to the following cities, particularly what makes them stand out in this competitive market.
1. Bear: The Rent Guzzler
Bear has one of the highest average rents in Delaware at $2,030, while home prices have increased by 3.5% in the past year. The city’s job market has increased by 2.7% over the past year, with projections looking positive for the foreseeable future. This would explain why people from near and far are suddenly flocking to it.
Bear has the distinct advantage of being in a state that ranks 16th in the US as far as the taxation system is concerned. It has zero sales tax and some of the best schools and colleges in the country.
In saying that, you might want to collaborate with a local real estate agent if you’re new to the area. They are your best bet for finding a lucrative property and paying off that investment property loan as soon as possible.
2. Wilmington: The Financial Hub
There’s no place better than Wilmington in Delaware when buying real estate. It is the state’s largest city and its legal, if not administrative, capital. It’s home to the Chancery Court, the country’s oldest courthouse.
The city is located along the Delaware River, a strategic location, seeing as it’s so close to Philadelphia and Baltimore. If you’re in either of those cities, you can add a second state to your portfolio by investing in Wilmington.
The city doesn’t lack anything from a real estate perspective—quite the opposite. It has an ever-growing financial sector due to Delaware boasting 65% of all Fortune 500 companies in the United States.
The growth has greatly contributed to the increasing demand for Delaware’s residential and commercial real estate. Riverfront and Trolley Square have been restored and continue to draw young professionals and families nationwide.
These revitalized neighborhoods host Wilmington’s budding arts and cultural heritage scene and some of its prestigious educational institutions. Apply for a property loan when you find an investment opportunity in or around these neighborhoods.
3. Newark: A Thriving College Town
The University of Delaware is located in Newark and has a 23,613-student population. Add the administrative, teaching, and other staff members, and you have a college town with affordable homes, 60.5% of which are let out annually.
The high demand naturally drives the rent rates sky-high, which is where you, dear investor, come in. Buy student property or a starter home in Newark if you want to pay just 0.55% of the property tax in a city with a below-national-average unemployment rate, a growing job market, and affordable housing.
4. Rehoboth Beach: Coastal Charm and Tourism
Rehoboth Beach is a popular vacation spot in Sussex County. Its economy relies on the constant influx of tourists. The city gets 3.5 million visitors annually, whose presence drives up the demand for vacation rentals and investment properties.
The place isn’t half-bad for residents. While they make up the city’s minority, they represent a growing job market. The best part about Rehoboth Beach is its real estate market; it’s currently undergoing a downward trend, meaning this is your chance to grab the perfect bargain, complete with one of the lowest property tax rates in the country!
5. Dover: The State Capital
You cannot go wrong with buying real estate in Dover, which has the honor of being Delaware’s capital and the county seat of Kent County. Thanks to the city’s well-developed infrastructure and a central location within Delaware, it hasn’t seen much change in housing and rental rates despite a steadily declining population.
Dover’s real estate market is a piñata of historic structures, new constructions, and multi-family properties. While it doesn’t have a job market as good as its predecessors on this list, it is a great place to retire, explore the state’s rich history and culture, and work in administrative positions.
Dover’s commercial buildings include legislative and administrative institutions. These headquarters house hundreds of employees who need residential housing. You can be the one to provide it to them by flipping a ragtag home or purchasing a single-family rental property.
6. Dewey Beach: Coastal Gem with Investment Potential
Nestled along the Delaware coastline is yet another coastal town called Dewey Beach. Famous for its breathtaking ocean views, relaxing daytime atmosphere, and sleepless nightlife, this town offers a unique blend of natural beauty and fun activities for visitors and locals alike.
Dewey Beach is a small patch of land with stringent zoning regulations to preserve its natural beauty. In other words, it has a limited real estate supply that helps keep the housing market afloat and riding the high tide at all times.
The town hosts a prime location along the Atlantic Ocean, drawing visitors from both sides for a beach getaway. The vacation rentals are fully booked out, especially during the warmer months.
While finding an investment property in Dewey Beach is challenging, keep an eye on this coastal town. Grab the first opportunity to come your way by applying for a rental loan in Delaware.
Explore the InstaLend website to apply for a hard money loan to buy real estate in Delaware with standard rates and no income requirements, prepayment penalties, or upfront fees.
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