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Where are the best investments in California and Florida?

Dennis Norman

Dennis Norman

By: Dennis Norman

Today SmartZip, Inc. released it’s first release of the SmartZip Top 10 Markets™, a list of top-rated cities most likely to yield above-average investment returns over the next ten years.  The markets are hand-picked by SmartZip’s analysts in conjunction with local market experts. 


smartzip, inc.Presently SmartZip, which just launched its public Beta site in June, 2009, rates over 15 million properties, including listings, foreclosures as well as non-listed homes, across California and Florida only.  However, these two states represent some of the most opportunity-rich markets for real estate investment.  SmartZip plans to roll out its ratings to all 50 states over the next year which will then give them the ability to highlight the best investment cities across the nation.


For the current report which is for July, 2009, there are seven cities in California and theree in Florida that made the list.  Avi Gupta, vice president of marketing at SmartZip said their approach  “applies proven bond and stock rating analytics to measure a property’s risk-adjusted investment potential”.  Gupta went on to say “as investors and home buyers move to capitalize on the current generational opportunity to invest in real estate, our Top 10 markets can show them the way, guiding them to places and properties that are not just good deals, but also financially sound purchases.”
According to the report, a common theme that makes the Top 10 markets most likely to outperform others is their strong balance of economic and investment fundamentals.  Most of these cities, such as Bakersfield, CA and Port St. Lucie, FL, are projected to have above average job and population growths.  Top cities like Coral Springs, FL and Roseville, CA have school safety and lifestyle ratings that are among the best in the nation.  Almost all the cities have home prices that are significantly depressed from their peaks, making homes a lot more affordable, sometimes below replacement cost.  And their large tenant pools strengthen rents and minimize vacancy rates, resulting in attractive cash flow.  This unique combination of low up-front investment, steady monthly income and potential for long-term appreciation makes these cities not just highly desirable places to live, but also the best markets to invest in.
Below are, according to SmartZip, the top 10 markets in California and Florida for July, 2009 (click on the city name to see the complete SmartZip report including growth and appreciation projections, average rent, average cap rate, school rating, etc):