You have been saving your money for the right investment opportunity and have decided that real estate is the way to go in 2025. Before you jump in with both feet, consider the best places to invest to get the best return on your money.

Some areas are better than others, so we are going to look at some of the areas where real estate investments are smarter than others, according to GOBankingRates.

Best Areas for Investing in Real Estate:

Some top investors like Tammie Carter with Engle & Volkers, Patrick Carroll, and sites like Zillow and Redfin can provide good information on some of the best areas to consider when investing in real estate. Here are some of the top regions.

Tennessee:

The area has seen significant growth in the last several years and experts are saying 2025 may be a good year to begin investing in real estate in Tennessee. One thing they have on their side is that there is no individual income tax, which has many people relocating because of the no-tax incentive. Other states like Florida and Texas have seen growth due to the purchasing power of their residents. “More people are also moving to these areas where they can afford to purchase property and see their investments appreciate,” according to the TV show, Funding Faceoff.

People have been pouring into Tennessee, especially areas like Nashville, Chattanooga, and Knoxville.

North Carolina:

North Carolina has become a key state for real estate investors because it has very low taxes, an aggressive job market, and more people migrating to the state.  The local housing market is stronger than the national average and homes are still affordable. In most cases, though not this year, North Carolina doesn’t experience the extreme weather conditions that often hit Florida and other coastal areas.

Florida:

Florida has become popular because there is no individual income tax, just like Tennessee, which gives individuals and investors more cash available for real estate. Key cities like Orlando, Tampa, and Jacksonville have all experienced rapid growth. In most cases, they are also away from hurricanes and other extreme weather, while experiencing a more temperate climate most of the year.

Florida has seen a lot of new real estate developments and some investors and developers have offered attractive incentives to help them move products.

Arizona:

Arizona is another state that has been growing. In part due to the warm weather and the job market. Many big industries have moved their headquarters and manufacturing facilities to Arizona, so there is plenty worthwhile in the area.

Phoenix has a lower cost of living than other high-profile western cities like San Diego, San Francisco, and LA, in California. There are also more well-paying jobs compared to the cost of living. The demand for housing is high, especially with rentals, so there is a lot of building going on to meet the demand.

While Arizona does have a state income tax, it is only 2.5%, which is less than many other areas, making it a more affordable option than other “in demand” areas.

Idaho:

Idaho is not a state you would think of when considering a move or real estate investment, but it should be considered. The state has a low population and great recreational options for those who enjoy the outdoors. Boise is also growing and has a reimagined downtown area, which has drawn in many new residents. It is being compared to the thriving downtown area of Austin, Texas. Many investors feel that more people are moving to Idaho to find fewer people and more to do.

There are surely other areas that offer a lot to real estate investors, so before you decide on the perfect place to invest, be sure to seek the advice of industry experts and resources that provide the insight you need for investing today and building your wealth in the future.