Newly released data signals a boost in construction nationwide, as housing starts and building permits rose to a 12-year high last month. Location, location, location will play a key role in which of these building investments flourish and which flop.
In a new interview, Jonathan and Drew Scott — co-hosts of the HGTV series “Property Brothers” — explain where buyers should invest in real estate, and why Las Vegas and Nashville are at the top of their list.
“Don't go and invest across the country somewhere that you don't know,” Drew Scott says. “Invest in a market that you know, because there are great areas in every city.”
Political or economic conditions can determine whether it’s worthwhile to build somewhere, said Jonathan Scott, Drew’s twin.
“You have to look at something that's a little diversified, because there are a lot of things that can impact the real estate game, whether it's political, or whether it's economic,” Jonathan Scott told Yahoo Finance Editor-in-Chief Andy Serwer in a conversation in April.
“Right now there's a lot of volatility,” he adds. “Seeing something that's diversified with tourism or a market that's diversified with the tourism industry is a very, very safe way to go.”
Drew and Jonathan Scott made the comments during a conversation that airs in an episode of Yahoo Finance’s “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Born in Vancouver, they came to prominence fixing up homes in HGTV reality series like “Property Brothers” and “Brother vs. Brother.” Each week, 18 million people watch them in 160 countries; another 10 million follow them on social media. They’ve capitalized with a line of home furnishings and a digital home-design service.
The brothers identified Las Vegas and Nashville as two of the top cities for real estate investment, heeding their own advice about strong economic performance and the presence of reliable tourism.
“For us, we've really found where our headquarters are in Las Vegas and Nashville,” Drew Scott says. “Those are two of the most booming cities in the country right now. There's a lot of growth. And so we've been investing there.”
The central advice from the Property Brothers: Do your homework and pick a city you’re familiar with.
“People always ask us, where should we invest?” Drew Scott says.
“The one thing we tell people is, if you're not a large development entity or someone who does a lot of real estate, if you're just looking for another house to invest in, don't go and invest across the country somewhere that you don't know.”
Andy Serwer is editor-in-chief of Yahoo Finance. Follow him on Twitter: @serwer.