Last updated: September 2026. This guide covers property investment markets in the US, UK, Canada and Australia. It is general information only, not financial or investment advice.
Location is still the most important decision in property investing. The same budget can buy a low yielding apartment in one city or a high yielding house in another, and the difference in long term returns can be enormous.
In this guide we look at the cities attracting investor attention in 2026 across four major English speaking markets, using data from well known industry sources. For each country we explain why these cities stand out, what the risks are and how to research a city before you invest. No list can tell you what to buy, so treat these cities as a starting point for your own research.
How We Chose These Cities
We focused on factors that matter to long term property investors:
- Rental yields, the income a property produces relative to its price.
- Price growth trends and market momentum.
- Population and job growth, which drive rental demand.
- Affordability, which affects both entry costs and future demand.
- Investor sentiment, based on major industry surveys.
We used publicly available data, including the PwC and Urban Land Institute Emerging Trends in Real Estate 2026 survey, Zoopla’s buy to let yield research, Cotality’s Home Value Index for Australia and city level market data for Canada.
United States
The Emerging Trends in Real Estate 2026 report by PwC and the Urban Land Institute, based on surveys of industry professionals, ranked these as the top US markets to watch:
| Rank | Market | Why investors like it |
|---|---|---|
| 1 | Dallas/Fort Worth | Diversified economy and strong growth; top ranked again |
| 2 | Jersey City | Strong interest outside the office sector |
| 3 | Miami | Solid investor demand across several property types |
| 4 | Brooklyn | Deep rental demand in the New York area |
| 5 | Houston | Large, diverse economy; strong industrial demand |
| 6 | Atlanta | Growing population and jobs |
| 7 | Philadelphia | Rose more than 10 places from 2025 |
| 8 | Chicago | Climbed 11 places; relatively affordable for a major city |
| 9 | Orange County | Strong gains in investor sentiment |
| 10 | Phoenix | Population growth and retail demand |
Standout US cities for rental investors
Dallas/Fort Worth. The top ranked market for another year. A diversified economy, strong population growth and business relocations support rental demand. Watch property taxes and insurance costs, which are relatively high in Texas.
Houston. Lower home prices than many large cities and a broad economic base. Flood risk and insurance costs need careful attention.
Atlanta. A growing metro with strong job creation and a large renter population. New supply in some areas has increased competition for tenants.
Philadelphia and Chicago. Both made big gains in the 2026 rankings. They offer relatively affordable prices for major cities, which can mean better rental yields than coastal markets.
Phoenix. Strong population growth over the past decade, although a wave of new building has moderated rent growth.
United Kingdom
In the UK, the highest rental yields are found outside London and the South East. According to Zoopla’s buy to let research (September 2025 data), the average UK gross rental yield was 5.8%, but yields were much higher in parts of the North and Scotland:
| City | Gross rental yield | Average property price |
|---|---|---|
| Sunderland | 9.3% | about £85,000 |
| Aberdeen | 8.3% | about £106,000 |
| Dundee | 8.1% | about £120,000 |
| Hull | 8.0% | about £100,000 |
| Glasgow | 7.8% | about £155,000 |
| Liverpool | 7.7% | about £136,000 |
By region, the North East led with average yields of around 7.9%, followed by Scotland at 7.6% and the North West at 6.8%. London had the lowest average yield at about 5.1%.
Standout UK cities for investors
Liverpool. High yields, a large student and young professional population and ongoing regeneration make it a long time favourite with buy to let investors.
Glasgow. Scotland’s largest city combines strong yields with a big rental market and major universities. Remember that Scotland has different tenancy laws and its own property transaction tax.
Manchester. Yields are lower than in some northern towns, but strong job growth, a young population and major regeneration continue to attract investors focused on long term growth.
Sunderland, Hull and Aberdeen. Very high yields driven by low prices. These can suit income focused investors, but demand and growth can be weaker, so research individual neighbourhoods carefully.
Buy to let investors in England and Northern Ireland should factor in the 5% Stamp Duty surcharge on additional properties and rules that limit tax relief on mortgage interest for individual landlords.
Canada
Canada’s most expensive cities, Toronto and Vancouver, tend to have low rental yields because prices are high relative to rents. Many investors are looking instead at more affordable cities with strong population growth.
Cities often highlighted by Canadian analysts
Calgary. Relatively affordable housing compared with Toronto and Vancouver, strong interprovincial migration and a growing, more diversified economy. Alberta has no provincial land transfer tax and no rent control, which appeals to investors.
Edmonton. Lower average prices than Calgary and solid rental demand. The economy is diversifying into technology, healthcare and energy transition industries.
Montréal. Prices are lower than in Toronto and Vancouver, and major universities support steady rental demand. Quebec has strong tenant protections and rent rules that investors need to understand.
Halifax. Population growth from migration and limited supply have supported both prices and rents, although affordability has become more stretched.
Saskatoon and Regina. Some of the lowest entry prices among Canadian cities, with economies linked to agriculture and natural resources. Smaller markets can offer good cash flow but may be less liquid when you want to sell.
Australia
Australia’s housing market has cooled in 2026. According to Cotality’s Home Value Index, national values fell 0.9% in August 2026, the fifth monthly fall in a row, leaving values about 3.6% below their March peak. However, some capitals still show strong growth over the past year, and national gross rental yields have risen to about 3.79%, the highest since 2019.
| City | Annual change to August 2026 | Gross rental yield | Median value |
|---|---|---|---|
| Perth | +15.6% | 3.9% | about $1,000,000 |
| Darwin | +14.6% | 6.3% | about $647,000 |
| Brisbane | +10.8% | 3.4% | about $1,080,000 |
| Adelaide | +8.6% | 3.6% | about $937,000 |
| Hobart | +8.1% | 4.4% | about $752,000 |
| Canberra | -0.4% | 4.3% | about $865,000 |
| Sydney | -4.6% | 3.3% | about $1,223,000 |
| Melbourne | -4.7% | 4.0% | about $787,000 |
Source: Cotality Home Value Index, August 2026.
Standout Australian cities for investors
Perth. The strongest annual growth among the capitals, supported by the resources sector, interstate migration and tight rental supply. After rapid gains, affordability is less of an advantage than it was.
Darwin. The only capital to rise in August 2026, with the highest gross yield of the capitals at 6.3%. It is a smaller, more volatile market, so research carefully.
Brisbane and Adelaide. Both have delivered strong growth over the past year, supported by population growth and relatively tight supply, although yields are modest.
Hobart. A higher yield than most capitals and solid annual growth, but a small market that can move sharply.
Melbourne. Values have fallen over the past year, and yields are higher than in Sydney. Some investors see this as a buying opportunity, but Victoria’s land tax and other investor costs are important to consider.
How to Research a City Before You Invest
A city appearing on a list does not make every property there a good investment. Before you buy, check:
- Population and job growth. Are people moving to the area, and are employers expanding?
- Rental demand and vacancy rates. Low vacancy suggests strong demand.
- New supply. A wave of new apartments can hold back rents and prices.
- Rental yield and cash flow. Calculate net yield using realistic rents and costs.
- Local taxes and rules. Property taxes, landlord licensing, rent controls and tenancy laws vary widely.
- Insurance and climate risks. Flood, fire and storm exposure can raise costs and affect values.
- Neighbourhood level data. Conditions can vary street by street, not just city by city.
Choosing a Neighbourhood Within a City
Even in a strong city, returns can vary a lot from one area to the next. When narrowing down a neighbourhood, look for:
- Transport links, such as train stations, tram lines and major roads.
- Employment hubs within a reasonable commute, such as hospitals, universities and business districts.
- Amenities that tenants value, including shops, schools, parks and cafes.
- Planned infrastructure, such as new transport lines or regeneration projects, which can support future demand.
- The mix of owners and renters, which affects rental competition and neighbourhood character.
- Safety and local reputation, which influence both rent and resale value.
Visiting in person, speaking to local letting agents and checking recent rental listings can reveal details that data alone cannot.
Growth vs Yield: Choosing Your Strategy
Different cities suit different goals:
| Strategy | Typical cities | Trade off |
|---|---|---|
| Income focused | High yield cities such as Sunderland, Liverpool, Darwin or smaller Canadian cities | Higher cash flow, but often slower growth and more management |
| Growth focused | Major cities with strong economies, such as Dallas, Manchester, Brisbane or Calgary | Lower yields, relying on price growth |
| Balanced | Cities with moderate yields and solid growth prospects | A mix of both, with less extreme risks |
Many investors start with a balanced approach and adjust as they gain experience.
Risks to Keep in Mind in 2026
- Interest rates. Mortgage rates remain elevated in the US and UK, while Australia’s cash rate is rising again, which can squeeze cash flow.
- Market cycles. Cities that have grown quickly, such as Perth, may slow.
- Oversupply. Some fast growing US Sun Belt cities have seen large amounts of new rental construction.
- Regulation. Rent controls, landlord licensing and tax changes can affect returns.
- Insurance and climate risk. Rising premiums in exposed areas can erode yields.
Investing Without Buying in These Cities
You do not need to buy a whole property in a distant city to gain exposure to it. REITs, property funds and some crowdfunding platforms let you invest in markets around the world with much smaller amounts. Our guide on how to invest in real estate with little money explains these options.
Frequently Asked Questions
What is the best city to invest in real estate in 2026?
There is no single best city. In the US, Dallas/Fort Worth tops the PwC and ULI survey. In the UK, northern cities and Scotland offer the highest yields. In Canada, Calgary and Edmonton stand out for affordability, and in Australia, Perth and Darwin have shown strong growth over the past year.
Is it better to invest in a high yield or high growth city?
It depends on your goals. High yield cities provide more income now, while high growth cities may build more wealth over time. Many investors aim for a balance.
Can I invest in a city I do not live in?
Yes, but you will usually need a reliable local property manager, and you should visit or research the area carefully before buying.
Are these cities good for first time investors?
Some can be, particularly more affordable cities with steady rental demand. Start with a property and budget you understand, and get local advice.
Should I invest in my own city or somewhere else?
Investing locally makes it easier to inspect properties, understand the market and manage tenants. Investing elsewhere can offer better yields or growth, but you will rely more on local agents and property managers. Many investors start close to home.
How often do these rankings change?
Every year. Markets move with interest rates, jobs, migration and supply, so check the latest data before you invest.
The Bottom Line
In 2026, investors are watching Dallas/Fort Worth, Houston and Atlanta in the US, high yield northern cities and Scotland in the UK, Calgary and Edmonton in Canada, and Perth, Darwin and Brisbane in Australia. Each offers a different mix of yield, growth and risk.
Use this list as a starting point, then research individual neighbourhoods, calculate net yields and cash flow, and consider local taxes and rules. If you are investing in another city or country, speak with local professionals before you commit.
Disclaimer: This article is general information only and does not constitute financial, investment or tax advice. Rankings, yields and price data come from third party sources, including PwC and the Urban Land Institute, Zoopla and Cotality, and may change. Property investing involves risk, including the loss of capital. Seek advice from a licensed professional before investing.