Top Real Estate Markets for Out-of-State IRA Investors
Real estate investing using an IRA or other retirement account is a way for many investors to use their expertise or interest in real estate to grow their wealth in a tax-advantaged environment. But investing in real estate with a retirement account sometimes raises its own challenges. For example, what if you’re priced out of your local real estate market – because of skyrocketing prices or because you haven’t built your IRA balance up yet?
Many investors discover they can find investment properties for their IRA by searching in other states, where prices are more affordable.
Top States for Out-of-State Self-Directed Real Estate Investors
According to Equity Trust clients’ real estate purchases in their self-directed accounts
State / Percentages of Properties Purchased by Non-Residents
Maine – 100%
Vermont – 100%
West Virginia – 100%
Mississippi – 81%
New Hampshire – 75%
Arizona – 64%
Massachusetts – 63%
Oklahoma – 57%
Alabama – 55%
Percentage of Properties Purchased by Non-Resident IRA Investors
Source: Equity Trust Company
Where have out-of-state purchases increased over the years?
Some states have seen more long-distance purchase activity these past five years compared to the previous five years. Maine’s out-of-state real estate investor activity increased nearly 33 percent over the previous period. As shown above, all of the properties purchased in Equity Trust accounts in Maine in 2022 were purchased by out-of-state investors.
Biggest Increase in Out-of-State Purchases
According to Equity Trust clients’ real estate purchases in their self-directed accounts
State / Growth in out-of-state purchases: 2018-2022 vs. 2013-2017
Maine – 32.8%
District of Columbia – 22.7%
Massachusetts – 22.5%
Oklahoma – 21.6%
New Hampshire – 19.2%
Idaho – 13.7%
Vermont – 13.6%
Wyoming – 12.1%
Mississippi – 11.5%
South Carolina – 11%
Where has out-of-state investing activity decreased over the years?
The Self-Directed Real Estate Market Report also reveals where out-of-state investors have decreased their purchasing in the past five years compared to the five years before that.
Biggest Decrease in Out-of-State Purchases
According to Equity Trust clients’ real estate purchases in their self-directed accounts
State / Decline in out-of-state purchases: 2018-2022 vs. 2013-2017
Nebraska –Â -57.6%
Connecticut –Â -53%
North Dakota –Â -33.3%
Colorado –Â -22.8%
Hawaii –Â -22.7%
Louisiana –Â -19.6%
Montana –Â -16.4%
Iowa –Â -14.8%
Delaware –Â -12.3%
Nevada –Â -10.2%
See more real estate investing data: 2023 report out now
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