In the United States, there are some states that offer the best of both worlds – a very high real estate appreciation rate and commercial values or prices of homes that are very reasonable. These states become the ideal place for real estate investors and homebuyers looking for a worthwhile investment, as they can be assured of very high returns in the future.

One such state is Arizona, which has a 25 percent real estate appreciation rate and houses that only cost about $300,000. However, an even better example is Nevada because in some of its cities, like Las Vegas, the real estate appreciation rate is the highest in the country, and the average prices of homes remain very reasonable.

Real estate profile of Las Vegas

The average price of single-family homes in Las Vegas is about $360,000. Compared to similar highly urbanized cities like Los Angeles, where homes cost around $750,000, this price is very reasonable. Moreover, the very high real estate appreciation rate in the city, which rose to 28 percent in 2005, makes this a small price to pay for the returns that investors and homebuyers can get. If this trend continues, investors and homebuyers can expect the value of their homes to double in less than four years. Some people can expect returns of about $200,000 in the next two years or so.

Downside

However, the excellent real estate opportunities in the city may come with a price for some. The weather conditions in Las Vegas, for example, may not be for everyone. Moreover, people who relocate to Las Vegas may have to contend with being “confined” to the city, as Nevada does not have as many urbanized cities they could visit as other states do.