On The Market

Could the Midwest "Startup Surge" Fuel Price Growth in These Cities?

Feb 10, 2025

Austin Wolff, an in-house analyst at BiggerPockets, joins Chicago real estate investor Dan Nelson to discuss the Midwest's emerging role as a startup hub. They explore how lower home prices and robust educational institutions attract tech investments. Key markets like Minneapolis and Indianapolis are highlighted for their rental potential and job growth. Wolff and Nelson also weigh in on market risks, local dynamics, and which cities might see significant appreciation as the startup surge unfolds.

31:48

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Episode guests

Dan Nelson

Austin Wolf

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Episode notes

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Quick takeaways

The Midwest is emerging as a startup haven, driven by affordable housing and a skilled workforce from nearby universities.

Cities like Indianapolis are gaining traction for real estate investments due to favorable government policies and strong job growth.

Deep dives

The Rise of the Midwest Startup Ecosystem

The Midwest is experiencing a surge in startup growth, characterized by strong job markets and resilient housing. This growth is attributed to various factors, including favorable environments for startups, which encourage business expansion and investment. Cities like Chicago are notable for having the highest number of startups and venture capital investments compared to other Midwestern cities. This trend raises questions about whether this momentum is a temporary trend or a sustained shift that could significantly impact real estate investment in the region.

Intro

4min

Navigating Chicago's Real Estate Landscape Amid Migration Trends

2min

Exploring Chicago's Unique Real Estate Landscape

4min

Startup Ecosystem in Minneapolis

7min

Exploring Investment Opportunities in Midwestern Markets

5min

Midwest Investment Opportunities

4min

Exploring Promising Real Estate Markets in the Midwest

4min

A startup surge is coming, bringing lots of money, jobs, and housing demand with it. But this time, it isn’t Silicon Valley, Seattle, or Miami bringing in the angel investors and seed funding rounds…it’s the Midwest! This is no surprise—with lower home prices, higher affordability, favorable tax environments, and plenty of top universities, the Midwest could become a booming tech economy, but which cities will benefit most?

Austin Wolff is back on the show, bringing the data with him, and he brought Chicago-based investor and agent Dan Nelson to share which cities are the best bet for real estate investors.

We’re tackling the top five Midwest housing markets for startups, going through home prices, job growth, population growth, tax environment, and universities that could produce the educated employees startups rely on. Which markets could see killer appreciation (and cash flow) once this startup boom solidifies? We’re giving you the full list in this episode!

In This Episode We Cover

How the Midwest slowly became a haven for startups and tech companies

What makes a market “startup-friendly” and will lead to bigger business growth

The number one market with affordable home prices and great universities—but there’s one downside to watch out for

Midwest cities where you can still find high appreciation

Is this soon-to-be chip manufacturing city already overhyped by real estate investors?

The three markets we would buy rental properties in

And So Much More!

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