Monday, June 21, 2021 / by Jay Lesko
Delaware may be the smallest state - fewer than a million people reside there - but is also the ninth richest. The state has become increasingly popular with companies, especially financial corporations. Companies are drawn to its favorable corporate taxes, favorable corporate laws, and its fast corporate legal processes.
Finance and insurance may be the largest economic drivers of the state, but Delaware is not known as the Chemical Capital for nothing. It has an economy that is heavily reliant on pharmaceuticals, plastics, and industrial chemical manufacturing. One of the world’s largest chemical manufacturers, DuPont, is based in the state.
There is no sales tax in Delaware, and property owners also pay the eighth-lowest property taxes in the U.S. - placing a mild property tax burden on them. Residents who spend more than 183 days a year in the state are considered tax residents.
After 44 years in politics, President Joe Biden is often found at the bottom of the wealth ladder of politicians. However, his passion has always been real estate, and he does have a substantial investment in it.
Even though the Bidens recently moved into the grandest piece of U.S. real estate, the White House, they are also the proud owners of two Delaware properties. Their main residence is their sprawling home in Greenville’s Wilmington suburb. The Bidens also invested in a beach house in 2017 on Rehoboth Beach.
Investment potential in Delaware
Real estate investors looking for potential opportunities have quite a few options when looking to invest in the state of Delaware. Depending on whether they are interested in vacation rentals, price appreciation, or rental returns, Delaware has something for everyone.
Even though areas like Dewey Beach and Rehoboth Beach lost their sparkle as havens for vacation rentals, they recently saw a huge shift when retirees decided to invest there. However, the vacation market has since undergone a revival, and interest has been sparked once again.
Newark is one of the areas of the state where price appreciation is consistent. It has affordable median home prices and affordable rentals. Because of its lower-than-average unemployment rate and its excellent schools, Newark has a strong rental market.
Investors are also drawn to Wilmington and Bear, where the demand for rental properties is high and the job markets remain strong.
Which are the most expensive cities in Delaware?
Delaware has many towns near the beach, making the state a popular vacation spot. These are its prime beach areas, and homes in these cities are more expensive than in the rest of the state.
Bethany Beach is known for its beautiful beaches and peaceful environment. Homes for sale in Bethany Beach, DE are often snatched up fast because of the town’s popularity, especially with celebrities.
Rehoboth beach is very favorably located, making it a popular holiday destination and retirement spot for people from Washington D.C. and Philadelphia. There is no shortage of entertainment and fun things to do in the area.
Neighboring Rehoboth Beach is Lewes, another one of the principal cities on the coastal area of Delaware. Year-round the area has its permanent residents, mostly retirees and second homeowners from the nearby cities of the east. In the summer, the population swells as tourists come to enjoy the natural beauty of the beaches and nearby Cape Henlopen State Park.
For those looking for a historical and quieter city in the region that is not on the sea, then Selbyville is the ideal location. Selbyville is also close enough to the Atlantic Ocean for those that don’t want to be too far from the sea. Finally, Ocean View is a beautiful town with quiet beaches in proximity.
Whether you are seduced by real estate like President Joe Biden, want an investment property, or are just looking for the perfect retirement home, Delaware is a state that offers many real estate opportunities in a low-tax environment.