The West Coast real estate market is home to some of the best cities for buying rental property in 2019. When we say West Coast, one might first think of expensive housing markets that are almost impossible to break into – like San Francisco and Seattle. However, there many affordable housing markets that offer great investment opportunities for real estate investors.
Wondering where to buy a rental property in the West Coast real estate market? Keep reading as we list the best cities to invest in real estate within the coastal states of California, Washington, and Oregon.
Note: The data mentioned in this blog post is provided by Mashvisor’s Investment Property Calculator. With this tool, Mashvisor helps real estate investors analyze investment opportunities in the US housing market to find the best and most profitable ones based on predictive analytics. To learn more about our product, click here.
West Coast Real Estate Market – California
The Oakland housing market is one of the best places to buy rental property in the Bay Area. Real estate investors get the proximity to San Francisco without facing high prices. In addition, let’s not forget about Oakland’s impressive employment numbers. Unemployment has dropped significantly in recent years and is now 3%, which is well below the state and national averages. Alongside this drop in unemployment comes an increasing number of people in the job market. This is a positive point for Oakland’s economy and real estate investors.
- Median Property Price: $872,744
- Price/Square Foot: $510
- Monthly Rental Income: $2,887
- Price to Rent Ratio: 25
Located northeast of San Francisco, Sacramento is the state capital and one of the best cities to buy rental property in the West Coast real estate market 2019. While Sacramento real estate is fairly affordable, the price to rent ratio in the city is 21, which indicates that renting a house makes more financial sense than buying one. In fact, the majority of households in the Sacramento housing market are renters according to Forbes. Another key factor in Sacramento rental property investors’ favor is the increasing median household income – it makes the city even more attractive to new residents and boosts rental demand as the population grows.
- Median Property Price: $398,947
- Price/Square Foot: $260
- Monthly Rental Income: $1,561
- Price to Rent Ratio: 21
Despite it being an expensive city in the West Coast real estate market 2019, Hawthorne is still one of the best cities to buy rental property in California. First and foremost, 73.5% of households in Hawthorne are renter-occupied – one of the highest rates in California! Secondly, it doesn’t surprise us that the city has a high price to rent ratio as home prices are too far out of the residents’ range, which is why renting a house makes more financial sense here. If you’re buying an investment property here, you’ll profit from high rental demand and a very attractive rental income, as you can see from Mashvisor’s predictive analytics.
- Median Property Price: $1,037,765
- Price/Square Foot: $359
- Monthly Rental Income: $4,746
- Price to Rent Ratio: 18
To start looking for and analyzing the best investment properties in your city/neighborhood of choice in California, click here.
West Coast Real Estate Market – Washington
Located in Washington’s Columbia Valley wine-growing region, West Richland ranked 1st in NerdWallet’s Best Places to Invest in Real Estate in Washington. Real estate investors here will profit from high appreciation rates. According to data from NeighborhoodScout, West Richland real estate has appreciated 45.78% over the last 10 years – an annual appreciation rate of 3.84%. So, if you’re looking to own long-term investments in the West Coast real estate market, West Richland is definitely a place to consider in 2019.
- Median Property Price: $434,647
- Price/Square Foot: $191
- Monthly Rental Income: $1,483
- Price to Rent Ratio: 24
Another good location for buying an investment property in Washington is Kennewick. With a population of over 78,000 (and increasing), the rental demand in the city has been rising since 2015. During that time, the Kennewick housing market had bottomed out. Today, the city appears to have solid fundamentals indicating steady growth. In addition, while houses for sale in the city are affordable, many residents still choose to rent rather than buy a house, which is good news for rental property owners. Overall, Kennewick seems to be growing at a moderate rate and shows no signs of slowing down any time soon, which is why it has earned a spot as one of the best cities to invest in the West Coast real estate market.
- Median Property Price: $322,294
- Price/Square Foot: $161
- Monthly Rental Income: $1,326
- Price to Rent Ratio: 20
Want to learn about a few of the other best cities to invest in real estate in Washington? Read Washington State Real Estate Market 2019: Invest in These Cities
West Coast Real Estate Market – Oregon
Like most cities across Oregon State, the Salem housing market has experienced steady price growth in 2019 which is expected to continue throughout the year. This is mainly due to the fact that demand is exceeding supply in the city, and this is boosting home prices. Looking at Mashvisor’s data, however, Salem is definitely not as expensive as other cities in Oregon. Moreover, new residents continue to move to the city. Because the inventory of homes for sale is limited, rental property owners can expect an increasing rental demand. As a result, it’s no surprise to see Salem as one of the best cities to invest in West Coast real estate 2019.
- Median Property Price: $365,562
- Price/Square Foot: $191
- Monthly Rental Income: $1,573
- Price to Rent Ratio: 19
While Portland has exploded in real estate appreciation in the last several years, things are starting to cool down. This is good news for a real estate investor looking to buy rental property because prices in Portland were among the most expensive in the US housing market, but are now becoming fairly affordable. As for residents, the high price to rent ratio suggests that renting is still the more affordable option. Another reason to consider investing in Portland real estate is that housing inventory has started to grow, giving investors more options while easing the competition. These factors make 2019 a great year to buy a rental property in Portland.
- Median Property Price: $563,428
- Price/Square Foot: $302
- Monthly Rental Income: $2,034
- Price to Rent Ratio: 23
Want to invest here? Check out The Top Portland Real Estate Market Neighborhoods for Investing
The Bottom Line
To sum up, if you’re thinking of buying an investment property in the West Coast real estate market 2019, make sure you add these cities to your list of places to look further into. Each city has something to offer to real estate investors. So, whether you’re looking for affordability, high rental income, or real estate appreciation, you’re bound to find what you’re looking for here.
Most importantly, if you’re looking for a high ROI, Mashvisor’s Investment Property Calculator can help you estimate what kind of return on investment you’ll gain from owning a rental property in any of these cities. Start out your 14-day free trial with Mashvisor now to analyze and find the best property that meets your criteria!