The strong economy of California carries the California real estate market afloat along with it, ensuring strength and stability for both real estate investors and first-time homebuyers. Whether you are residing in California or considering out-of-state real estate investing in California real estate, it’s encouraged to take advantage of the residential real estate market stats while they’re hot.
To help guide property investors to the right investment path and location, we’ve utilized Mashvisor’s investment property calculator data and real estate market statistics about California real estate. How can you spot a lucrative market opportunity? How can you carefully analyze property data? And most importantly, how should you invest?
Where are the best real estate opportunities in the California real estate market?
To sum up, here is a detailed list of appreciating residential real estate markets in the state of California:
Palm Springs real estate
Palm Springs has grown over the past decade. The lively tourist scene has made it more metropolitan and culturally diverse. Accordingly, real estate investors are wasting no time and are investing in real estate in the Palm Springs real estate market. As a matter of fact, both Airbnb rental investments and buy-and-hold properties are dominating the real estate investment sector. Keep in mind that the California real estate market benefits greatly from the higher listing prices that property goes on the market for. When compared to other states, you can notice the gap that the California real estate market creates.
To better understand Palm Springs real estate, these stats can give you a precise figure with each variable to compare to:
- Airbnb rental income: $4,267
- Traditional rental income: $1,726
- Median property price: $603,968
- Average Airbnb cap rate: 4.17%
- Average Airbnb cash on cash return: 4.17%
To learn more about real estate investing stats about Palm Springs real estate, read this blog post: Palm Springs Real Estate Market 2018 – Forecast and Overview.
Tahoe City real estate
What makes Tahoe City real estate different than other up and coming California real estate markets is the fact that it’s an unincorporated community. Located on Lake Tahoe, it makes for the best vacation home rentals. The summers hot days and chilly, slightly windy nights make you wonder if you’re still in California. On the other hand, the winters are snowy but not severely cold. This is caused by the high altitude. To get back into the real estate business, Tahoe City real estate is thriving along with its neighboring California real estate markets. Here are some stats to clarify the type of real estate investments that thrive in Tahoe City:
- Airbnb rental income: $3,347
- Traditional rental income: $1,897
- Median property price: $1,030,586
- Average Airbnb cap rate: 1.76%
Irvine real estate
An Orange County Haven, Irvine is known for its versatile tourist attractions and relatively affordable housing developments. It’s the home of many successful real estate investors as they saw the potential in the Irvine real estate market. Along with the rest of the California real estate market, real estate appreciation is not shying away from Irvine real estate. Here are a few stats to learn about the Irvine real estate market:
- Airbnb rental income: $3,085
- Traditional rental income: $3,438
- Median property price: $1,102,956
- Average Airbnb cap rate: 0.53%
- Average traditional cap rate: 0.85%
With Irvine real estate, many real estate investors are opting for traditional rentals as it minimizes their effort and maximizes their passive income.
Huntington Beach real estate
On the southwest of Los Angeles lies the city of Huntington Beach. The summer tourists pave the beach as it’s well-known for great surfing beaches. With 72% of the population opting for homeownership, it makes perfect sense that property prices are reaching the 1 million high ends. To sum up, here are a few stats to keep in mind with Huntington Beach real estate:
- Airbnb rental income: $4,802
- Traditional rental income: $3,697
- Median property price: $1,066,770
- Average Airbnb cap rate: 2.07%
- Average traditional cap rate: 1.26%
Be that as it may, it’s clear that Huntington beach real estate makes for great Airbnb rentals. For a property investor, going for rental property real estate investing makes perfect sense in Huntington Beach real estate.
Dana Point real estate
Another Orange County haven. The views are undoubtfully breathtaking. Dana Point proudly takes its spot among the rising real estate markets in California. With major tourist attractions, such as the marina, beach clubs, and the many parks that infiltrate the city, it welcomes tourists from all over the country to start California dreaming. Here is why you should invest in Dana Point real estate:
- Airbnb rental income: $3,873
- Traditional rental income: $3,319
- Median property price: $1,300,891
If you’re into the California real estate market for vacation rental investing, read this blog post: The 3 Best Places to Buy a Vacation Home in California in the Summer of 2018.
Sacramento real estate
With Sacramento being the capital of California, it’s out to get some buzz with its Sacramento real estate. The Sacramento real estate market is growing rapidly and not showing any signs of backing down. According to many real estate experts, many of the San Francisco Bay area residents are choosing to migrate to Sacramento, mainly to get more bang for their buck. For the amount you can get a single-family investment property in San Francisco, you can get two of them in Sacramento. Moreover, Sacramento is witnessing a tech migration- many companies are choosing it for their headquarters. More jobs, more income, and less vacant real estate. Here are some stats to get you excited about Sacramento real estate:
- Airbnb rental income: $2,760
- Traditional rental income: $1,395
- Median property price: $373,840
- Average Airbnb cap rate: 2.65%
- Average traditional cap rate: 1%
The Sacramento real estate market is expected to continue rising over the next couple of years. Accordingly, real estate investors are encouraged to start investing in real estate in the city. For more details about Sacramento real estate, read this blog post: Should You Invest in Sacramento Real Estate in 2018?
On a side note, the real estate data in this blog was provided by Mashvisor’s investment property calculator. As clearly stated, the information provided by this versatile tool is information that both real estate investors and homebuyers can utilize. In fact, to find out more about the variables associated with a smart real estate investment decision and to make use of the 14-day free trial with Mashvisor, click here.
The California real estate market differs from the many real estate markets in the US. It offers great appreciation rates in a crowded investment field. However, the market is still thriving and growing. Make use of it and start investing in California real estate.