The US housing market is vast and encompasses multiple regions and areas. Within each area, there are many top real estate markets to consider investing in.
Today, we’re here to tell you about the best cities to buy rental property in the West Coast real estate market, which includes the markets of California, Oregon, and Washington. Some of the top cities in the region are:
Joshua Tree, CA
Long Beach, CA
San Jose, CA
We’ll list these top real estate markets by whether they are the best cities to buy rental property for Airbnb investing, traditional investing, or both.
Best Cities in West Coast Real Estate for Airbnb
Joshua Tree, CA
Median Property Price: $322,008
Price Per Square Foot: $223.30
Rental Income: $2,214
Cap Rate / Cash on Cash Return: 4.35%
Occupancy Rate: 54%
Kicking off our top cities in West Coast real estate is Joshua Tree, which is also a candidate for the best place to invest in real estate in California. According to Mashvisor’s investment property calculator, owning a rental property for Airbnb in this city is a lucrative investment.
For starters, the median property price in Joshua Tree is approximately the same as that of the entirety of US real estate. This good factoid becomes an excellent one relative to the California real estate market, as this median property price is among the lowest in the state.
The average Joshua Tree Airbnb property also boasts high rental income, return on investment, and occupancy rate. Add these statistics to the lack of Airbnb legal issues and the plethora of guests who visit the city for the Joshua Tree National Park and the biannual Joshua Tree Music Festival and it becomes clear why Joshua Tree is among the best Airbnb cities for West Coast real estate.
Related: Investing in Joshua Tree Real Estate: An Unexpectedly Good Opportunity
Median Property Price: $543,951
Price Per Square Foot: $290.73
Rental Income: $2,676
Cap Rate / Cash on Cash Return: 1.4%
Occupancy Rate: 55%
Moving north, we arrive at Portland, Oregon, which has consistently been one of the top real estate markets in West Coast real estate. As it pertains to Airbnb, investing in the average Portland investment property is a great method for making money in real estate due to the high average return on investment and rental income. There is no shortage of potential guests in P-Town, as there were nearly 9 million overnight person-trips during the last year, generating over $5 billion in direct spending. Airbnb is also fully legal in the city. Despite these pros, however, property prices have been on the rise in Portland, which should motivate interested investors in owning a rental property soon.
Median Property Price: $805,932
Price Per Square Foot: $522.26
Rental Income: $3,225
Cap Rate / Cash on Cash Return: 1.77%
Occupancy Rate: 59%
The most profitable Airbnb city in West Coast real estate, and one of the most profitable in the US real estate market at large, is Seattle, Washington. Seattle is one of America’s top tourist destinations, as the city is known for its many art and cultural attractions and events. Due to these factors, making money in real estate with Airbnb in Seattle is a terrific opportunity. Airbnb is also legal in the city, although recent legislation has put a limit of 2 units per host.
Best Cities in West Coast Real Estate for Traditional
San Jose, CA
Median Property Price: $1,034,209
Price Per Square Foot: $668.40
Rental Income: $3,190
Cap Rate / Cash on Cash Return: 1.09%
When it comes to buy and hold real estate in the West Coast real estate market, look no further than San Jose. The city is excellent for traditional investing due to its population and economy. San Jose is dubbed as the “Capital of Silicon Valley,” which highlights the city’s strong tech industry, though its overall workforce is very mixed. San Jose is also home to the third largest community in the state. These factors, along with the city’s high rental income, make it the top city for buy and hold real estate on the West Coast, and one of the best in the US housing market.
Related: California Is Emerging as the Best Place to Invest in Real Estate in the Years to Come
Median Property Price: $610,277
Price Per Square Foot: $388.18
Rental Income: $2,726
Cap Rate / Cash on Cash Return: 1.69%
The affordable alternative to San Jose is another Californian city: Anaheim. While not as profitable as its counterpart, Anaheim is still a very profitable city for buy and hold real estate on the West Coast. The city’s economy is also very attractive for long term tenants due to the city’s giant tourism industry, largely due to Disneyland. Also, the city’s unemployment rate is only 2.7%, which is very low relative to California’s 4.2%. Investors should definitely consider homes for sale in Anaheim for traditional investing.
Best City in West Coast Real Estate for Both
Long Beach, CA
Median Property Price: $785,310
Price Per Square Foot: $470.60
Rental Income: $3,001
Cap Rate / Cash on Cash Return: 1.18%
Rental Income: $3,542
Cap Rate / Cash on Cash Return: 1.95%
Occupancy Rate: 62%
Having options of homes for sale is very useful in the US real estate market, and having multiple options of investment strategies is even more helpful. According to Mashvisor’s investment property calculator, Long Beach is one of the top real estate markets on the West Coast for investment strategy versatility. Both traditional and Airbnb investments have high averages of rental income and return on investment, though Airbnb is generally seen as the more successful strategy.
Related: Airbnb vs. Traditional Renting: Which Strategy Yields Higher Rental Income?
The West Coast real estate market is one of the most lucrative regional markets in the country. With cities ranging in terms of their success with various investment strategies, there’s bound to be a suitable location for all investors. To get yourself started with searching for West Coast real estate homes for sale, click here to start your 14-day free trial with Mashvisor!