Sacramento real estate is expected to be one of the best places to invest in real estate in 2017. Specifically, it is expected to be the fourth best city for selling homes and housing prices, after Phoenix, Boston, and Los Angeles.
Home prices are increasing for two reasons. Firstly, there has been low inventory, causing high demand and a rise in prices. Secondly, more homebuyers and investors from the Bay Area are investing in Sacramento real estate because it is more affordable. What is great about the Sacramento real estate market is, although home prices are increasing, home affordability has improved compared to country’s average. Fortune Builders reported that homeowners in Sacramento put 13.9% of their income towards their mortgage, which is lower than the national average at 15.8%.
Vacation rentals, specifically Airbnb, have not been extremely popular in the past but there are some who expect Airbnb Sacramento to become more in demand this year. While the projected returns for this strategy look good on Mashvisor, there are legal restrictions investors should be aware of.