California has long been a popular destination for real estate investors, thanks to its sunny climate, thriving job market, and high quality of life. With some smart planning, buying investment property in the Golden State can pay off handsomely. Here are some of the best places to consider for California real estate investment in 2023.
Los Angeles offers appreciating property values despite high prices
Los Angeles has some of the most expensive real estate in California, with a median home price around $800,000. While prices are high, the LA market continues to see steady growth year over year. The city’s large job market and appeal for those working in tech, finance, healthcare and entertainment help property values rise. Investors who can afford Los Angeles real estate benefit from strong demand driving up rents and sale prices over time.
San Francisco bay area rents push returns for investors
The San Francisco Bay Area is another top choice for California real estate investment. Rapid job growth in Silicon Valley along with limited housing inventory keeps rents high in San Francisco and surrounding cities. Investors can target single family homes for appreciation or multi-family properties to benefit from rent prices that are among the highest in the nation. Focusing on neighborhoods near major employers is a smart move.
San Diego market gains from tourism, military and jobs
Featuring great weather and a strong job market, San Diego offers a lot for real estate investors. Tourism and the military presence provide a stable foundation, while the city has also gained tech jobs in recent years. Both the purchase price and rents for investment property are high in desirable coastal neighborhoods. Focusing on emerging markets like El Cajon can provide cash flow at lower price points.
Sacramento suburbs offer value outside the Bay Area
For California real estate investors looking for relatively affordable options, Sacramento and suburbs like Roseville are a top choice. The region features major employment centers like the state government and UC Davis. With median listing prices under $500,000, the Sacramento area provides opportunity for cash flow. Targeting single family rentals near good school districts can be rewarding.
Inland Empire returns benefit from LA commuters
Areas like Riverside and San Bernardino that make up the Inland Empire region of California can make for smart real estate investments as well. The area offers affordable housing compared to Los Angeles and Orange County, while also providing reasonable commutes. With home prices that leave room for rent growth, targetting single family or small multi-family rentals can provide stable returns.
For investors who do their homework, California offers promising real estate markets to target. Focusing on major urban areas and their more affordable suburbs can provide options to benefit from home price appreciation, rising rents, or both.