If the S&P CoreLogic Case-Shiller Home Price Indices are anything to go by, then the West Coast real estate is experiencing a boom. More home buyers are looking to Phoenix, San Diego, and other West Coast cities for the best real estate opportunities. If you are an investor, what are the top 3 spots to consider for real estate investment at the West Coast? Check them out below.
San Jose is a high-income capital of Silicon Valley with an excellent history of long term investment opportunities. Here, home values are some of the most expensive in the United States. Yet, the San Jose market is currently a buyer’s market with some of the most successful high-tech firms on the listings. In turn, sellers are willing to accept the asking value or below. Zillow estimates the median prices for San Jose at $1,002,873. The last ten years saw the industry appreciate by 77.36%.
In the Los Angeles area lies Hawthorne, a hidden gem for rental properties. Up to 70% of the residents here own or live in rental units. In turn, expect a high and steady rental income from your investment. The average monthly rent stands at $1,736. Typical neighborhoods with rental values are on an upward trend of as high as 194%, including Delta, Washington Ave/W135th St, and Del Aire. Plus, most home sizes fall in the two bedrooms’ apartment complex category.
When you are looking for an affordable real estate investment opportunity on the West Coast, get to Anaheim. With a median price of $685,000 and an appreciation rate of 41% in the last three years, this buyer’s market is popular with single-family homes. Further, it is a favorite tourist spot home to attractions like Disneyland that push up the rental income of the houses. Average mortgage costs stand at $2,535. Then, expect the sellers to lure you with competitive listings as they tap into the lower demand.
Other prime real estate spots at the West Coast include east of Los Angeles as you get to the Interstate 710, Portland’s’ rental units that are popular with students, and Oakland that is now appealing to a higher class of tenants. Then, liaise with an experienced broker who will take you through the steps of owning a part of the West Coast today.
The population growth, growth of job opportunities, and its affordability, primarily determine the best places to invest in real estate. A market with the three factors is likely to have investment opportunities. The rising costs of homes in the United States mean it can be challenging to find the right investment; however, there are cities to invest in and have good returns.
Arlington is attractive and lucrative for real estate investments due to its sustainable population growth. The city’s population growth is 2.2%; the employment growth stands at 3.4%, making it one of the best in the whole country. The value of homes in Arlington increased to 10.3%.
Additionally, the median pricing for homes is an affordable price of $240,000, while that for renting costs most people a whopping $1,498. The combination of the factors translates into a robust rental yield of 7.5%, meaning investors have a high chance of paying off the investment in slightly more than 13 years.
The sunshine state of Florida has seen an increase in the demand for family houses; an individual can get a completely refurbished home in a great neighborhood at a price of below $193,000. Although it is affordable to buy a house in the state, many people choose to rent.
Orlando is particularly interesting because of the magnificent beaches, conducive climate, and numerous entertainment spots. From 2010, the city’s population growth stands at more than 20% and expected to see a 3.44% job growth in the coming ten years. Retirees, job seekers, and students drive Orlando’s real estate business.
The city is popularly known for its space missions and the bountiful Southern heritage. Huntsville offers excellent real estate opportunities owing to its affordability and numerous defense, space, and technological industries.
STEM workers in the city enjoy salaries that exceed the national average. Investors need about $158,750 to acquire a three-bedroom family home in Orlando. The fact that 38% of the residents prefer to rent should further encourage real estate investors to venture into Orlando’s real estate.
If someone intends to have a piece of the real estate market, think carefully about the location because not every town will give a return on investment.