As you know, the real estate market is looking strong throughout the country. Prices have somewhat moderated and new cities are becoming very attractive for real estate investment. However, not every market is created equally; some, like the West Coast, are more appealing than others. Let’s look at some of those cities and what makes them the places for the best return on investment (ROI).
Rental Property Investing: San Jose, CA
The median property price in San Jose is $1,034,209 with a price per square foot of $668.40. Immediately you can see this is a city that you’ll want to invest and hold onto as its population and economy are thriving. San Jose has been called the “Capital of Silicon Valley,” which insinuates that it’s a high-tech employment field. The actual workforce is a bit more diverse but still full of high earners.
San Jose has high rental income potential making it one of the best West Coast cities to buy and hold in.
The Affordable Alternative: Anaheim, CA
If San Jose is too high a market to enter into then consider Anaheim, which has a median property price of $610,277 with a price per square foot of $388.18. The city’s economy makes it a great place for long-term tenants, mostly due to the city’s tourism jobs, including those at Disneyland. It has an unemployment rate of only 2.7%, much lower than the state’s average of 4.2%.
Versatile Investment Strategies: Long Beach, CA
This city has a median property price of $785,310 with a price per square foot of $470.60. For rental property investing, you can expect around $3,000/mo of rental income, providing a return of 1.18%. It’s one of the best markets for strategy versatility as it’s also a strong city for short-term rental (such as AirBnB) income.
Still Going Strong: Seattle, WA
Seattle, WA continues to be a strong city. The median property price is $614,035. Seattle’s high-tech economy and low unemployment rate fuel traditional real estate investing in the city. Job growth over the next 10 years is estimated at 11%, which is greater than the national average. They’ll be no shortage of tenants or buyers should you decide to flip a property.
High Rental Income: San Diego, CA
San Diego is a city that most people dream about living in, except most are not able to buy, thus rental income is solid for this city. The median property price is $677,962. San Diego’s economy is versatile with trade, manufacturing, and research industries.
Affordable and Growing: Sacramento, CA
Sacramento, the state’s capital, has one of the lowest median property prices on the list at $400,060. It makes its place on the list as one of the most affordable cities in California. Appreciation is higher than the national average. Sacramento is a great city for rental income or flipping.
Undervalued and Ready for Investing: Las Vegas, NV
Las Vegas is one of the best cities in the West for investing in a rental property with a median property price of $293,035. The two biggest factors that have led to Las Vegas as a successful rental market are affordability and tourism. The city’s reasonable investment properties are a holdover from the most recent housing bubble. The market has recovered but is still undervalued by 40%.
As you can see, there are still some great opportunities for investment on the West Coast regardless of your investment strategy. Much of it has to do with finding the right property at the right time. Whether you are looking for rental income or simply want to buy, renovate, and sell, you’ll find healthy markets in each of these cities. When you’re ready to finance your next investment, First Capital Trust Deeds can help.