Despite the worst-case scenarios and the dreaded “2020 effect”, California’s rental market is back in full swing. As the economy starts to recover and companies are calling their employees back to work, people are once again looking for places to rent, which has led to an increase in rent prices. In Los Angeles, for instance, rent prices are going up by 10% compared to pandemic lows, and the market, in general, has become very competitive. This is big news for investors and landlords, who are looking to capitalize on California’s most promising rental markets.
What do these markets have in common? A growing economy, plenty of things to do, great weather, and attractive properties whose value is increasing. If you want to sign a California lease agreement as quickly as possible, these are the top 5 markets to look into:
1. Lancaster, Northern LA
According to recent data, the value of Lancaster properties has more than doubled since the first quarter of 2020, making it a coveted location for investors. What’s more, a Zillow forecast estimates that Lancaster home values will grow by an additional 5% in the next twelve months. The average monthly rental income for a Lancaster property is around $1,848. An interesting fact about Lancaster is that almost half the people here rent rather than buy properties, making it a long-term opportunity for investors.
2. Irvine, Orange County
One of the fastest-growing cities in California, Irvine is currently one of the most competitive local markets. Since last year, the number of properties available for sale has increased by 32%, and the market value of these properties has also increased significantly, to $976,000. Competition is high in Irvine, Orange County, so listed properties don’t stay on the market for long.
3. Fremont, Alameda County
Located in the East Bay region of the Bay Area, Fremont is one of the most popular cities near San Francisco, attracting both buyers and tenants. This is another example where demand exceeds supply, and the average listing is gone in around nine days. Fremont has one of the highest standards of living in the US (nearly 155% higher than the national average), which makes it an excellent option for investors.
4. Santa Rosa, Sonoma County
Santa Rosa is located in the Northern part of the San Francisco Bay Area, and properties here have doubled in value in the past two decades. This is another example of a city where people prefer renting rather than buying, and that’s because Santa Rosa is quite close to San Francisco. Instead of looking for rent in San Francisco, where the rent can be prohibitively high, many families and young professionals rent properties in Santa Rosa and commute to work.
5. Oxnard, Ventura County
Thanks to its proximity to downtown LA, Oxnard is one of the best places to invest in property in California. Convinced by the possibility of beachfront living at an affordable price, people from other states are flocking here, which has turned Oxnard into a competitive market. The average home sells in less than 40 days, and lease agreements are signed even faster.