Several cities in California topped the list for the hottest real estate markets in 2017. For those looking to invest in land and property in the state, these top cities are your best bet.
It’s no surprise that San Jose is on this list. Real estate prices in the city have been steadily rising over the last year and almost doubled in the last five years.
Five years ago, 3-bedroom homes were selling for around $485,000. This year, they’re selling for over $860,000.
Rent prices are also on the rise. Between September 2016 and August 2017, the median rent price has increased from $3,295 to $3,495.
Known as the Capital of Silicon Valley, San Jose is a hotspot for growth and one of the most expensive places to live in the United States. The city is home to several major companies and employers, including eBay, PayPal, Adobe, Cisco, Lumileds and more.
As one of the nation’s major tech hubs, San Jose is a great place to invest in property.
Real estate prices in San Francisco have been consistently rising over the last five years. Three-bedroom homes were selling for around $850,000 five years ago, and are now selling for over $1.6 million.
Rent prices have held steady over the last year, although they dipped for short period of time between December 2016 and February 2017. In September 2016, the median rental price was $4,500. In August 2017, the median price was slightly lower at $4,400.
With a growing population – projected to reach one million by 2033 – San Francisco is the cultural capital of Northern California and is a popular tourist destination. The city’s economy is primarily service-based, and tourism is a major driver of business.
With its growing population and rising real estate prices, San Francisco is a smart place to invest in property.
The median home price in Vallejo has risen $47,500 (or 14%) in the last year, but prices are far more reasonable than in San Francisco or the heart of Silicon Valley.
The median sales price for a 3-bedroom home has risen from $154,000 five years ago to $377,000 today. Three-bedroom homes have seen the highest growth, but one-bedroom homes have actually declined over the last year ($200,000 to $185,000).
Rent prices have increased over the last year. In September 2016, the median rent price in Vallejo was $1,999. In August 2017, it hit $2,100. The number of rentals has also increased, which indicates that there’s been more investing in the city.
The waterfront town has attracted numerous artists from the area, and several major employers are located in the city, including: Six Flags Discovery Kingdom, Sutter Health, Kaiser Permanente Call Center, Petrochem and the United States Forest Service.
While Vallejo hasn’t seen the explosive growth seen by the first two cities on our list, its population and real estate market is on the rise.
Over the last year, median home prices in San Diego have increased by $40,000 (or 8%). The median price for a three-bedroom home five years ago was $390,000. One year ago, the median price was $553,000, and today, it’s at $602,000.
Between September 2016 and August 2017, the median rent price in the city has increased from $2,650 to $2,775. The number of rentals has also increased significantly, rising from 1,252 in September 2016 to 2,617 in August 2017.
Situated along the coast and about 120 miles south of Los Angeles, San Diego’s population has ballooned to over 1.4 million people. As the economic center of the region, San Diego’s economy is diverse and includes: tourism, defense, private companies and international trade. Some of the top employers in the city include Sharp HealthCare, United States Navy, Qualcomm, Dexcom, University of California and Scripps Health.
San Diego is known for its high real estate prices, which drove many people away from the city. Consequently, home prices dipped over time. Now, we’re seeing some recovery in the market. Now may be a good time to invest.
The median home price in Stockton is up 9% (or about $22,000) over the last month. Situated east of San Francisco, the city’s real estate market has seen impressive growth over the last year.
Five years ago, the median price for a three-bedroom home was $117,000. Now, the median price for a three-bedroom home is $256,500.
Rent prices have stayed about the same in the last year, although prices dipped in January and February 2017. In September 2016, the median rent price was $1,500, and in August 2017, it was $1,525. The number of rentals has also increased, although they have dipped since reaching a peak in the spring.
Stockton is seeing steady population growth, and is home to the oldest university in the state. While the city filed for bankruptcy protection during the financial crisis of 2008, it has steadily been recovering ever since.
With housing prices on the rise, now may be a good time to start investing in property in Stockton.
Santa Rosa’s real estate market is on the rise, with home prices increasing by $50,000 over the last year. Median home prices have nearly doubled over the last five years. The median price for a three-bedroom home five years ago was $280,000. Today, it’s $530,000.
Rent prices have dipped slightly. In September 2016, the median rent price was $2,550. In August 2017, the median price was $2,500. While prices are a little lower, the number of rentals has increased from 121 to 246 over the last year.
Investors can expect home prices to dip somewhat in the near future, which will make the city more attractive to buy property. In October 2017, five percent of the city’s homes were destroyed in a devastating wildfire that took out 45,000 acres.
The median home price in Sacramento is up 10% ($28,000) over the last year. Five years ago, the median price for a three-bedroom home was $136,000. Today, the median price is $295,000.
Rent prices and the number of rentals is also on the rise. Between September 2016 and August 2017, rent prices have increased from $1,555 to $1,731. The number of rentals has also risen from 638 to 1,133.
Known for its tree canopy (which is the largest in the country) and diversity, Sacramento’s population is growing and its economy is thriving. Top employers in the city include Intel, Dignity Health, Sutter Health, Kaiser Permanente and UC Davis Health System.
The median home price in Modesto has increased by $15,000 over the last year, or about 6%. In five years, the median price for a three-bedroom home has increased from $125,00 to $264,000.
Modesto is a more modest market compared to cities closer to Silicon Valley, but still offers great investment opportunities.
Rent prices have increased from $1,395 to $1,500 over the last year. The number of rentals has also increased from 126 to 279.
The city’s population is on the rise, and the city’s economy is industry-based. The top employers in Modesto include Memorial Medical Center, E & J Gallo Winery, Kaiser Permanente, Walmart, Sutter Gould Medical Foundation, Save Mart Supermarkets and Doctors Medical Center.
Crime rates are a little higher in Modesto, but lower property prices and rising demand for rental properties makes this city worth considering for investing.