Many people know that real estate can be a wise investment. The problem is uncovering the best locations at the right time. Property investment trends can change in a flash.
As of 2023, real estate in California is the crown jewel nationwide. According to the U.S. Census Bureau, there are over 14.5 million housing units. Each one is in high demand due to its location in the Golden State.
Why are homes here so attractive to property investors?
Continue reading our real estate guide to find out!
1. A Growing Population
California is the most populous state in the country. At the beginning of 2023, the state was home to over 40 million inhabitants. And it is seeing a healthy growth rate of 0.57%.
As the population rises, so does the demand for homes. So you will never have a vacant property and have to search for a suitable tenant.
Experts believe the state will see steady population growth in the upcoming years.
2. Tourism Along the West Coast
Each year, people come from around the world to admire the west coast of the United States. Therefore, it is no surprise that California is the most visited state nationwide. It welcomes around 15 million people annually.
When people come for city breaks or to visit Disneyworld, they need a place to stay the night. If you own a property, you can rent it for short-term lettings on platforms such as Vbro, Airbnb, or Booking.com.
Short-term rentals generate five or six times more income per night when compared to a long-term stay.
3. California's Economy
If California became a nation, it would have one of the highest GDPs worldwide. At over 3 trillion USD, it is just above Britain's gross domestic product.
A robust economy is vital for a stable real estate market. It will also continue to attract foreign businesses and investments.
That will lead to more people relocating to the area for jobs. In return, it increases the demand for your real estate properties in California.
4. Rising Prices
In general, you would think rising prices would be a reason to stay away from a region. However, that is not the case now.
Due to several factors, including inflation, the cost of rent in the state is always rising. Since the global pandemic, it has increased in areas between 10-15%. Therefore, if your property in California was $2000 in 2020, you could earn a monthly income of up to $2300 this year.
Not only are rent prices rising, but people's incomes are too. In 2023, the mean household earnings are $119,149.00.
5. Low Property Tax
If you are a landlord, the words "low property tax" should be music to your ears. Fortunately, California has one of the lowest rates in the U.S.
The national average is 0.99% of the assessed home value, while California's mean is only 0.71%. Even Los Angeles Country, the most expensive area, is lower than most of the nation.
Invest in Real Estate in California
Real estate can be a worthwhile and fulfilling prospect. You can earn a passive income for the rest of your life. And if you hire a property management service, you barely have to lift a finger.
After reading our guide, you now know some reasons to invest in real estate in California. However, you are not alone; many others are hoping to make the most of this golden opportunity.
So contact us today and find the perfect real estate option for you before someone else!