LeapZipBlog: 1stcrealty's blog: The Best Cities in California to Buy Real Estate

The Best Cities in California to Buy Real Estate

January 13, 2020 by 1stcrealty  

There’s nothing like home for sale in California when it comes to real estate in California. Cities like San Francisco and San Jose boast median home prices over $1 million — and that’s the median price, not the average price (which would be pulled up by a few expensive homes). Indeed, the number of homes you could buy elsewhere for the price of homes for sale in Los Angeles.


With its excellent climate and significant centers of the industry — tech in the San Francisco Bay Area, entertainment in Los Angeles — California is always going to be a hugely in-demand market for housing. But with such high home prices, many people, if not most, have to resort to renting. This is a prime reason why California is such a great state for buying and owning rental property.

Here’s a look at the best places in California to own a rental property and turn a substantial profit in 2019.

Oakland

Oakland is one of the best places to buy a rental property in the Bay Area. You get the proximity to San Francisco without facing that city’s dizzyingly high prices: According to Zillow’s latest data, the median price in San Francisco for all homes — that means from one-bedrooms to single-family homes to multi-family and condos and everything in between—is $1,253,461.

Sacramento

Located northeast of the San Francisco area, Sacramento is the state capital and one of the best places to buy a rental property in California in 2019. Property in Sacramento is relatively affordable, the current median home listing price being $312,650. This is good for keeping your buy-in down. Plus, since Sacramento’s price-to-ratio is higher-than-average (the U.S. overall: 12.22), renting still makes more sense than buying for many. Another critical factor in Sacramento’s favor is that the majority of households are renters.

East Los Angeles

Located just east of downtown Los Angeles, East Los Angeles is emerging as one of the top cities to own an investment property in California in 2019. East Los Angeles is in an advantageous geographic position, straddling Interstate 710, a vital north-south artery in the Los Angeles metro area.

The primary industry here is manufacturing, which accounts for over 15% of employment, according to Data USA. Though building tends to have lower wages on average, East Los Angeles has seen incomes rise substantially. Over the last five years, the median household income in East Los Angeles grew by 15.8%, from $36,755 in 2012 to $42,544 by 2017, according to the Census Bureau.

Hawthorne

Located in southwestern Los Angeles County, Hawthorne is the hometown of the Beach Boys and one of the best cities in California to own rental property.

First and foremost, Hawthorne has one of the highest rates of renter-occupied households in California, with 73.5% being renters. Secondly, the city’s price-to-rent ratio of 18.86 is higher than the U.S. average, with home prices too far out of residents’ range to make buying a home instead of renting one makes financial sense. Though the median property price is costlier than some of the places, Hawthorne compensates with a median rent that’s over $2,800 a month and rising. Plus, $650,000 for property in the cockpit of the Los Angeles metro area isn’t that bad of a deal for prospective investment property owners.