California is the most populated state in the U.S. and home to 28 national parks, Disneyland, Alcatraz, and the Entertainment Capital of the World. And with low unemployment, solid job growth, and access to surfing, hiking, movie studios, and tech conglomerates (just to name a few more attractions), the people keep coming. And while the steady increase of immigrants has been a boon to the economy, it’s also created a housing shortage.
Since median home sale prices have skyrocketed, thanks to the rise in demand, many new residents have been pushed to rentals. While this creates opportunity for owning rental properties, it also does make the market a little more costly. You’ll need to find the right lender for the best ROI.
Many investors are counting on appreciation to make investments worthwhile, but it’s important to keep in mind that because California real estate prices are skyrocketing, the housing market in some areas could take a serious dip. To avoid going bust with the potential bubble, it’s probably safer to look for multi-family units in areas just off the beaten path, like Inglewood.