Are you considering investing in California real estate? If you are, it could be the best decision you’ll ever make!
California’s significant population, booming economy, and attractive beaches really stand out to prospective investors. What’s more, many residents choose to rent instead of buy real estate in California. The rental demand is year-round!
As an investor, choosing the right location is extremely important. The location you choose can make or break your investment.
In this article, we here at Pinnacle Property Management will go over the top areas in California that you could consider for your next property investment. We’ll take you through the areas that promise the highest potential return on investment.
Best California Areas to Buy Real Estate
Winchester is a census-designated place in Riverside County with a population of about 3,000 residents. The area is one of the best places to buy a rental property in Southern California.
You can expect a decent return and enjoy a high occupancy rate. On average, a 4-room Airbnb can earn you up to $12,045 in rent.
Most Winchester residents work in business, engineering, management, and the computer industry.
Blythe is a city in eastern Riverside County. It’s located on the California-Arizona border where Interstate 10 crosses the Colorado River. More than 19,000 people call this part of Southern California home, according to latest census figures.
The city is conveniently located in the Colorado Desert section of the Sonoran Desert, where it’s summer all year long. What’s more, the area is also in close proximity to attractions such as the Anza-Borrego Desert State Park, Joshua Tree National Park, Havasu Lake, and the Salton Sea.
Blythe is a relatively affordable area to live. If you are looking to invest in a vacation rental home, this is one of the best places to consider investing in.
Airbnbs are particularly quite rewarding – occupancy rates are high and rate of return on investment is relatively good.
3. Lake Los Angeles
Lake Los Angeles is a census-designated place in Los Angeles. It has a population of about 11,700. It lies about 50 miles northeast of Los Angeles, in the eastern Antelope Valley.
Lake Los Angeles lies in close proximity to the San Bernardino National Forest and the Angeles National Forest.
As an investor, you can make profits with both long-term and short-term rental properties in Lake Los Angeles.
Hawthorne is another great place to buy a rental property in Southern California. It’s located in the southwestern Los Angeles County. Currently, the population is over 87,000.
Hawthorne has one the largest renter population in the Golden State. In fact, over 70% of residents live in rental homes.
If you are looking to invest here, consider investing in long-term rentals for a higher return on investment. Although buying a home here is comparatively pricey, it’s almost a guarantee that you’ll recoup your investment dollars within a reasonable period of time.
Stanton is home to 38,377 people. It is located in western Orange County close to the cities of Anaheim and Garden Grove. Incorporated in 1956, Stanton has greatly flourished and developed since then.
Just like Hawthorne, most residents in Stanton rent their homes. And with such a huge population of renters, the area is arguably one of the best places to invest in rental properties.
Short-term rentals tend to yield the highest rate of return. A 4-room Airbnb usually costs anywhere between $1,900 and $6,789. Rent prices on traditional rentals can earn you up to $2,841.
Also, there is no shortage of adventures here. Anaheim is just 15 minutes away, and Newport Beach, Huntington Beach, and Long Beach are 30 minutes away.
This is the premier California coastal city. Torrance is nestled in Los Angeles County’s South Bay. It’s about 30 minutes south of downtown Los Angeles and directly north of the prestigious Palos Verders Peninsula. The city of Torrance is home to 145,492 residents.
If you are thinking of investing in Southern California, Torrance should be at the top of your list. There are many reasons to invest in Torrance. For instance, it’s safe, diverse, and has a 1.5 mile stretch of beautiful sandy beaches.
Families also love the area due to the award-winning quality of education offered.
Lawndale is another investment area worth a look. The area is home to 32,819 residents. Lawndale is a beautiful city. Some even call it the heart of the Southbay.
If you are looking to invest here, consider investing in rentals targeting families. Families love the area for its great parks and quality of education. Hermosa Beach and Manhattan Beach are also some few minutes away.
8. Culver City
Home to 39,169 people, Culver City is also worth your consideration when it comes to investment opportunities. The area is especially a hit with families and young professionals.
It’s also close to Downtown LA, Venice Beach and Santa Monica.
In a Nutshell: Best Real Estate Markets in California
California has one of the largest renter populations in the country. Its diverse and growing economy, huge population and bountiful attractions ensure a guaranteed rental demand year-round.
If you’re looking to buy a rental property in California, consider the following areas:
- Lake Los Angeles
- Culver City
For our top tips on investing in California real estate, read our post here!
For more questions about investing in California, don’t hesitate to contact Pinnacle Property Management today.