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About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

San Diego Housing Market: Prices, Trends, Forecast 2023

May 28, 2023 by Marco Santarelli

San Diego Housing Market

California's housing market faced challenges in April, as higher mortgage rates and a shortage of available homes for sale contributed to a decline in home sales. However, the statewide median home price reached over $800,000 for the first time in six months, according to a report by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The San Diego County housing market showed mixed results during April 2023.

While there was a modest increase in the median sold price of existing single-family homes, there was a significant decline in the number of homes sold. These trends suggest a market that is adjusting and possibly transitioning to a more balanced state.

San Diego County Housing Market April 2023

The real estate market in San Diego County has been a topic of interest for many potential buyers and sellers. April 2023 brought some notable changes in the housing market, which can have a significant impact on the decisions of those involved. Let's take a closer look at the data and trends for the month.

Median Sold Price of Existing Single-Family Homes

One of the crucial factors to consider when analyzing the housing market is the median sold price of existing single-family homes. In April 2023, the median sold price in San Diego County stood at $930,000. This figure reflects a 1.6% increase compared to the previous month, March 2023, when the median sold price was $915,000. However, when compared to April 2022, there has been a decline of 4.6% in the median sold price, as it was recorded at $975,000 during that period.

Sales Statistics

Sales figures play a vital role in understanding the dynamics of the housing market. In April 2023, San Diego County experienced a decrease in sales compared to the previous month and the same period the previous year. The number of home sales dropped by 8.2% from March 2023. When compared to April 2022, there was a significant decline of 36.9% in the number of homes sold.

Price Movement Month-to-Month (MTM) and Year-to-Year (YTY)

Analyzing the month-to-month and year-to-year changes in prices provides valuable insights into the market's direction. In April 2023, San Diego County experienced a positive price movement compared to the previous month, with a 1.6% increase in the median sold price. However, when comparing it to April 2022, there has been a 4.6% decline in the median sold price, indicating a cooling trend in the market.

Conversely, the year-to-year sales data indicates a substantial decrease. The number of homes sold in April 2023 dropped by 36.9% compared to the same period in the previous year. This decline in sales could be attributed to various factors, including changes in buyer preferences, economic conditions, or market saturation.

Condo Housing Market Trends in San Diego County

The condo market in San Diego County is an integral part of the real estate landscape. Understanding the trends and dynamics within this segment can provide valuable insights for buyers and sellers. The condo market in San Diego County during April 2023 exhibited stability in terms of median sold prices, with no change compared to the previous month.

However, there was a notable decline in the number of condos sold. These trends indicate a market that may be experiencing a balancing act between supply and demand, with potential shifts in buyer preferences and market conditions. Let's delve into the data and trends for April 2023.

Median Sold Price of Existing Condos and Townhomes

The median sold price of existing condos and townhomes is a key metric to gauge the market's performance. In April 2023, the median sold price in San Diego County stood at $635,000. Interestingly, this figure remained the same as the previous month, March 2023, when the median sold price was also $635,000. However, when compared to April 2022, there was a decline of 3.4% in the median sold price, as it was recorded at $657,500 during that period.

Sales Statistics

Examining the sales statistics is crucial to understanding the level of activity in the condo market. In April 2023, San Diego County experienced a decrease in sales compared to both the previous month and the same period in the previous year. The number of condo sales dropped by 8.7% from March 2023. When compared to April 2022, there was a significant decline of 33.4% in the number of condos sold.

Price Movement Month-to-Month (MTM) and Year-to-Year (YTY)

Analyzing the month-to-month and year-to-year changes in prices provides valuable insights into the market's direction. In April 2023, San Diego County's median sold price remained steady with no change compared to the previous month. However, when comparing it to April 2022, there has been a 3.4% decline in the median sold price, indicating a slight cooling trend in the condo market.

The year-to-year sales data paints a more substantial decline. The number of condos sold in April 2023 dropped by 33.4% compared to the same period in the previous year. This decline in sales suggests a shift in buyer demand or other market factors affecting the condo segment in San Diego County.

Is San Diego a Seller's Housing Market?

The following San Diego housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. San Diego County, California is a highly sought-after location for home buyers and sellers alike. With a beautiful coastal location, thriving job market, and endless amenities, it's no surprise that San Diego County's real estate market is booming.

Median Listing Home Price and Price per Square Foot

In April 2023, the median listing home price in San Diego County was $949,000, indicating a 6% increase compared to the previous year. Additionally, the median listing home price per square foot stood at $583. These figures reflect the prices at which homes are listed for sale, providing an overview of the market's overall price range.

Sale-to-List Price Ratio

The sale-to-list price ratio is a crucial metric to assess the negotiation power of sellers. In San Diego County, CA, homes sold for approximately the asking price on average in April 2023, with a sale-to-list price ratio of 100%. This ratio suggests that sellers have been able to achieve their desired asking prices for their properties.

Days on Market

The average number of days a home spends on the market can provide insights into the level of buyer interest and the speed of transactions. In San Diego County, CA, homes typically sell after an average of 30 days on the market. The median days on the market have remained relatively flat since the previous month but have seen a slight increase compared to the previous year.

City Variations

San Diego County encompasses a diverse range of cities, each with its own unique real estate landscape. La Jolla stands out as the most expensive city in San Diego County, with a median listing home price of $2.7 million. On the other end of the spectrum, Lakeside is the most affordable city, with a median listing home price of $725,000.

Seller's Market Assessment

Considering the median listing home price, sale-to-list price ratio, and average days on market, it can be concluded that San Diego County, CA is currently a seller's market. The median listing home price is showing an upward trend, indicating strong demand and competition among buyers. Additionally, homes are selling close to their asking prices, further reinforcing the advantageous position of sellers.

It is important to note that market conditions can change over time. Factors such as inventory levels, economic trends, and buyer preferences can influence the balance between supply and demand. Therefore, it is essential for sellers to stay informed about market fluctuations and work closely with real estate professionals to navigate the San Diego County housing market successfully.

San Diego Housing Market Forecast 2023-2024

Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. The housing market in San Diego has experienced some notable changes over the past year. As of April 30, 2023, the average home value in the San Diego-Carlsbad area stands at $850,397. This represents a decrease of 3.3% compared to the previous year. Additionally, homes in this area typically go pending within a short period of around 10 days, indicating a high level of buyer demand.

Average Home Values

The current average home value of $850,397 provides an overview of the general price range in the San Diego-Carlsbad area. While there has been a slight decline of 3.3% over the past year, it's important to consider that housing market values can fluctuate due to various factors such as economic conditions, supply and demand dynamics, and overall market trends.

Market Forecast

Based on the available data, there is a positive market forecast for the San Diego housing market. The forecast suggests a projected increase of 3.6% in home values over the next year, starting from April 30, 2023. This projection indicates that the market is expected to rebound and experience moderate growth in the coming months.

Sale-to-List Ratio and Sales Price Performance

The sale-to-list ratio is an essential metric that reflects the negotiation power of sellers and the level of buyer competition. As of March 31, 2023, the median sale-to-list ratio in San Diego stands at 0.997. This ratio indicates that, on average, homes are selling close to their list prices, showcasing a balanced market environment.

Additionally, the market has seen 36.4% of sales going over the list price, indicating instances of competitive bidding and potential multiple offers. On the other hand, 50.2% of sales have occurred under the list price, suggesting room for negotiation and potential opportunities for buyers.

Median Days to Pending

The median number of days it takes for a home to go pending in San Diego as of April 30, 2023, is 10 days. This swift pace indicates a high level of buyer interest and competition, with properties quickly attracting offers and moving through the sales process.

San Diego Housing Market Forecast
Courtesy of Zillow.com

San Diego Area Housing Market Report

According to the Greater San Diego Association of REALTORS®, the housing market in the Greater San Diego Area witnessed some notable changes in April 2023. The Greater San Diego Area housing market in April 2023 exhibited a slowdown in closed and pending sales, along with a decrease in inventory. The median sales prices also experienced a decline, while the number of days on market increased significantly. However, there was an increase in housing supply, which might provide more options for buyers. Let's dive into the key highlights and trends:

Closed Sales

The number of closed sales experienced a significant decline in April 2023. Detached homes saw a decrease of 40.3 percent, while attached homes experienced a slightly lower decline of 35.0 percent. This decrease indicates a slowdown in the pace of completed home sales in the region.

Pending Sales

Pending sales, which represent homes under contract but not yet closed, also saw a notable decrease in April 2023. Detached homes had a decline of 28.8 percent, while attached homes experienced a slightly higher decrease of 29.1 percent. This decline suggests a reduced level of buyer activity and a slower pace of homes entering into the pending stage.

Inventory

The available housing inventory in the Greater San Diego Area decreased in April 2023. Detached homes saw a decline of 22.8 percent, and attached homes experienced a relatively lower decrease of 13.5 percent. This decrease in inventory signifies a tighter market with fewer homes available for sale.

Median Sales Price

The median sales price for homes in the Greater San Diego Area also experienced a decline in April 2023. Detached homes saw a decrease of 4.7 percent, with the median sales price reaching $952,600. Attached homes had a smaller decline of 3.0 percent, with a median sales price of $640,000. These declines suggest a slight softening in home prices during this period.

Days on Market

The number of days homes spent on the market before being sold increased significantly in April 2023. Detached homes experienced a substantial increase of 52.6 percent in days on market, while attached homes saw an even higher increase of 76.5 percent. This increase indicates a lengthening of the selling process and potentially more time required to attract buyers in the current market conditions.

Supply

The supply of homes in the Greater San Diego Area increased during this period. Detached homes saw an 18.2 percent increase in supply, while attached homes experienced a larger increase of 37.5 percent. This increase suggests a greater number of homes available for potential buyers, potentially contributing to the longer days on market and the overall market dynamics.

San Diego Rental Housing Market Trends

The San Diego real estate market has been ranked among the ten most expensive real estate markets in the country, though it ranks below several other West Coast cities. This creates massive demand for San Diego rental properties by those who simply cannot afford to buy homes. The rental market will continue to grow as the city grows an estimated 500,000 population by 2050, adding tens of thousands each year. The median rent in San Diego is $2700. The rent you’d receive on single-family San Diego rental properties would, of course, be much higher.

If you find a good bargain and make it family-friendly, you could charge well over $3000 a month. If you can convert San Diego rental properties into smaller units, you’d receive around $2200 a month for a one or two-bedroom apartment. The cash-on-cash returns for properties in the San Diego housing market is around 2.5% for traditional rental properties and nearly 2% if you rent on Airbnb. The fact that the city isn’t too dependent on tourism means you could rent properties on the beach to newcomers, locals, and students if tourism is slow.

Before the pandemic, the average rent for an apartment in San Diego had been growing at 4% year-over-year (source: RentCafe). About 40% of the apartments can be rented for less than $2000, and 60% of the apartments can be rented for more than $2,000 per month. This shows that rent prices are very high in San Diego.

Homeowners vs Renters Statistics: According to the most recent 2020 American Community Survey census data, San Diego County has a renter percentage of 46.7% which is the second most renter percentage of all the counties in the greater San Diego County region. The homeowner percentage is 53.3%. The monthly cost of ownership for property owners in San Deigo is around $2,073.

The median gross rent is $1,658, which is the third most expensive among all other counties in the greater San Diego County region. Comparing rental rates to the United States average of $1,062, San Diego County is 56.1% larger. Also, compared to the state of California ($1,503), San Diego County is 10.3% larger.

San Diego Rent Market Trends & Prices

As of May 2023, the average rent for a 1-bedroom apartment in San Diego, CA is $2,422. This is a 1% increase compared to the previous year. Over the past month, the average rent for a studio apartment in San Diego increased by 2% to $1,938. The average rent for a 1-bedroom apartment increased by 1% to $2,422, and the average rent for a 2-bedroom apartment increased by 1% to $3,205.

  • Two-bedroom apartment rents average $3,205 which is a 7% increase from last year.
  • Three-bedroom apartment rents average $4,300 which is a 27% increase from last year.
  • Four-bedroom apartment rents average $5,000 which is a 21% increase from last year.

FAQs About San Diego Housing Market

$930,000

$517,000

$739,000

$950,000

$1.68M

$635,000


Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

  • https://www.car.org/
  • https://www.car.org/marketdata/data/countysalesactivity
  • https://www.sdar.com/press-releases.html
  • https://www.zillow.com/SanDiego-ca/home-values
  • https://www.neighborhoodscout.com/ca/san-diego/real-estate
  • https://www.realtor.com/realestateandhomes-search/San-Diego_CA/overview
  • https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-market-forecast
  • http://www.homebuyinginstitute.com/news/san-diego-more-moderate-forecast
  • https://www.zillow.com/research/2020-hot-markets-south-26293/
  • https://journal.firsttuesday.us/san-diego-housing-indicators-2/29246/
  • https://www.rentcafe.com/average-rent-market-trends/us/ca/san-diego

Filed Under: Growth Markets, Housing Market, Real Estate Investing Tagged With: San Diego Housing Market, San Diego Housing Market Forecast, San Diego Real Estate Market

Chicago Real Estate Market: Prices, Trends, Forecast 2023

May 26, 2023 by Marco Santarelli

Chicago Housing Market

We'll discuss the latest trends and projections for the Chicago housing market. The Chicago housing market has experienced a decline in home sales and a decrease in median home prices, reflecting the broader trends seen in the real estate industry. However, despite these challenges, there are still opportunities for both buyers and sellers. Let's take a closer look at the current state of the Chicago housing market.

ALSO READ: Illinois Housing Market Forecast

Chicago Housing Market Update

Decline in Home Sales

According to Illinois REALTORS®, in April 2023, home sales in the nine-county Chicago Metro Area totaled 7,593, a significant 31.2 percent decrease compared to April 2022, when 11,041 homes were sold. This decline in sales indicates a slowdown in the market and presents challenges for sellers seeking to offload their properties.

Decrease in Median Home Prices

The median price of a home in the Chicago Metro Area also experienced a decline. In April 2023, the median price stood at $320,000, a 1.5 percent decrease from April 2022, when it was $325,000. This drop suggests a shift in buyer preferences or market conditions, influencing the pricing dynamics within the region.

Expert Insights and Forecasts

Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration, provides valuable insights into the current market situation. He points out that while prices increased in the previous month, the median sale price in the Chicago area remains lower compared to the same period last year. Dr. McMillen forecasts that the number of sales may increase in June but will likely remain lower than last year's levels. Additionally, he anticipates a price increase next month, albeit still below the levels observed in the previous year.

Sales Decrease in the City of Chicago

The city of Chicago, specifically, has seen a significant decline in home sales. In April 2023, there were 2,028 home sales, representing a year-over-year decrease of 37.6 percent compared to the 3,249 sales in April 2022. This decline indicates a more pronounced slowdown within the city's real estate market.

Decrease in Median Home Price for Chicago

The median price of a home in the city of Chicago also experienced a notable decrease. In April 2023, the median price was $340,000, down 8.1 percent from April 2022, when it stood at $370,000. This decline suggests a more significant adjustment in pricing within the city compared to the broader Chicago Metro Area.

Challenges and Opportunities

Sarah Ware, president of the Chicago Association of REALTORS® and principal and designated managing broker for Ware Realty Group in Chicago, acknowledges the decline in the housing market but highlights the ongoing activity and opportunities for both buyers and sellers. While factors such as low inventory, increased inflation, and higher mortgage rates have affected real estate markets nationwide, Ware emphasizes that there are still chances for those who were previously intimidated by the hectic pace of the market.

Chicago Housing Market Trends
Infographic Courtesy: ILLINOIS REALTORS®

Chicago Rent Prices 2023

The Zumper Chicago Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Illinois one bedroom median rent was $1,314 last month. Oak Park was the most expensive city with one bedroom priced at $1,900 while Delkab was the most affordable city with rent at $710.

The Fastest Growing Cities For Rents in Chicago Metro Area (Y/Y%)

  • Oak Park had the fastest growing rent, up 39.7% since this time last year.
  • Des Plaines saw rent climb 32.8%, making it the second fastest growing.
  • Valparaiso was third with rent increasing 19.3%.

The Fastest Growing Cities For Rents in Chicago Metro Area (M/M%)

  • Des Plaines had the largest monthly rental growth rate, up 6%.
  • Elmhurst was second with rent climbing 5.7%.
  • Chicago saw rent grow 3.4% last month, making it third.
Chicago Rental Market Trends
Source: Zumper

Chicago Housing Market Forecast 2023-2024

The Chicago housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the United States. It is also one of the hottest real estate markets for investing in rental properties. What are the Chicago real estate market predictions for 2023?

According to the market forecast presented by Stuart Handler from the Department of Real Estate at the University of Illinois Chicago, the sales forecast for the upcoming months, May, June, and July, both Illinois and the Chicago PMSA exhibit interesting patterns with regards to yearly and monthly changes. Let's delve into the forecasted numbers and explore what they mean for the Chicago housing market.

Sales Forecast

The sales forecast for the next three months presents a combination of yearly decreases and monthly increases. When considering the annual perspective, Illinois is projected to experience a decline in the range of -10.5% to -14.2%. Similarly, the forecast for the Chicago PMSA indicates a yearly decrease ranging from -12.4% to -16.7%. These figures suggest a challenging market environment compared to the previous year.

However, on a monthly basis, there is a glimmer of hope. The three-month average sales forecast for Illinois indicates an increase ranging from 8.4% to 11.4%. Similarly, the Chicago PMSA is expected to see a monthly increase ranging from 7.0% to 9.5%. These positive monthly trends indicate potential recovery and demand within the market.

Median Price Forecast

While the sales forecast presents a mixed picture, the median price forecast provides insights into the expected price changes for May, June, and July. In Illinois, the forecast indicates mixed annual growth rates, but overall, a relatively stable trajectory. The median price is expected to change by -0.4% in May, followed by a further decrease of -1.0% in June. However, there is a positive outlook for July, with a forecasted growth rate of 2.2%.

Contrarily, the forecast for the Chicago PMSA suggests negative growth rates for the same period. In May, the median price is projected to decrease by -2.1%, followed by a larger decrease of -3.2% in June. July shows a smaller decline of -0.4%. These negative growth rates indicate a potential adjustment in property values within the Chicago PMSA.

Implications and Considerations

The forecasted decreases in sales and median prices, particularly on a yearly basis, emphasize the challenges that persist within the Chicago housing market. These challenges can be attributed to factors such as economic conditions, market saturation, and shifts in buyer behavior. However, the positive monthly sales forecast and the stability in median prices for Illinois offer some hope for a gradual recovery.

It is crucial for buyers and sellers to closely monitor market trends and seek guidance from experienced real estate professionals to navigate these dynamics effectively. Additionally, staying informed about macroeconomic factors and local market conditions can help individuals make informed decisions.

Let us look at the price trends recorded by Zillow over the past year. As of April 30, 2023, the average home value in the Chicago-Naperville-Elgin area stands at $294,993. This figure represents a 1.8% increase over the past year, reflecting the upward trajectory of the market. The consistent growth in home values bodes well for homeowners and investors in the region.

Market Forecast

Looking ahead, the market forecast for the next year indicates further positive developments. With a projected 1.7% market forecast, the Chicago-Naperville-Elgin area is expected to maintain its upward momentum in terms of home values. This forecast signals confidence in the market's stability and suggests potential opportunities for buyers and sellers alike.

Sales Dynamics

The sales dynamics in the Chicago housing market showcase a dynamic and competitive environment. The median sale-to-list ratio, which measures the percentage of the listing price that a home sells for, stands at 0.989 as of March 31, 2023. This ratio indicates that, on average, homes are selling very close to their list prices, highlighting the strong demand and competitiveness among buyers.

Moreover, the market demonstrates a high level of buyer activity, with 29.1% of sales occurring over the list price as of March 31, 2023. This signifies the prevalence of bidding wars and multiple offers, emphasizing the need for buyers to act quickly and strategically.

On the other hand, 57.5% of sales in the same period were under the list price. This indicates that while some properties may attract offers above the asking price, there are still opportunities for buyers to negotiate and find favorable deals in the market.

Speedy Sales

The Chicago-Naperville-Elgin housing market is characterized by rapid sales, with homes going pending in approximately 9 days as of April 30, 2023. This quick turnaround time highlights the high demand and efficient sales processes in the region. Both buyers and sellers need to be prepared to act swiftly and make well-informed decisions in this fast-paced market.

Overall, the Chicago housing market presents a promising outlook. Staying informed about market trends, seeking expert advice, and acting decisively will be key to making the most of the opportunities available in this dynamic real estate landscape.

Chicago Real Estate Market Forecast
Source: Zillow

Chicago Real Estate Investment Overview

Is Chicago a Good Place Real Estate Investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Chicago housing market forecast for answers on why to put resources into this market. Chicago is a strong renter market. Over 50% of the population rents in this city. Chicago is the 6th most walkable city in the nation. Chicago metro area has a population of approximately 8,865,000, a 0.03% increase from 2019. It is the most populous city in the U.S. state of Illinois, and the third-most-populous city in the United States.

Chicago has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in Chicago. Other types of housing that are prevalent in Chicago include single-family detached homes, duplexes, rowhouses, and homes converted to apartments. Single-family detached homes account for roughly 25.98% of Chicago's housing units.

Chicago has been one of the hottest real estate markets in the country for many years. In the past ten years, the annual Chicago real estate appreciation rate has amounted to 4.88%, according to NeighborhoodScout.com. Chicago metropolitan area or Chicagoland is an area that includes the city of Chicago and its suburbs. So if you buy a Chicago real estate investment to use as a rental property, you could benefit in this market.

Although the recent population loss has been a concern for real estate investors, Chicago is still the most populous city in the Midwestern United States. About three million people live in Chicago and another ten million in the surrounding metro area. Chicago MSA is the third-largest metropolitan area in the U.S. It has a large population, a diverse economy, and a stable market. It is home to 32 Fortune 500 companies, with very high private sector employment.

Chicago's 58 million domestic and international visitors in 2018 made it the second most visited city in the nation, as compared with New York City's 65 million visitors in 2018. These are just some of the highlights that make Chicago a great place to live and invest in real estate. The list can go on and on. Chicago is also a major world financial center, having the second-largest central business district in the United States.

Top Reasons To Invest In The Chicago Real Estate Market?
  • Chicago was ranked first in the 2018 Time Out City Life Index (Time Out Group).
  • On the UBS list of the world's richest cities.
  • Often rated as having the most balanced economy in the United States.
  • Ranked seventh in the entire world in the 2017 Global Cities Index.
  • Home to 12 Fortune Global 500 companies and 17 Financial Times 500 companies.
  • Third-largest gross metropolitan product in the United States.
  • Strong Rental Market – Over 50% of the population rents.
  • Fully renovated single-family homes with great ROI.
  • Solid blue-collar areas with high rents.
  • High private sector employment.
  • Major transportation hub in the United States.
  • It has the largest number of federal highways & railroads in the nation.
  • Strong economic and job growth.
  • The tourism and hospitality industries have added thousands of jobs, generating billions of dollars in direct spending by visitors.
  • An international hub for finance, culture, commerce, industry, education, technology, telecommunications, and transportation.

Chicago Real Estate For Sale

Let’s take a look at the number of positive things going on in the Chicago real estate market which can help investors who are keen to buy an investment property in this city.

Chicago Rental Market Is Very Strong

What makes Chicago such a hot market for rental real estate? Over 50% of the population rents. The large population of renters means that rental income for properties is far better than you’d see if you invested elsewhere in the country. Luxury Rentals Are a Profitable Niche in Chicago. Many people know that there are solid blue-collar areas with high rents, but it isn’t just the working class that rents townhomes and condos. According to Crain’s, the number of upper-income households in Cook County that rent has nearly doubled over the past ten years.

The Institute for Housing Studies at DePaul University found that the number of rental households among those earning at least $132,000 a year nearly doubled, while those earning $80,000 to $132,000 saw the number of renting households increase by just over 50%. Chicago has a booming supply of high-end rentals, especially luxury apartments downtown. Home prices in the Chicago area are low compared to regional income.

Yet economic uncertainty and shifts in the employment market are leaving many who want to live in a single-family home unable to afford to buy one. This is causing many to rent single-family homes instead. Crain’s last year's April report found that the hottest areas for detached single-family homes were in Calumet Heights, Gage Park, and West Ridge. However, home prices are low compared to rents almost everywhere in the Chicago metropolitan area.

The workforce in Chicago is shifting from high-paying but slow-to-no growth manufacturing jobs to lower-paying and less stable retail, business services, and healthcare jobs. This is causing many who would have been able to afford a middle-class home to rent apartments instead. Crain’s last year's April report stated that the hottest Chicago markets for condos and townhomes were Grand Boulevard, Kenwood, and Lincoln Square.

Chicago Rental Prices Trends

As of May 2023, the average rent for a 1-bedroom apartment in Chicago, IL is currently $1,995. This is a 5% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Chicago increased by 5% to $1,450. The average rent for a 1-bedroom apartment increased by 11% to $1,995, and the average rent for a 2-bedroom apartment increased by 9% to $2,400.

53% of the households in Chicago, IL are renter-occupied while 48% are owner-occupied. The most expensive neighborhoods in Chicago are River West, Streeterville, and River North. Some of the most affordable neighborhoods in Chicago are South Shore, where the average rent can go for $950/month, Woodlawn, where the average rent can go for $995/month, and Rogers Park, where the average rent can go for $1,250/month.

On the other hand, the most expensive neighborhoods in Chicago are Near North Side, where the average rent can go for $2,436/month, Loop, where the average rent can go for $2,250/month, and West Town, where the average rent can go for $2,050/month. According to the report, the most popular neighborhoods in Chicago are Near North Side, where there are 1,350 listings, followed by Lakeview, where there are 968 listings, and Loop, where there are 678 listings.

Chicago Real Estate Prices Are Reasonable

Because households at all income levels choose to rent instead of buy, they are reducing demand for houses for sale, slowing the rise in home prices. This also explains why housing prices haven’t skyrocketed despite the limited supply. Chicago’s inventory of homes for sale is very tight. Both attached and detached single-family home inventory has been declining since 2012.

At the end of 2017, potential buyers in Chicago had about five thousand fewer properties on the market to select from than if they’d been shopping at the end of 2016. This contributed to homes closing five days faster than the year before. If you start shopping for rental real estate, you could find something and rent it out.

Chicago’s real estate market has been one of the slowest to recover since the housing bubble burst at the start of the Great Recession. Home prices were 19% below their pre-crash levels in 2017, and they aren’t expected to hit peak values yet. This means that the Chicago real estate market is likely going to continue its slow, upward market trend.

Chicago Rehabbed Homes Are Readily Available

Chicago is seeing a surge in fully renovated single-family homes. The Chicago Association of Realtors’ data found that most of the strong suburbs are on the south side of Chicago, and this is where many homes are being rehabbed and sold. Calumet Heights is in this category; a quarter of properties sold were either rehabbed or candidates for rehabilitation. These properties are ideal for investors who want to buy a property to rent out.

Chicago's Job Growth Keeps People Coming

Chicago is not only home to several corporate headquarters; there has been a recent trend of companies moving their headquarters to Chicago as well. The steady increase in jobs has contributed to a slow but steady increase in rents. Many businesses are attracted by Chicago’s labor pool, the largest in the nation. As these businesses move into the area and attract relocating professionals, many are forced to rent because they can’t find houses fast enough in the areas they want to live in or simply choose to rent upon relocation in one of the luxury apartments downtown.

The Chicago metropolitan area is made up of four metropolitan divisions—separately identifiable employment centers within the larger metropolitan area. The current economic uncertainty and inflation keep many who can afford to buy a home renting. It also keeps the rental market itself strong, since many want to remain free to follow their jobs as required.

Where to Invest in Chicago Real Estate Market?

In Chicago, arts and culture abound at top institutions like The Art Institute. Although the winters can test anyone's resolve, Chicago summers are among the best in the world, with things to do every weekend, outdoor festivals, and Lake Michigan at your doorstep. Chicago has an incredibly deep pool of potential renters at all levels of the market. Several factors guarantee that they’re not going to turn into new home buyers any time soon.

Chicago real estate market is a prime destination for investors who would like to buy where the ROI is going to be high and likely to improve over time. It won't be long before Chicago makes you feel right at home. Good cash flow from Chicago rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Chicago in a growing neighborhood would be key to your success.

When looking for the best real estate investments in Chicago, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If the housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Chicago might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

There are 76 neighborhoods in Chicago. Lincoln Park has a median listing price of $649.9K, making it the most expensive neighborhood. Auburn Gresham is the most affordable neighborhood, with a median listing price of $189.9K (on Realtor.com).

Some of the popular neighborhoods in Chicago, Illinois are Near North Side, Lakeview, West Town, Andersonville, South Loop, Bronzeville, Norridge, Logan Square, Old Town, Wicker Park, Bridgeport, Irving Park, Norwood Park, Bucktown, West Loop, and Hyde Park.

Chicago's North Side is the city's most densely populated residential section. For $200,000 price, you can purchase properties with one or two bedrooms and one or two baths. Chicago's West Side is home to the University of Illinois at Chicago. With a $200,000 budget, you can buy condos that typically offer one to two bedrooms and one or two baths.

You can buy Chicago investment properties in the Pilsen neighborhood. Pilsen is a great area for those who want a diverse portfolio of investment properties without having to run all over the city. Pilsen is located on Chicago’s Lower West Side. It features a mix of condos, apartment buildings, and single-family homes. The area is suburban enough to attract families. Its schools are a C+, which is close to the Chicago average. Parks and other amenities explain why Niche.com gave the area a B- for families.

CHECK OUT → Some Good Neighborhoods in Chicago Where You Can Buy Investment Properties.

Humboldt Park is another good neighborhood to buy investment properties in Chicago. The home prices in Humboldt Park peaked in 2006 but fell dramatically during the Great Recession. Home prices here hit a record low in 2012. Humboldt’s housing prices are on the rise again, though they remain below their 2006 peak. The average home price is around 300,000 dollars, while rents are around 1700 dollars a month. The area is notable for the number of foreclosed and distressed properties available to investors, and this helps pull the average rental rate down.

Highest Appreciating Chicago Neighborhoods Since 2000 (By Neighborhoodscout.com)

  1. W Wabansia Ave / N Whipple St
  2. W Cortland St / N Mozart St
  3. W Wabansia Ave / N Francisco Ave
  4. Humboldt Park Northeast
  5. Logan Square East
  6. Palmer Square East
  7. Palmer Square
  8. Logan Square West
  9. Logan Square Northwest
  10. W Cortland St / N Albany Ave

Illinois is in the midwestern United States. Surrounding states are Wisconsin to the north, Iowa and Missouri to the west, Kentucky to the south, and Indiana to the east. Illinois also borders Michigan, but only via a northeastern water boundary in Lake Michigan.

Apart from the Chicago real estate market, you can also invest in the housing market of Indianapolis. The median sales price in Indiana saw a year-over-year increase of 9.7 percent to $170,000. Not surprising is the fact that Indianapolis house prices are also on the rise in the year 2020. Demand is still outpacing the supply, the new construction is slow, and competition for quality homes remains tough.

Like most cities nationwide, Indianapolis has experienced real estate appreciation over the last couple of years. The real estate appreciation rate in Indianapolis in the last quarter was around 0.81%, which amounts to an annual rate of 3.3%. However, it is quite unclear whether the rate of appreciation would remain steady or not due to the short-term effects of the ongoing pandemic.

Economic uncertainty might hold back sales volume for a short period in 2020. Most housing analysts expect Indianapolis house prices to remain flat or drop by a small fraction for the remainder of the year 2020.

If you head towards the west of Illinois, you should consider investing in Kansas City, MO. There is probably no hotter market right now than Kansas City, Missouri. A large, prosperous, self-sufficient, and culturally rich city, it is no wonder why it has seen a continuous rise in its employment, directly impacting the local real estate.

The Kansas City real estate market is very hot and in many ways the envy of housing pundits on both coasts. It is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, Kansas City is now emerging as a growing market for real estate investments.   High demand and low inventory are driving up both home prices and the speed of home sales in the Kansas City Housing Market.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Chicago.

Consult with one of the investment counselors who can help build you a custom portfolio of Chicago turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Chicago.

Not just limited to Chicago or Illinois but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Chicago turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Let us know which real estate markets in the United States you consider best for real estate investing! 


Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. 

REFERENCES

Market Prices, Trends & Forecasts
https://www.illinoisrealtors.org/marketstats/
https://www.zillow.com/chicago-il/home-values
https://www.illinoisrealtors.org/wp-content/uploads/2021/11/Annual_forecast_2022.pdf
https://www.neighborhoodscout.com/il/chicago/real-estate
https://www.realtor.com/realestateandhomes-search/Chicago_IL/overview
https://www.forbes.com/sites/ingowinzer/2016/05/25/should-you-invest-in-chicago-real-estate/#64c07e3c2ad1
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm

Housing Price Forecasts Illinois and Chicago PMSA, August 2020
https://www.illinoisrealtors.org/wp-content/uploads/2020/08/Forecasts_August_2020.pdf

Upper household rental rates
http://www.chicagobusiness.com/realestate/20180411/CRED0701/180419970/more-upper-income-households-renting-in-chicago-area

Housing inventory numbers
http://www.chicagonow.com/getting-real/2018/04/chicago-real-estate-market-worst-home-sales-decline-in-20-months/

2016 to 2017 housing inventory decline data
http://www.chicagotribune.com/business/ct-biz-chicago-home-sales-supply-20180124-story.html

Labor pool stats
https://www.homeunion.com/real-estate-investment-locations/chicago-illinois/

Trump’s Tax Plan Makes Many Reluctant to Buy
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm

Foreclosures
https://www.realtytrac.com/statsandtrends/il/cook-county/chicago/

Crain’s April real estate report
http://www.chicagobusiness.com/realestate/20180419/CRED0701/180419837/heres-where-the-real-estate-market-has-been-hottest-in-2018

Filed Under: Growth Markets, Housing Market Tagged With: Chicago Housing Market, Chicago Housing Market Forecast, Chicago Housing Prices, Chicago Real Estate, Chicago Real Estate Market

Sacramento Housing Market: Prices, Trends, Forecast 2023

May 26, 2023 by Marco Santarelli

Sacramento Housing Market

The Sacramento housing market has been a topic of great interest for homeowners, real estate agents, and investors alike. In this report, we will delve into the latest data and statistics to provide an overview of the market's performance in April 2023. We will examine the median sold price of existing single-family homes, as well as the sales trends in comparison to the previous month and the same period last year.

Median Sold Price of Existing Single-Family Homes:

According to the California Association of Realtors®, the median sold price of existing single-family homes in Sacramento County during April 2023 was $515,000. This represents a 3.0% increase compared to the previous month's median price of $500,000. However, it is essential to note that the median sold price has experienced a year-over-year decline of 9.6%, as the price in April 2022 stood at $570,000.

Sales Trends:

The number of home sales in Sacramento County has seen some fluctuations in recent months. In April 2023, the sales volume dropped by 6.6% compared to March 2023. This decline is indicative of a slowdown in the market activity during this period. Furthermore, when compared to April 2022, there has been a significant decline of 40.4% in home sales.

Price MTM% Chg and Price YTY% Chg:

The month-to-month percentage change in the median sold price shows a positive trend, with a 3.0% increase from March to April 2023. However, the year-over-year percentage change reveals a decline of 9.6%, reflecting the overall downward price movement in the housing market over the past year.

Sales MTM% Chg and Sales YTY% Chg:

The month-to-month sales percentage change demonstrates a decrease of 6.6% from March to April 2023. This decline indicates a slowdown in buyer demand and market activity during this period. Additionally, the year-over-year sales percentage change highlights a significant drop of 40.4%, indicating a notable decrease in sales volume compared to April 2022.

Is Sacramento a Seller's Housing Market in 2023?

The following Sacramento housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded.

Median Listing Home Price and Sale-to-List Price Ratio

As of April 2023, the median listing home price in Sacramento County, CA stands at $540,000, which reflects a -1.8% decrease compared to the previous year. Additionally, the median listing home price per square foot is reported to be $322. However, it's essential to consider the sale-to-list price ratio, which indicates how close homes are selling to their listed prices. In Sacramento County, CA, homes have been selling for approximately the asking price on average, with a sale-to-list price ratio of 100%.

Median Days on the Market

Another crucial factor to examine is the median days on the market, which provides insight into the speed at which homes are being sold. In Sacramento County, CA, homes typically sell after an average of 26 days on the market. It's worth noting that the median days on the market have decreased since the previous month, indicating a trend of faster sales. However, compared to the previous year, the median days on the market have seen a slight increase.

Based on the data and market indicators, it can be concluded that Sacramento County, CA is currently a seller's market in 2023. With a median listing home price of $540,000 and homes selling at the asking price on average, sellers have an advantage in this market. The median days on the market have decreased since the previous month, indicating a trend of faster sales.

However, compared to the previous year, there has been a slight increase in the median days on the market. With a substantial number of homes available for sale and a range of rental options, prospective buyers and renters in Sacramento County have various opportunities to find a suitable property.

Sacramento Single Family Housing Market

Below is the latest monthly report of the Sacramento housing market released by the Sacramento Association of REALTORS®. The report shows key housing metrics of Sacramento County and the City of West Sacramento for April 2023.  The Sacramento housing market for single-family homes in April 2023 saw some interesting trends, with changes in sales volume, sales price, listing inventory, and days on the market.

Sales Volume

In April, there were a total of 850 closed sales, indicating a 6.2% decrease compared to the previous month's figure of 906 sales. However, when compared to April 2022, there was a significant decline of 41.2% in sales volume, with only 850 sales as opposed to 1,464 sales. Of the sales made in April 2023, conventional financing accounted for 65%, while cash and FHA financing both represented 13.2% of the sales.

Sales Price

The median sales price for single-family homes in Sacramento showed a positive trend in April. There was a 2.9% increase in the median sales price, rising from $500,500 to $515,000. However, when compared to April 2022, there was an 8.9% decrease in the median sales price, which stood at $565,500. The median sales price represents the midpoint, with exactly half of the monthly sales above this price and half below it.

Listing Inventory

The number of homes available for sale, also known as listing inventory, experienced a 19.3% increase from March to April, rising from 879 units to 1,049 units. However, in comparison to April 2022, there was a decline of 21.8% in inventory, which stood at 1,342 units. The Months of Inventory, a metric indicating the time it would take to deplete the active listing inventory at the current sales rate, increased from 1 month to 1.2 months.

Days on Market

The median Days on Market (DOM) metric provides insights into how quickly homes are selling. In April 2023, the median DOM decreased from 16 to 11 days. This indicates that homes were spending less time on the market compared to the previous month. However, when compared to April 2022, there was an increase from 7 DOM to 11 DOM. Of the 850 sales made in April, 72.5% (616) were on the market for 30 days or less, while 81.7% (694) were on the market for 60 days or less.

Sacramento Housing Market Forecast 2023-2024

The Sacramento housing market has experienced fluctuations over the past year, with changes in home values, market forecasts, and key market indicators. Let's explore the current state of the market and the forecast for the near future.

Average Home Values

According to Zillow, as of April 30, 2023, the average home value in the Sacramento-Roseville-Arden-Arcade area is $556,683. This reflects a 5.8% decrease over the past year, indicating a slight decline in home values. It's important to note that these values are based on historical data up to April 30, 2023, and may be subject to change as market conditions evolve.

1-Year Market Forecast

The market forecast for the Sacramento housing market indicates a projected increase of 0.8% in home values over the next year. While there has been a slight decrease in home values in the past year, the forecast suggests a positive trend in the near future. However, it's crucial to consider that market forecasts are estimates based on various factors and may not guarantee precise outcomes.

Market Indicators

Several market indicators provide valuable insights into the Sacramento housing market. The median sale-to-list ratio, as of March 31, 2023, is reported as 0.992. This ratio suggests that, on average, homes in the area sell very close to their listed prices. Additionally, 31.3% of sales in March 2023 were made over the list price, indicating a competitive market environment. Conversely, 53.9% of sales were made under the list price, suggesting that some buyers may have negotiated discounts.

Days to Pending

The median number of days for a home in Sacramento to go pending, as of April 30, 2023, is 12 days. This means that, on average, homes in the area receive offers and enter the pending stage within a relatively short time frame. A low median days to pending metric can indicate a fast-paced market with high buyer demand and limited housing inventory.

The Sacramento housing market has experienced a decline in home values over the past year. However, the market forecast suggests a potential rebound in the near future, with a projected increase in home values. Market indicators such as the sale-to-list ratio and the percentage of sales over or under the list price reflect the competitiveness of the market and the dynamics between buyers and sellers.

Sacramento Real Estate Market Forecast
Credits: Zillow.com

Is Buying a House in Sacramento a Good Investment?

Should you consider Sacramento real estate investment? Now that you know where Sacramento is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Sacramento is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

Let’s talk a bit about Sacramento. Sacramento is the capital of California, though many mistakenly think it is L.A. or another larger city. Sacramento is a minimally walkable city in Sacramento County with a population of approximately just over half a million people. It is overshadowed by bigger, glitzier cities like San Francisco or Los Angeles. When you take suburbs like Yuba City, Truckee, Roseville, and South Lake Tahoe into account, the Sacramento real estate market contains around two million people. However, size isn’t reason enough to invest in any real estate market.

The rise and fall of Detroit and the current decline of other rust belt cities are testaments to this. The city of Sacramento has a mixture of owners and renters, with 47.12% owning and 52.88% renting. According to Neigborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Sacramento. Other types of housing that are prevalent in Sacramento include duplexes, rowhouses, and homes converted to apartments. Sacramento has more renter-occupied housing accounts as compared to owner-occupied.

Single-family detached homes account for roughly 60% of Sacramento's housing units. Looking back in 2018 about 2,400 new dwelling units were built in Sacramento, most of them being single-family detached homes. That’s even more than San Francisco, a city of nearly 900,000 people where new towers have altered the skyline. Overall, neither Sacramento nor California produced nearly the same amount of new housing that occurred during the state’s big building boom more than a decade ago, when home construction in Sacramento peaked at 4,000 new units, city officials said.

Although this article alone is not a comprehensive source to make a final investment decision for Sacramento, we have collected evidence-based positive things for those who are keen to invest in the Sacramento real estate market. Let’s take a look at the number of positive things going on in the Sacramento real estate market which can help investors who are keen to buy an investment property in this city.

Sacramento is a Healthy Housing Market

Sacramento had several thousand people move in there in 2017. Between people relocating here from overheated housing markets and demographic momentum, it saw 1.4 percent growth in 2017 and 2018. This gives the Sacramento housing market a source of slowly increasing demand and rising property values. Yet the area isn’t experiencing a bubble that will burst down the line.

The area also has a steady enough job market that it isn’t experiencing population loss like the San Joaquin Valley due to environmental crackdowns on agriculture or the risk of a collapse like San Francisco’s tech bubble may see. This is why SmartAsset ranked the city as the third healthiest housing market in the state.

For those considering Sacramento real estate investment, median rents of around 1700 dollars a month in Sacramento don’t sound as appealing as the 4000 dollars a month in San Francisco and 3400 dollars a month in San Jose. However, Sacramento is more landlord-friendly than some of the alternatives. For example, the Sacramento housing market isn’t burdened by local rent control laws, though the state government is considering imposing it on the whole state.

A side benefit of the relatively affordable Sacramento real estate market and increasing demand is that any Sacramento real estate investment will see significant appreciation. For example, the average rental rates in the Sacramento housing market went up nearly 9 percent year over year in 2018. That was the greatest increase for any American metro area.

Among all the nation's largest metros, the Sacramento metro area is predicted to have the highest sales and price growth in 2021. Therefore, with the affordable entry price of homes, high appreciation, and growing rent prices, real estate investors in Sacramento can enjoy positive cash flow and nice profits in the long term.

Sacramento's Cost of Living & Quality of Life

Sacramento may not offer the $200,000 salaries of tech startups, but it doesn’t cost you more than a million dollars to buy a modest bungalow, either. Sacramento’s cost of living is much cheaper than the California coast just 75 miles away. That’s why the Sacramento real estate market being 50 percent higher than that national average is irrelevant – it is the sizzling home prices in the Bay Area that make people move here for the relative bargains. The 20 percent higher cost of living is a bargain, too, compared to the California coast.

Sacramento offers a better quality of life than the larger cities it is becoming a suburb of. We’ll ignore the fact you’re far closer to Lake Tahoe because any home in the Sacramento housing market puts you in easy reach of the outdoors. The area offers white water rafting, hot air balloons, mountain biking, fishing, and nature walks. You don’t have to buy a luxury property in the Sacramento real estate market to enjoy beautiful views or live near open spaces.

The area had its great cuisine and entertainment options before the influx of Silicon Valley types, but a livelier night scene is forming, too. A side benefit of the more affordable Sacramento housing market is that homelessness is almost nonexistent in Sacramento. You certainly don’t need a poop-reporting app to avoid the attendant health hazards while you go on your morning run.

One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in cities, but Sacramento has a much lower violent crime rate. People are more concerned about being mugged, raped, or murdered than having their car broken into.

The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles. When you ignore people shooting up in public and won’t punish violent panhandlers, your official crime rate is lower but that doesn’t make it better. Sacramento seeks to maintain order, public health, and safety to make it a safer place to live.

Sacramento is Bucking the Bad Trends Plaguing California

California is seeing overall population growth, but it isn’t healthy. Native-born Americans are fleeing the state for Oregon, Nevada, Arizona, and Idaho. They’re replaced by lower-skilled, lower-paid legal and illegal immigrants. This hollows out the middle class of the state while contributing to sky-high poverty rates. Sacramento is a stark contrast to these unhealthy trends. It is receiving an influx of middle-class and working-class people from around the state who don’t want to leave California.

This is why Sacramento ranked number one in the state for one-way U-Haul trips in 2018. This makes the Sacramento real estate market much healthier since it contains a true income mix. It also allows Sacramento real estate investment investors more options than luxury homes and densely packed affordable units, the only types of housing you see built in San Francisco.

People are willing to commute 90 minutes to San Francisco each way to get those Silicon Valley paychecks, though they don’t want to pay SF prices for a property. This is increasing the value of homes on the western side of the Sacramento real estate market since they’ve become a de facto suburb of the Bay Area.

While Yolo County is a rapidly developing suburb of San Francisco, the eastern side of the Sacramento metro area contains large tracts of agricultural land. The Central Valley is one of the most productive agricultural areas in the United States. This means that Sacramento's real estate investment opportunities include agricultural land and former farmland that is open to new development.

Sacramento's Diverse Job Market Is a Plus for Residents

San Francisco suffered a decline in the early 2000s when the first internet bubble burst. Fears of regulation and anti-trust action against Big Tech firms could cause the San Francisco area to suffer a second major decline because they’re so dependent on high tech to bolster the real estate market. Sacramento does have several high-tech jobs, many of them small firms that relocated to the area for its lower cost of living and doing business.

The government is the largest employer, and it is a stable one at that. Healthcare and construction are major employers, as well. This gives Sacramento a more stable job market in addition to low unemployment rates. Tourism and the service sector is a growing contributor, too, as people move here for the lower cost of living and have more money to spend on luxuries like going out. This contributes to the improving quality of life that will keep the Sacramento real estate market going strong.

Sacramento Rent Prices

Sacramento was on the nation’s top 10 list of rent increases in 2020. More people are moving out of big cities and heading toward surrounding areas, like Sacramento. The transition is driving rental prices up in counties like Sacramento, while rent in areas like San Francisco is going down. There is not a whole bunch of rental property inventory out there, which is driving the prices up.

As of May 2023, the average rent for a 1-bedroom apartment in Sacramento, CA is currently $1,595. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Sacramento increased by 3% to $1,500. The average rent for a 1-bedroom apartment increased by 1% to $1,595, and the average rent for a 2-bedroom apartment increased by 1% to $1,895.

The Diverse Sacramento Rental Market Is a Plus for Investors

If you’re considering Sacramento real estate investment, the diverse rental market is a definite plus. Being a state capital, it is home to several universities. This allows you to rent to the relatively large student market in addition to the local population. There is, of course, the University of California campus in Sacramento, but you could own investment properties by American River College and other, smaller schools in the area, too. Around 50% of households are renter-occupied.

Best Neighborhoods in Sacramento to Buy a House

In any property investment, cash flow is gold. California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. Sacramento is an island of sanity in an overpriced, over-regulated, and overheated West Coast housing market.

It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas. These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.

The city remains a choice landing spot for coastal emigres tired of skyrocketing housing costs and long commutes. Sacramento is also a fast-growing city with a flourishing real estate market. Continuously developing economy, employment, and a better quality of life offer a lot of opportunities for real estate investors in Sacramento to purchase single-family homes as investment properties.

Good cash flow from Sacramento investment property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Sacramento in a growing neighborhood would be key to your success. If you invest wisely in Sacramento real estate, you could secure your future.

The less expensive the Sacramento investment property is, the lower your ongoing expenses will be. When looking for the best real estate investments in Sacramento, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Sacramento might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

Sacramento home prices are some of the most expensive in all of the United States. There are 89 neighborhoods in Sacramento. Midtown has a median listing price of $838.9K, making it the most expensive neighborhood. Hagginwood is the most affordable neighborhood, with a median listing price of $278K (Realtor.com).

Some of the most popular neighborhoods in Sacramento, California are Florin, East Sacramento, Midtown, Meadowview, Natomas Crossing, Arden-Arcade, North Sacramento, Elmhurst, East Sacramento, Tahoe Park, North Highlands, Natomas Park, Hollywood Park, Rancho Cordova, and South Land Park.

Elmhurst, Land Park, and Upper Land Park are some of the top neighborhoods in Sacramento to buy investment properties. These are quite affordable neighborhoods with a low entry price of homes, high cash-on-cash returns, and a positive appreciation forecast for the coming years. According to Zillow, Elmhurst home values have gone down 0.2% over the past year. Typical Home Value is $616,096 (Data through September 30, 2022).

According to Realtor.com Market Hotness Index, Elmhurst, Sacramento, CA is VERY HOT at the moment. It ranks in the top 11% of neighborhoods in the area and the top 28% in the U.S. Homes sell 5 days slower and are 23% less popular than homes in the surrounding area. In October 2022, the median list price of homes in Elmhurst was $580K, trending down 13.4% year-over-year. The median sale price was $580K. It is a seller's market.

Land Park, Sacramento, CA is also VERY HOT. It ranks in the top 3% of neighborhoods in the area and the top 13% in the U.S. Homes sell 4 days faster and are 116% more popular than homes in the surrounding area. In October 2022, the median list price of homes in Land Park was $749.9K on Realtor.com, trending up 7.3% year-over-year. The median sale price was $750K. It is a seller's market.

Upper Land Park is a neighborhood in the more general Land Park area of Sacramento, California. The real estate is primarily made up of small (studio to two bedrooms) to medium-sized (three or four bedrooms) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is occupied by a mixture of owners and renters.

Upper Land Park, Sacramento, CA is also VERY HOT at the moment. It ranks in the top 3% of neighborhoods in the area and the top 13% in the U.S. It is a seller's market. The housing supply is very tight compared to the demand for property here. In October 2022, the median listing home price in Upper Land Park was $529K, trending up 2.7% year-over-year. The median home sold price was $493.7K.

Top 10 Sacramento Neighborhoods Where Real Estate Is Going Up

Here are the ten neighborhoods in Sacramento having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. Central Oak Park
  2. Woodlake
  3. South Hagginwood
  4. Norwood I-80
  5. Youngs Heights
  6. Central Oak Park East
  7. Midtown Winn Park Capital Avenue North
  8. Boulevard Park
  9. Old Sacramento
  10. Glen Elder North

We recommend taking the help of the local real estate agents to find neighborhoods with an affordable entry prices of homes, high appreciation forecasts, and growing rent prices so that as an investor you can enjoy positive cash flow and nice profits. Apart from Sacramento, you can also invest in many other real estate markets in California. California's real estate market is the focus of many U.S. and foreign real estate investors.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your turnkey investment properties.

Not just limited to Sacramento or California but you can also invest in some of the hottest real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience with our team to see if Sacramento makes sense as a place to invest today.

We can help build you a custom portfolio of turnkey properties located in some of the best markets in the United States. By researching and structuring complete turnkey real estate investments, we can help you succeed by minimizing risk and maximizing profitability.


This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments makes no express or implied representations, warranties, or guarantees that the information is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. Buying a rental property requires research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.

References

Market Data, Reports & Forecasts
https://www.sacrealtor.org/
https://www.sacrealtor.org/consumers/housing-statistics
https://www.zillow.com/sacramento-ca/home-values
https://www.littlebighomes.com/real-estate-sacramento.html
https://www.neighborhoodscout.com/ca/sacramento/real-estate
https://www.sacbee.com/news/coronavirus/article243805667.html
https://www.realtor.com/realestateandhomes-search/Sacramento_CA/overview

Foreclosures
https://www.realtytrac.com/statsandtrends/ca/sacramento-county/sacramento

Best Neighborhoods
https://www.homeunion.com/sacramento-ca/
https://www.neighborhoodscout.com/ca/sacramento/real-estate

Top Reasons to Invest in Sacramento
https://en.wikipedia.org/wiki/California_locations_by_crime_rate
https://realestate.usnews.com/places/california/sacramento/jobs
https://www.gobankingrates.com/making-money/economy/sacramento-vs-bay-area
https://www.thesandiegocriminallawyer.com/california-cities-most-dangerous.html
https://www.theguardian.com/business/2019/apr/29/big-tech-regulation-facebook-google-amazon
https://www.abc10.com/article/news/local/5-rent-controlled-cities-in-california/103-591256565
https://www.thrillist.com/entertainment/san-francisco/why-sacramento-is-the-new-oakland-sf
https://www.sfgate.com/bayarea/article/SnapCrap-app-San-Francisco-poop-feces-dirty-street-13281837.php
https://www.sfgate.com/expensive-san-francisco/article/uhaul-sacramento-san-francisco-moving-exodus-13509219.php
https://www.sfgate.com/expensive-san-francisco/article/sacramento-move-grass-is-greener-tips-bay-area-13164238.php
https://www.technologyreview.com/s/613628/big-tech-breakup-regulation-antitrust-apple-amazon-google-facebook-doj-ftc-policy

Rental Market Trends
https://www.rentjungle.com/average-rent-in-sacramento-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/ca/sacramento/

Filed Under: Growth Markets, Housing Market, Real Estate Investing

Columbus Real Estate Market: Prices, Trends, Forecast 2023

May 25, 2023 by Marco Santarelli

Columbus Housing Market

We will discuss the latest Columbus Ohio real estate market trends & news and find out how they can affect investors and homebuyers in 2023. Columbus is a slowly and steadily growing real estate market that will be thriving well into the foreseeable future. The real estate statistics in Columbus show us that while construction is increasing, inventory is still scarce because of increasing demand. This is leading to a steady year-over-year increase in Columbus house prices.

March signifies the start of Spring, and the central Ohio housing market saw a significant uptick month over month. As we head into the peak season for buying and selling in central Ohio, the market continues to present challenges and opportunities. Rising home prices, limited inventory, and increased competitiveness create a dynamic environment for buyers and sellers. Let’s continue to explore the Central Ohio housing market to understand the latest trends, according to the Columbus REALTORS®.

Increase in Closings and Average Sale Price

In March, there were 2,304 closings, marking a substantial increase from the 1,728 closed sales in February—a month-to-month growth of 33 percent. This surge in activity is an encouraging sign for the central Ohio housing market. Additionally, the average sale price experienced a notable increase, reaching $328,769, compared to $318,826 in March of the previous year.

Columbus Ranks High on Hottest Housing Markets List

Columbus made a noteworthy move on the Realtor.com Top 20 Hottest Housing Markets list, climbing from fifth place in February to fourth in March. This ranking is determined by market demand, measured by unique views per property on Realtor.com, and the pace of the market, measured by the number of days a listing remains active. This rise in position reflects the strong interest and activity in the Columbus housing market.

Yearly Comparison

When comparing March 2023 to the same period the previous year, there was a 5.2 percent decrease in closed sales. However, the average sale price demonstrated a positive trend, increasing by 3.1 percent to over $10,000 compared to the previous year.

Affordability and Cost of Living

Despite rising prices, Columbus remains one of the most affordable metros in the U.S. According to the Bankrate.com Cost of Living Comparison Calculator, living in Columbus is significantly more affordable than in other cities such as Seattle, Denver, and Washington, D.C. This affordability factor contributes to the appeal of the central Ohio housing market.

Increasing Competitiveness and Faster Sales

For the past couple of years, central Ohio homebuyers have become accustomed to homes selling slightly over the asking price. Last year, the percentage of the last list price received was 103.5%, and this month the average is back over asking at 100.3%. Homes are selling faster, with 72.6 percent of homes sold in 30 days or less in March. On average, homes last 34 days on the market, but in some of central Ohio's hottest suburbs, such as Westerville City School District and Dublin (Corp.), homes were sold in as little as 10 to 16 days.

Decrease in New Listings and Total Inventory

The competition in the central Ohio housing market remains fierce, primarily due to a decrease in the number of new listings. In March, there were 2,630 new listings, representing a 20 percent drop compared to the previous year. The current total inventory stands at 2,322 homes in central Ohio. This limited inventory poses a challenge for buyers, emphasizing the need for swift action in this market.

Standout Performances in School Districts

Certain school districts in central Ohio experienced exceptional performance in March. The South-Western Consolidated School District in Grove City saw 151 closed sales with an average sales price of $310,138, representing a 13.4 percent increase compared to the previous year. The Olentangy Local School District in Delaware County recorded 111 closings with an average sale price of $584,123, marking a 10.1 percent increase.

Is Columbus Ohio a Seller's Real Estate Market in 2023?

The following housing market trends are based on single-family, condo, and townhome properties listed for sale in Columbus on Realtor.com. Land, multi-unit, and other property types are excluded. Columbus, Ohio, offers a thriving real estate market with a wide range of neighborhoods to suit various lifestyles. Whether you're looking to buy or rent a home, this city has plenty to offer.

Real Estate Highlights in Columbus, OH:

Columbus, OH, boasts a dynamic real estate market with a range of options. With 2,113 homes for sale in 204 neighborhoods on Realtor.com, Columbus offers a variety of choices for prospective buyers. Home prices have a median listing price of $279.9K. In April 2023, Columbus saw a 5.6% year-over-year increase in median listing home prices. The median listing home price per square foot was $182, and the median sold home price was $269K.

According to the information provided, Columbus, OH, is described as a seller's market. It states that there are more people looking to buy homes than there are homes available, indicating a higher demand for properties. Additionally, it mentions that homes in Columbus, OH, sold for approximately the asking price on average in April 2023.

These factors suggest that sellers have an advantage in the current real estate market in Columbus, OH. On average, homes in Columbus sell after 20 days on the market. The trend for median days on the market has decreased compared to the previous month and slightly increased compared to the previous year.

Trends to Watch Out For in 2023

The Columbus housing market is expected to continue to grow in 2023, with new construction and expansion projects underway. The construction of Intel’s “Ohio One” semiconductor campus in Licking County is expected to drive housing demand in nearby areas. As a result, housing inventory in towns like Pataskala is likely to remain low, driving up home prices.

Additionally, more buyers are venturing outside of the I-270 loop to find their dream homes, according to the Columbus REALTORS®. Overall, the Columbus housing market shows promising trends in 2023, with an increase in home prices and new construction projects driving demand.

Columbus Ohio Real Estate Market Forecast 2023-2024

The Columbus real estate market has been experiencing steady growth over the past year. According to Zillow, as of April 30, 2023, the average home value in Columbus stands at $240,398, reflecting a 4.7% increase compared to the previous year. This upward trend indicates a positive appreciation in home values, making it an attractive market for homeowners and investors.

One notable aspect of the Columbus real estate market is the speed at which homes are going pending. On average, homes in Columbus go pending in approximately 4 days, indicating a high demand for properties. This fast-paced market suggests that buyers need to act quickly when they find a desirable property.

Key statistics reveal further insights into the Columbus real estate market:

  • Median Sale to List Ratio: As of March 31, 2023, the median sale-to-list ratio in Columbus is 0.998. This indicates that, on average, homes are selling very close to their listing price, further emphasizing the competitive nature of the market.
  • Sales Over List Price: Approximately 39.2% of sales in Columbus are happening over the list price, suggesting a strong buyer demand and potential bidding wars for desirable properties.
  • Sales Under List Price: Around 43.0% of sales in Columbus are occurring under the list price. This indicates that while there are instances of homes selling above the asking price, there are still opportunities for buyers to negotiate and find deals below the list price.
  • Median Days to Pending: The median days to pending, as of April 30, 2023, is 4 days. This short time frame highlights the quick pace at which properties are being snatched up by eager buyers.

Columbus MSA Forecast for 2024:

Looking ahead to the Columbus Metropolitan Statistical Area (MSA) forecast for 2024, the projected growth rate indicates a continued positive trajectory for the real estate market. Based on the provided data, the forecast suggests the following changes in the Columbus MSA:

  • May 31, 2023: Projected growth rate of 0.6%
  • July 31, 2023: Projected growth rate of 1.3%
  • April 30, 2024: Projected growth rate of 5.5%

These figures suggest that the Columbus MSA is expected to experience significant growth over the next year, further strengthening the real estate market. This forecast indicates a favorable environment for homeowners and investors, with the potential for continued appreciation in property values.

Columbus Ohio Real Estate Market Forecast
Source: Zillow

Columbus Real Estate Investment Overview?

Columbus, Ohio, is one of the fastest-growing cities in the Midwest, with a population of over 900,000. The city's real estate market has been on an upward trajectory in recent years, with home prices and rental rates rising steadily. This makes it an attractive destination for real estate investors looking for a stable and profitable investment.

Investing in Columbus real estate offers a wide range of opportunities, from single-family homes to multi-unit apartment complexes. The city's diverse economy, low unemployment rate, and growing population make it a promising market for rental properties. According to Zillow, the median home value in Columbus is $227,481, up 8.9% over the past year. This suggests that property values are on an upward trend, which can be advantageous for investors seeking long-term appreciation.

One key advantage of investing in Columbus real estate is the affordability of properties compared to other major cities. While coastal markets like New York and San Francisco may have higher appreciation rates, they also have significantly higher price tags, making it difficult for many investors to enter the market. In contrast, Columbus offers relatively affordable properties with solid returns on investment.

Another factor that makes Columbus an attractive real estate investment destination is the city's growing job market. The unemployment rate in Columbus is consistently below the national average, with a diverse economy that includes sectors like healthcare, education, and technology. This means there is a steady demand for rental properties from young professionals and families who are moving to the city to take advantage of job opportunities.

The Columbus real estate market is also attractive to investors due to the city's robust infrastructure and transportation network. The city has a well-developed public transportation system, including buses, light rail, and bike-sharing programs, making it easy for residents to get around without a car. Additionally, the city is home to Port Columbus International Airport, which provides direct flights to many major U.S. cities.

When considering investing in Columbus real estate, it's essential to note that the market can vary significantly from neighborhood to neighborhood. For example, the median home value in Italian Village is $397,113, while in Milo-Grogan, it is $114,460. Therefore, it's essential to research individual neighborhoods and consult with a local real estate agent who has a deep understanding of the market.

In summary, Columbus offers a promising real estate investment opportunity, with affordable properties, a strong job market, and a growing population. While the market can vary by neighborhood, investing in Columbus real estate offers the potential for solid returns on investment in both the short and long term.

Top Reasons to Invest in Columbus Real Estate Market for the Long Term

Investing in real estate can be a lucrative long-term strategy, but it's important to choose the right market. Columbus, Ohio, is a city that is increasingly becoming popular among real estate investors. Here are the top six reasons to consider investing in Columbus real estate market for the long term:

  • Strong Job Market: Columbus has a diverse economy and a strong job market. The city is home to several Fortune 500 companies, including Nationwide Insurance, American Electric Power, and Huntington Bancshares. The city also boasts a thriving technology sector, with companies like IBM and JPMorgan Chase had a significant presence in the area. With a low unemployment rate and a growing economy, Columbus is an attractive location for those looking to invest in real estate.
  • Growing Population: Columbus has experienced steady population growth over the past decade, making it one of the fastest-growing cities in the United States. This growth is expected to continue in the coming years, with estimates suggesting that the population will increase by 10% by 2030. A growing population means an increased demand for housing, which can translate to higher rental yields and property values.
  • Affordable Housing Market: Despite its strong job market and growing population, Columbus remains an affordable housing market, especially when compared to other major cities. The median home price in Columbus is currently around $227,481, which is significantly lower than in other cities like New York, San Francisco, or Los Angeles. This makes Columbus an attractive option for real estate investors looking to get in on the ground floor of an emerging market.
  • Strong Rental Market: Columbus has a strong rental market, with rental demand consistently outpacing supply. This has resulted in a relatively low vacancy rate, which has been hovering around 5% for the past few years. The strong rental market is good news for real estate investors, as it means they are likely to find tenants quickly and keep their properties occupied for longer periods. As of March 2023, the average rent for a 1-bedroom apartment in Columbus, OH is currently $975. This is an 8% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Columbus remained flat. The average rent for a 1-bedroom apartment increased by 2% to $975, and the average rent for a 2-bedroom apartment remained flat.
  • Favorable Tax Climate: Ohio has a relatively low tax burden compared to other states, making it an attractive location for real estate investors. Property taxes in Columbus are also relatively low compared to other major cities, which can help investors keep their expenses down and their profits up.
  • Thriving Arts and Culture Scene: Columbus has a vibrant arts and culture scene, with several museums, theaters, and galleries located in the city. The city also hosts several festivals throughout the year, including the Columbus Arts Festival and the Ohio State Fair. This cultural richness attracts more people to the city and makes it an even more attractive place to live, work, and invest in real estate.

Therefore, Columbus, Ohio, offers a combination of strong economic fundamentals, affordable housing, and a thriving rental market, making it an attractive option for real estate investors looking to make long-term investments. As with any real estate purchase, act wisely. Evaluate the specifics of the Columbus housing market at the time you intend to purchase.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Columbus.

Consult with one of the investment counselors who can help build you a custom portfolio of Columbus turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Columbus.

Not just limited to Columbus or Ohio but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Columbus turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

There are many other markets in the state of Ohio for real estate investing. Cincinnati is one of them. The Cincinnati real estate market is on the upswing and looking strong for the foreseeable future. It provides many opportunities for investors, regardless of the market you want to invest in. It is growing faster than the nation as a whole, though this is partially due to its recovery from a low point during the Great Recession. It is recovering home values and growth in cheap markets can yield the greatest ROI.

Cleveland is another good market to invest in real estate. Cleveland is a notable exception to the decline of the Rust Belt cities. It has managed to reinvent itself, shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.

Let us know which real estate markets you consider best for real estate investing! 


Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

Sources:

  • https://www.columbusrealtors.com/housing-reports
  • https://www.zillow.com/Columbus-oh/home-values
  • https://www.neighborhoodscout.com/oh/columbus/real-estate
  • https://www.realtor.com/realestateandhomes-search/Columbus_OH/overview

Filed Under: Growth Markets, Housing Market, Real Estate Investing

Los Angeles Housing Market: Prices, Trends, Forecast 2023

May 25, 2023 by Marco Santarelli

Los Angeles Housing Market

The Los Angeles housing market has been closely watched by real estate professionals and potential buyers alike, as it is one of the most active and competitive markets in the United States. In this report, we will take a closer look at the current state of the Los Angeles housing market, including prices, trends, and forecasts for the rest of 2023. We will analyze the latest data on median home prices, sales volume, and inventory levels to provide insights into what buyers and sellers can expect in the months ahead.

In April 2023, the median home price in Los Angeles County dropped 7.9% from the previous year but rose 2.8% from the previous month.

  • Los Angeles County's median home price in April 2023 was $738,520.
  • The median home price in March 2023 was $718,370.
  • Last year, in April, the median home price was $801,680.

The decline in home prices is due to higher mortgage rates that have caused a decrease in closed sales in the region. However, the supply of inventory remains low, with only 2.6 months of supply left. This suggests that the housing market will continue to experience upward pressure on home prices in the coming months. Despite the drop in prices, the Los Angeles County housing market still holds potential for real estate investors looking to invest in the region.

C.A.R.’s resale report for April shows that at the regional level, all regions in California continued to record annual sales declines of more than 35 percent. The Central Coast witnessed the steepest drop at -42.8%, closely followed by the Far North with a decline of 41.8%. The San Francisco Bay Area, Southern California, and the Central Valley also saw substantial decreases, falling by -38.5%, -37.4%, and -36.7% respectively.

The Los Angeles Metro Area posted a decline of -37.5% year-over-year in sales of existing single-family homes. The median home price in the Los Angeles metropolitan region was $740,000, a decline of 7.5% compared to April 2022. However, it was a rise of 0.7% from the previous month's price of $735,000. These figures reflect a challenging market environment with reduced sales activity and fluctuating prices in the real estate market.

Generally, a balanced market will lie somewhere between four and six months of supply. Inventory is calculated monthly by taking a count of the number of active listings and pending sales on the last day of the month. If an inventory is rising, there is less pressure for home prices to increase. With 2.2 months of supply left, it is still short of what economists say is needed for a balanced market. Hence, the Los Angeles County housing market will continue to see upward pressure on home prices.

  • Months Supply of Inventory (SFH) for Los Angeles County is now 2.6 months.
  • Months Supply of Inventory (SFH) for the Los Angeles Metro Area is 2.6 months.
  • Months Supply of Inventory (SFH) for Southern California is 2.5 months.

Is Los Angeles a Seller's Real Estate Market?

The following Los Angeles housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only.

Los Angeles County, CA is renowned for its thriving real estate market, offering a diverse range of properties to buyers and investors. In April 2023, the housing market in Los Angeles County exhibited several trends and indicators that point towards a seller's market.

Rising Home Prices

In April 2023, the median listing home price in Los Angeles County stood at $930,000, marking a 3.4% increase compared to the previous year. This upward trend in home prices indicates a growing demand for properties and reflects the desirability of the region's real estate market. Buyers should be prepared for the potential of higher price points when exploring properties in Los Angeles County.

Sale-to-List Price Ratio: 100%

One notable aspect of the Los Angeles County housing market is the sale-to-list price ratio, which reached 100% in April 2023. This means that homes, on average, sold for the asking price or very close to it. The fact that buyers were willing to meet sellers' price expectations demonstrates the high demand and competition for available properties. Sellers have been able to secure prices close to their initial listing amounts, highlighting the advantageous position they hold in the current market conditions.

Median Days on Market

The median days on market metric provides insights into the pace at which homes are selling. In Los Angeles County, homes sold after an average of 39 days on the market in April 2023. This figure suggests a relatively fast turnaround time, indicating a high level of buyer activity and interest. Furthermore, the trend for median days on the market in Los Angeles County has been decreasing since the previous month, indicating an even faster pace of sales.

It's worth noting that although the median days on market have slightly increased compared to the previous year, the overall trend still suggests a robust real estate market. Buyers need to act swiftly and be prepared to make competitive offers to secure their desired properties.

Limited Housing Inventory

One of the key factors contributing to the seller's market in Los Angeles County is the limited housing inventory. Currently, there are 19,611 homes available for sale, with 1,982 newly listed within the last week. With more people looking to buy than there are homes available, the market heavily favors sellers. This scarcity of inventory drives competition among buyers and leads to higher prices and faster sales.

Some economists forecast that house prices would tumble in 2023, but few, if any, foresee declines comparable to the Great Recession. In large part, this is due to the fact that foreclosures were mostly responsible for the previous significant decreases. Now, financing criteria are much stricter, and experts say that unless they are forced to, many homeowners prefer not to sell for less than their neighbor did a few months ago.

C.A.R.’s April 2023 resale housing report shows that in Los Angeles County, homes are still moving fast. The median days on market is 22 days. But the sales of existing single-family homes are down 37.6 percent from the previous year. The average sale price to list price ratio in LA was 100.0% in April. In April 2022, it was 104.7% and in March 2023, it was 99.4%.

  • The single-family median price went down by 7.9% YoY to $738,520.
  • In the previous month, the median home price was $718,370.
  • Last year at this time the median home price was $801,680.
  • Single-family sales were down 37.6% YTY and 8.0% MTM.
  • The condo market also showed less buyer turnout.
  • Sales of existing condos were down 43.3% YTY and 6.1% MTM.
  • The median condo price in Los Angele grew slightly by 0.8% YTY to $588,000.
  • It was up by 0.5% from March's price of $585,000.
  • Last year at this time the median condo price in Los Angeles was $626,500.
Los Angeles Housing Market Report
Infographic Courtesy of CALIFORNIA ASSOCIATION OF REALTORS®

Are Home Rents Going Up or Down in Los Angeles?

The Zumper Los Angeles Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. Rents in Los Angeles are higher than the state median rent. The California one bedroom median rent was $2,061 last month. Beverly Hills was the most expensive city with one-bedrooms priced at $3,110 while Twentynine Palms was the most affordable city with one bedrooms priced at $940.

The Fastest Growing Cities in the Los Angeles Metro Area For Rents (Y/Y%)

  • San Bernardino had the fastest growing rent, up 27.1% since this time last year.
  • Torrance saw rent climb 18.1%, making it the second fastest growing.
  • Pasadena ranked as third with rent jumping 14.9%.

The Fastest Growing Cities in Los Angeles Metro Area For Rents (M/M%)

  • Pasadena had the largest monthly rental growth rate, up 6.2%.
  • Beverly Hills rent increased 6.1% last month, making it second.
  • West Hollywood was third with rent climbing 5.9% last month.
Los Angeles Metro Rental Market Trends
Credits: Zumper

Los Angeles Housing Market Forecast 2023-2024

Let us look at the price growth recorded by Zillow, a leading real estate marketplace. The Los Angeles-Long Beach-Anaheim housing market has experienced a slight decline in average home values over the past year, with a decrease of 3.5%. The typical home value in the area is currently $871,613. However, the market is expected to show signs of improvement, with a forecasted 2.5% increase in home values over the next year.

When it comes to the sales process, homes in the Los Angeles area tend to go to pending status relatively quickly, taking around 16 days on average. This indicates a competitive market where desirable properties are in high demand.

In terms of pricing dynamics, the median sale to list ratio stands at 0.994, indicating that homes in Los Angeles are generally selling very close to their listed prices. Additionally, a significant percentage of sales (35.2%) are happening above the list price, showcasing the competitive nature of the market.

On the other hand, 52.4% of sales are occurring under the list price, suggesting that there are still opportunities for buyers to find properties at a lower price point.

Overall, the Los Angeles housing market presents a dynamic landscape with shifting prices and competitive conditions. While there has been a slight decline in home values, the forecasted market outlook suggests a positive trend in the coming year.

Los Angeles Housing Market Forecast
Credits: Zillow.com

Is Los Angeles Housing Market Going to Crash?

Some of housing analysts say that home prices in Los Angeles and Orange counties will fall by the middle single digits in 2023, while home prices in the Inland Empire will fall by the high single digits over the same time period. They anticipate that prices will continue to fall on a regional and national scale in 2024 but at a considerably slower rate, followed by a little increase in 2025.

Do buyers have any advantage? Is it the right time to buy a house in Los Angles? This is a never-ending question with no definitive answer. Buyers believe it is not a very good time to buy a home in Los Angeles due to rising mortgage rates and home prices. On the other hand, it is a good time to sell so you can expect more inventory due to increasing seller optimism.

More houses are expected to be listed in the coming months which may bring down the pace of appreciation to some extent. Affordability is a big issue in Los Angeles County as nearly three in four residents can’t afford to buy a median-priced home in the area. According to HousingWire, an index that combined median income and median home prices made Los Angeles the least affordable city in the country, and several younger residents said they were concerned they will never be able to afford a house. Home shoppers are leaving Los Angeles for cheaper metros, the most popular being Las Vegas.

Is Real Estate a Good Investment in Los Angeles?

Should you consider Los Angeles real estate investment? Many real estate investors have asked themselves if buying a property in Los Angeles is a good investment. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023.

Los Angeles is a moderately walkable city in Los Angeles County. It is home to around four million people. It is the largest city in California and the second-largest in the United States. Los Angeles Metropolitan Area is a 5- region that includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura. The L.A. metropolitan area with over 13 million people rivals New York in population as the largest in the country. However, being a huge real estate market is not reason enough to invest here.

The Los Angeles real estate market is considered one of the premier markets for both investors and homeowners. It is also touted as the nation’s least affordable housing market. If you look in the long-term, it’s always a good investment to buy in Los Angeles. It is said that you will always get your money back or you would make a profit, as Los Angeles has a track record of being a great long-term investment.

How do I Invest in Real Estate in Los Angeles?

According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in Los Angeles. Other types of housing that are prevalent in Los Angeles include single-family detached homes, duplexes, rowhouses, and homes converted to apartments.

Single-family homes account for about 40% of Los Angeles' housing units. In April 2020, the single-family homes posted their biggest percentage gains of the year so far in the Los Angeles metro area. House prices increased by 4.9% in Los Angeles County, 3.7% in Orange County, and 5% in the Inland Empire.

The Los Angeles housing market has been hot for years. In 2018, home prices in Los Angeles reached record heights, climbing to levels far above those recorded in the years leading up to the Great Recession. If we check historical data, in Los Angeles and Orange counties, year-over-year price increases peaked at 8.2% in April 2018 and have declined every month since. In October 2018, home prices in Los Angeles and Orange counties rose 5.5% over the previous year, according to the latest available data from the closely watched S&P CoreLogic Case-Shiller index.

A big factor, according to experts, is that many would-be buyers are increasingly priced out. But real estate agents also say a growing number of people who could buy, like Saavedra, have decided they don’t want to pull the trigger at the top. Home values in Los Angeles are up less than 3 percent since last year. After years of steady escalation, home prices in Los Angeles County are tapering off, according to a new report from CoreLogic.

They find that Los Angeles county’s median home price was $579,500 in January, down slightly from December’s median price of $581,500. That’s a 2.6 percent increase over the same time last year. By this comparison, prices shot up nearly 8 percent between January 2017 and January 2018. Prices continued to rise through much of 2018 but began to drop heading into Q4 2018. In Q4 2019, home prices were still slightly higher than a year earlier, but the spread has narrowed.

2018’s FRM interest rate increase decreased the principal amount homebuyers can borrow while making the same sustainable mortgage payment. The National Association of Home Builders and Wells Fargo Housing Opportunity Index have given the title of least affordable housing market to Los Angeles. In Los Angeles-Long Beach-Glendale region, only 11.3% of homes sold during the fourth quarter of 2019 were affordable to families earning the area’s median income of $73,100.

The 2020 pandemic had its impact on the market bringing down the rent prices while houisng prices reached record highs. Los Angeles real estate market isn’t the most affordable in the country, but it’s a market with ample investment opportunities for those who can afford the median price of over 700K.

However, this number doesn't apply to every part of the Los Angeles real estate market. There are some neighborhoods where prices are much cheaper and completion between buyers is much lesser. The high rate of appreciation has not prevented real estate investors from realizing a great return on investment. Instead of flipping rehabs, you should consider investing in rental properties.

Let’s find some factors that make LA a good place to invest for wealthy investors. We’ll address the biggest factor pulling people to the Los Angeles housing market next. In this section, we're not taking into account the short-term impact of the pandemic on the economy and housing market.

Los Angeles Hidden Real Estate Deals

Distressed sellers exist in every real estate market. If you do find an ideal property in the Los Angeles housing market, the increased selection of properties means you’re far less likely to end up in a bidding war. If you’re looking for other great deals, check out Vermont Vista, Hyde Park, Wilmington, and Cypress Park, where the asking prices are below the Los Angeles median price. In December 2020, the median list price of homes in Vermont Vista was $580K while the median sale price was $566K.

Foreclosures can be a great way to snap up Los Angeles real estate at a bargain price. Foreclosure rates, though, vary wildly. Note that for every home in foreclosure with the bank, there is probably another that is approaching that point and would be sold at a discount by a distressed seller who wants to avoid foreclosure. In distressed neighborhoods, fix and flip may be an option. So is buying Los Angeles real estate cheap and renting it out in a market starving for affordable rental units?

Single-Family Rental vs Multi-Family Investment

Years of appreciation have led Los Angeles real estate investors to favor rentals over flipping. This market favors rental property owners. In the city of Los Angeles alone, renters live in more than 600,000 apartments spread across 118,000 properties, according to the city’s Housing and Community Investment Department. In late 2019, California became the second state (after Oregon) to pass a statewide rent control law. It covers all multi-family rental units built more than 15 years ago. The state law applies on top of any stricter local ordinances.

Therefore, rent control applies to Los Angeles rental properties if they are multi-family units. Single-family detached homes rarely fall under rent control ordinances. They are generally not subject to LA Rent Control. The only exception is when two or more dwelling units are located on the same lot; then rent control rules are likely to apply. The simplest solution to this is to only buy single-family Los Angeles rental properties. Never buy a property with a separately rented granny flat or upstairs apartment you could rent out, as well.

On the other hand, homeownership rates in California have been declining for years. The sea change has been the growth of renting among the middle and upper classes. For example, a third of Los Angeles residents with incomes over $100,000 rent instead of own. Baby Boomers downsizing their homes choose to rent condos and homes that others maintain. Millennials who have a good income often say their parents lose their homes in the Great Recession and choose to rent instead.

This is driving demand for the luxury Los Angeles real estate market, whether condos, apartments with concierges, or luxury homes rented instead of purchased so that the resident can easily move if they lose their jobs. Only San Jose and San Francisco have more high-income residents that rent than the Los Angeles real estate market. Although apartment prices are high and rising, they’re lower in Los Angeles than in California.

That’s one bright spot in an otherwise tough rental market for Los Angeles renters. The Military also adds renters to the Los Angeles housing market. Any military base will pump renters into a real estate market. The Los Angeles real estate market is simply notable for having a large military population but a job market so diverse that the closing of a base won’t hurt the area’s home prices overall.

The Los Angeles AirPort Base, Edwards Air Force Base, and smaller facilities dump many renters into the Los Angeles housing market. Those with families often choose to rent Los Angeles rental properties instead of life on base. On top of that are defense contractors like Raytheon in Long Beach and El Segundo who pay people a premium to live here.

Los Angeles Rental Market Trends 2023

Current Rent Prices in Los Angels: Before the pandemic, the average rent for an apartment in Los Angeles was $2,524, growing by 2% YTY, according to RENTCafé. The average size for a Los Angeles, CA apartment is 792 square feet. 40% of the households in LA are renter-occupied while 60% are owner-occupied. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.

As of May 2023, the average rent for a 1-bedroom apartment in Los Angeles, CA is currently $2,443. This is a 3% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Los Angeles increased by 4% to $1,866. The average rent for a 1-bedroom apartment increased by 2% to $2,443, and the average rent for a 2-bedroom apartment increased by 1% to $3,325.

  • The average rent for a 2-bedroom apartment in Los Angeles, CA is currently $3,325. This is a 3% increase compared to the previous year.
  • The average rent for a 3-bedroom apartment in Los Angeles, CA is currently $4,795. This is a 9% increase compared to the previous year.
  • The average rent for a 4-bedroom apartment in Los Angeles, CA is currently $6,500. This is a 10% increase compared to the previous year.

Some of the most affordable neighborhoods in LA are:

  • Jefferson Park, where the average rent goes for $1,355/month.
  • El Sereno, where renters pay $1,396/mo on average.
  • Vermont Knolls, where the average rent goes for $1,445/mo.
  • Glassell Park & Cypress Park, where the average rent goes for $1,485/month.
  • Cypress Park, where renters pay $1,396/mo on average.
  • North Hills, where renters pay $1,530/mo on average.

Construction Isn’t Meeting Housing Demand in LA

The Los Angeles housing market has seen a bump in residential construction. This has helped to satisfy some demand from renters. However, due to increasing demand, the new supply hasn’t brought prices down. The current supply of existing single-family homes is 1.4 which is insufficient to meet the demand. This also suggests that any new wave of construction will at most result in rental rates remaining steady instead of causing them to fall.

The geography of this region also limits the supply. The Los Angeles metropolitan area is perched between the ocean and the mountains. You obviously can’t build on water. There’s only so far you can build into the hills when mudslides and earthquakes limit how much you can build there. The Los Angeles real estate market is further constrained by the vast national parks around L.A. like the Angeles National Forest. These areas simply cannot be turned into residential areas.

Two of the most fundamental economic indicators are employment and income. Home sales usually are directly tied to an economy's health and rise and fall with economic activity. As economies slow, the supply of money tends to become more restrictive. What makes Los Angeles unique is the employment market. Want to work in Hollywood? Move to L.A. Want to work for a production company or in fashion? Come to L.A. If rent is too high, share an apartment or single-family home with friends. In terms of home prices, income, and employment indicate whether people can afford current and future increases.

The Golden State added 310,300 jobs in 2019, a 1.8% increase, to a total of 17.61 million, according to data released by the California Employment Development Department. The previous year’s increase was 1.6%. In Los Angeles County, nonfarm jobs grew by 67,800 to a total of 4.65 million. That was a 1.5% rise, led by healthcare and social assistance (up 28,000) and construction (up 8,500). The unemployment rate was 4.4% in December, down from 4.7% a year earlier.

Note that due to the ongoing pandemic, Los Angeles County’s unemployment rate has increased. It fell to 11% in November from a revised 12% in October amid seasonal hiring gains in retail and logistics, according to the State Employment Development Department. It was 19.6 percent in April 2020. Every major sector of the county’s economy suffered significant job losses during the past 12 months, led by accommodation/food services, which shed 120,000 payroll jobs.

How to Invest in Real Estate in Los Angeles?

In any property investment, cash flow is gold. California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. The Los Angeles real estate market has many points in its favor beyond its sheer size. The strong market fundamentals make the Los Angeles housing market a good place to invest if you’re looking at buying real estate in California.

How good is it to buy a Los Angeles investment property? Not every real estate investor wants to enter the most expensive and competitive Los Angeles real estate market. For buyers, the affordability is dropping and only 30% of LA county residents own a home. Home Prices are so high and out of reach for many buyers – many consider LA homes grossly over-priced.

While Los Angeles home prices may be increasing slightly over the next year, the fact remains that there are many homes available at fair prices. Growing household formations, ongoing job creation, and rising wage growth are fueling housing demand,” said NAHB Chief Economist Robert Dietz. “But a record-low resale inventory, coupled with underbuilding as builders deal with supply-side constraints, continue to put upward pressure on home prices even as interest rates remain at low levels.”

There’s still a strong opportunity for rental property investment in Los Angeles. There is a strong and continuous demand for apartments for rent in LA. This is fueled by always tight inventory, severe competition from tenants, rising wages, and a good economy. Therefore, for a great opportunity for rental income for investors. Good cash flow from Los Angeles investment properties means the investment is, needless to say, profitable.

A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Los Angeles real estate investment opportunity would be key to your success. If you invest wisely in Los Angeles real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Los Angeles and want to purchase property to rent out.

The running costs for owning and managing a Los Angeles rental property should not be high. While hiring a property management company you should expect to give up roughly ten percent of the rent for each property they manage. Remember to factor this loss into your calculations when budgeting for a new rental property. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand.

There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Los Angeles investment property and you should be able to get a good return on your investment over the long term. The neighborhoods in Los Angeles must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls.

A cheaper neighborhood in Los Angeles might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. Los Angeles real estate prices are well above average cost compared to national prices. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplexes and triplexes in Class A neighborhoods. The inventory is low, but opportunities are there.

If you think of investing in LA, you have decided on a long-term investment property. Here are the ten neighborhoods in LA having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. W 21st St / S Orange Dr
  2. Irvington Pl / N Ave 51
  3. Montecito Heights Northeast
  4. N Ave 57 / Monte Vista St
  5. Happy Valley
  6. N Ave 52 / Granada St
  7. Highland Park
  8. Harvard Heights Southwest
  9. Highland Park North
  10. Apple St / S Dunsmuir Ave

As with any real estate purchase, act wisely. Evaluate the specifics of the Los Angeles housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Los Angeles.


This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments provides no express or implied claims, warranties, or guarantees that the material is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. This article educated investors about LA real estate. Buying a rental property needs research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.

REFERENCES

Market Data, Reports & Forecasts
https://www.car.org/marketdata/data/countysalesactivity
https://www.car.org/en/marketdata/interactive/housingmarketoverview
https://www.zillow.com/losangeles-ca/home-values
https://www.redfin.com/city/11203/CA/Los-Angeles/housing-market
https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview
https://www.zumper.com/rent-research/los-angeles-ca
https://www.zumper.com/blog/los-angeles-metro-report/
https://www.littlebighomes.com/real-estate-los-angeles.html

Covid-19 Impact/News
https://la.curbed.com/2020/2/28/21157988/home-prices-los-angeles-report
https://www.latimes.com/homeless-housing/story/2020-07-23/southern-california-home-prices

Best Neighborhoods and Statistics
https://www.zillow.com/
https://en.wikipedia.org/
https://www.neighborhoodscout.com/ca/los-angeles/real-estate/
https://www.mashvisor.com/blog/invest-los-angeles-real-estate-market-2019/

LA demographics
http://worldpopulationreview.com/us-cities/los-angeles-population

Rent control
https://www.latimes.com/archives/la-xpm-2007-dec-30-re-aptlife30-story.html

Foreclosures
https://www.realtytrac.com/statsandtrends/foreclosuretrends/ca/los-angeles-county

Rental market/Apartments
https://la.curbed.com/2019/2/4/18210857/los-angeles-rental-prices-2019-average
https://www.rentcafe.com/average-rent-market-trends/us/ca/los-angeles
https://la.curbed.com/2019/2/26/18241819/rent-vs-buy-los-angeles-high-income

Job & Unemployment Stats
https://fred.stlouisfed.org/series/CALOSA7URN
https://www.labormarketinfo.edd.ca.gov/file/month/la$pds.pdf

Military market
http://www.laalmanac.com/military/mi05.php
https://militarybases.com/california

Good time to buy/price predictions
https://la.curbed.com/2018/12/7/18128000/los-angeles-real-estate-market-prediction-2019
https://www.forbes.com/sites/ellenparis/2019/02/23/buyers-should-revisit-los-angeles-and-san-francisco-housing-markets-for-new-opportunities/#47bd1029428c

Filed Under: Growth Markets, Housing Market, Real Estate Investing Tagged With: Los Angeles Housing Market, Los Angeles Housing Market Forecast, Los Angeles Housing Prices, Los Angeles Real Estate Market

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