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How is The Huntsville AL Housing Market?

If you are looking at buying a house in Huntsville AL real estate market as a potential investment opportunity, you must read till the end. Huntsville is the county seat of Madison County and the largest city in Alabama. The 2020 census estimated Huntsville's population at 215,070, which represents a 20% increase over the 2010 census. More than 1.2 million reside in the Huntsville metro area.

The Huntsville Metropolitan Statistical Area is a metropolitan statistical area on the northern border of Alabama. The metro area's principal city is Huntsville and consists of two counties: Limestone and Madison. Huntsville has the nickname “Rocket City” for its close ties to NASA. Huntsville, AL, known as ‘The Rocket City’, has seen some great progress in various areas of the city in recent years. Let us take a look at the market data from various sources so that you can stay up-to-date with trends in the Huntsville AL real estate market.

Huntsville Residential 1st Quarter Report 2022 published by ACRE shows that residential sales for the first quarter of 2022 totaled 1,883 units, representing a decrease of 4.4% when compared to 1,970 units that were sold in the first quarter of 2021. The median selling price in Huntsville for the first quarter of 2022 was $322,314, a 21.8% increase from one year ago.

Huntsville residential units available for sale in the first quarter of 2022 decreased by 4.6% when compared to the same period last year. The quarterly average of inventory for sale divided by the current quarterly sales average equals the # of months of supply which was 0.9 months, down 23.8% YoY.

Huntsville-Madison County Housing Market Trends 2022 (Monthly)

Huntsville area (Madison County) is facing a shortage of housing supply to meet the growing demand. Here are statistics published by the Alabama Center for Real Estate for the month of April 2022.

Median Price: The median sales price in April was $334,700, an increase of 18.3% from one year ago and an increase of 0.5% from March based on 778 home sales. Homes sold in April averaged 8 days on the market (DOM), 5 days faster than April 2021.

Housing Sales: According to ValleyMLS.com, April home sales in the Huntsville area increased 5.1% year-over-year (Y/Y) from 740 to 778 closed transactions. Sales decreased 0.9% from March. Sales are down 1.8% year-to-date.

Inventory: April listings (722) increased 7.4% from March and 40.7% from one year ago. At the current sales pace, all the active inventory on the market would sell in 0.9 months, an increase from 0.7 months in March and up from 0.6 months in April 2021. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.

Forecast: April sales were 26 units, or 3.4%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 752 sales for the month, while actual sales were 778 units. ACRE forecast a total of 2,736 sales in the area year-to-date, while there were 2,661 actual sales through April, a difference of 2.7%.

New Construction: The 235 new homes sold represented 30.2% of all residential sales in the area in April. Total sales increased 7.3% year-over-year. The median sales price in April was $363,900, a decrease of 0.6% from March and an increase of 21.3% from one year ago.

Huntsville Alabama Housing Market Forecast 2022

Appreciation rates for homes in Huntsville have been tracking above average for the last ten years, according to NeighborhoodScout's data. The cumulative appreciation rate over the ten years has been 59.39%, which ranks in the top 50% nationwide. This equates to an annual average Huntsville house appreciation rate of 4.77%.

Looking at just the latest twelve months, Huntsville's appreciation rates continue to be some of the highest in the nation, at 23.79%. Based on the last twelve months, short-term real estate investors have found good fortune in Huntsville. Huntsville appreciation rates in the latest quarter were at 8.63%, which equates to an annual appreciation rate of 39.26%.

The current housing demand: According to Realtor.com, in April 2022, the median listing home price in Madison County, AL was $323.2K, trending up 24.3% year-over-year. The median listing home price per square foot was $154. The median home sold price was $349.5K. Homes in Madison County, AL sold for approximately the asking price on average in April 2022.

There are 16 cities in Madison County where Realtor.com has active listings. Brownsboro has a median listing home price of $596.9K, making it the most expensive city. New Hope is the most affordable city, with a median listing home price of $225K. Huntsville City's median listing price is $315K, trending up 16.7% year-over-year.

According to Zillow.com, the typical home value in Madison County is $303,661. Madison County home values have gone up 20.7% over the past year and 85% over the past decade (since May 2012). Similarly, the typical value of homes in the Huntsville Metro housing market is $295,602, up 26.7% over the past year and 83.6% over the past decade.

Here are some of the best neighborhoods in Huntsville to invest in real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

1. Redstone Arsenal
2. Twickenham / Old Town
3. Longwood / Mayfair
4. Five Points
5. Downtown Huntsville
6. Mountain Brook
7. West Huntsville
8. Darwin Downs / Oak Park
9. Fleming Meadows
10. Terry Heights

Huntsville Real Estate Investment Overview

Investing in real estate is touted as a great way to become wealthy. Is Huntsville rental property good for investment? Planning to invest in the Huntsville, AL real estate market? Many real estate investors have asked themselves if buying a property in Huntsville 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.

We have already discussed the Huntsville housing market forecast for answers on why to put resources into this sizzling market. According to Homefacts statistics, there are 46 public schools in Huntsville with an average Homefacts rating of B-. The total crime rate for Huntsville is high, and there are 215 registered sex offenders residing in the city. Here are the top reasons to invest in Huntsville real estate.

Demographic Momentum

A housing market is stable if the population is stable in both numbers and buying power. Its long-term outlook depends on birth rates, death rates, and migration rates. If young people are leaving for work, then in a few years, the housing market will start to decline. If people are moving into the area because of work, the housing market will see stronger growth unless the housing supply is growing just as quickly.

Huntsville has a population several years younger than average, and a disproportionate number of households here have children. Given the area’s strong economy, they’re seeing people move in for work and their children staying. That alone bolsters the Huntsville Al real estate market long-term.

The Strong Economy

Huntsville’s strong economy also explains why Huntsville’s population growth has been growing about 5% between 2010 and 2015 while the nation as a whole only grew by 3.2%. Huntsville’s unemployment rate is less than 4%, more than a quarter less than Birmingham’s unemployment rate. During the Great Recession that only ended around 2016, Huntsville was an even better place to be. At the height of the Obama Recession, unemployment in Huntsville hit 9% but was 14% in Birmingham.

According to a study by Stessa, a leading real estate technology service provider, the Huntsville metro area led all U.S. metros in the rate of economic recovery for 2021. Huntsville’s 2.2% unemployment rate, strong employment growth, and steady home sales and building permits landed the community at the top of the list. The study showed that communities with strong employment growth and home sales are driving economic recovery.

Huntsville’s total employment has already returned to pre-Covid levels where the U.S. as a whole is still behind. Huntsville’s population grew over 2% from 2019 to 2020, one of the highest growth rates in the country, fueled by companies adding new jobs and opportunities to the local community.

The Sheer Affordability

Housing affordability may seem like a reason not to invest in Huntsville Al housing. After all, why invest if many can afford to buy? In reality, about 20% of those living in the Huntsville Al real estate market are renting. This is a mix of military personnel, students, and those who cannot afford these relatively affordable homes.

The typical home in Huntsville Metro costs around $295K. Homes cost around $150 per square foot, so a small starter home could cost significantly less. An investor could buy multiple affordable homes to rent out for the price of a median home in a West coast city.

“Rocket City” has long been home to a large high-tech workforce. This has created a demand for luxury homes catering to them. Alabama’s most expensive zip code isn’t a tony neighborhood in Birmingham. No, it is 35213, the community of Mountain Brook. The median home in this community is worth just under half a million dollars.

Yes, that’s rivaling a small condo in New York or a modest single-family home in California, but it is incredibly expensive in a community where the median household income is less than $50,000. This opens up the door to “affordable” luxury home investing, whether buying and flipping or buying to rent out to young executives only planning on staying for a year or two.

The Landlord-Friendly Climate

One perk of the Huntsville Al real estate market is how landlord-friendly the area is. The return on your investment in the Huntsville Al housing market suffers if tenants don’t pay the rent for months and you face a costly battle to evict them. Security deposits are limited to one month rent, but if they have pets, there is no limit on the add-on security deposit for pet damage. There aren’t limits on late fees, though if challenged in court, you’ll lose if they are unreasonable.

Notice to terminate the lease is generally 30 days. If the landlord doesn’t offer to renew the lease, the tenant is legally required to leave. There is a process for eviction that requires at least 17 days but likely longer. If someone violates the terms of the lease, they are limited to four “corrections” after which they can be evicted.

Huntsville's Big Rental Market

Any real estate market with a large number of enlisted personnel is going to be home to many renters since military personnel doesn’t want to become long-distance landlords. Redstone Arsenal located just outside of Huntsville has been home to several departments simultaneously such as the Marshall Flight Center, the Missile Defense Agency, the Army’s Missile Command, and a logistics wing.

That meant there were roughly 2000 permanently stationed personnel and ten times that many civilian contractors working at the site. The Defense Base Realignment and Closure Commission has moved some of these functions elsewhere, such as the ordinance school hosted here for a century moving to Fort Lee in Virginia.

Other functions, such as NASA’s Space Flight Center and Missile Defense wing, remained. This means that the number of military and military contracting jobs has declined but has not gone away. It creates an excellent permanent class of renters for those investing in Huntsville Al housing.

A university is a goldmine for real estate investors since students always rent. There are twelve colleges within fifty miles of Huntsville, Alabama. Alabama A&M, J F Drake State Technical College, and the University of Alabama at Huntsville are located in Huntsville proper. The University of Alabama at Huntsville campus alone puts several thousand renters in the Huntsville Al real estate market.

The average rent for apartments in Huntsville, AL, is between $609 and $1,079 in 2022. For a studio apartment in Huntsville, AL, the average rent is $609. When it comes to 1-bedroom apartments, the average rent in Huntsville, AL, is $887. For a 2-bedroom apartment, the average rent is $1,065. The average rent for a 3-bedroom apartment in Huntsville, AL, is $1,079.

When you factor in the premium charged for the privacy and space you get when renting a home, landlords charge much higher monthly rents for detached single-family homes. When combined with the relatively low price you can pay for properties, this yields a decent return on the investment unless you pay too much at the beginning.

The Growing Technology Research Sector In Huntsville

Huntsville’s early support for the space program resulted in a technology and research park here. Huntsville now has the second largest tech and research park in the United States. This attracts well-paid talent from around the world. Those relocating here for work tend to rent rather than buy since they may go somewhere else in a few years.

Others choose to rent for a while until they find the right home to buy. These high-paying jobs also keep home values high in the Huntsville Al real estate market. Huntsville has leveraged its significant technology base to cultivate a biotech industry. For example, the HudsonAlpha Institute for Biotechnology is but one biotech research facility in the four thousand acres Cummings Research Park.

This research hub rivals Research Triangle Park in North Carolina. It is R&D centers like that that explain why Huntsville has such a well-educated, well-paid population. And given how many researchers move to follow the grants or upgrade their careers, many rent homes instead of buying them. Whether renting or buying, these high-paying biotech workers keep property values and rents high in the Huntsville Al real estate market.

Conclusion

If you invest wisely in Huntsville real estate, you could secure your future. Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing.

If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. The Huntsville AL real estate market is a solid market with long-term potential that any investor could take advantage of.

Buying an investment property is different from buying an owner-occupied home. Our Huntsville investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Huntsville.

We can help you succeed by minimizing risk and maximizing profitability. You can contact us for a “Free Strategy Session” by clicking here.

Another housing market in Alabama to go for diversifying your investments is the Birmingham Al real estate market. Birmingham, AL remains among the most affordable markets in the nation, which bodes well for homeowners, investors, and renters alike. The median home in Birmingham, Alabama is around $277K. Birmingham AL real estate values are going up.

Similarly, Montgomery, Alabama is another great market for investing in real estate. Montgomery Alabama Real Estate Market is a strong cash-flow market due to strong demand for rental housing. And this is not entirely due to the 8 colleges and universities in the city. Montgomery has seen the job market increase by 1.1% over the last year. Future job growth over the next ten years is predicted to be 30.3%. With affordable home prices, lower taxes, and a low cost of living, Montgomery is a great city to live and invest in real estate

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

Remember, caveat emptor still applies when buying a property anywhere. 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Market Data & Trends
https://acre.culverhouse.ua.edu/
https://www.zillow.com/huntsville-al/home-values/
https://acre.culverhouse.ua.edu/category/statewide/huntsville-madison-county/
https://www.realtor.com/realestateandhomes-search/Huntsville_AL/overview
https://www.rent.com/alabama/huntsville-apartments/rent-trends
https://www.homefacts.com/city/Alabama/Madison-County/Huntsville.html
https://www.neighborhoodscout.com/al/huntsville/real-estate

Economy & Population growth
https://hsvchamber.org/huntsville-leads-the-u-s-in-2021-economic-growth/
https://www.towncharts.com/Alabama/Demographics/Huntsville-city-AL-Demographics-data.html

Hidden luxury market
https://www.al.com/news/index.ssf/2016/03/how_much_it_costs_to_buy_a_hou_1.html

Landlord Friendly
https://sparkrental.com/alabama-landlord-tenant-law-summary-quick-reference
https://www.alabamalegalhelp.org/resource/alabamas-landlord-tenant-law-is-changing

Universities
https://www.collegesimply.com/colleges-near/alabama/huntsville/

The Seattle housing market is red-hot this year. Despite record-low inventory levels, last year's record-breaking sales occurred. No month had more than a month's supply. By and large, industry observers describe a balanced market as one with a four- to six-month supply of inventory. This region has far less than that due to which home prices in the Seattle area continue to grow beyond the means of many buyers. In April 2022, the median home price (res plus condos) was $880,000 in King County, up 17.33 percent from 2021.

According to new data released by the Northwest Multiple Listing Service for April 2022, in most locations, the housing market in the Puget Sound region has cooled to a level more consistent with the pre-pandemic robust market. Increasing interest rates and inflation, along with a small recovery in inventory, may bring about some normalcy. Last month's sales of single-family houses and condominiums in 26 counties included in the survey had a list price to sales price ratio of 107.8 percent, down from March when it set a 12-month high of 108.2 percent. Prior to a year, the ratio was 106.6%.

Northwest Multiple Listing Service brokers added 1,681 new listings of single-family homes and condos during April, the highest number since last July when 12,916 listings were added. Only two counties, King and Jefferson, had year-over-year drops in inventory. Notably, the number of new listings (11,681) surpassed the number of pending sales (9,760), to help boost inventory. Pending sales were down about 7.8% from a year ago and down 3% from March.

At the end of April, the MLS database contained 6,514 total active listings, the highest level since September 2021 when there were 7,757 total active listings. In months of supply terms, there were about three weeks (.78 months) of inventory of single-family homes and condos combined at the end of April. By this metric, that is the highest level in nearly 18 months. MLS data show there were .80 months of supply in October 2020.

Area-wide prices for single-family home sales (excluding condos) in King County also increased, climbing nearly 20% from a year ago, from $830,000 to $995,000. Closed sales of homes and condos slid from a year ago, from 8,791 to 8,344 for a drop of around 5.1%. In April, the median sales price for single-family homes in King County was close to $1 million ($995,000, up 19.88%). Home price growth was whopping 27% in Snohomish County, the highest by far in the four-county Puget Sound region.

Seattle also continues with strong double-digit price increases being recorded. The median sold price of single-family homes in April surpassed $1M ($1,019,950, up 16.57%). As more millennials enter the market, the demand crunch will intensify. From the standpoint of supply and demand, Seattle's housing market is currently one of the most inequitably balanced in the United States. There’s just not enough supply to keep up. In 2022, the rate of appreciation is likely to slow significantly from current levels due to mortgage rate increases combined with more sellers entering the market.

Growing demand is expected to continue as a result of a lack of new construction entering the market in suburban areas following years of underdevelopment. With interest rates remaining at low levels and a supply of homes available for sale in the region of less than one month, the perfect storm for rising house prices will continue, albeit perhaps not quite as ferociously as previously.

What you get to see are record-breaking housing prices and record-breaking low inventory. Seattle's housing market is driven by employees of local tech businesses like Amazon and Microsoft, as well as corporations with big operations in the vicinity like Google and Facebook. Many of them didn't want to work remotely in small apartments during the epidemic, so they sought spacious homes with office areas. Most of them have the financial means to compete with other buyers and raise home selling prices.

According to NWMLS, despite historically low inventory levels, home sales in the Central Puget Sound region increased to levels not seen since 2006, with Pierce and Kitsap counties seeing the most sales ever. Mortgage rates were historically low, and the ongoing pandemic drew a flood of buyers into a market with a scarcity of available homes. This resulted in double-digit price increases throughout the Puget Sound region.

The Puget Sound region is in desperate need of additional housing units, which would serve to slow the area's existing housing price growth. Costs, on the other hand, continue to constrain construction activity, and this is unlikely to change significantly in 2022. A study of counties surrounding Puget Sound reveals that Kitsap County has had favorable growth in inventories and closed transactions.

There were less than two weeks of supply (0.78) at month-end across the 26 counties, which is still significantly less than the industry's “balanced market” indicator of four to six months. Inventory was even more sparse in some counties, with Pierce having the most acute shortage at 0.62 months. King, Pierce, and Snohomish counties all have around two and a half weeks of supply. Kitsap County is slightly better with 0.71 months.

To summarise the last month's statistics we can say that the Puget Sound region remains a seller's real estate market with less than a month of inventory — still well below what is required to meet the volume of buyers right now. In the current market environment, home buyers are trying to take advantage of low-interest rates, and the local real estate agents are struggling to meet the demand.

According to local realtors, the ongoing combination of low mortgage rates and escalating prices has both buyers and sellers taking advantage of the market. Buyers are finding well-priced homes in good condition, and sellers are seeing many multiple offer situations. With the virus and increased flexible work-from-home options, people can move to suburbs and outer areas in search of value and lower population density. Therefore, buyers are also starting to find homes in the suburbs.

Seattle Housing Market Trends 2022

According to Realtor.com, King County is an expensive seller's real estate market. The median asking price for a home in King County was approximately $825K in March 2022, up 17.9 percent year over year. At $870K, the median sale price was even higher. If the Median Listing Price is increasing, the market is likely “hot,” and homes will sell more quickly. When prices increase, sellers will benefit. In March, homes in King County, WA sold for approximately 9.19% above the asking price. The Sale-to-List Price Ratio was almost 109.19%.

• There are 64 cities in King County.
• Beaux-Arts has a median listing price of $1.9M, making it the most expensive city in King County.
• SeaTac is the most affordable city in King County, with a median listing price of $509.9K.
• The median list price of homes in Seattle is $820K, trending up 14.7% year-over-year.
• The median sale price is $880K.
• Seattle is also a seller's market.
• West Queen Anne has a median listing price of $1.5M, making it the most expensive neighborhood in Seattle.
• Broadway has become the most affordable neighborhood, with a median listing price of homes being around $590K.

Below is the most recent Seattle Housing Market Report released by “Northwest MLS.” The report compares the key housing metrics of the City of Seattle (which is part of King County). For buyers in Seattle, the historic drop in the mortgage rates has been a significant advantage to move forward and scoop up some properties from the market.

Here are the numbers (RESIDENTIAL+CONDO) for April 2022 compared with April 2021.

ACTIVE LISTINGS FOR SALE

• Total active listings in Seattle were 803.
• This represents a decrease of -31.07% as compared to April 2021.
• Total active listings in All King County were 2,108.
• This represents a drop of -4.70% as compared to April 2021.

NEW LISTINGS FOR SALE

• 1,449 new listings were added to the market by brokers in Seattle.
• This represents a decrease of 13.8% as compared to April 2021.
• 4,199 new listings were added to the market in All King County.
• This represents a decrease of 8.75% as compared to April 2021.

CLOSED SALES

• 1,071 closed sales were registered by brokers in Seattle.
• This represents a year-over-year decrease of -11.63%.
• 3,060 closed sales were registered in All King County.
• This represents a year-over-year decrease of -10.05%.

PENDING SALES

• 1,163 pending sales were registered by brokers in Seattle.
• This represents a decrease of -20.23% from the same month a year ago.
• 3,356 pending sales were registered in All King County.
• This represents a decrease of -15.61% from the same month a year ago.

MEDIAN SALES PRICE

• Seattle's median sales price increased by 13.12% to $888,000.
• Last year, at this time, the median price in Seattle was $785,000.
• King County's median price increased by 17.33% to $880,000.
• Last year, at this time, the median price in King County was $750,000.

MONTHS OF INVENTORY (MOI)

• 0.75 months represents the number in Seattle.
• Months of supply in All King County is 0.69.
• 6 months of supply is when you have a balanced real estate market. 
• This shows that this region continues to be a strong seller’s housing market.

Seattle Area Real Estate Market: Statistics of Last Year

Last year's record-breaking sales occurred despite record-low inventory levels. No month had a supply greater than a month. By and large, industry analysts define a balanced market as having an inventory of four to six months. The Seattle area home prices continue to rise beyond the reach of many buyers. The median home sold for $828,111 in King County, up 14.2 percent from 2020.

Prices increased even faster in Snohomish County, where the median price of $680,000 increased by 23.6 percent, and in Pierce County, where the median price of $502,500 increased by 19.6 percent. San Juan County had the highest median sale price: $860,000, an increase of 26.8 percent over a year ago. Seattle's median home price reached $859,000, an increase of 7.4 percent from 2020. Other areas of the county experienced greater increases.

Members of the Northwest Multiple Listing Service reported 107,354 closed sales in 2021. This was the first time the annual volume of sales exceeded 100,000 transactions. Completed sales exceeded $75 billion last year, surpassing the figure for 2020 by nearly $18.9 billion, representing a year-over-year (YOY) increase of nearly 33.6 percent.

Residential (single-family) home and condominium sales in 2021 exceeded those in 2020 by 11,594 transactions or 12.1 percent. Around 86 percent (92,713) of completed sales were single-family homes, while the remaining 14 percent (14,641) were condominiums. Buyers found themselves in competitive bidding situations for last year's sales, frequently paying above the asking price. Across the board, buyers paid an average of 104.7% of the listing price. King County homebuyers paid 106.6 percent, followed by Snohomish County homebuyers who paid 106 percent.

Condo prices area-wide (NWMLS members) rose 11.8%, from $380,000 in 2020 to $425,000 for last year's sales. In King County, which accounted for about six of every 10 condo sales (59%), the median price was $459,000, up a modest 6.7% from 2020. Less than 6% of last year's sales of single-family homes system-wide sold for less than $300,000. About half (48.8%) had sales prices between $500,000 and $1 million dollars. Almost two-thirds of condos (63.1%) sold for a half-million dollars or less.

The highlights in MWLS's annual compilation of statistics for the tri-county areas were showed that the average prices for single-family homes (excluding condos) in the tri-county areas of King, Pierce, and Snohomish have skyrocketed since 1991.

• From 1991 to 2001 prices rose 88.8% in King County, 57% in Snohomish County, and 32.3% in Pierce County.
• From 2001 to 2011 prices increased 31.2% in King County, 16.2% in Snohomish County, and 23.5% in Pierce County.
• From 2011 to 2021 prices surged 249% in King County, 274% in Snohomish County, and 258% in Pierce County.

A closer look at 8,580 condo sales within six “sub-areas” of King County (where nearly 60% of all condo sales were located) shows Seattle accounted for 3,373 of them (about 39%), followed by the Eastside with 36%. The priciest condos, with a median sales price of $550,000, are on the Eastside, followed by Seattle ($495,000). Head south for more affordably priced condos. In the Southwest part of King County, the median sales price was $280,000, followed by the Southeast segment at $340,000.

Seattle Housing Market Forecast 2022-2023 (Latest Predictions)

What are the Seattle real estate market predictions for 2022-2023? Let us look at the price trends recorded by Zillow over the past few years. For the past 6 to 7 years an extreme drop in inventory led to an astronomical rise in Seattle home prices, as buyers competed over a dwindling number of properties on the market. Seattle has a track record of being one of the best long-term real estate investments in the U.S.

Since the last decade (May 2012), the home values in the city of Seattle have appreciated by nearly 156.8% — Zillow Home Value Index.  As you can see in the graph given below, the home values increased consistently, starting in late 2012 and continuing through 2018. After that, it marked the beginning of a sustained downturn in prices which lasted for over a year. In 2018, prices took a steep drop. From July 2018 onward the home values started declining and they continued so until November of 2019. The trajectory has shifted from last Oct 2019 to an upward trend.

The current typical home value of homes in Seattle is $958,027. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. It indicates that 50 percent of all housing stock in the area is worth more than $958,027 and 50 percent is worth less (adjusting for seasonal fluctuations). In Mar 2021, the typical value of homes in Seattle was around $823,000. Home values have gone up 16.4% over the past year alone.

Similar growth has been recorded by NeighborhoodScout.com. Their data also shows that Seattle's real estate appreciated 142.47% over the last ten years, which is an average annual home appreciation rate of 9.26%, putting Seattle in the top 10% nationally for real estate appreciation. As of now, Seattle prices are up across the board. Condos are still below their peak price, but this is the highest the condo price has been since the peak of 2018. Houses have surpassed the peak breaking records month over month.

During the latest twelve months alone, the Seattle appreciation rate has been 22.56%, and in the latest quarter, the appreciation rate has been at 7.26%, which annualizes to a rate of 32.38%. This figure also corroborates Zillow's positive forecast, so the home prices in this region are expected to increase by double-digits in the next twelve months. It means that there is a situation in which demand exceeds supply, giving sellers an advantage over buyers in price negotiations. That's how the housing prices increase in a region.

Here is the housing forecast for Seattle, King County, and Seattle MSA. The home appreciation has been incredibly strong over the past year.

• Seattle-Tacoma-Bellevue Metro home values have gone up 24.8% (current = $771,631) over the past year and will continue to rise over the next 12-months.
• Seattle home values have gone up 16.4% over the past year and will continue to rise over the next 12-months.
• King County home values have gone up 23.2% (current = $902,210) over the past year and will continue to rise over the next 12-months.
• Pierce County home values have gone up 21% over the past year.
• Pierce county is comparatively affordable with a typical home value being $551,497.
• The typical home value of homes in Snohomish County is $771,036, up by almost 30.7% over the past year.

The chart below, created by Zillow, shows the growth of median home values since 2012.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The increase in the number of new and total listings indicates that sellers are now willing to put their homes on the market. People continue to buy and sell their homes, whether they're growing their family and need a bigger place, relocating for a job, or retiring. And the real estate industry has quickly adapted to restrictions due to the novel coronavirus pandemic by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.

Opportunities abound for both buyers and sellers if they’re willing to act quickly. Sellers, brokers, and homebuyers seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic. With the help of agents, buyers are touring properties virtually, on FaceTime, or via WhatsApp calls. The constraint on available inventory is making the Seattle real estate market heat up again. Seattle and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero.

In terms of months of supply, Seattle can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. The pandemic caused some sellers to take a pause which resulted in the Seattle housing market facing even more of a decline in inventory. At the same time, buyer demand remained as before.

The bottom line: The current inventory (months of supply for SFH+condos) in this region remains very tight — 0.75 months in Seattle and 0.69 months in All of King County. Therefore, in the long term, the Seattle real estate market remains as strong as always. This housing market is skewed to sellers due to a persistent imbalance in supply and demand.

Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Seattle in 2022 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance. 

Seattle Real Estate Investment Overview 2022

Should you consider investing in Seattle real estate? Well, to answer that question we should take a look at its economy and jobs. Many real estate investors have asked themselves if buying a property in Seattle 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. Seattle is a fairly walkable city in King County of Washington. It has a mixture of owner-occupied and renter-occupied housing. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom large apartment complexes are the most common housing units in Seattle's real estate market.

Other types of housing that are prevalent in the market include single-family detached homes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 40% of housing units in Seattle. At the national level, single-family rental homes have grown up to 30% within the last three years. The Seattle real estate market always looks nearly as expensive as an overheated market. We all know that Seattle is an expensive real estate market that gives many investors pause. However, there are many compelling reasons to invest in Seattle.

After a significant decline in the Seattle home prices in the past year, the prices have taken a good jump in the latest quarter of 2020. The shortage of homes for sale in the Seattle housing market is causing prices to rise. And so for all those reasons and more, rising property values are a positive development for homeowners and sellers in the Seattle area. The ongoing nationwide crisis has affected the real estate market of Seattle as well but not as much as we expected. As housing inventory in Seattle remains tight, it would make things very challenging for buyers.

Seattle Housing Demand is Strong

What does the state of Silicon Valley real estate have to do with the Seattle real estate market? Quite a bit. Seattle has long been a second-tier technology hub, bolstered by companies like Boeing, Amazon, F5, and Real Networks. Seattle’s strong tech ecosystem has led to several startups choosing to start here, but more importantly, many tech giants are setting up “outposts” here. They’re moving jobs to Seattle so they can afford to expand or simply afford to remain in business. The influx of new high-paying jobs plus relocating employees to Seattle is driving demand for homes in Seattle. Over the past 10 years, Amazon has grown more than tenfold in the city of Seattle, from about 4,000 employees in its hometown to over 45,000.

During the same time, the median home price in the city has shot up from $420,000 to $720,000 (according to the Northwest MLS) and home prices in the metro area as a whole have gone up 47 percent. Between 2008 and 2018, over 535,000 homes have sold in the entire Seattle metro area. For comparison, that’s 41 percent more than in the similarly-sized San Diego metro area. Much of this growth in the local housing market can likely be attributed to growth at Amazon. The Seattle real estate market shares many of the constraints that drove up real estate prices in San Francisco. You can’t realistically build on water. It is hard to build in the mountains. You can build up, but that takes time and is expensive. And all the while, everyone wants to live close to the city center and jobs. This helps keep property values in the Seattle housing market high.

Seattle Real Estate Investment Generates Excellent ROI In The Long Term

Seattle's housing market has been one of the hottest in the country for years. In the past ten years, the annual real estate appreciation rate has amounted to nearly 6.5%. This puts Seattle in the top 10% nationally for real estate appreciation. Seattle has repeatedly hit lists as being among the top cities for real estate sellers to get the highest return on their investment. Property values have gone up consistently for years. Rental rates are high and continue to rise, guaranteeing ROI for those who buy and hold properties for the long term. We’ve already addressed the fact that you can raise rents as necessary to match the market. This means you will certainly be able to profit from the large rental market in Seattle whether you buy and hold or buy and flip.

Seattle Has Friendly Business Climate

Businesses aren’t just relocated to Seattle to tap into a growing, skilled labor market. Others are simply relocating because they cannot stay in business in California. California has the highest income taxes in the United States. Incredibly intrusive and endlessly proliferating regulation only makes it harder for businesses to operate. While many businesses are moving to Texas, Seattle is closer both in culture and geography. That they can find cheaper talent and real estate while gaining more freedom to operate their businesses only adds to the bottom line.

Seattle's Tech Landscape Is Rapidly Evolving

Seattle was the fastest-growing major city in the country in 2015. It has ranked among the top 5 fastest growing cities since 2010, hitting a 3.1% annual growth in 2016. Many young people move here because it is seen as an excellent place to live and get started, and that’s aside from the strong job market. The exodus from California to Seattle is only part of the equation, since Seattle attracts people from all over the country, and in truth, around the world. Seattle's tech landscape and real estate market are rapidly evolving.

Google has upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen 50% price growth in this market which has priced out many middle-class buyers.

Seattle Rental Market Is Very Strong

Around a third of people in the U.S. rent. However, in Seattle, the rate is over half. This is partially due to the cost of homes in the Seattle housing market. Another contributing factor is that Millennials are less willing to be tied down to a home and thus prefer to rent, while Seattle is one of the top cities for attracting these young adults. They’re probably going to continue to rent instead of buying homes. Environmentalist protections for large swaths of land around Seattle limit how far the city could spread out.

This prevents the value of homes in the Seattle housing market from coming down as people relocate to distant suburbs, trading home values for commute time. Building up is increasingly an option, but you can’t do that here the way they’ve done it in Miami. The financial district allows buildings to be as tall as FAA regulations allow, but that’s pretty much it. Nor does that designation matter much, since the area is mostly built-up. The rest of Seattle is zoned low, preventing demand from being met by building condo towers. That keeps Seattle rental property rates high.

Rental prices are declining in Seattle due to the ongoing pandemic which has caused high vacancies. As of May 10, 2022, the average rent for a 1-bedroom apartment in Seattle, WA is currently $1,955. This is a 26% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Seattle increased by 3% to $1,345. The average rent for a 1-bedroom apartment increased by 3% to $1,955, and the average rent for a 2-bedroom apartment remained flat.

• Two-bedroom apartments in Seattle rent for $2,695 a month on average (a 35% increase from last year)
• Three-bedroom apartment rents average $3,300 (an 18% increase from last year).
• Four-bedroom apartment rents average $3,695 (a 6% increase from last year).

Only 15% of the apartments can be rented for less than $1500, and more than 50% of the apartments are priced at more than $2,000 per month. This shows that overall rent prices are very high in Seattle and a huge drop in rent prices can help new renters to lock in a long-term lease.

These are some of the most affordable neighborhoods where the rent prices are below the Seattle average rent:

• Innis Arden
• Richmond Beach
• The Highlands
• Broadway

The Zumper Seattle Metro Area Report analyzed active listings last month across 11 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Washington one bedroom median rent was $1,485 last month. Kirkland was the most expensive city with one bedrooms priced at $2,400 whereas Lakewood & Bellingham were tied for the most affordable city with one-bedrooms both priced at $1,300.

Here are the best areas to invest in a rental property in the Seattle Metro Area in 2022. Investors should consider the suburbs of major metropolitan areas for residential rental opportunities, as they're an ideal investment and have seen an increase in buyer demand in this pandemic. The cities should be within driving distance of major cities or metro areas. Locations with growing employment opportunities attract more tenants. Most importantly, vet the local neighborhoods thoroughly — their livability, vacancy rate, average rents,  quality of the local schools, and amenities such as parks, restaurants, gyms, movie theaters.

The Cities With Fastest Growing Rents in Seattle Metro (Y/Y%)

• Kirkland had the fastest growing rent, up 38.7% since this time last year.
• Bellevue saw rent climb 23.7%, making it second.
• Redmond & Seattle were tied for third with rents both jumping 15.3%.

The Cities With Fastest Growing Rents in Seattle Metro (M/M%)

• Bellevue & Tacoma had the largest monthly rental growth rates, both up 5%.
• Renton rent increased 4.9% last month, making it second.
• Kent & Lakewood ranked as the next fastest growing with rent climbing 4.8%.

Seattle's Large Student Market Is Great For Rental Property Investment

While we cannot say this just about the Seattle housing market, the fact remains that large cities with a strong network of educational institutions always create an opportunity for those who want to own rental properties. Students don’t buy houses – they rent. A college town with a single university sees property values rise and fall relative to the popularity of the university. Seattle’s nearly two dozen four-year colleges provide a diverse market for landlords catering to students, while the strong local job market means you can rent the property out to locals if the students move out.

Seattle Is Friendly To Foreign Real Estate Buyers

The United States is pretty friendly to foreign real estate buyers. Canada has limited the ability of foreign buyers to buy up properties in Canada, a major reason why Vancouver became one of the most overvalued real estate markets in the world. This has led many Chinese investors to buy up Seattle real estate instead, making the city the third destination for foreign real estate investors. Some hope to send kids to study in the U.S., while a few have children here. Others buy the properties as a way to park money overseas in a relatively low tax jurisdiction with likely returns if they choose to sell later. Since foreign buyers don’t always rent the properties out, this drives up prices in the Seattle real estate market while indirectly constricting supply.

The Seattle Housing Market Is Landlord Friendly

Many investors are reluctant to buy properties in liberal markets because they’re afraid they won’t be able to protect their investment. However, there are several points in favor of Seattle, especially in comparison to Oregon and California. Washington State outlawed rent control, so you can raise rents to keep up with inflation and demand. If a tenant breaks the lease without the landlord’s consent, the tenant is liable for rent through the end of the lease. Landlords have significant freedom in their screening questions. If a tenant has a month-to-month lease, the landlord can only end it for one of 18 approved reasons, but they can end it with a written notice three weeks before the end of the month.

Where To Buy Seattle Investment Properties?

Are you looking for an investment property in the Seattle real estate market? Seattle has long been second to Silicon Valley, but its strong economy, diverse population, and better regulatory climate are bringing refugees from California and migrants from around the country and world to live here. Regardless of the area’s weather, the Seattle housing market’s outlook can only be described as sunny. Good cash flow from Seattle 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 Seattle in a growing neighborhood would be key to your success.

The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. You should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Seattle rental property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Seattle 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 Seattle 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. The inventory is low, but opportunities are there.

There are 75 neighborhoods in Seattle. Some of the other popular neighborhoods in Seattle where you can invest in Seattle investment properties are Maple Leaf, Central District, Phinney Ridge, Ballard, Columbia City, Belltown, Beacon Hill, Green Lake, West Seattle, Wallingford, Madison Park, Queen Anne, Magnolia, and Northgate.

Here are some of the best neighborhoods in the Seattle metro area where you can buy a house or an investment property.

North Redmond is in King County and is one of the best places to live in Washington. According to Niche.com, living in North Redmond offers residents a sparse urban feel and most residents own their homes. In North Redmond, there are a lot of restaurants, coffee shops, and parks. Many families live in North Redmond and residents tend to lean liberal. The public schools in North Redmond are highly rated. The typical value of homes in North Redmond is $1,809,188, up 32.6% over the past year.

North Delridge is quite an affordable neighborhood in Seattle. It lies in King County and is one of the best places to live in Washington. According to Niche.com, living in North Delridge offers residents an urban-suburban mixed feel. The area is known for its lush natural beauty and abundant opportunities for outdoor recreation. The public schools in North Delridge are highly rated. The typical home value in North Delridge is $670,846. North Delridge home values have gone up 8.6% over the past year. About 48% of the residents like to rent a home.

Capitol Hill is a densely populated residential district in Seattle (Not be confused by Capitol Hill, Washington D.C.). It is located east of the city's Downtown on the other side of Interstate 5. Capitol Hill is the 9th most walkable neighborhood in Seattle with a Walk Score of 91 and is bikeable. It is one of the city's most popular nightlife and entertainment districts. Made up of a few smaller neighborhoods, rents in Capitol Hill average around $1,900 a month. The community is made up of young professionals, singles, and families with kids. This neighborhood exists alongside 536 submarkets in the greater Seattle market.

According to Redfin.com, the Capitol Hill housing market is somewhat competitive. In October 2021, Capitol Hill home prices were up 18.2% compared to last year, selling for a median price of $780K. On average, homes in Capitol Hill sell after 7 days on the market compared to 20 days last year. There were 37 homes sold in October this year, up from 32 last year.

Highland Park is a neighborhood in King County. Living in Highland Park offers residents an urban-suburban mix feel and most residents rent their homes. The public schools in Highland Park are above average. The median home value in Highland Park is $651,903. Highland Park home values have gone up 13.8% over the past year. According to RentCafe, the average rent in Highland Park, Seattle, WA is $1,711. Highland Park rent is 21% lower than Seattle's average rent. The price range for a studio apartment in Highland Park, Seattle, WA is between $1,850 and $2,299. The price range for a 1-bedroom apartment in Highland Park, Seattle, WA is between $1,850 and $2,299.

South Hollywood Hill is in King County and is one of the best places to live in Washington. According to Niche.com, living in South Hollywood Hill offers residents a sparse urban feel and most residents own their homes. In South Hollywood Hill there are a lot of restaurants, coffee shops, and parks. The public schools in South Hollywood Hill are highly rated.

Sammamish Plateau also lies in King County. It is an upscale, picturesque suburb situated between Lake Sammamish and the Snoqualmie Valley. The market in the Seattle suburb of Sammamish is currently very hot. Living here offers residents a sparse suburban feel. The typical home value in Sammamish is $1,372,491, up 28.3% over the past year.

Sammamish Plateau is consistently ranked among the best places to live in the state and the country. The public schools in Sammamish Plateau are highly rated. According to Apartments.com, the average rent in Sammamish is $1,976. When you rent an apartment in Sammamish, you can expect to pay as little as $1,678 or as much as $2,517, depending on the location and the size of the apartment. The average rent for a studio apartment in Sammamish, WA is $1,678 while the average rent for a two-bedroom apartment in Sammamish, WA is $2,467.

The ten neighborhoods in Seattle have the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Yesler Terrace West
2. Belltown Northeast
3. First Hill East
4. Belltown East
5. Central Waterfront
6. Belltown Southeast
7. International District
8. Belltown
9. First Hill
10. South Lake Union

Apart from the Seattle real estate market, you can also invest in another hot market in Spokane, WA. Spokane is a relatively cheap real estate market on the West Coast. It is already seeing increased demand and property valuations, while it remains a safe place to invest in real estate. Skip Seattle and Silicon Valley and invest in the future growth of Spokane. One reason why Spokane long lagged behind Seattle was its higher unemployment rate.

Seattle has a roughly 3% unemployment rate, significantly lower than the 5% unemployment rate seen in Spokane. Spokane’s economy, though, is seeing a surge in higher-wage jobs. Out of the tens of thousands of new jobs created since 2010, the majority of them pay more than the average county wage – which is in line with the national average. The promise of better pay will lure many people to Spokane to live, fueling demand for the Spokane housing market.

The next one is the Tacoma real estate market. It is the second-largest city in a state that is often a better choice for investors than the largest city since demand is strong but not so great that investors worry about being priced out of the market or being caught up in a bubble. Tacoma is the third-largest city in Washington state. Rents and property values in the Tacoma area are rising due to increased demand and constrained supply. This is an ideal time to buy. Roughly speaking, the median house in the Tacoma area is now the same price as the typical house in King County was in 2012. Furthermore, there are many reasons to consider investing in Tacoma real estate over homes and condominiums in nearby housing markets.

Then comes the Walla housing market which includes two suburbs, encompassing more than fifty thousand people. The area has become the hub of Washington State’s wine country, though wheat remains a major contributor to the local agricultural economy. Walla Walla is one of the real estate markets in the state that doesn’t depend on Seattle’s growth for appreciation. Walla Walla sits on the Washington-Oregon state line. The Walla Walla housing market is poised for steady price growth. The median home value in Walla Walla is $278,247 and home values have gone up 4.4% over the past year.

For a majority of investors, buying or selling real estate 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 Seattle. Consult with one of the investment counselors who can help build you a custom portfolio of Seattle turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Seattle.

Not just limited to Seattle or Washington 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 Seattle 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.nwmls.com/
https://www.zillow.com/seattle-wa/home-values
https://www.redfin.com/news/seattle-homes-sold-above-list-price/
https://www.realtor.com/realestateandhomes-search/Seattle_WA/overview
https://www.rentcafe.com/average-rent-market-trends/us/wa/seattle
https://www.neighborhoodscout.com/wa/seattle/real-estate
https://www.littlebighomes.com/real-estate-seattle.html
https://seattlerealestatenews.com/category/info/seattle-monthly-housing-news
https://www.seattlepi.com/coronavirus/article/best-time-to-buy-or-sell-a-house-during-pandemic-15287608.php

Foreclosure Statistics
https://www.realtytrac.com/statsandtrends/wa/king-county/seattle

Rental Market (Apartments) Statistics
https://www.rentjungle.com/average-rent-in-seattle-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/wa/seattle/

Why Invest In Seattle
https://www.collegesimply.com/colleges/washington/seattle/four-year-colleges
https://www.naahq.org/read/industry-insider/6-28-16/america-becoming-renters-nation
http://www.homebuyinginstitute.com/news/will-seattle-start-rising-again
https://www.geekwire.com/2018/amazon-responsible-seattles-housing-cooldown-real-estate-experts-weigh
https://www.cnbc.com/2018/08/02/seattle-housing-market-is-under-pressure-as-chinese-buying-dries-up.html
https://seattlebubble.com/blog/2019/03/27/case-shiller-seattle-home-price-gains-below-average-in-january
https://www.bizjournals.com/losangeles/news/2016/08/12/california-regulatory-policies-businesses-flee.html
https://www.linkedin.com/pulse/seattle-san-francisco-why-west-coast-tech-companies-both-shanahan
https://www.theurbanist.org/2014/09/02/85-foot-and-125-foot-height-limits-are-a-missed-opportunity
https://www.seattletimes.com/seattle-news/politics/seattle-approves-taller-buildings-in-uptown-doubling-heights-in-some-areas
https://www.seattlemag.com/news-and-features/seattle-housing-experiences-high-demands-tech-companies-continue-grow
https://www.thestranger.com/slog/2018/01/09/25692670/seattle-is-now-number-three-us-city-for-foreign-real-estate-investors
https://www.thestranger.com/news/feature/2016/01/27/23480634/what-you-need-to-know-about-your-rights-as-a-renter-in-seattle

Neighborhoods info & rent prices
https://www.apartments.com/
https://www.apartmenthomeliving.com/seattle/
https://www.niche.com/places-to-live/search/best-neighborhoods-to-buy-a-house/m/seattle-metro-area/

Home prices & sales are rising across the Southern California housing market and San Diego is no exception. In Southern California, the median home price has risen by double digits for thirteen consecutive months. Homes on the market are selling at a fast pace, often fetching multiple offers well above what the sellers are asking. Homebuyer demand is expected to remain strong in 2022, but it will be tested by increasing mortgage rates.

Extremely low inventory levels, combined with active investor activity in the housing market, are keeping prices high. While gains are diminishing, it is improbable that prices will fall precipitously in 2022. Supply and demand fundamentals continue to favor an expensive housing market like San Diego.

According to the latest C.A.R. report, the Southern California region was strong in March 2022 showing a year-over-year price growth and month-over-month sales growth. The sales of single-family homes posted a decline of 7.5% from last year but were up by 38.3% from the previous month. The median price was $802,500, up 13.8% year over year, and was up from February's median price of $760,000. Last year at this time the median price in Southern California was $705,000.

San Diego County exhibited a similar trend. In San Diego County, the median single-family home price increased 18.8 percent to $950,000, while sales fell 2.2 percent year over year. Inventory is low, prices are rising, and pent-up demand alongside low mortgage rates has the San Diego housing market flooded with homebuyers.

The housing demand in San Diego has also been driven by the desire for additional space as people spend more time at home. Housing prices in San Diego County have risen dramatically in the past year due to lower mortgage rates which allow buyers to put more of their monthly payments toward the principal. The record-low interest rates in 2021 fueled San Diego's high house prices, increasing consumer purchasing power. Since Q3 2021, interest rates began to increase, leveling buying power and reducing homebuyer urgency.

San Diego Housing Market: Is It The Most Expensive in the Country?

According to a new survey, San Diego has the nation's most costly housing market. That is not to say we have the most costly residences. San Diego edged out San Francisco as the least cheap city in which to buy a property. This is because earnings in San Diego have not kept pace with increasing house prices.

According to the OJO Labs research released on Feb. 3, San Diego's median home price increased more than 14% in the last year to a stunning $764,000. San Francisco has the highest median home price in the country, at more than a million dollars. However, San Francisco's median price decreased by 4.2 percent year over year.

San Diego County covers an area of 4,526 square miles making it larger than Delaware or Rhode Island and 82% the size of the state of Connecticut. According to the most recent data from Realtor.com, the entire San Diego County is a seller's real estate market. In other words, there are approximately more buyers than houses for sale on the market.

• In February 2022, the median list price of homes in San Diego County was $840K, trending up 16.7% year-over-year.
• The median sale price of sold homes was $850K.
• The median listing home price per square foot was $548.
• Homes in San Diego County, CA sold for 3.47% above the asking price on average in March.
• It is a seller's market as the total sales to total listings ratio is above 0.2 which tends to favor sellers.
• It also means that there are more people looking to buy than there are homes available.
• There are 67 cities in San Diego County.
• La Jolla has a median listing home price of $2.7M, making it the most expensive city in San Diego County.
• La Presa is the most affordable city in San Diego County, with a median listing home price of $662.5K.
• San Diego City is an even more expensive housing market.
• The median listing home price in San Diego City was $889.9K, trending up 22.7% year-over-year.
• The median home sold price was $910K.
• San Diego, CA is also a seller's market which means that there are more people looking to buy than there are homes available.
• Homes in San Diego, CA sold for 4.56% above the asking price on average in March 2022.
• There are 101 neighborhoods in San Diego where Realtor.com has active listings.
• City Heights is the most affordable neighborhood in San Diego, with a median listing home price of more than half a million dollars ($599K).

Southern California Housing Market Trends 2022 (YoY)

Here's how individual counties of Southern California are setting or matching price records as compared to last February (Data released by C.A.R.). Orange County led the pack again with the highest price increase of 27.3% over last year. San Bernardino is the most affordable with a median price of $475,000 (+15.3%) for existing single-family homes. Orange County is the most expensive real estate market in Southern California with a median sales price of $1,305,000. Sales declined in all counties of Southern California except Ventura.

• In Los Angeles County, the median price rose 13.3% to $781,050 in March, while sales decreased by 5.8%.
• In Orange County, the median price rose 27.3% to $1,305,000, while sales decreased by 19.4%.
• Orange County also had the highest decline in sales among all the six counties.
• In Riverside County, the median price rose 15.9% to $620,000, while sales decreased by 9.5%.
• In San Bernardino County, the median price rose 15.3% to $475,000, while sales decreased by 5.7%.
• In San Diego County, the median price rose 18.8% to $950,000, while sales decreased by 2.2%.
• In Ventura County, the median price rose 18.6% to $914,000, while sales increased by 6.2%.

San Diego County Housing Market Trends

San Diego County's median home price reaches $950,000, up 7.0% from last month. It is a growth of 18.8% over last year, according to C.A.R.'s Mar 2022 resale housing report. The report also shows that existing single-family home sales rose by 34.0% MTM but declined by 2.2% over last year. San Deigo's condo market also saw a sharp increase in the median price as compared to last year. The condo's median price was $640,000, +24.6% YTY and +4.1% MTM. Last year at this time the median price was $513,500.

Months Supply of existing single-family homes is very tight, currently holding at 1.4 months while for condos it is 1.1 months. It is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market is considered balanced if it has 4 to 6 months of inventory of homes on hand. A lower number means that buyers are dominating the San Diego housing market and there are relatively few sellers.

Is it a good time to buy a house in San Diego?

Mortgage rates are rising compared to last year. The 30-Year Fixed-Rate in March 2022 was 4.17% while in March 2021, it was 3.08%. The supply is very tight and with all of these factors considered, at this time, it is unlikely that the San Diego housing market will see a price decline in 2022. So, buyers should act now and take advantage of low mortgage rates before they rise to pre-pandemic levels.

• The median price of a one-bedroom house in San Diego County is $499K. If you put 20% down, monthly payment = $2,519.
• The median price of a two-bedroom house is $685K. If you put 20% down, monthly payment = $3,458.
• The median price of a three-bedroom house is $849K. If you put 20% down, monthly payment = $4,287.
• The median price of a four-bedroom house is $1.30M. If you put 20% down, monthly payment = $6,559.

Greater San Diego Housing Market Trends

In the Greater San Diego region, the decline in existing home sales coincides with rising sales prices, which continued to soar last month, with the median sales price of existing homes up 18.1% compared to last year, according to the Greater San Diego Association of REALTORS®.

The percentage change is shown year-over-year for February 2022.

• The Median Sales Price was up 19.3 percent to $1,000,000 for Detached homes and 24.6 percent to $660,500 for Attached homes.
• Closed Sales decreased 17.9 percent for Detached homes and 27.1 percent for Attached homes.
• The dollar volume of Closed Sales decreased 3.8 percent for Detached homes and 8.58 percent for Attached homes.
• New Listings decreased 15.8 percent for Detached homes and 23.3 percent for Attached homes.
• Pending Sales decreased 18.9 percent for Detached homes and 18.7 percent for Attached homes.
• Days on Market decreased 5.0 percent for Detached homes and 20.0 percent for Attached homes.
• The inventory of homes for sale decreased by 16.5 percent for Detached homes and 36.4 percent for Attached homes.
• Months Supply of Inventory decreased 10.0 percent for Detached homes and 33.3 percent for Attached homes.

San Diego Housing Market Forecast 2022 – 2023

What are the San Diego real estate market predictions for 2022 to 2023? Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Since the last decade (May 2012), the typical home value in San Diego County has appreciated by nearly 153% — ZILLOW HOME VALUE INDEX. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month.

The price of low-tier housing in San Diego County skyrocketed after the latter half of 2012. 2015 experienced another price increase, due to the boost given by decreased mortgage rates throughout 2015 and 2016. San Diego’s high home prices continued to find fuel from increased buyer purchasing power. Although there has been a steady housing price growth from 2012 to 2018 the housing market did cool off from March 2018 till mid-2019. In 2018, home price growth sharply declined in reaction to slowing sales and rising interest rates, which began in late-2017.

The chart clearly shows the flattening of the home price curve in that period. Home prices have since turned back up and the forecast is also positive. The typical value of homes in San Diego County is currently $902,655. It indicates that 50 percent of all housing stock in the area is worth more than $902,655 and 50 percent is worth less (adjusting for seasonal fluctuations).

San Diego County's home values have gone up 27.8% over the past year. NeighborhoodScout.com's data also shows that in the past ten years, San Diego real estate appreciated by 120.47%. This amounts to an annual real estate appreciation of 8.23%, which puts San Diego in the top 10% nationally for real estate appreciation.

During the latest twelve months, San Diego's appreciation rate has been around 22.45%. In the latest quarter, the appreciation rate has been 7.89%, which annualizes to a rate of 35.51%. Overall, there exists a limited supply of homes in San Diego, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers.

San Diego County also comprises the San Diego-Chula Vista-Carlsbad, CA Metropolitan Statistical Area, which is the 17th most populous metropolitan statistical area. The San Diego-Carlsbad, CA Metropolitan Statistical Area is conterminous with San Diego County in Southern California. According to Zillow, the typical value of homes in San Diego-Carlsbad Metro is $value. The forecast for 2022 is that the shortage of supply and an increase in the demand for housing from millennials will push the prices higher in the next twelve months.

As of now San Diego home prices have reached the highest level in years and upward pressure is expected to continue into the next year even if there is a marginal increase in homes for sale. The inventory can dwindle in just 1 month if no homes are listed. Despite high mortgage rates, the strong demand will continue pushing up home price growth.

• San Diego-Carlsbad Metro home values have gone up 27.8% over the past year and will continue to rise in the next twelve months.
• San Diego County home values have gone up 27.8% over the past year and will continue to rise in the next twelve months.
• San Diego City home values have gone up 27.9% (current value = $969,595) over the past year and will continue to rise in the next twelve months.
• Carlsbad home values have gone up 36.1% (current = $1,436,381) over the past year and will continue to rise in the next twelve months.

Both home prices and sales have both risen in recent months, despite the turmoil in other areas of the economy. Low inventory and steady demand are two of the key driving factors affecting San Diego’s housing market outlook for 2022. The constraint on available inventory and a decline in new listings is keeping the San Diego housing market skewed to sellers.

The decrease in the number of active listings also indicates that inventory will be very tight over the coming months. It's an opportune time for sellers to list their properties on the market as the sales to list price ratio is almost 100%. However, when you consider the current supply-and-demand situation, it’s easy to see why San Diego's real estate market forecasts are mostly positive for the year 2022.

There aren’t nearly enough homes listed for sale to satisfy the current level of demand from buyers. Despite the COVID19 pandemic, San Diego and the entire metro area market is so hot that it hasn't shifted to a buyer’s real estate market. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero.

In terms of months of supply, San Diego can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. This housing market is skewed to sellers due to a persistent imbalance in supply and demand.

This is also true across much of Southern California. The Southern California region was recently singled out as having the steepest decline in housing inventory over the past year or so. It’s a positive sign for homebuyers, especially for those to want to invest in San Diego real estate. For buyers in San Diego, the mortgage rates are still low and the positive forecast for the next twelve months nearly guarantees appreciation.

The US housing market is booming with an increase in home-buying activity despite the COVID-19 pandemic. The real estate sector has been one of the most resilient areas of the economy during the severe economic shutdown. While uncertainty remains on the resurgence of COVID-19, the healthy housing demand we see today will create significant tailwinds in the near term.

The chart below, created by Zillow, shows the growth of median home values since 2012.

San Diego Real Estate Investment Overview 2022

Should you consider San Diego real estate investment? Many real estate investors have asked themselves if buying an investment property in San Diego 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 2022. Although this article alone is not a comprehensive source to make a final investment decision for San Diego, we have collected ten evidence-based positive things for those who are keen to invest in San Diego real estate now.

Let’s look at the state of the San Diego real estate market and the factors driving the property market short and long term. Affordability has become an issue for many homebuyers in the San Diego area. This is another housing market trend that is affecting many major cities across the country but particularly in the western coastal markets. How big is San Deigo's housing market? San Diego is a moderately walkable city in San Diego County with a population of approximately 1,305,700 people.

It is the second biggest California city and one of the ten biggest cities in the country. San Diego is one of the fastest-growing cities in the U.S, and its economy is strong. San Diego is often overlooked in favor of hotter real estate markets like San Francisco and Los Angeles. However, that’s one of the reasons why you should consider investing in the San Diego real estate market. The city of San Diego continues to outpace California's job recovery, which is good news for San Diego’s housing industry.

The San Diego metropolitan area is known as the birthplace of naval aviation, serving as a major employment center in the nation for defense and in the Southern California region for scientific research, health care, education, trade, and tourism. The significant military presence supports hundreds of thousands of jobs, pays billions of dollars in wages, and has an overall annual economic impact on the San Diego metropolitan area of billions of dollars.

San Diego's housing market remains one of the hottest in the nation (ranked 10th by Zillow). Since home building takes time especially in a heavily regulated environment, there’s little chance of diminished demand. San Diego has been one of the hottest real estate markets in the country for many years. During the 20 years from 1998 to 2018, the median home value in San Diego rose by a whopping 217%. But the median household income only rose by around 77% during that same 20-year time frame.

San Diego has a mixture of owner-occupied and renter-occupied housing. As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached are the most common housing units in San Diego. Other housing types prevalent in San Diego include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

There were 4,100 single-family homes and 6,400 multi-family homes built in 2017, compared to 2,200 single-family homes and 7,800 multi-family units in 2016. Today, the general trend for SFR construction in San Diego County is still far below the 2002-2004 numbers. The next peak in single-family residential construction will likely begin around 2021, but it is doubtful to return to the frenzied mortgage-driven numbers seen during the Millennium Boom.

The San Diego Housing Market Is a Relative Bargain

California is known for its insane real estate prices. San Diego stands out as a relatively affordable real estate market. The median home price is around $550,000. This sounds bad if you compare it to the national average of $300,000, but it is a bargain in California. You could snap up several San Diego rental properties for the price of one home in San Francisco.

The San Diego housing market is cooling. Home price appreciation fell below 5%, and home prices in some areas are declining due to decreasing demand. This is an improvement over the 6 to 8% appreciation San Diego had been seeing. The expanding inventory of houses on the market makes this a great time to invest in the San Diego housing market.

San Diego's Housing Supply Is Constrained As New Construction of Homes is Quite Slow

San Diego is a growing housing market. By 2050, the population of San Diego County is expected to grow to 4.5 million, approximately a 50% increase from the population in early 2007 of 3,098,269 people. Population trends have connections with housing trends as it increases the demand for housing supply. However, construction in San Diego has stalled. Single-family residential construction is well below the demand for such homes in the San Diego housing market.

There has been faster growth in the construction of multi-family housing in the San Diego real estate market, but that is also below historic rates. Currently, both single-family and multi-family housing construction is increasing in San Diego. Even though there are more multi-family starts over single-family homes in terms of raw numbers, the percentage of single-family homes being constructed outpaces that of multi-family units.

San Diego also shares several geographic constraints that other California coastal cities do. You can’t build on water. The Cowles Mountains limit how much the city can expand inland, constraining the housing supply. Regulations limit high-density construction, preventing the area from meeting demand with too many tall condo towers. So, do the wilderness areas off-limits to construction like Cuyamaca Rancho State Park and Cleveland National Forest.

The Diverse Student Market Feeds the San Diego Rental Market

San Diego is a major metropolitan area, and it is home to several colleges and universities. The University of California at San Diego is one of the largest. It is sometimes confused with San Diego State University, a different campus, and the University of San Diego. Point Loma Nazarene University is a Christian school in San Diego. National University is located in nearby La Jolla.

Smaller schools like the Art Institute, Alliant International University, Azusa Pacific University, Brandman University, Miramar College, Mesa College, and California College of San Diego fill out the San Diego real estate market.

A side benefit of the diversified student market is that you can buy multiple properties across the San Diego housing market and enjoy a “diverse” investment portfolio. You won’t see demand for the property rise and fall based on the popularity of a flagship school, and the strong San Diego housing market allows you to rent it to newcomers to the area or military officers if you can’t fill the unit with students.

San Diego’s economy isn’t as reliant on tourism as other coastal towns. Instead, defense and the military are a larger part of the local economy. This dumps tens of thousands of renters into the San Diego real estate market who will never buy because they could be deployed elsewhere in a year or two. The military also gives generous allowances for those who rent San Diego rental properties, keeping rents near the military base strong regardless of the state of the economy.

San Diego Rental Prices Are Increasing Year-Over-Year

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.

Rental Trends: As of May 09, 2022, the average rent for a 1-bedroom apartment in San Diego, CA is currently $2,495. This is a 32% increase compared to the previous year. Over the past month, the average rent for a studio apartment in San Diego increased by 3% to $2,000. The average rent for a 1-bedroom apartment increased by 4% to $2,495, and the average rent for a 2-bedroom apartment increased by 2% to $3,100.

• Two-bedroom apartment rents average $3,100 (a 24% increase from last year).
• Three-bedroom apartment rents average $4,000 (a 15% increase from last year).
• Four-bedroom apartment rents average $4,650 (an 8% increase from last year).

San Diego Real Estate Market Is More Landlord Friendly For Short Term Rentals

We can’t say that California is landlord-friendly. However, specific cities are better for landlords and real estate investors than others. One reason to invest in the San Diego housing market over San Francisco or Los Angeles is the fact that San Diego is one of the few big cities that doesn’t have rent control. The city has groups fighting proposals to apply rent control to San Diego rental properties in addition to apartments.

San Diego has many tourist attractions. Balboa Park is home to the San Diego Zoo, the Air and Space Museum, the Natural History Museum, the Desert Garden, the local youth Symphony, a Japanese garden, and a golf complex. There’s a SeaWorld in San Diego, an MLB stadium, the USS Midway Museum, and the San Diego zoo safari park. On top of this is the mild weather and proximity to the beach. Any San Diego rental properties in easy reach of these attractions command a premium on rental sites like Airbnb.

Demand for rentals in the San Diego real estate market soars during Comic-Con, one of the biggest comic conventions in the country. The only limit on San Diego rental properties has been the fluctuating rules by the city council, such as a measure passed limiting rentals to primary residences that were rescinded a few months later in 2018. Yet permission for rentals is limited in many master-planned communities and condo developments, keeping rents for Airbnb and other short-term rentals strong.

San Diego Is A Great Place Place To Live In 

San Diego is a great place to live which makes real estate investment a lucrative opportunity. It has nice sunny weather and impressive beaches. It has more than 300 parks, including Mission Trails Regional Park, and 40,000 acres of undeveloped open space. Balboa Park has the world-famous San Diego Zoo, Old Globe Theatre, and museums. San Diego Zoo is also one of the prettiest zoos in the world to walk around. U.S. News analyzed 125 metro areas in the United States to find the best places to live based on the quality of life and the job market in each metro area, as well as the value of living there and people's desire to live there.

San Diego, California was ranked:

• #36 in Best Places to Live
• #51 in Best Places to Retire
• #3 in Best Places to Live in California
• #5 in Most Expensive Places to Live
• #9 in Best Places to Live for Quality of Life
• #12 in Safest Places to Live

San Diego is home attracts millennials with its higher education opportunities and big-city amenities such as excellent restaurants, dive bars or clubs, and great nightlife. The craft beer scene in San Diego is one of the best in the world. North County is desirable for young families whereas millennials are moving downtown and to communities to the northeast as a result of gentrification and the diverse entertainment options centralized in those areas.

Where To Invest In San Diego Real Estate Market?

Are you looking for an investment property in the San Diego real estate market? Maybe you have done a bit of real estate investing in San Diego but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. San Diego offers an ideal mix of limited supply, high demand, and excellent income potential.

San Diego's mild climate, miles of beaches, fun attractions, and great schools make the city one of America's best places to live. If you’re going to invest in California, it needs to be in San Diego. Good cash flow from San Diego investment properties means the investment is, needless to say, profitable. On the other hand, a bad cash flow means you won’t have money on hand to repay your debt.

Therefore, finding the best investment property in San Diego in a growing neighborhood would be key to your success. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. You should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your San Diego rental property and you should be able to get a good return on your investment over the long term.

The neighborhoods in San Diego 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 San Diego 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. The inventory is low, but opportunities are there.

Some of the popular neighborhoods in or around San Diego are Carmel Valley, Rancho Bernardo, Point Loma, Pacific Beach, Mission Valley, Mira Mesa, Rancho Penasquitos, Bonita, Del Cerro, North Park, La Jolla, 4s Ranch, Mission Hills, Otay Ranch and Rancho Santa Fe.

As we write this, the asking price of single-family homes for sale in San Diego (on Realtor.com) starts from $132,000 for a 3-bedroom house and can go up to $37M for a luxury 10-bedroom house located in the Northern San Diego neighborhood.

You can get a beautiful 3-bedroom new construction single-family house for around $379,000 in the Southern San Diego neighborhood — which is quite an affordable entry price as San Deigo home prices are some of the most expensive in all of the United States.

Here are some of the best neighborhoods in San Diego where you can buy an investment property.

Encanto is one of San Diego’s most affordable neighborhoods if you want to buy an investment property. According to Neighborhood Scout Encanto’s median real estate price is $469,345, which is cheaper than 71.3% of California neighborhoods and 21.5% of all U.S. neighborhoods. Encanto is a hilly neighborhood located in the southeastern part of San Diego, California. The neighborhood of Encanto is split into two sections, North Encanto (which lies north of Broadway), and South Encanto (which lies south of Broadway).

The name Encanto usually refers to the neighborhood of Encanto, but it can also refer collectively to the neighborhoods of the Chollas Valley planning area, which consists of Chollas View, O'Farrell, Lincoln Park, Emerald Hills, Valencia Park, Broadway Heights, Alta Vista, Rosemont, as well as Encanto. The citizens' community planning group that represents these eight neighborhoods in accordance with the City of San Diego Council Policy 600-24 is named the Chollas Valley Community Planning Group.

The Encanto Neighborhoods Community Plan is designed to expand the existing retail, commercial and light industrial areas along the main transportation corridors and the villages surrounding the trolley stops at 47th and Market streets, and Euclid Avenue and Market Street. Its cultural heart is the Market Street Village, situated along Chollas Creek, and the trolley stop at the intersection of Euclid Avenue and Market Street.

With its proximity to San Diego Bay just 2 1/2 to 5 miles away, temperatures tend to be mild. The area offers excellent opportunities for infill development, including commercial, transit-oriented mixed-use along the main corridors, and view lots for single-family residential in the surrounding hills.

Nestor is another relatively affordable neighborhood in San Deigo having a median real estate price of $579,106, which is more expensive than 42.9% of the neighborhoods in California and 84.6% of the neighborhoods in the U.S. The average rental price in Nestor is currently $1,881, based on NeighborhoodScout's exclusive analysis. Rents here are currently lower in price than 77.6% of California neighborhoods. Nestor is a residential neighborhood in the southern section of San Diego, and part of the Otay Mesa-Nestor community planning area. According to Zillow, Nestor's home values have gone up 29.4% over the past year.

It neighbors Palm City and Otay Mesa West to the east, Egger Highlands to the north, San Ysidro to the southeast, and the Tijuana River Valley to the south. Major thoroughfares include Coronado Avenue, Saturn Boulevard, Hollister Street, and Tocayo Avenue. According to Areavibes.com, the cost of living in Nestor is 19% lower than the San Diego average and 13% higher than the national average. On their livability index, it ranks better than 42% of areas in San Diego.

The Otay Mesa-Nestor community planning area is located in the southern region of the City and is bounded on the north by Chula Vista, on the east by the community of Otay Mesa, on the south by the Tijuana River Valley and the San Ysidro community, and on the west by Imperial Beach. Twenty percent of the planning area consists of schools, parks, transit, and other public facilities, while vacant, undeveloped, agricultural, and mineral extraction and processing uses comprise the remaining 15 percent.

Emerald Hills is a fairly good neighborhood in San Diego to invest in real estate. It is a calm neighborhood with many green spaces nearby for residents to visit. Most areas in this neighborhood are quiet, as noise from the streets and other parts of the city is rarely an issue. It is bordered by Oak Park and California State Route 94 on the north, Chollas View and Euclid Avenue on the west, Encanto on the east, and Valencia Park and Market Street on the south. Major thoroughfares include Kelton Road and Roswell Street.

Most houses for sale in this neighborhood are located in places that are not very suitable for walking since carrying out daily needs is sometimes difficult. The typical home value in Emerald Hills is $659,983, up 33.0% over the past year.

Another urban area that is great for investment is the Downtown/City Center. It is one of the best places to live in California. It offers residents a dense urban feel and more than 70% of the residents rent their homes. So it is a great neighborhood to buy rental properties due to high demand. Downtown's public schools are above average. It offers good nightlife with restaurants, bars, and entertainment venues. Niche.com ranks it #25 among the best neighborhoods to live in San Diego.

Highest Growing San Diego Neighborhoods For The Last 5 years (List by Neighborhoodscout.com)

1. Mountain View Southeast
2. Logan Heights West
3. Logan Heights
4. Barrio Logan
5. Golden Hill South
6. Grant Hill West
7. Sherman Heights
8. Grant Hill
9. East Village
10. Mountain View East

The cheapest or most affordable neighborhoods to rent in San Diego are Alta Vista, where the average rent goes for $1100/month, Broadway Heights, where renters pay $1100/mo on average, and Emerald Hills, where the average rent goes for $1100/mo, Encanto, where renters pay $1100/mo on average $1,383, Jamacha Lomita with an average rent of $1100, and Skyline, where the average rent price is 1100. In all of these areas, the asking prices are below the average San Diego rent.

Apart from San Deigo, you can also invest in several other real estate markets in California. 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. Apart from the San Diego real estate market, you can also invest in another hot market in San Jose. San Jose is part of Silicon Valley, a place where $100,000 a year or higher salaries from competing tech firms have driven up the cost of real estate.

But what about the San Jose housing market itself? San Jose is the third-largest city in California, home to roughly a million people. It has the highest cost of living in any area in the U.S., and it is one of the most expensive housing markets in the country. If you want to invest in San Jose real estate, you may not need to buy and renovate. Instead, if you know of industrial or commercial properties near major employers they may need to convert to employee housing, which you could buy now and hold until it sells.

If that doesn’t happen, you could still turn it into a co-working space. In January 2018, Redfin ranked the ten hottest neighborhoods in the United States. Nine of the ten were in San Jose. When single home prices fall from 1.2 million to 1 million, homes now sit on the market for several days instead of being snapped up immediately.

The other good place for real estate investment in California is Sacramento. 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.

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.

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 properties.

Not just limited to San Diego or California 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 with our team to see if San Diego 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.

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:

Latest Market Data, Trends, and Forecasts
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/

California COVID-19 Economic/Market Update
https://car.sharefile.com/share/view/s2a8899fc081428a8

Cooling market
https://www.10news.com/news/making-it-in-san-diego/making-it-in-san-diego-slowing-housing-market-could-create-buying-opportunity

New housing supply
https://journal.firsttuesday.us/san-diego-housing-indicators-2/29246

Relatively cheap market
https://www.cnbc.com/2019/02/27/spring-housing-market-could-be-coolest-in-recent-years-realtorcom.html
https://www.sandiegouniontribune.com/business/real-estate/sd-fi-corelogic-home-20180724-story.html

Rental rates
https://www.rentcafe.com/average-rent-market-trends/us/ca/san-diego
http://worldpopulationreview.com/us-cities/san-diego-population

Landlord friendly
https://www.sandiegouniontribune.com/business/real-estate/sd-fi-rent-control-20180703-story.html

Short term rentals
https://www.mashvisor.com/blog/airbnb-san-diego
https://www.sandiegoreader.com/news/2018/mar/07/city-lights-airbnb-forcing-you-out
https://www.sandiegouniontribune.com/business/tourism/sd-fi-airbnb-regulations-council-20181022-story.html

College market
https://www.niche.com/colleges/search/best-colleges/m/san-diego-metro-area

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

General stats
http://worldpopulationreview.com/us-cities/san-diego-population
https://www.sandiego.org/articles/east-county/san-diego-east-mountains.aspx