We will discuss the latest San Jose real estate market trends. San Jose's housing market is infamously expensive. A lack of homes for sale is pushing prices up, so potential buyers are facing an affordability crunch. Buyers need to earn $203K per year to afford a median-priced single-family home whereas the average income needed to buy a house nationally is $60,770. Only 22% of San José homes are affordable to median-income households. That means homeownership of a median-priced home is out of reach for nearly 80 percent of the city’s residents.
San Jose Housing Price Trends And Forecasts 2021-2022
A seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Available inventory remains low and can’t keep up with the high buyer demand in this market. San Jose is the county seat and the largest city is Santa Clara. In July 2021, the single-family housing supply in Santa Clara was down to 1.5 months.
San Jose Housing Demand
Redfin's data shows that the San Jose housing market is very competitive for buyers. San Jose home prices increased 17.1 percent year over year in August 2021, with a median price of $1.3M. Homes in San Jose sell on average after 11 days on the market, down from 20 days last year. August saw the sale of 892 homes, up from 673 last year.
- Many homes receive multiple offers (6 offers on average), some of which include waived contingencies.
- On average, homes sell for approximately 8% above the list price and are pending within 10 days.
- Hot homes can sell for about 15% more than the asking price and go pending in about 7 days.
According to Realtor.com, in San Jose, the median listing home price in San Jose, CA in July 2021 was $1.1M, up 10.5 percent year over year. The median listing price per square foot for a home was $723. The median sold price of a home was $1.2 million. The Sale-to-List Price Ratio in July 2021 was 106.08 percent, which means that on average, homes in San Jose, CA sold for 6.08 percent more than they were listed for in July 2021.
Is It a Good Time to Buy or Rent a House in San Jose?
Mortgage rates are still low as compared to last year. The 30-Year Fixed-Rate in July 2021 was 2.87% while in July 2020, it was 3.02%. The supply is very tight and with all of these factors considered, at this time, it is unlikely that the San Jose housing market will see a price decline in 2021. 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 is $549K. If you put 20% down, monthly payment = $2,452
- The median price of a two-bedroom house is $765K. If you put 20% down, monthly payment = $3,417
- The median price of a three-bedroom house is $1.14M. If you put 20% down, monthly payment = $5,102
- The median price of a four-bedroom house is $1.50M. If you put 20% down, monthly payment = $6,684
The South Bay, Silicon Valley's heart, is home to a slew of technology companies, including Facebook and Google. As a result, employees from all over the world have settled in the Bay Area, which some attribute to the years-long increase in rent prices. The National Low Income Housing Coalition's (NLIHC) annual report reveals that the San Jose-Sunnyvale-Santa Clara region is the second most expensive to rent in the country.
A minimum-wage worker earning $14 per hour would need to work approximately 141 hours per week to afford a one-bedroom apartment in Santa Clara County, the report states. The annual income needed to afford the one bedroom for one person comes out to $102,320, or an hourly wage per week of $49.19. The realistic affordable rental rate for a minimum wage worker is just $728 per month, according to NLIHC.
Average Rent in San Jose
Rents in San Jose increased 1.56 percent month over month and are down 4.19 percent year over year.
- The average rent for a San Jose studio apartment is $2,446
- The average rent for a San Jose 1-bedroom apartment is $2,751
- The average rent for a San Jose 2-bedroom apartment is $3,367
- The average rent for a San Jose 3-bedroom apartment is $3,865
San Jose Rental Inventory by Average Apartment Rent
- 0% of apartments in San Jose cost less than $1,000 per month.
- 8% of apartments in San Jose cost between $1,000-$1,999 per month.
- 58% of apartments in San Jose cost between $2,000-$2,999 per month.
- 33% of apartments in San Jose cost over $3,000 per month.
According to Apartmentlist, using the 30% rule, you can get a rough estimate of the salary needed to rent an apartment in San Jose.
- If you are renting an average-priced studio apartment in San Jose, your annual salary should be around $88,056 or higher.
- If you are renting an average-priced 1-bedroom apartment in San Jose, your annual salary should be around $99,036 or higher.
- If you are renting an average-priced 2-bedroom apartment in San Jose, your annual salary should be around $121,212 or higher.
- If you are renting an average-priced 3-bedroom apartment in San Jose, your annual salary should be around $139,140 or higher.
San Jose Housing Market Trends For Existing Single-Family Homes
Below is the latest monthly report of the San Jose Housing Market released by the California Association Of Realtors. It compares key housing metrics of the San Jose housing market from July 2021 with July 2020.
- Existing SFR Home Sales were up by 14.6% year-over-year.
- The existing SFR Median Price was $1.42M, up 18.8% year-over-year.
- Active Listings declined by 21.1% YoY.
- Median Days on Market was 8.
- Sales-to-ListPrice % was 109.2%.
- % of Active Listings with Reduced Prices was 14%.
Santa Clara Housing Market Trends 2021
Santa Clara is a seller's market, according to the latest data from Realtor.com, which means that more people are looking to buy than there are available homes for sale. In July 2021, the median listing home price in Santa Clara County, California was $1.3M, representing an increase of 8 percent year-over-year from the previous year. The median listing price per square foot was $795, according to the data. The median price of a home sold was $1.4 million. The Sale-to-List Price Ratio in July 2021 was 105.69 percent, indicating that homes in Santa Clara County, CA were selling for an average of 5.69 percent more than their asking price on average.
The California Association of Realtors has released the most recent monthly report on the Santa Clara housing market, which is included below. Comparing key housing metrics in the Santa Clara housing market between July 2021 and July 2020 is the goal of this study. Months' Supply for SF detached homes is 1.3 months, a decline of 27.8% year-over-year. It refers to the number of months required to sell the current inventory of homes on the market at the current pace of sales. Six months of supply has historically been associated with moderate price appreciation, while a lower level of months' supply tends to accelerate price increases.
- Existing SFR Home Sales were up by 11.3% year-over-year.
- The existing SFR Median Price was $1.67M, up 21.1% year-over-year.
- Active Listings declined by 26.4% YoY.
- Median Days on Market was 8.
- Sales-to-ListPrice % was 108.8%.
- % of Active Listings with Reduced Prices was 15.6%.
San Jose Real Estate Market Forecast 2021 – 2022
What are the San Jose real estate market predictions for 2021 and 2022? Let us look at the price trends recorded by Zillow over the past few years. Zillow Home Value Index is an adjusted measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range.
ZHVI also represents the whole housing stock and not just the homes that list or sell in a given month. Looking at the data, it is evident that the prior 3 years have been fluctuating quite a bit. From mid of 2018, after reaching their peak in July, the San Jose home values saw a sharp decline. In 2019 the market remained almost flat but San Jose home values went up 12.4% over the past year.
The home values have surpassed the peak of July 2018 ($1.21M). The typical home value of homes in San Jose is currently $1,286,076, which indicates that 50 percent of all housing stock in the area is worth more than $1,286,076 and 50 percent is worth less (adjusting for seasonal fluctuations). The typical home value of homes in San Jose in Sep 2011 was $501,000. It means that San Jose's home values have appreciated by nearly 156% since then.
NeighborhoodScout's data also shows that San Jose has experienced some of the highest home appreciation rates of any community in the nation. San Jose real estate appreciated 93.46% over the last ten years, which is an average annual home appreciation rate of 6.82%, putting San Jose in the top 10% nationally for real estate appreciation. San Jose's appreciation rate over the last twelve months has been -0.92 percent, which is lower than the appreciation rate in the majority of American communities. According to NeighborhoodScout data, house appreciation rates in San Jose were 0.35 percent in the most recent quarter, equating to an annual appreciation rate of 1.41 percent.
- The typical home value of homes in San Jose-Sunnyvale-Santa Clara Metro is $1,462,949.
- San Jose-Sunnyvale-Santa Clara Metro home values have gone up 19.6% over the past year and Zillow predicts they will rise 10.9% in the next year.
- San Jose home values have gone up 21.8% over the past year.
- The San Jose (City) real estate market forecast is that the home prices will continue to rise in the next twelve months.
- This is due to a very tight supply of single-family homes which cannot meet the buyer demand.
- The typical home value of homes in Santa Clara County is $1,467,021.
- Santa Clara County home values have gone up 19.6% over the past year and will continue to rise in the next twelve months.
The chart below, created by Zillow, shows the growth of typical home values since 2011 and their forecast until July 2022.
Affordability is a big issue in San Jose but it remains one of the most affordable areas of Silicon Valley. This region remains skewed to sellers due to low inventory. Home prices will appreciate due to the supply and demand imbalance. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
For sellers, it is a great time to sell. Motivated home buyers are looking for houses for sale and bidding up prices. In July, the Sales-to-ListPrice percentage was 109.2%.
For buyers, the mortgage rates are still low as compare to last year. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars. Since you're buying in a seller's market, you may want to pay more than a home's listing price.
Impact of the Pandemic on San Jose Housing Market
The shutdown due to the coronavirus pandemic had an impact on California's economy and the real estate sector as well. 2020 started with low inventory in San Jose, and a strong seller's real estate market. The number of home sales in January and February was really strong. Then came the shelter-in-place order due to the COVID-19 pandemic. The impact of the pandemic on the San Jose housing market was felt in April when home sales started dropping massively.
Sales of single-family, re-sale homes dropped by 35.8% dropped in April and 51.6% in May compared to last year. Inventory of single-family, re-sale homes was down 39.6% compared to last year. The median sales price for single-family, re-sale homes in April was up 3.2% compared to last year. The average sales price was up 2.2% year-over-year.
From the summer of 2020 on the housing market has been heating up in San Jose. San Jose officials recently released the City’s Housing Market Report, which provides quarterly data on the rental and ownership housing market in San José and Santa Clara County. Trends tracked in the report include median sale prices of homes, average rental rates, interest rates, and foreclosures.
San Jose Housing Market Report For Q4 2020
- 440 residential building permits were issued in Q4, 189 of which were for affordable apartments.
- 1,375 residential building permits were issued in 2020, 663 of which were for affordable apartments.
- 92 secondary unit / ADU (Accessory Dwelling Units) permits issued in Q4.
- 378 permits issued in 2020, 9% lower than 2019 permits.
- Average effective rent down 3.5% Quarter-over-Quarter (QoQ); overall residential vacancy rate is 8.7%.
- Renters must earn $49/hour ($102,560/year) to afford the average effective monthly rent for a 2- bedroom apartment of $2,564.
- The median single-family home price is $1,225,000, down 2% QoQ but up 14% YoY.
- San José condo/townhome's median price is $732,500, up 0.3% QoQ and 12% YoY.
- Buyers must earn $98/hour ($203,497/year) to afford a median-priced single-family home.
- Annual Income to Own a Median-Priced Townhome/Condo is $133,683.
- Annual Income to Afford Average Rent for a 1-bedroom Apartment ($82,160).
- Annual Income to Afford Average Rent for a 2-bedroom Apartment ($102,560).
- Single Family Inventory Down Over 40% & Homes Sold Down 8% QoQ
San Jose Real Estate Investment Overview
Is San Jose a Good Place Real Estate Investment? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying rental property in San Jose 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.
San Jose is part of Silicon Valley, a place where $100,000 a year or higher salaries from competing tech firms has 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.
California keeps hitting the news as a figuratively toxic market spiraling down. If it wasn’t for legal and illegal immigration, the population would decline because so many natives are leaving. The business exodus is propping up Seattle’s real estate market. The state hits the news for bleeding-edge political mandates while the public debate their cost.
Why on Earth would anyone want to buy a home here? Quite a few, actually, despite housing prices in the state of California. If you are a real estate investor, San Jose real estate has a track record of being one of the best long-term investments in the country through the last ten years. Let’s find some other factors that make San Jose a good place to invest for wealthy buyers.
San Jose has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in San Jose. Other types of housing that are prevalent in San Jose include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 53.00% of San Jose's housing units. About 43.60% of residents rent a home.
Purchasing an investment property is a little different from shopping for your car or primary residence. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, a turnkey investment property in San Jose that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider.
1. Job Growth in San Jose
Wherever there are jobs, there will be people going there to seek work. As of March 31, 2021, San Jose's unemployment rate is at 5.60%, compared to 5.90% last month and 3.20% last year. This is lower than the long-term average of 6.36%. San Jose has seen the job market increase by 2.5% over the last year. Future job growth over the next ten years is predicted to be 38.9%, which is higher than the US average of 33.5%. The very high average pay rate for any job in San Jose is simply another reason for people to move here.
The average income of a San Jose resident is $34,992 a year. The US average is $28,555 a year. The Median household income of a San Jose resident is $83,787 a year. The US average is $53,482 a year. You can make twice that or more if you have the right technical expertise. This is the biggest factor driving the San Jose real estate market.
Due to Covid-19, there has been a surge in unemployment claims all over the country. Between March 2020 and March 2021, combined employment in the South Bay counties of San Benito and Santa Clara, dropped by 80,000 jobs, or 6.9 percent. According to the State of California (EMPLOYMENT DEVELOPMENT DEPARTMENT), the unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 5.2 percent in March 2021, down from a revised 5.4 percent in February 2021, and above the year-ago estimate of 3.1 percent.
This compares with an unadjusted unemployment rate of 8.2 percent for California and 6.2 percent for the nation during the same period. The unemployment rate was 8.2 percent in San Benito County, and 5.1 percent in Santa Clara County. Between February 2021 and March 2021, total employment in the San Jose-Sunnyvale-Santa Clara MSA, which also includes San Benito County, rose by 7,500 jobs to reach 1,074,700.
2. San Jose's Big Tech Market
San Jose may have seen housing prices soften somewhat in 2018, but the high-paying jobs that led to the incredible San Jose real estate market valuations haven’t gone anywhere. Businesses like Samsung, Qualcomm, Netgear, Cisco, Paypal, and others are still located here. Samsung opened a new campus here in 2015. Apple’s new San Jose campus is under construction.
To underscore the strength of the entire Bay Area economy, over the one-year period that ended in July 2019, the nine-county region added slightly more than 100,000 jobs — one-third of the jobs that the entire state of California gained during the same 12 months. Santa Clara County added 4,900 jobs in July while other metro centers in the Bay Area could not match the numbers.
The robust tech sector is still expanding and fuelling the becoming of this region. Google, in particular, has prepared multiple springboards to catapult the search giant to dramatic expansions in Mountain View, Sunnyvale, North San Jose, and downtown San Jose. The result of all that could well equate to continued hiring at a brisk pace. People who want to work for these firms will either move to San Jose or try to find a cheaper market and commute in.
3. San Jose's Growing Rental Market
Any housing market will see a large and generally well-funded population of renters if there is a university in town. San Jose has several that attract students from around the world. Investors in the San Jose real estate market could buy up properties to rent out to the thousands of engineering and computer graduate majors attending the University of California Berkley campus, UC Santa Cruz, Stanford University, Santa Clara University, and California State University.
The students are coming to these schools in the hope of working for Big Tech, so they’re not going to leave if they have a choice. According to Sanjoseca.gov, only 22% of San Jose homes remain affordable to median-income households. In other words, only 1 in 5 families can afford to buy a median-priced home in San José. Buyers must earn $98/hour ($203,497/year) to afford a median-priced single-family home.
When evaluating a rental investment, working out the vacancy rate is very important. It is helpful to know the market’s average vacancy rate so you can compare your property’s current performance. According to data compiled by the online lending site Lending Tree, San Jose had the lowest vacancy rate in the entire U.S. in the summer of 2019.
Of the 50 major cities listed, San Jose’s vacancy rate of 4.26 percent citywide was the lowest. The figures for San Jose are not only for the city of San Jose but also include the larger Santa Clara County metro region. Generally speaking, 2% to 4% is considered a decent rate for metropolitan areas like San Jose.
Short-Term Impact of Pandemic
According to Sanjoseca.gov, in Q4 2020, the average effective multifamily rents had fallen 3.5% since Q3 and 7.3% since last year at this time. Vacancy rates remain higher than normal due to conditions caused by COVID-19. Class A apartments have the highest vacancy at 18.1%, while vacancy rates for lower-rent apartments are far lower at 6.2 to 6.6%. Fourth-quarter 2020 marks the first time that Class B apartments surpassed a 6% vacancy rate since 2015 and the first time that Class C and F apartments surpassed a 6% vacancy rate since 2005.
As of September 6, 2021, the average rent for a 1-bedroom apartment in San Jose, CA is currently $2,200. This is a 2% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in San Jose increased by 14% to $1,988. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 2% to $2,750.
- The average rent for a 2-bedroom apartment in San Jose, CA is currently $2,750. This is a 2% decrease compared to the previous year.
- The average rent for a 3-bedroom apartment in San Jose, CA is currently $3,600. This is a 3% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in San Jose, CA is currently $4,100. This is a 2% decrease compared to the previous year.
The most expensive San Jose neighborhoods to rent apartments in are Downtown, North San Jose, and Buena Vista. The cheapest San Jose neighborhoods to rent apartments in are East San Jose, Cambrian Park, and Evergreen.
4. San Jose is Relatively Cheaper Than Silicon Valley
We mentioned San Francisco tech firms moving jobs to Seattle to reduce labor costs or pay the same rate while giving workers a higher standard of living. However, the less often mentioned trend is San Francisco and Palo Alto firms moving to the South Bay because it isn’t as much of an inconvenience. After all, many of their workers are moving to the South Bay to be able to afford a home. Smaller firms are starting up in San Jose instead of Mountain View because it is what they can afford.
Silicon Valley is dominated by young professionals, many of whom want to start families. If you can invest in housing that caters to their needs and fits their budget, they’ll pay a premium for it. And as long as Silicon Valley continues to generate so many high-paying jobs, it will continue to attract people who will eventually start families. If families continue to be priced out of the San Jose housing market, you can still rent the property out to young tech workers willing to pay $2000 a month to rent a bedroom in a single-family dwelling.
San Jose ends up serving as a place for middle-class people working in these areas to find more affordable housing. Similarly, due to office space costs, more middle-class jobs locate themselves in San Jose and vicinity rather than further north in Palo Alto or Mt. View. San Francisco on the other hand is the job center for that area, and people with high-paying jobs end up having to pay a premium to live close to said jobs, leaving only the richer people able to afford to live in SF.
Co-working space allows small businesses and individuals to share workspace at a lower overall cost per head. Co-living spaces bring the same economies of scale to individuals. You may have a bedroom to yourself or share it, but amenities like the laundry room, kitchen, and entertainment are shared. It is hard to think of a more profitable opportunity for investing in the San Jose real estate market.
Buy a building and convert it into a co-living space, charging several hundred dollars a month per bed for students starting up their own company or working for a Big Tech firm. If the dorm-like residence is next to co-working spaces, it is a marriage made in heaven. If you know of industrial or commercial properties near major employers they may need to convert to employee housing, you could buy now and hold until it sells. If that doesn’t happen, you could still turn it into a co-working space.
5. San Jose's Micro-Housing Is Making a Comeback
Co-living spaces maximize personal space and quality of life by minimizing the size of bedrooms while having people share living rooms, bathrooms, and gyms. However, not everyone wants to live in one of these “dorms for grownups”, but they can’t afford the $2500-3500 a month rent for a conventional apartment. San Jose is meeting demand by authorizing the construction of new micro-apartments and renovation of existing structures to create micro-apartments.
San Francisco is considering amending its building code to reduce apartments from a minimum of 290 square feet of livable space to 150. San Jose is ahead of the curve with the 150 square foot minimum. If you want to buy and renovate single-family homes or apartment buildings to carve up into many smaller and profitable units, now is the best time to invest in the San Jose real estate market. Hotels are being converted to micro-apartments all ready to meet this new affordable option in the San Jose housing market.
The New Hotel Balmoral offers a new rental option in downtown San Jose. 10 micro-apartments, ranging from 344 to 926 Square feet and equipped with internet, cable TV, refrigerator, and microwave, can be rented for 2,200 dollars a month. The price includes two cleanings per week and access to the gym. Just recently, a San Jose housing development with 400-square-feet micro-apartments has been approved near Google transit village.
6. San Jose's House Prices Are Now Rising Slowly
San Jose has a large population of highly educated professionals. Due to the strong economy, there is a great deal of new construction, with commercial and residential buildings being erected everywhere. The retail infrastructure has undergone massive improvement since the 1990s. It recently became the tenth-largest city in the United States, with over a million people, but only about 40% of its land area is developed. San Jose's downtown is small relative to its population size. The majority of San Jose is suburban.
Although the inventory is up due to the pandemic it hasn’t made a dent in the problem of the housing shortage. San Jose’s total housing stock is growing year-over-year but it doesn’t translate into measurable relief on housing demand. However, over the past couple of years, the growth of inventory has significantly contributed to a slowdown in price appreciation.
Three years ago, home prices in San Jose were rising by double-digits year over year. Then they leveled off followed by a declining phase. Inventory growth has played key a role in this reversal. Zillow's latest forecast until March 2022 is that San Jose-Sunnyvale-Santa Clara Metro home values will decline by 5%. The city's appreciation rate is higher than this. As we write this, the San Jose median price is up 10.9% ($1.42M) from last year.
San Jose Investment Properties: Where To Buy?
Maybe you have done a bit of real estate investing in San Jose 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. Should you consider investing in San Jose real estate?
If you are a home buyer or real estate investor, San Jose real estate investment has been generating one of the best long-term returns in the U.S. through the last ten years. Big Tech makes San Jose one of the hottest real estate markets in the country. Among all the cities of Silicon Valley Bay Area, San Jose city probably has the perfect balance of residential and commercial areas.
While the intense pressure is driving some companies and people out, the strong financial numbers continue to make the San Jose housing market a good place to invest. The unique redevelopment opportunities should not be overlooked. If you want to invest in the San Jose housing market, you should do it now while things are – relatively speaking – affordable.
The best part is low competition among buyers due to pandemic, and historically low mortgage rates. Zillow's forecast until March 2021 is that the San Jose housing market will remain flat. You can still find affordable housing in this big city which has fantastic neighborhoods. The economy is currently strong, fueled by the vibrant high-tech sector.
Demand would raise the price of your San Jose investment property and you should be able to get a good return on your investment over the long term. The neighborhoods in San Jose 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 Jose 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. Nine of Redfin’s 10 Hottest Neighborhoods of 2018 were in the San Jose metro area. While the San Francisco peninsula has traditionally been the hottest of the hot places, we’re seeing it become unaffordable for even the tech giants that helped create its demand in the first place,” said Redfin Silicon Valley agent Kalena Masching. “The result has been a tech-worker migration to the South Bay charged by people looking for relative affordability, highly rated schools, short commutes, and access to jobs.”
Bucknall topped the list. This neighborhood is dominated by single-family homes, which sets it apart from many neighborhoods in the area that have more mixed-use or multi-family homes.
White Oak is a neighborhood that many first-time homebuyers choose because it has a lower price point and is close to vibrant Downtown Campbell and Downtown Los Gatos.
Ortega is becoming famous among homebuyers because of its proximity to the Cupertino and Santa Clara Apple campus, its highly rated schools, and its access to highways 101 and 280.
Lakewood is a good commuter neighborhood and one of the few remaining places in the San Jose metro area where people can get a home for less than $1 million without getting deep into San Jose or going to the East Bay. It’s close to Mission College and a fairly new shopping plaza with a beautiful movie theater, small grocery store, and plenty of restaurants and pubs to keep up with demand. More information regarding all the 10 hottest neighborhoods in San Jose can be found here.
Niche.com also comes up with the best neighborhoods for buying a house in San Jose in 2020. Here are a few of them.
California housing market is the focus of many U.S. and foreign real estate investors. Apart from the San Jose real estate market, you can also invest in multiple cities in California. Here are the other two big cities in California where a real estate investor should look into buying investment properties.
California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. The Los Angeles real estate market has many points in its favor beyond its sheer size. The strong market fundamentals make the Los Angeles housing market a good place to invest if you’re looking at buying real estate in California. Homeownership rates in California have been declining for years. The sea change has been the growth of renting among the middle and upper classes.
For example, a third of Los Angeles residents with incomes over $100,000 rent instead of own. Baby Boomers downsizing their homes choose to rent condos and homes that others maintain. Millennials who have a good income often say their parents lose their homes in the Great Recession and choose to rent instead. This is driving demand for the luxury Los Angeles real estate market, whether condos, apartments with concierges, or luxury homes rented instead of purchased so that the resident can easily move if they lose their jobs.
The San Diego real estate market offers an ideal mix of limited supply, high demand, and excellent income potential. If you’re going to invest in California, it needs to be in San Diego. 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 by 2050, adding tens of thousands each year.
San Diego also 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.
Fresno is the epitome of “the Valley” and it was also among the nation’s top housing markets in 2019. Fresno continues to be ignored in favor of hot coastal markets like San Francisco and Los Angeles. We can say that the Fresno real estate market is more friendly to landlords than somewhere like San Francisco. For example, your Fresno real estate investment property isn’t subject to rent control unless you’re running a trailer park. Nor does Fresno follow in San Fran’s habit of nearly banning new construction. It is also much easier to evict someone in Fresno who doesn’t follow the terms of the lease. Furthermore, Fresno allows you to remove tenants through no fault of their own.
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.
Let us know which markets in the United States you consider as best places to invest in real estate!
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.
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