Best Areas to Invest in Sacramento

Located to the north east of the San Francisco Bay Area, Sacramento is a booming city with a thriving job market and growing home values, as well as being the capital city of California. It’s also among the largest cities in the United States with a highly profitable market for real estate investors to take advantage of.

Known for the Sacramento River, its extensive tree coverage and clean air, the city of Sacramento has become a favorite for young professionals and families. This is due to its fast growth over the years and a relatively affordable median home price in the real estate property and rental market. It's no wonder it stands apart from other cities.

The central city offers a number of amenities and recreational facilities that are appealing to both tourists and residents in the region. In addition to gorgeous views of the American and Sacramento rivers, and the American River Bike Trail, the city has some of the best schools, health care facilities, parks, bike and pedestrian trails, and restaurants with Italian and French cuisine in all of California. This makes the Sacramento city real estate market competitive while still offering affordable housing. 

Thanks to its quality facilities, biking trails and great opportunities for investment properties, Sacramento County is among the best places to purchase investment property in all of CA. Regardless of your experience as a property investor, the city of Sacramento has something to offer to all real estate investors -  in particular its growing home values in charming neighborhoods.

In this article, we here at Peak Residential Management will give you insights on Sacramento real estate including some of the best neighborhoods to invest in Sacramento, CA. This article will give you a clear head start on your investment opportunities in this city.  

However, before we get into the various neighborhoods in Sacramento, we’ll give you a glimpse into real estate investing in the Sacramento housing market!

The Real Estate Market in Sacramento, California

Over the years, Sacramento has gained popularity among real estate investors, renters, young professionals alike. West Sacramento real estate has even appeared in many popular blogs and magazines that state it’s among the best places to buy rental property in all of the cities in California. 

Sacramento real estate is fairly affordable, especially in comparison to San Francisco and San Diego, with the majority of the households being renters. The housing market in neighborhoods in the town of Sacramento is usually in high demand making it a highly competitive market, but providing reliable revenue and real estate appreciation to investors due to the growing median property price. 

Regardless of your preferences as a property investor, there are plenty of investment opportunities in the city of Sacramento real estate market. Whether you are looking to invest in an Airbnb, rental home, or vacation home in the city, Sacramento will offer you more than enough opportunities, all with promising returns, a growing median price and healthy housing prices.

The Best Neighborhoods to Invest in Sacramento

East Sacramento 

Located on the east side of downtown Sacramento, East Sacramento, also known as the town of East Sac, is one that can be characterized by its community feel. Additionally, in this neighborhood, each home has its unique qualities. No two homes are alike which can really appeal to real estate investors.

Due to its unique characteristics in terms of culture, and proximity to downtown, the town of East Sac is a profitable market that has drawn quite a number of real estate investors, developers, and homebuyers alike. In recent years, there’s been an increase in the development of this neighborhood. This area also has a number of amenities, such as schools, biking areas, parks, and high-rated restaurants. 

The East Sacramento area would be best for those looking to invest in rental homes or multiple properties, with a positive cash flow and a healthy median listing price. As most of the developments in the area are single family homes.

Oak Park

Oak Park is one of the most popular neighborhoods in Sacramento for real estate investing with its continuously developing economy and high average rent. In terms of location, it’s situated just a short drive from downtown Sacramento and West Sacramento for its many shopping centers and parks.

The neighborhood’s security has been ramped up significantly over the years, creating an area that’s safe and trendy to live in and close to downtown restaurants. As a result, the town of North Oak Park has gained popularity in the local market compared to San Francisco, and its homes and developments have become a target for investors, young professionals and renters due to the proximity to downtown, growing rent prices and great median sales price.

Sacramento real estate investors enjoy the fact that homes in the region have an affordable entry price, and attracts renters due to the number of apartment complexes also located here. The community offers the draw of beautiful tree lined streets, a brewing company, several art studios, restaurants, and a farmers’ market that cater to the needs of the neighborhood. 

It’s speculated that Oak Park is going to become an influential neighborhood in the Sacramento area in a few years. As such, this neighborhood is one of the places to look out for in regard to property investment as the median property price is ripe for growth. This can be attributed to its proximity to downtown and other influential districts.

Elk Grove

Elk Grove is located between Interstate 5 and the 99 freeway. This Sacramento suburb has been growing steadily since the early 2000s compared to the national average making it a great choice for real estate investing. 

The Elk Grove neighborhood has several parks and other natural features that appeal to real estate investors, such as rivers and aquatic centers, that are very appealing to families. Its residents, especially families, love the parks, and the walkable neighborhood. 

Unsurprisingly, it has numerous homes that are family-oriented which makes one of the most highly sought after neighborhoods in the city. The rental market in Elk Grove has become very competitive in recent years as many people have become interested in residing in the neighborhood. 

Property investment is very profitable and stable in Elk Grove as most of the residents and potential residents are willing to pay home prices that afford them comfortable living.

Rancho Cordova

Ranked as one of the best places for real estate investing in the Sacramento area, Rancho Cordova is a neighborhood that has a lot to offer to both its residents and investors. It’s the region’s largest employment center compared to the national average, with most of its population being commuters.

Rancho Cordova is great for numerous types of property investments. Short-term vacation rentals in particular have the potential to do well in this neighborhood. 

In a Nutshell: the Best Areas in Sacramento for Investing

Whether you love a busy downtown or quiet neighborhood, Sacramento offers it all. The Sacramento area offers some of the best investment properties for property owners, with a flourishing real estate market, a thriving job market and a great median home value.

The Sacramento neighborhoods above are just a few of the many promising options in Sacramento. If you’re looking to become a property investor in the region, we suggest that you consider Oak Park, Rancho Cordova, Elk Grove, and East Sacramento. 

For you to run your property successfully and feel the benefits, such as to enjoy positive cash flow, it’s important to incorporate localized knowledge of this big city and specialized skills into the job of managing rental properties. We here at Peak Residential are able to offer the top property management skills of our real estate professionals in the Sacramento region. 

Having worked in the region since 1982, our Sacramento history is sure to be beneficial to your investment. We offer a number of property management services such as rent collection, tenant management, leasing and letting, and marketing, among other tasks.

Real estate investors are encouraged to reach out to us for any advice on property investment in Sacramento as well as for property management and investment consultancy services in the area!