Reasons to Invest in Sacramento Real Estate

Are you looking to invest in Sacramento, California real estate?

Real estate investments can be the key to achieving a passive income. Rental properties often provide a regular monthly profit, and you can also earn more when the property value appreciates over time. Investors need to be aware, however, that real estate markets don’t all perform in a similar manner. This is where strong research is recommended. You must look for an area where the economy is flourishing, the rental market is healthy, and the housing prices are affordable.

Sacramento easily fits this checklist, making it an excellent pick as a rental investment. Real estate investors are certain to find Sacramento a bankable asset.

With the help of Peak Residential, you’ll learn the main reasons to buy an investment property in Sacramento, California. Specifically, you’ll find out what attributes it has that earn investors such high returns. 

Why Invest in Sacramento, California Rental Properties

#1. Strong Local Economy and Solid Job Market

The economy is always at the crux of investing in real estate. Sacramento offers a strong and stable economy, making it a perfect choice to add to your investment portfolio. Its economy remains unflappable in the face of change. Investors remain optimistic and continue to invest in Sacramento.

Most real estate investors are on the lookout for secure and unshakable economies to protect their interests. A solid economy means a high employment rate which attracts more people to move to the area. Sacramento is successful with its economy. The pillar of the economy is supported by vital industries in the sectors of healthcare, education, clean technology, and agriculture. This aids Sacramento’s accomplishment in reducing unemployment levels.

Another advantage Sacramento has over the more costly neighborhoods in the Bay Area and Silicon Valley is the influx of companies and people moving to Sacramento. This is due to lower operational costs and living costs. This expands the city’s industries and serves to grow the job market even more. Real estate investors are confident that rental properties in Sacramento will have a consistently high occupancy rate. 

#2. Population Growth

Growth in population relates to a robust job market. Given the dependable job market in Sacramento, more people are deciding to move here to embrace the work opportunities offered in this city. As such, the demand for rental properties in Sacramento will continue to skyrocket.

As a Sacramento landlord, you’ll stand to benefit from this scenario as your tenant reach expands. You can now access a wider pool of high-quality renters. Being ranked as one of the best cities to reside in certainly helps its popularity too! 

Sacramento’s rental occupancy remains high in the face of strong demand. In fact, more than half of the residents settling in Sacramento are categorized as renters. Sacramento landlords will profit since it’s easier to retain long-term tenants in a city with solid rental demand. Real estate investors know that the economy is progressive, leading to stable rent income.

#3. Great Local Climate

Tourists coming from areas with extreme winters also flock to the Mediterranean climate of Sacramento. Landlords can focus on attracting this demographic to their rental vacation properties.

Sacramento has consistent and predictable weather with a comfortable climate and many sunny days. Spring and fall seasons have mild temperatures, so visitors coming from colder places can enjoy staying in Sacramento for a few weeks or months each year. 

#4. Affordable Real Estate and Low Cost of Living

Even if California is reputed to have expensive real estate homes, great property deals do exist in Sacramento. You are much more likely to find a good quality yet affordable property here.

When it comes to Sacramento’s cost of living, other cities are way higher, such as Los Angeles, San Francisco, Oakland, and San Diego. As a wise investor, choosing Sacramento as your real estate investment means capitalizing on its affordable price, given its impressive potential. You can also find solace in the fact that home values are bound to appreciate over time, taking into account this city’s established economy.

Since the market has more affordable property prices, you may get more for your money in Sacramento than in comparable areas! 

#5. Rental Income and Appreciation

The thriving real estate landscape in Sacramento means that home values continue to appreciate and rental rates remain high, given the demand for housing. However, with the plethora of property choices in Sacramento, you can price accordingly based on the neighborhood and type of rental property you own. 

In terms of property appreciation, Sacramento has enjoyed high appreciation values for the past decade. Overall, it has scored in the top 10% when it comes to appreciation in comparison to the rest of the country. 

Considering the major factors of affordability, projected high demand for rent, and predictable appreciation, Sacramento is a winning investment. Real estate investors can easily gain back their ROI while enjoying the passive income generated by their investment property.

Bottom Line

Sacramento is among the top places to live, providing a high quality of living. It’s also a sound investment for real estate investors due to its strong local economy and the solid job market. Moreover, its great local climate attracts another group of short-term tenants. 

The affordable real estate and low cost of living in Sacramento qualify it as an ideal real estate investment where you can benefit from a stable rental income.

For first-time investors, getting in touch with property management professionals like Peak Residential is highly recommended. We can use our expertise to ensure you come up with the right decisions!