Real Estate Investment in Anaheim, CA

Why Invest in Anaheim Real Estate?

Regarded as one of the top housing markets on the beautiful West Coast, Anaheim's real estate market is constantly developing. Settled right outside of Los Angeles and famous for its theme parks, Anaheim is the 10th most populated city in California, hosting over 351,000 residents. However, the population growth rate was 0.24% in 2017, lower than the national average of 0.7%.

When analyzing the local economy, we've noticed that Anaheim boasts some strong economic indicators. The largest industries in the city are the retail trade, manufacturing, healthcare, and business services. Also, a substantial part of the city's economy is based on tourism thanks to the world famous Disneyland, which attracts an influx of workers and visitors to the area. Thus, real estate investors can consider investing in both single-family homes and vacation rental properties.

Thanks to its flourishing economy sectors and steady population number, Anaheim's real estate market facilitates a solid rental property demand.

Investment Considerations for Anaheim Real Estate

There are a number of factors to consider, including:

  • High rental demand - With a strong economy, the rental demand in Anaheim is very high now. Renters make up more than half (55.4%) of the city's population and the vacancy rate is 4.5%. The rent prices have also increased by 8.64% since 2017. For traditional rental properties, the rental income is $2,763, and the cash on cash return and cap rate are 2.22%. For short-term vacation rental properties, the rental income is $4,121, and the cash on cash return and cap rate are 4.84%. Therefore, Anaheim shows a favorable future for real estate investors in single-family homes and vacation rental properties.
  • Growing job market - The robust job growth along with the low unemployment rate (3% in 2018) make the city's economy one of the strongest in the United States. Disneyland Park and Disney California Adventure theme parks are the largest employers in the area. Besides that, companies like Carl's Jr, Yogurtland, and Genisco Technology have their headquarters in Anaheim. The job market is predicted to increase by 38.9% over the next decade, which is higher than the national 38% average. Therefore, there are plenty of employed or job-seeking renters and buyers that real estate investors in Anaheim can find for their properties.
  • High appreciation rate - Over the past decade, the city's housing market cumulative appreciation rate has been about 14%, which places Anaheim in the top 30% nationwide. This shows long-term benefits for real estate investors in Anaheim that want to buy and hold properties until their values increase.
  • Popular tourist destination - Anaheim's economy is strongly supported by tourism, as the city hosts two renowned theme parks: Disneyland and Disney California Adventure. In 2017, the city had 24.2 million tourists, which was a record-breaker for the fifth year in a row. This makes Anaheim's real estate market a great one to invest in short-term vacation rental properties.

What are the Best Neighborhoods to Invest in Anaheim

Rental units are always on demand all over Anaheim. However, the neighborhoods that are experiencing the fastest growth, as well as best cap rate and cash on cash return are Southwest Anaheim (median property price: $568,000 cap rate & CoC return: 2.03%, vacation rental cap rate & CoC return: 7.73%), Anaheim Resort (median property price: $625,000 cap rate & CoC return: 2.69%, vacation rental cap rate & CoC return: 3.46%), Southeast Anaheim (median property price: $612,450 cap rate & CoC return: 2.14%, vacation rental cap rate & CoC return: 4.71%), The Colony (median property price: $569,000 cap rate & CoC return: 1.61%, vacation rental cap rate & CoC return: 3.97%), and West Anaheim (median property price: $549,000 cap rate & CoC return: 2.62%, vacation rental cap rate & CoC return: 4.15%). Therefore, these areas are ideal for real estate investors who want to purchase properties that will generate a good return on investment.

Anaheim is a smart call for real estate investors looking for appreciation, growing their wealth, positive cash flow likelihood, together with good traditional and vacation rental income for properties. With a strong economy and a continuously booming tourism sector, Anaheim is a solid option when it comes to opportunities for real estate investing.

 

HomeUnion® Investment MapHomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Anaheim, CA; and across the United States and calculate home values INVESTimate® for every property in Anaheim, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.

Space

View Our Most Popular Properties

  • 3699 Summit Dr Nw Acworth, GA 3 Beds 2 Baths - 1,465 Sqft • Built 1982
    AVAILABLE fmls
    • 15.29% GROSS YIELD
    • $9,438 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $109,900
    • $70,772
    • $1,400
  • 6760 Browns Mill Ferr... Lithonia, GA 3 Beds 3 Baths - 1,660 Sqft • Built 1985
    AVAILABLE fmls
    • 11.31% GROSS YIELD
    • $6,589 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $113,000
    • $43,140
    • $1,065
  • 6909 Wentworth Austin, TX 8 Beds 8 Baths - 3,968 Sqft • Built 1984
    AVAILABLE
    • 11.36% GROSS YIELD
    • $21,451 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $399,990
    • $140,747
    • $3,785


  • See More Properties

    Find available properties in high yielding real estate investing markets

    SIGN UP

    Already have an account?

Innovative Tips and News for Real Estate Investors

Download Our Real Estate Investment Guides

Be an Investor, Not a Landlord

Warren Buffet, the most successful investor of the 20th century, told CNBC that “If I had a way of buying a couple-hundred-thousand single-family-homes, I would load...

Finding Investment Properties

Learn how to identify single-family rental investment properties using our top-down approach. Use this definitive guide to expand your investment portfolio with cash...

Identifying the Perfect Tenant

How do we ensure that we only place “perfect tenants” into our properties and eliminate undesirable tenants? Here is the work HomeUnion® does for you to find...