Real Estate Investment in Berkeley, CA

Why Invest in Berkeley Real Estate?

Thanks to its booming real estate market, Berkeley is a good option for investors to own single-family homes. The city is located in Northern California, very close to San Francisco and is home to the world-class University of California, Berkley. For many years, the area has drawn students, young professionals, and people working in the education sector. In 2017, Berkeley's population growth rate was 1.02%, which is higher than the national average of 0.7% and the numbers are still increasing.

The city's economy is strong and prosperous, mainly thanks to the continuous UC-related transactions that generate billions. Besides the education sector, other important industries in Berkeley are healthcare, social assistance, and scientific, tech, & professional services. The economic growth leads to an influx of renters and active home buyers.

While real estate prices are on the rise, Berkeley's market still favors investment, as many neighborhoods boast affordable properties. Therefore, Berkeley remains a city with a plethora of profitable opportunities for real estate investors in single-family homes.

Investment Considerations for Berkeley Real Estate

There are a number of factors to consider, including:

  • Job Market Growth - Berkeley's job market experienced a 2.6% increase during 2017, which has helped the real estate scene remain stable. Future job growth for the next decade is predicted at 41.4%; this is higher than the national average of 38%. At 3.8%, the unemployment rate is low as well, significantly lower than the US average of 5.2%. The University of California, which is located in Berkeley, makes for 1.8% of the state's gross state product. Moreover, 25.1% of the city's residents are working in the education sector and the University is Berkeley's top employer. Thus, renters and active homebuyers are attracted to the area, which means that real estate investors are likely to enjoy a positive cash flow.
  • Popular Living Destination - More and more students, education professionals, and recent graduates are drawn to Berkeley thanks to its state-of-the-art University and a solid economy. As a result, the area's population is constantly growing. In addition, the city is appreciated for its diverse restaurant scene, numerous shopping centers, and a lively vibe. Hence, real estate investors can benefit from low vacancy rates on their properties which leads to a secure and continuous income stream.
  • Affordable Entry Price of Homes - There is a large number of affordable properties in Berkeley. The median home value has increased by 7.1% in 2017 and is predicted to rise by 1.3% during 2018. The sales have also gone up by 7% in 2017, which indicates a high demand. Another good news is that there are approximately 50,000 new housing units added in the Bay Area. All of these facts, together with the increasing rent prices give real estate investors the opportunity to earn a solid and continuously growing income from rental properties and flipping houses.
  • High Rental Demand- With over 40,000 students enrolled in courses at the University of California, Berkeley, there are always people looking for a place to rent. Plus, the low vacancy rates and skyrocketing rent prices lead to a stable yearly influx of tenants and a high return on investments.

What are the best neighborhoods to invest in Berkeley

  • In terms of top neighborhoods, West Berkeley has a high supply of available properties, which means higher days on market numbers. Especially compared to the more competitive neighborhoods, this makes the west part of the city more attractive to real estate investors. Telegraph and Claremont are regarded as some of the safest areas, so real estate investors can also consider them.
  • In spite of its reputation for a highly competitive real estate market, Berkeley offers a bunch of awesome opportunities for real estate investors in single-family homes.

 

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 Berkeley, CA; and across the United States and calculate home values INVESTimate® for every property in Berkeley. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.

Space

View Our Most Popular Properties

  • 1004 Rodden Street Longview, TX 4 Beds 2 Baths - 1,606 Sqft • Built 1970
    AVAILABLE
    • 11.73% GROSS YIELD
    • $6,394 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $132,500
    • $48,600
    • $1,295
  • 21709 Crystal Way Lago Vista, TX 3 Beds 2 Baths - 1,556 Sqft • Built 2018
    AVAILABLE
    • 9.94% GROSS YIELD
    • $10,093 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $211,211
    • $61,639
    • $1,750
  • 1105 Safrano Street Midlothian, TX 4 Beds 3 Baths - 2,658 Sqft • Built 2014
    AVAILABLE
    • 9.69% GROSS YIELD
    • $12,934 NET OPERATING INCOME
    • Purchase Price
    • Investment
    • Projected Rent
    • $309,000
    • $92,270
    • $2,495


  • 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...