Why Invest in Fresno Real Estate?
Known for its relaxed atmosphere, active art scene and quality university programs, Fresno boasts a steady influx of students who spend most of the year living in the city. This makes it easy to minimize the vacancy rate of any rental property. While Fresno still depends on agriculture, growing healthcare, retail and accommodation sectors, as well as lower unemployment rates, paint a brighter picture for its economy. With a higher standard of living, real estate investment opportunities are bound to appear.
Having been stagnant for a while, Fresno remains one of California’s more affordable areas for housing, especially when compared to coastal cities in California. However, it seems that the real estate market in Fresno is about to experience a boom. This is especially due to all the young professionals from the Bay Area arriving in search of affordable living.
Investment Considerations for Fresno Real Estate
There are a number of factors to consider, including:
- Recovering economy – Ever since the 2008 recession, Fresno has been plagued by high unemployment rates. According to USA Today, in 2017 it ranked 9th of all the cities in the US. However, it is projected that its 12.2% unemployment rate will soon start going down, especially thanks to the local government taking necessary measures to strengthen the economy. This will influence the real estate market as well, which means this could be the right time to invest in a property in Fresno.
- Affordability of living – When it comes to cost of living, Fresno is one of the most affordable places in the US. According to GOBankingRates’ survey, you only need a $44,648 income to live comfortably, with other cities in the Bay Area costing almost twice as much. Home prices are a lot lower as well, median being $225,900. Although this means you could get your investment a lot cheaper than elsewhere, lower income of Fresno residents also needs to be accounted for.
- Rising appreciation rates – Prices of homes in Fresno are rising slowly, but steadily. The increase reached 10.3% during 2017 compared to the previous year, and it is estimated that 2019 will see an additional 4.7% growth. Along with home prices, rents are rising as well, which means there will be opportunities for achieving higher rental incomes.
- Influx of Bay Area residents – The Bay Area is receiving more and more newcomers each year, mostly thanks to the growth of its technology sector. An increasing number of those who are relocating are choosing Fresno for their home base. This is mostly due to it being a lot more affordable than San Francisco and other cities in the area. While this could result in more investment opportunities, the city’s still unstable economy needs to be taken into consideration as well.
What are the Best Neighborhoods to Invest in Fresno
Newcomers to Fresno are mostly looking for family homes in neighborhoods with good schools. Hoover, Bullard and Woodward Park stand apart from the crowd in regards to conditions for raising a family. That is why these markets are considered to be the safest for investing in the whole of Fresno.
Also on the rise are rental rates in the Fresno area, by 5.67% thanks to the continued growth in student population. For real estate investors, investing in properties near universities could mean lower vacancy rate and steady stream of income for years to come.
HomeUnion® 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 Fresno, CA; and across the United States and calculate home values RENTestimate for every property in Fresno, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.