Why Invest in Los Altos, CA Real Estate?
Los Altos is located in Santa Clara County, right in the heart of Silicon Valley. The city boasts charming nature, diverse leisure ops, as well as opportunities to visit or commute to nearby tech hubs, such as Palo Alto and San Jose. Los Altos has a population of over 30,000 residents and is packed with renters and aspiring homeowners throughout the year.
The city's economy is growing and is stimulated by industries like information, professional services, technology, manufacturing scientific services, and real estate. Los Altos is among the wealthier cities in the US, which makes it a nice choice for real estate investment.
While experiencing rising median home values, Los Altos is going through ups and downs when it comes to real estate prices. However, thanks to its solid economy and some well-established industry sectors, the Silicon Valley city's real estate capricious market is a promising candidate for future growth.
Investment Considerations for Los Altos Real Estate
There are a number of factors to consider, including:
- Job growth - The job growth market in the entire Santa Clara County experiences a continuous growth. There were 7,500 new jobs added in the Bay Area during December 2017 alone and Los Altos is among the cities that benefit from this growth, with an employment rate that went up by approximately 0.50% in the recent years. As a matter of fact, 26.1% of Los Altos' population is employed in booming sectors like professional, technical, and scientific services. The unemployment rate is currently 2.6%, considerably lower than the 5.2% national average. Real estate investors in Los Altos can, therefore, choose from employed tenants with a steady income which makes them able to pay their rent on time.
- Increasing housing demand - With a growing rental demand, rent prices are going up as well. Right now, the median rent price in Los Gatos is $2,979; this is 9.26% higher than last year's average of $2,703. Taking these facts into consideration, real estate investors are likely to enjoy positive cash flows.
- Population shifts - Los Altos' demographics is slowly, yet steadily changing. The city has become Silicon Valley's commuter town; hence, it experiences an influx of homebuyers and tenants working in the skyrocketing technology sector. While this is one of the reasons why home prices increase, it also maintains a healthy market and ensures steady year-round incomes for real estate investors in single-family units.
- Popular living destination - Families with children are more and more interested in Los Altos thanks to its top-notch schools like Egan Junior High School and Los Altos High School. Actually, Los Altos has been ranked the 9th best US city when it comes to the quality of public high schools. In addition, low crime rates, peaceful atmosphere, and the sense of community are highly appreciated by renters and homebuyers. This makes it easy for real estate investors to find newly-arrived tenants and buyers for their properties.
What are the best neighborhoods to invest in Los Altos
- The most sought-after neighborhood in the entire city is definitely North Los Altos, mostly because it's located in the very center and boasts a sense of community. South Los Altos is worth keeping an eye on as well, taking into account its multitude of high-quality schools and after-school programs.
- While the real estate market in Los Altos sometimes struggles with low supply and rising median home prices, there are many factors working in its favor. Real estate investors can often find windows of opportunity thanks to the city's wealthy economy, population shifts, job market, and overall popularity. Those who choose to invest in single-family homes can consider Los Altos a place with a decent potential to succeed.
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