Why Invest in Los Gatos, CA Real Estate?
With more than 30,000 residents, Los Gatos enjoys a lovely weather year-round and encompasses both valley and hillside terrains. The picturesque town is part of the Santa Clara County and nestled right at Sierra Azules' base, very close to San Francisco.
Closely tied to Silicon Valley and its ever-booming economy, Los Gatos has an excellent school system, low unemployment rates, a fast-paced technology sector, and a very desirable ranking when it comes to the wealth of its inhabitants. The main industries in the city include tech, professional, & scientific services, healthcare, social assistance, and manufacturing. As a result, its economy and real estate market are as stable as they come.
While still considered a seller’s market, Los Gatos also provides enough real estate opportunities for investors in rental properties. The luxury market isn’t as overpriced as entry-level properties are, but even the latter are getting fewer and fewer offers. This indicates a possibility for changes in buyers’ advantage.
Investment Considerations for Los Gatos Real Estate
There are a number of factors to consider, including:
- Increasing rental demand - Of all the city's residents, 34.3% are renters and only 4.9% of homes are currently unoccupied. And with 33.33% of renter-occupied units, Los Gatos is a great location for rental property investment. In addition, the area is home to numerous top-notch schools and companies, which attracts skilled professionals and families. Therefore, real estate investors in Los Gatos will find tenants for their properties in a timely manner.
- Increasing rent prices - 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.
- Job market growth - Los Gatos' unemployment rate is 2.7%, which is considerably lower than the national average of 5.2%. Plus, the city hosts over 3,000 businesses including the world-famous Netflix, EverSport, and ImageShack, which makes it an appealing destination for young professionals. As a matter of fact, Los Gatos manages to keep a staggering 22.2% of those employed in high-paying professional, scientific and technical services sectors. The 3.3% job market increase experienced in 2017 goes hand in hand with the place's strong economy and low unemployment rate. As a result, the town's real estate market is stable and investors can choose from numerous employed renters and active buyers who are able to pay their rent on time.
- Popularity as a living destination - Los Gatos has an upscale community, great economy, beautiful weather, a charming downtown, low crime rates, as well as excellent schools like Blossom Hill Elementary School, Los Gatos High School, and Louise Van Meter Elementary School. Moreover, the area boasts nice shopping centers, restaurants, and leisure ops such as wine tasting, sailing, picnicking, and rollerblading. Its proximity to San Francisco San Jose also adds to its popularity. Thus, the city is an ideal destination for families with children, young professionals, and retirees. All of these mean a steady influx of permanent migrants and low vacancy rates, which makes Los Gatos a catch for real estate investors interested in steady year-round incomes.
What are the best neighborhoods to invest in Los Gatos
- When it comes to neighborhoods, school districts are especially desirable, as they have a family-oriented vibe, are close to education facilities and company offices. Some are even more affordable, the sweet spot being the Campbell Union HS District. Nevertheless, the entire city is a nice investment opportunity for investors in single-family properties.
- While entry-level homes are selling fast, the luxury market in Los Gatos is characterized by a much slower pace and more opportunities for lowering prices. The city experiences economic growth and offers access to state-of-the-art healthcare and education; this makes both short- and long-term prospects regarding cash flow and profit pretty favorable.
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 Los Gatos, CA; and across the United States and calculate home values RENTestimate for every property in Los Gatos. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.