Real Estate Investment in San Mateo, CA

Why Invest in San Mateo Real Estate?

Settled in the heart of Silicon Valley, San Mateo is a lively city famous for its amazing weather, top-notch schools, beautiful parks, fascinating libraries, as well as some of the best restaurants and shopping centers in the Bay Area. San Mateo's population is nearing 104,000 residents and has experienced a 2.21% population growth rate in 2017, which is higher than the national average of 0.7%.

When taking a closer look at the local thriving technology-based economy, we've noticed that San Mateo enjoys some strong economic indicators. The city's key industries are IT, technical, scientific, and professional services which contribute to creating high-paying jobs. Therefore, there is a good percentage of wealthy renters and homebuyers that keep the real estate market in good shape.

Thanks to its booming economy sectors and growing population, San Mateo's real estate scene experiences a high rental demand. This leads to an increase in prices of single-family homes and condominiums which is well-balanced out by the rising appreciation rates.

Investment Considerations for San Mateo Real Estate

There are a number of factors to consider, including:

  • Tech hub - As the high-tech enclave of Silicon Valley, San Mateo is home to many companies, such as Marketo, and Coupa, as well as numerous successful startups, including Jelli and Scalyr. The job market grew by 3.8% in 2017 and the unemployment rate is 3.2%, lower than the 5.2% US average. Therefore, numerous young professionals are drawn to the area and many of the city's residents work in the high-paying technology industry. For real estate investors, this means numerous employed tenants with significant disposable incomes to choose from.
  • Increasing rental demand - Thanks to its well-established startup scene, a strong economy, and low employment, San Mateo is attracting an increasing number of migrants working in booming sectors. Plus, there are many others arriving in search of a higher standard of living. These facts combined lead to a very high rental demand, which translates into a potentially lucrative market for real estate investors. For rental properties, the rental income is $4,330, and the cash on cash return is 3.26%. Thus, San Mateo shoes a beneficial future for real estate investors in single-family properties.
  • High Appreciation Rates - While the median price of a home in San Mateo is on the pricey side ($1,471,900), the appreciation rate is currently 18.8%, which works on real estate investors' advantage. Moreover, the real estate has appreciated by 56.96% over the last decade, which puts the city in the first 10% nationwide for real estate appreciation. In 2017, home values have gone up by 19.4% and they're predicted to rise 7.3% in 2018. This shows long-term gains for investors in San Mateo who want to purchase, hold, and rent out properties until they increase in value and generate nice returns on investment.
  • Popularity as a living destination - San Mateo is a city that boasts pleasant weather, a multitude of high-profile employers, an excellent university program, and a high standard of living. This makes the city appealing to young professionals, families, and students alike; this fact is proven by the high population growth rate. As a result, real estate investors will be able to choose from a large number of renters and active homebuyers and enjoy a positive cash flow likelihood.

What are the best neighborhoods to invest in San Mateo

  • Rental properties are always on demand in San Mateo. The city's top neighborhoods regarding profitability are Sugarloaf (median property price: $1,499,000, cash on cash return: 1.20%, rental income: $4,100), Southeast Hillsdale (median property price: $1,438,000, cash on cash return: 1.10%, rental income: $3,809), and Central (median property price: $$499,900, cash on cash return: 3.02%, rental income: $3,440). Areas with the highest rankings in terms of livability include Downtown San Mateo, Western Hills, and Baywood. Hence, all of these places represent potentially good opportunities for real estate investors looking for good returns on their investments.
  • San Mateo is a smart call for those interested in appreciation, positive cash flow, and wealth-growing likelihood. With a robust economy and a flourishing technology sector, San Mateo is a good choice when it comes to real estate opportunities.

 

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

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