Why Invest in Saratoga Real Estate?
Renowned for its small-town feel, safety, peacefulness, and high-quality elementary schools, Saratoga is a place that offers many opportunities to real estate investors in single-family homes. Its family-friendly identity is one of the key drivers of the city's real estate market. A growing number of potential tenants and active home buyers are looking for a quiet place that offers access to great education opportunities, leisure ops, and affordability; therefore, Saratoga is often among the first choices.
Home to more than 30,000 people, Saratoga has lost some people over the past years, experiencing a population growth rate of -0.30% in 2017. However, the economy of the city is staying solid, supporting main industries like manufacturing, IT, technology, science, and business services. Hence, Saratoga's real estate market is pretty active which makes the area a decent choice for real estate investors.
Investment Considerations for Saratoga Real Estate
There are a number of factors to consider, including:
- Affordable entry price of homes - While the property values increase, the entry price of homes stays pocket-friendly. The average home value is $2,453,600 and the prices of properties start at around $800,000. As the homeownership rate is over 80%, there are always plenty of active home buyers looking to purchase property in Saratoga. This is good news for real estate investors looking for appreciation (up about 18% in 2017) and making a good profit from buying, holding, and selling single-family homes.
- Increasing rental demand - Even if most properties in Saratoga are currently owned by their inhabitants, the rental demand has been slightly increasing over the past years. Back in 2015, 85.6% of Saratoga's properties were owned, but the percentage went down to 84.5% in 2016. This translates into more rental units and a growing rental demand. With a pretty low inventory and an increasing demand, Saratoga's rental market is certainly heated up. Thanks to that, the rent prices have also gone up by approximately 1.5% in 2017. Thus, real estate investors will easily find tenants for their properties and enjoy a steadily increasing income.
- Job growth - Saratoga has an unemployment rate of 2.9%, which is lower than the national average of 5.2%. With 81% of college-educated residents, the city has been enjoying a knowledge-based job growth rate of 3.34% recently. Plus, the median household income is continuously growing; for example, in 2017, it went up by 0.23%. This draws both buyers and renters to the area, which means a steady cash flow likelihood for real estate investors. In addition, investors will be able to choose from employed tenants who afford to pay their rent on time.
- Great education opportunities - Saratoga is renowned for its top-notch elementary schools such as Sacred Heart School, Blue Hills Elementary School, and St Andrew’s Episcopal School. This attracts young families who are looking for state-of-the-art educational opportunities for their kids, as well as year-round pleasant climate, and leisure ops. Real estate investors can, therefore, benefit from flipping or renting properties.
What are the Best Neighborhoods to Invest in Saratoga
The top neighborhoods for investing in Saratoga are Glen Una and Fruitvale. Both are in close proximity of highly-rated elementary schools and in peaceful, safe areas. These factors are important to buyers and renters who are either residents or future residents of the city.
Saratoga is a promising real estate market for investors. The growing job market, access to good education ops, high property appreciation, as well as increasing rent prices and demand make real estate investment in Saratoga a clever option.<
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 Saratoga, CA; and across the United States and calculate home values RENTestimate for every property in Saratoga, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.