Why Invest in Stockton Real Estate?
Although still struggling economically, Stockton boasts the 20th most desirable real estate market in the US. Cheap properties coupled with high appreciation rates and promising new developments make for an exciting place for real estate investment.
Thanks to its huge inland port and the Asparagus Festival, Stockton receives over 100,000 visitors annually. This, of course, makes the vacancy rates around the city reach minimum levels. While healthcare and retail trade are among the strongest industries here, construction services are being increasingly employed, mostly to support new developments. All in all, Stockton is becoming a more promising real estate investment opportunity with each day.
Investment Considerations for Stockton Real Estate
There are a number of factors to consider, including:
- Rapid economic recovery – It has been projected that during 2018 the entire Northern California will reach an all-time unemployment rates. The future seems the brightest for Stockton, which will experience a 3% job growth in a single year. In terms of real estate investment, this could serve to predict a boom in homebuyer activity.
- High occupancy rates – Only 9.2% of all properties in Stockton are vacant, which means the occupancy rate in this city is a whopping 91.8%. To a real estate investor, this means a stable income for any property that can be rented out.
- Affordability of residential properties – The median price of a home in Stockton is $285,400, which is a lot lower than practically anywhere else in California. This is mostly due to a high number of properties that are owned by banks and in the process of being foreclosed. As a result, Stockton has been ranked 20th on the list of the 300 best real estate markets for both sellers and buyers.
- High appreciation rates – Although home prices are low, those who own rental properties can earn a good income in Stockton. The percentage of renters is quite high, making up 45.7% of the entire population. In addition to that, appreciation rates are around 15%, which is twice as high as the national average. All things considered, it seems like a good time to buy a property and rent it for a profit.
What are the Best Neighborhoods to Invest in Stockton
The most attractive markets in Stockton are Park, Valley Oak and Bear Creek. The latter experienced the highest gain, but it is now being overthrown by the Lothrop neighborhood. This part of the town has been chosen for the River Islands development, a project that is supposed to bring Stockton 11,000 new homes over the next 25 years. As is evident, this city is blossoming into a true real estate wonder.<
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 Stockton, CA; and across the United States and calculate home values RENTestimate for every property in Stockton, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.