California’s Top Real Estate Markets

Sacramento is the state capital. Other major markets surround San Francisco’s Bay Area, Los Angeles, and San Diego. Northern California, Southern California, and the Inland Empire to the east have emerged into very distinct markets.

According to Bloomberg in July 2014 San Francisco home prices had climbed over 60% since 2009. Big money, anchored by one of the world’s best business, tech and finance hubs sees the area continuing to separate itself as a distinct asset class.

LA is one of the most famous cities in the world, and will continue to draw international visitors and buyers in bulk. Still, Los Angeles is a far more diverse market than many realize, with new efforts to revitalize downtown areas with green projects, mixed use developments, and affordable housing.

San Diego, CA is one of the most diverse counties in the world. Investors can choose between hot metropolitan markets, coastal beach towns, and magnificent custom built ocean front homes, to mountain and valley properties in smaller inland communities. Here there is also incredible diversity in property price ranges, with a little something for every real estate investor.

Prices in San Diego County are significantly lower than in the north, and despite being one of the hottest, and healthiest markets in the US, reportedly still offers great value for buy and hold investors. Analysts via the Union Tribune San Diego commented that county home values were up, but in some cases still 50% below their previous peaks as of 2014. The rental market here is strong with a vacancy rate of just 2.8% as of the second half of 2014.

However, investors should anticipate more activity and gains to be had in more affordable areas as the new property boom matures.