Investing in real estate can be tricky. While real estate investments often boast great returns, it requires one to be vigilant, strategic, and informed about the outlook and potential growth of a particular location before investing. Doing so can be challenging and we always recommend connecting with a local resource to help you develop insightful and strategic investment plans.
At The Dehlan Group, we are here to help! Our skilled agents can assist you throughout the buying process, helping you make sure your investment is a sound choice. We can help you answer the following:
- Is the area developing and at what rate?
- Is there positive population growth in the area?
- What are prior real estate investment statistics suggesting about the location?
Finding answers to these questions will help you decide whether the investment is secure and right for you and your goals.
Fresno real estate investment statistics
In recent years, Fresno has become an extremely hot real estate market. Fresno has every component a real estate investor needs to thrive. The region is currently experiencing explosive economic growth, with a steady upsurge in employment and population growth, creating an extremely healthy and competitive market.
Currently, the market in Fresno is experiencing an unprecedented upward surge. Redfin indicates that the median sales price in Fresno is currently $360,000, pushing a 31% increase in market price, and the trend is expected to continue. Additionally, the Fresno real estate market experienced a 7% home value increase from last year, implying that real estate value in Fresno is not slowing down.
Population growth in Fresno is also seeing impressive gains. According to population data, Fresno’s population increased by 2.4 percent in just the last twelve months, pushing the demand on housing even harder. As the demand for housing increases, the volume and sales prices continue to rise, creating a very healthy market for investors.
According to RentCafe.com, 31% of homes in Fresno, California are renter-occupied. An article by the Guardian also reported that Fresno witnessed a 26% increase in rent in the past year. The median rent cost of a one-bedroom stands at $1,141 per month, while a two-bedroom is $1,421 per month. The rental price increase in Fresno is confirmed by CalMatters.org, which states that since 2017 rents have gone up by 39% in Fresno.
Statistically, Fresno is a good place to invest in real estate. The market has and will continue to experience an increase. There is no better time than now to invest in the Fresno real estate market.
Investment considerations for Fresno real estate
There are various aspects to consider before investing in the nation’s hottest housing markets. Here are our top four:
Population growth
This is one of the most telling components of real estate investments, and Fresno is doing exceptionally well in this category. With a population of approximately 550,000, the growth of Fresno has been on an upward trajectory with a recent 2.4% annual growth. This increase is largely caused by Bay Area residents rapidly relocating to the area to escape the unaffordable housing prices of the city. The Fresno market is feeling this influx in its housing prices, contributing to the overall evolution of the city.
In addition, with the sudden growth of remote work situations, people are relocating in large numbers, and many are choosing Fresno. Since Fresno sits in the central valley of California, it makes it fairly easy to return to any of California’s major cities such as San Francisco and San Jose when required to do so. This has led to increased housing demand in Fresno, with many investors flocking to the Fresno area to meet this demand.
Expanding appreciation rates
Home prices in Fresno are steadily rising. Due to the mass influx of people relocating to the area, the significant housing demand is taking the real estate appreciation rates to new levels, making Fresno a hot market for real estate investors.
The economy of Fresno
The economy of Fresno is also experiencing rapid growth. The City of Fresno has been taking strategic measures to support the local economy, openly inviting many companies and industries to the area. While agriculture has always been a dominant industry in Fresno, we are now seeing much more opportunity for industry growth outside of the traditional sectors. A healthy economy leads to a healthy real estate market, a critical factor for real estate investing.
Affordable cost of living
Fresno is among the most affordable cities to live in California. It has long been known as a humble, blue-collar agricultural region. Food costs remain relatively low since much of it is grown locally. Many entertainment amenities and necessities such as gas also tend to cost much less than in other areas of California. The low cost of living, especially when compared to the rest of California, is one of the most attractive things about Fresno.
Housing costs have continued to remain low in comparison to the rest of California, however, prices have been rapidly rising due to growth in economy and population. With the current trend in Fresno growth rates, the sooner you invest in Fresno real estate, the better.
Real Estate Investment Options
People have various motives for why they want to invest or relocate to Fresno, California. Luckily, there is a wide range of real estate investment properties options in Fresno. Based on recent data, here are some of the top trends:
- Building homes and apartments for rentals
Due to the financial uncertainty caused by the pandemic, many people prefer to rent homes instead of buying. Quite a large number of households in Fresno are renter-occupied and that number is increasing on an annual basis. Statistically, rent prices in Fresno have been increasing annually and the demand for rentals keeps rising every year. With the City of Fresno focusing heavily on economic growth, we do not see this trend slowing down in the coming years.
Fresno is also the home to various universities, which increases the demand for affordable student housing. This presents an excellent opportunity for real estate investors to venture into the Fresno housing market and fill the housing gap.
- Purchasing low priced fixer-uppers
Fixer-uppers in Fresno can still be purchased at very reasonable rates. There are many older homes that just need a little attention and with the right mindset, you can get a lot of bang for your buck in Fresno. Many investors are purchasing older homes with strong bones at a very low price, renovating them, and reselling at a higher price very quickly. In addition, many long-time locals are selling their homes in Fresno to relocate elsewhere.
- Investing with a long-term aim
Unfortunately, uncertainty levels are high globally. With the economic upset of the pandemic, many people are waiting for things to settle down before making major financial decisions. While the real estate market in California has remained very competitive, the economic uncertainty has allowed many to acquire homes or land at a lower cost. Unlike other investments in an uncertain economy, land rarely depreciates. And the fact that Fresno is rapidly stabilizing in all sectors of its economy, a purchase in the area is a sound investment, guaranteeing positive returns in the future.
The best neighborhoods to invest in Fresno
Fresno boasts many great communities and neighborhoods. From an up-and-coming Downtown, the charming Tower District, the established Old Fig community and beautiful Woodward Park, there really is something for everyone! We also see a lot of families investing in gorgeous new developments in North Fresno, Madera and Clovis areas. These locations are convenient for families and are considered to be some of the safest areas in Fresno.
Should I invest in real estate in Fresno?
If you are looking for an affordable places real estate opportunity with the potential to grow, Fresno is the perfect place to invest. The market is rapidly growing and shows no signs of slowing down. The Fresno housing market has never seen such expansive short-term growth and we look forward to what the coming years will bring. If you’re looking for a great place to live or invest in California, it’s best to get into the Fresno real estate market before it’s too late!
It is important to start with the right agent in order to find the right solutions. As local agents in Fresno, California, the Dehlan Group can make sure Fresno is the right investment for you.
