Since the gold rush in the mid-1800s, people have been relocating to California. Residents enjoy a laid-back lifestyle in a beautiful place with ample opportunity to thrive.
Because California is attractive to so many renters, real estate investors have a chance to make a living owning real estate.
The high cost of living leaves investors concerned. While people do leave due to high costs, others always take their place.
If you want to find a valuable investment property in a competitive real estate market, this guide is for you. Keep reading to learn more about real estate in Walnut Creek, California.
Average Rent Prices
California is a hot spot for real estate investors because of the opportunity to generate passive income through rent collection. Higher rent prices are expected in Walnut Creek and certain areas.
As a whole, the average rent prices in California look like this:
- Studio: $1,700
- 1-Bedroom: $2,400
- 2-Bedroom: $3,200
- 3-Bedroom: $4,400
- 4-Bedroom: $6,000
Almost 50% of the state is renter-occupied as mortgage rates and house prices continue to climb. The demand for rentals is increasing in the state and across the United States in general.
Rent Control Laws
California has rent control laws and landlord regulations that investors need to be aware of.
For example, the Tenant Protection Act caps rent increases on residential properties in the state. Over 12 months, landlords cannot increase the rent by 10%.
Read up on tenant protections in the state before renting out your units. Staying compliant is an essential part of being an investor.
Experienced real estate investors benefit most in a market like this because it takes savvy investing to succeed. Beginner investors can dabble in the market, but it's important to seek help from a property management company.
Before buying real estate, get to know the rent control laws and other regulations in the area.
Walnut Creek Housing Market: Home Sales
Home sales are a driving factor in the rental market. December 2023 showed a decline in sales because of fewer listings. A home list price is higher when fewer homes are on the market.
While some home buyers believe they can wait out an expensive market, it's not always the case. In states like California, the demand always increases in due time.
When residents and businesses leave the area, new ones take their place. Location is a top factor in property value and appreciation. California continues to attract new residents and renters for many reasons.
Invest in the Real Estate Market Today
Walnut Creek real estate is hot and real estate investors have a great opportunity to increase their earnings. With the help of a property management company like PMI Contra Costa, you can meet your financial goals.
For over 20 years, we've been a local business with national recognition. With an understanding of the local market, we can maximize your profits and minimize expenses.
We'll start with a free rental analysis and work on marketability. Then we will utilize friendly and professional services to increase the value of your asset.
Ready to get started? Contact us today for more information.
