Top 10 housing market in Sacramento Where to Invest in 2021, by Robert Langston.

By Robert Langston

TOP 10 HOUSING MARKETS IN SACRAMENTO: WHERE TO INVEST IN 2021

Despite the pandemic, the housing market in Sacramento is thriving. This is as a result of the high demand for properties, low mortgage rates and the need that people have to settle. With the influx of prices, it may seem intimidating to invest in Sacramento. But as the capital of California, Sacramento might have yes, the highest median property price of $431,857 in the entire nation according to data from Noradrealestate.com, but it is the cheapest place to invest in compared to its neighbors, San Jose and San Francisco.

Additionally, Sacramento offers quite a number of incentives that make investing there worthwhile. According to an article by FortuneBuilers, over the years Sacramento has provided investors with good returns on their investment. Still, Sacramento draws in tourists in the market for Airbnb’s. It therefore might be a good idea to invest in Airbnb’s.

But not so fast, there are two areas you could consider investing in Sacramento—that is, in rental properties and Airbnb.

Top 5 places to invest in Airbnb.

Sacramento is the most suitable tourist destination for people of all ages. It’s cultural events like the Sacramento Music Festival and its multi-visit attractions such as the Raging Waters in Cal Expo, draw in thousands of tourists in the market for Airbnb.

Airbnbs are largely more profitable than the traditional rentals but it is important to choose the best location to invest in in order to get maximum returns.

It has the highest median property price of $350,000. With an Airbnb here, you stand to make a monthly rental income of $3,745. The occupancy rate of the Airbnb is 64% and a cash-on-cash return of 10.00%.

2. Natomas Crossing.

It has a median property price of $320,000, with a monthly income of $3,824, a cash-oncash return of 9.72% and an occupancy rate of 78%.

3. Creekside.

Creekside has the highest median property price of the five, at $469,999. It has a monthly rental income of $2,701 and the Airbnb have an occupancy rate of 78%. The cash-on-cash return is 9.52%.

4. Natomas Creek.

It has a median property price of $440,000, a monthly rental income of $2,813 and a cashon-cash return of 7.70%. Airbnb in Natomas Creek have an occupancy rate of 60%.

5. South Oak Park.

South Oak Park has a median Property Price of $254,850, with a monthly rental income of $2,582 and cash on cash return of 6.75%. It has a relatively high occupancy rate of 74%. Investing in Sacramento accords you a landlordfriendly housing market as people are looking for cheap housing and it has good regulations. The income generated in Sacramento may not be as high as its neighbors but it has favorable regulations. In 2021 as per data from Mashvisor, the rent averages at $1,542 in 2021.

The best places to invest in traditional rentals as per Mashvisor’s calculator are:

1. Northgate

Northgate has a median Property Price of $346,950 and a monthly traditional income of $1,720. The average cash on cash return is 5.22%.

2. Robla.

It has a median property price of $335,000 and a monthly income of $1,437. Robla has a cashon-cash return of 3.99%.

3. Del Paso Park

It has a median Property Price of $419,000 and a potential monthly income of &1,456. Del Paso Park offers a cash-on-cash return of 3.20%.

4. Campus commons.

Campus Commons has a median property price of $367,500 and a monthly income of $1,484. It offers a cash-on-cash return of 3.13%.

5. Valley High-North Laguna.

The median property price in this area is $350,000, the monthly traditional rental income is $1,010 and a cash-on-cash return of 2.34%.

While investing in the Sacramento real estate market, it is worth noting that the Sacramento market right now is quite competitive. That however, should not deter you from investing there. Investing in Sacramento could mean good returns on your investment.

Sources:

https://www.mashvisor.com/blog/sacramento-real-estate-market-2021/. https://www.fortunebuilders.com/sacramento-real-estate-and-market-trends/. https://www.noradarealestate.com/blog/sacramento-real-estate-market/.