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What are the Best Places to Invest in Real Estate 2022 California?


With the recent wildfires and ongoing pandemic, it is difficult to predict accurate real estate trends in the golden state. The pandemic took a toll on the economy. The prices are starting to rebound but the situation will become more clear once the pandemic ends. The pattern in the Best Places to Invest in Real Estate 2022 California market is favoring sellers as of now. It is more of a seller’s market. Although mortgage rates are at an all-time low, there are fewer closings. You can expect a shift in the coming year. 2022 is going to look like a buyer’s market according to analysts. 

Best places to invest in real estate 2022 California:

Analysts are predicting the fastest growth in the Best Places to Invest in Real Estate 2022 California market in the following areas.

Fresno – Why is it one of the best housing markets for investment? 

Best Places to Invest in Real Estate 2022 California

Fresno is a major city set in the center of California State. Fresno is famous for lavish ash trees facing the San Joaquin River. The fifth-most populous city in California has a population of 542,107 as of the 2020 census. It is also the 34th-most populous city in the U.S. Fresno County and San Joaquin Valley share the city as their economic hub.

Fresno scored 80 on the Best Places to Invest in Real Estate 2022 California, making it a very competitive housing market. The median sale price of houses in Fresno saw a surge of 9.5% over last year. The houses in Fresno are selling at an average sale price of around 360,000 USD.

The houses remain on the market for an average of 11 days, before selling out. 

With the population growth, demand for houses is growing. Fresno is less dense as compared to other urban areas. The real estate market in Fresno is experiencing positive trends with more people looking for housing in uncrowded urban cities.

If you compare Fresno to other coastal cities of California, it offers more affordable housing options. Fresno offers good quality university programs. The city has a large student population occupying many rental properties which decreases the vacancy rate of rental properties. This makes Fresno a lucrative option for real estate investment.

Reasons for investing in the real estate market of Fresno

  • Large market

The city boasts a large real estate market. Fresno houses a population of over half a million. If you add the population of suburbs as well, the numbers increase up to almost a million. This translates into a higher possibility of making profits off real estate endeavors. A big market is an ideal option for real estate investment.

  • Rapid growth

It is one of the fastest-growing regions in the state of Best Places to Invest in Real Estate 2022 California. Fresno is drawing people looking for affordable living costs, while still enjoying the perks of living in the State. The population growth is creating more demand for real estate. This increase in population will positively impact the real estate market down the lane. The expansion of the technology sector in the area is also contributing to an influx of newcomers. This means more opportunities for investment in the real estate market.

  • Affordability

The cost of living in Fresno is relatively lower than in many other cities. An income of around 40,000 USD is enough to live comfortably in Fresno. Moreover, the average home price is around 226,000 USD, which is lower than other Bay Area cities. If you compare the housing prices to other cities of California, this is a bargain. Lower housing prices make Fresno an affordable area for real estate investment.

  • Diverse economy

Many industries in the area contribute to the local economy. The city is famous for its agricultural production and food processing industry. Although the city was hit by a recession in 2008, the local financial picture is getting brighter now. The economy is rising due to the efforts of the local government. You can expect to see a positive impact on the real estate market. The city is home to the regional office of the IRS. With a diverse financial market, there are various jobs available ranging from educational to medical and more.

This coupled with military tech jobs available in the area is helping the economy to recover and flourish. A recovering economy can create a boom in the real estate investment market. The city offers the perks of affordable homes while having good-paying jobs.

  • Student population

The city has a considerable student market of more than twenty Best Places to Invest in Real Estate 2022 California, thanks to many reputable educational institutions in the area. This has created a large pool of renters and minimizes the risk of vacancies. Dealers can not only get a cheaper investment but an assorted property portfolio.

  • A steady increase in housing prices

The housing market is experiencing a steady rise in sale prices. Rent prices are also increasing steadily. Investing in real estate can assure high rental prices and turn more profits on selling. The city is also notorious for higher rates of foreclosure which mean ample investment deals. You can buy at a low price and sell at a high price to turn more profits. The large rental market creates high rental income. Because of the large rental market, you also have the option of buying a house at a low price, fixing it, and renting it out.

  • Low crime rate

The city has a lower crime rate as compared to more famous cities of California like Los Angeles. The quality of life and environment is considerably better in Fresno. More people are choosing to relocate here because of low living costs and reasonable incomes. This means a large pool of buyers and renters, who are aiming to choose a home base with a lifestyle of good quality.

Best neighborhoods in Fresno to invest in:

Since the city is home to a fairly large student population, it is more beneficial to invest in properties near universities. This can assure a steady source of income. Moreover, areas like Bullard and Woodward Park are also top-notch neighborhoods with regards to investment. These areas are very family-friendly. More young families are moving to these areas to raise their families. 

Bakersfield – Why is it one of the best housing markets for investment? 

Bakersfield has made it into the list of Best Places to Invest in Real Estate 2022 California, despite being relatively unknown. Bakersfield is an inland city in Kern County, California. This low-profile inland city has seen an admirable growth of 10.4 percent in its population in the last ten years. 

It is also famous as the “West Coast capital” of country music. Bakersfield is a profitable real estate investment option if you are looking to make a good profit off the sale down the lane. The average price of an average house in Bakersfield is currently around 260000 USD. Based on real estate forecasts, you can expect a long-term increase. 

Real estate forecasts show the price of an average home in the “Bakersfield” area to be around 290000 USD by 2026. For a 5-year investment, you can expect to make a profit of +9% by 2026. This region is noteworthy for its agriculture and energy production. Bakersfield hosts various industries including natural gas, mining and other energy extraction, petroleum refining, food processing, and energy distribution.

The healthcare and construction industries are seeing rapid growth in the region. As a result, employment opportunities are increasing. The student population is also growing.

Amazon trending up Bakersfield real estate market:

Did you know that Amazon built a warehouse in Bakersfield? With Amazon investing in Bakersfield, you can expect an influx of new jobs and an increase in average wages. This means more employment opportunities and an increase in the pool of renters. 

Bakersfield REALTORs are anticipating an increase in house values, with the rise in rental prices. If this results in mortgage prices succeeding, renters will prefer to buy a house.

This will further increase the house values which makes Bakersfield an Best Places to Invest in Real Estate 2022 California.

The real estate market is becoming stronger. With a compelling rental market, you can expect a positive cash flow if you decide to invest. The real estate market has a strong financial standing as you can see. This means you will see a surge in the market value of your real estate investment.

Bakersfield has scored an impressive score of 79 on the Redfin compete to score. The prices of houses in Bakersfield have increased up to 15% in 2021. On average, properties in Bakersfield spend 15 days on the market before sales. The city is one of the most affordable cities in the whole of California State.

Its proximity to Los Angeles makes it easy to commute. If you are planning to retire, Bakersfield is an ideal location. It is one of the top 100 places that are ideal for retirement.

It is the 48th-most populous city in the United States. It hosts a population of 403,455 as of the 2020 census, which makes it the 9th-most populous city in California. It is the 62nd-largest metropolitan area in the United States.

Reasons to invest in Bakersfield real estate

  • Affordability

You cannot underrate the affordability factor of real estate in Bakersfield. Bakersfield boasts one of the most affordable real estate markets in the state of California. In addition to that, the cost of living is also relatively low in the region.

If you compare it to that of other areas like Los Angeles, and San Francisco, it is significantly lower. According to an estimate, it is 28% and 45% lower than the State’s two most prominent markets. Moreover, if you compare investment property costs with these cities, investment costs in LA bypass Bakersfield’s by 63%. The cost of investing in real estate in Bakersfield is 76% lower than San Francisco’s.

The median property price tag in Bakersfield is around 300,000 USD. This is significantly half of the actual price tags in other states. Even the national average is higher than the median property price in Bakersfield.

  • Increase in the student population

The student population of the city is growing as more high-school graduates are choosing to stay. This is relatively due to higher living costs in other areas. Bakersfield is also providing more conveniences and facilities than before. Diverse amenities and low living costs are causing an influx in the student population of the city. With a higher percentage of young people choosing to continue studying in Bakersfield, this will open new doors of opportunities. This makes it ideal for real estate investors to invest in the area.

  • Growth in economy

With Amazon opening its warehouse, and expansion of healthcare, construction industries in Bakersfield, employment opportunities are increasing. It is one of the Best Places to Invest in Real Estate 2022 California oil-producing regions in the U.S. The job market is seeing an increase in positions requiring higher levels of skill. More employment opportunities mean a large pool of renters and homebuyers. The economic boom is a godsend for the Realtors.

  • Ideal for retirement

It is one of the top 100 places that are ideal for retirement in the U.S. More people are choosing to retire here because of affordable costs and diverse adult active communities. Bakersfield is a potential market for real estate investors to tap into to make more profits.

  • A large percentage of young families

The city is experiencing an influx of young families. The lucrative standard of living in addition to affordable costs in bringing a large percentage of young families. The house prices in the area are below the national average. The real estate market is seeing positive trends in selling and renting properties.

  • Profitable market

The real estate trends are not only offering affordability, but also profitability. The profitability of Bakersfield’s real estate market can assure you of high rental income and positive cash flows in investment. Being a part of such a market will surely do you some good.

Best neighborhoods in Bakersfield to invest in 2022

If you are searching to invest in real estate in Bakersfield, Best Places to Invest in Real Estate 2022 California is the way to go. The NorthWest boasts quiet neighborhoods, a well-known heart hospital, good schools, parks, and recreational areas.

Investing in single-family homes will be very profitable since more young families are choosing the North West. For traditional real estate investments, Kern City, Stockdale Estates, and Stone Meadows are also some of the best areas. 

However, if you are looking for investment properties for Airbnb rentals, Oleander-Sunset, Park Stockdale, and Amberton are the best neighborhoods. Since the city hosts many yearly events with people coming from all over to attend, Airbnb rental strategy is a great investment option.

Bay Area – Why is it one of the best housing markets for investment?

The San Francisco Bay Area is commonly known as the Bay Area. This populous region is in the northern part of the golden state. The Bay Area encircles the San Francisco, San Pablo, and estuaries of Suisun Bay.

The Bay Area has a healthy job market providing abundant job opportunities. The area is home to a thriving economy. This coupled with the natural beauty of the area makes it one of the most appealing places to work and live.

The natural beauty and thriving economy make it one of the most lucrative markets for real estate investment. If you are a beginner in real estate investment, you have to find a local lender in the Bay Area. then you have to go through a pre-approval process where they check your financial history and credit checks. After the completion of the pre-approval process, you can start looking in the market to find the best place. 

The Bay Area is immensely valuable since it offers Best Places to Invest in Real Estate 2022 California. The space is limited which makes it hard to do more construction in the area. This increases the value of the real estate in the Bay Area. You can expect to see a positive cash flow for years to come if you decide to invest in a prime location.

Reasons for investing in the Bay Area real estate market

  • Job market

Silicon Valley and San Francisco are huge tech centers in the Bay Area. They contribute significantly to the job market of the Bay Area. Head to the East Bay and you will find Oakland experiencing a boom in market development. Many high-profile firms like Uber Technologies, Oracle are expanding their operations in the region. The East Bay is also the headquarters for known health providers like Blue Shield, and Clorox.

Alameda County shares a similar scene. Tesla has its original production factory in Fremont. Dublin has a strong economic standing and is home to Ross Stores, among other huge corporate headquarters.

  • Community Developments

The Bay Area has various noteworthy developments and restoration projects. Berkeley is famous for the University of California-Berkeley. Walnut Creek is an established vibrant city.

Real estate prices are on the rise in the whole Bay Area especially East Bay. The East Bay is becoming a center of various economic activities. The East Bay is seeing an influx of new residents. It is close to transit and features various shops and restaurants. The neighborhoods are friendly. 

The island city of Alameda has good schools and is close to San Francisco. Commuting in the East Bay has improved a lot and connects to the western neighborhoods. Now you can easily access the commercial and entertainment districts from the suburbs. The easier access and newer transformations in the eastern side are fueling the prices of real estate in the area.

  • Good quality lifestyle

The Bay Area provides diverse amenities. There are many good schools in the area. The Bay Area provides various options for outdoor activities enthusiasts ranging from trails to preserves, hiking, recreational areas, and many more. The cities are moving into urbanism and growing into trendy burgs. The lifestyle alone is attracting people in droves, creating a pool of renters and home buyers. 

  • Affordable property deals

Whilst this is not true for San Francisco which has the strongest job market. But the East Bay offers not only affordable options but also diverse ones. East Bay has everything to offer from Urban to rural. East Bay has property options for everyone. It provides a multitude of choices to suit everyone’s tastes and lifestyle. And that too at affordable prices.

You can expect the competition to grow in the real estate market as prices continue to rise in the future. Add low-interest rates in the mix and you have a strong player in the world of real estate investment.

Best neighborhoods in the Bay Area to invest in 2022

San Francisco has some of the highest price Best Places to Invest in Real Estate 2022 California. The pandemic caused a huge toll on the prices. Prices took a huge dip due to the pandemic but are back on the rebound. San Mateo, Santa Carla, Alameda, Contra Costa, and Oakland is enjoying a great run. Investing in a long-term rental property is especially beneficial in Oakland. The rental demand is growing. The interest rates are low and you can expect positive cash flow for the years to come. This justifies the higher acquisition costs.

Trends in the California real estate market

The trend of buying luxury vacation homes is surging throughout the state. With the spike in sales, home prices are increasing. Millennials make up one of the largest groups of buyers. They are moving to less dense areas. Suburbs are seeing an influx of homebuyers.

The pending sales are declining. Lending standards are getting tighter leading to the decline.

Prime markets have a shortage of affordable housing options. The limelight is not on big metropolitan areas right now due to a shift in the market. You can expect them to make a comeback in a few years.

People are favoring suburbs and inland cities due to less contagion and more space. Due to the complexity of the pandemic, it is best to stick to investments that are benefiting from the local economy. If you want the most bang for your buck, investing in luxury homes, and suburbs is the way to go. Inland cities are also one of the fastest-growing real estate markets in California