Despite its reputation for pricey real estate, the Golden State offers a spectrum of opportunities for investors who want to get into multi-family real estate investing. With dramatic beaches, four-season recreational opportunities, sparkling cities and energetic culture, California is a land of opportunity for many. Its robust, diversified economy is grounded in technology, entertainment, innovation and business services, supporting strong, consistent interest by renters, aspiring homeowners and active home buyers.
For investors who want to capture returns from rising home values, California's strong housing market is reflected by being the fifth-largest economy in the world at over $3.5 trillion - more productive than India and the United Kingdom.
The California real estate market has a limited inventory when it comes to
housing, which has seen a rise in construction of single-family and multi-family properties since 2015. The expansion is a great opportunity for the investor and it is proof that California real estate is well positioned and is growing.
In fact, State officials estimate that California needs to build 180,000 new units of housing each year to meet demand. At best, California is building about half of that number, adjusted for losses to old age, fires and other calamities, and construction seems to be slowing due to sharp increases in interest rates.
In the wake of the California housing crisis, conditions are just right for investors looking to purchase prime US real estate. Homes are selling at attractive prices, and the dollar continues to gain strength against a number of key currencies.
Its GDP represents 14.3% of the US GDP, during the last decade its economy has undergone a remarkable transformation leading both the growth of the country with a rate higher than 3% as the creation of employment, having gone from a rate of unemployment from 12.4% in 2010 to 4.0% in 2022 placing the state as a place attractive for investments.