Sacramento is enjoying growth both in the local economy and the population, which makes it a desirable real estate market for investors who live here and afar. Whether you’re
buying your first property or adding new
rental homes to an expanding portfolio, we have some thoughts on which neighborhoods will deliver the most profitability.
Here are some of the emerging neighborhoods in Sacramento that you don’t want to miss.
Investing in Sacramento Real Estate
Sacramento’s real estate market has displayed significant resilience and growth over the past few years. The city’s appeal is largely attributed to its affordable housing in comparison to neighboring markets like San Francisco and Silicon Valley. This is a city that’s also becoming a hub for tech companies and startups, contributing to an increasing demand for housing.
The Sacramento Bee recently reported the city experienced a 10% increase in home prices over the last year, with predictions of continued growth.
Key Factors Driving Growth
- Population Growth. Sacramento's population is expected to reach 1 million by 2040.
- Job Opportunities. The city has seen an influx of tech companies and is home to several government agencies, creating diverse job opportunities.
- Infrastructure Development. The ongoing improvements to transportation links, schools, and healthcare facilities make Sacramento an attractive place to live.
- Lifestyle Appeal. Its proximity to lakes, mountains, wine country, combined with a vibrant downtown, enhances the desirability of Sacramento.
Top 5 Emerging Neighborhoods for Real Estate Investment
1. Oak Park
Historically known for its rich cultural heritage, Oak Park is undergoing a major transformation, attracting a diverse demographic of renters. The average home price is under half a million dollars, and there’s a lot of
investment potential. A lot of local businesses are setting up shop here, and there are ongoing infrastructure and public transport improvements.
2. North Natomas
Located just north of downtown Sacramento, this area is becoming increasingly popular due to its spacious homes and good schools. This is a highly desirable neighborhood across tenant demographics because it’s an easy commute to Sacramento’s downtown area, but a residential enclave that’s big on green spaces, parks, and trees. The airport is also close by, and there’s abundant recreation and dining in the area.
3. West Sacramento
Just across the river from downtown Sacramento, West Sacramento has been making headlines for its affordable housing and vibrant community events. Properties here are affordable, likely to rise in value, and the neighborhood is close to parks and waterfront spaces.
4. South Sacramento
With its rich cultural diversity and increasing number of amenities, South Sacramento is becoming a hotspot for renters and buyers looking for residential homes that are affordable. Great shopping and dining can be found here, and there are good schools and hospitals in the area.
5. Midtown Sacramento
