With the sales volume rising slowly, but steadily, the Santa Ana real estate market is showing signs of improvement. As this will be supported by the projected job growth, it seems safe to say that all the single-family homes that are currently being built won’t get stuck on the market for too long.
Thanks to its art and culinary scene getting stronger by the day, Santa Ana is becoming increasingly attractive to domestic visitors. When you take its sunny weather into account as well, it is no wonder rental properties have low vacancy rates. With more than 10,000 businesses in the city itself, Santa Ana emerges as the center of all the top industries in the county, including service, retail trade and manufacturing. As a result, it has a constant influx of both short- and long-term renters.
Investment Considerations for Santa Ana Real Estate
There are a number of factors to consider, including:
Job growth – Stumped job market is one of the main reasons why the real estate market in all of Orange County has been stagnant. Due to financial insecurity, renters and homeowners were choosing to stay put, which led to minimum turnover rates. Fortunately, job market was up 2.5% during 2017 and it is projected that Santa Ana will experience a growth of 39.4% in the next 10 years. If done on time, real estate investment in this city could prove to be a smart move.
Population growth – Since 2007, Orange County in general has experienced a population growth of 10%. Year over year, this trend is remaining stable, having almost reached 2% in 2017. This doesn’t mean a lot in itself, but if the job market truly recovers, OC’s real estate market could experience a boom.
Larger number of real estate developments – With low turnover rates, Santa Ana isn’t able to accommodate a lot of buyers. However, it seems that this won’t be a problem even in the case of stronger homebuyer activity. Namely, the number of building permits for single-family residences issued in 2017 was significantly higher compared to previous years. To a real estate investor, this might be the window of opportunity.
Higher rent prices – Possibly because of the low turnover rate, rent prices in Santa Ana are going up, just like they are in the whole of Orange County. The year 2017 has seen an increase of 3.6%. This promises a great rental income to anyone who would rent their Santa Ana property.
What are the Best Neighborhoods to Invest in Santa Ana
As the second most populated place in Orange County, Santa Ana has plenty of different neighborhoods. In terms of high income, low unemployment rates, low crime and population, the best neighborhoods are Thornton Park, Northwest, West Grove Valley, Meredith Parkwood and Riverview. These are definitely the most attractive of the bunch in terms of real estate investments as well. Since the luxury market in OC is a healthy one, investing in a higher-end property might be the best choice for real estate investors who are looking to invest in Santa Ana.
Reasons To Invest
- High Rental Demand
- Growing Job Market
- Population Growth
- Higher Rent Prices
- Large Tenant Base
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