Why Invest in Carlsbad, CA Real Estate?
Considered a solid housing market in the San Diego area, Carlsbad's real estate scene enjoys a continuous development. Located right near San Diego, Carlsbad is famous for its luscious flower fields, nice beaches with surfing ops, the fascinating Leo Carrillo Ranch Historic Park, awesome restaurants, as well as being home to the first Legoland in the United States. The city's population growth rate has increased by 1.24% in 2017, which is considerably higher than the national average of 0.7%.
Carlsbad has a diverse economy and features a great talent pool, ocean view office spaces, along with an awesome work-life balance. The area hosts some of the most innovative companies in clean tech, auction sports, information and communications technology, and life sciences. In addition, tourism is another major industry, thanks to the renowned Legoland, which attracts an influx of visitors and workers. Therefore, real estate investors can take into account investing in single-family homes as well as in vacation rental properties.
Its booming economy and increasing population growth rate make Carlsbad's real estate market an optimal place experiencing a high rental property demand. Learn more about Carlsbad, CA rental properties below and even consider the pro's and con's of hiring a property management team to assist with your Sand Diego area rental.
Investment Considerations for Carlsbad Real Estate
There are a number of factors to consider when investing in the San Diego area, including:
- High Rental Demand- The coastal city's strong economy, popularity, and increasing population growth rate translate into a high rental demand. Renter-occupied units make up 34% of Carlsbad's properties and the vacancy rate is currently 11%. Plus, the average rent prices have risen by 2% in 2017. As a result, Carlsbad indicates a favorable future with good, growing profits for real estate investors in rental properties.
- Job Market Growth- The 2.2% job market growth in 2017 together with the 4.6% unemployment rate (lower than the 5.2% national average), make the area's economy a robust one. Viasat, Legoland, California Pacific Airlines, and LocationSmart are just of few companies that are headquartered or have their key offices in Carlsbad. The city is certainly a white-collar one, with about 91% of the professionals employed in white-collar high-paying jobs, which is well above the US average. Hence, there are numerous employed renters and buyers that real estate investors in Carlsbad can find for their properties.
- High Appreciation - In 2017, the home values in Carlsbad have increased by 4.7% and they're expected to rise 3.5% in 2018. Moreover, there was a 2% growth in median home sale during 2017 and most properties were sold for less than the asking price, which makes the city a buyer's market. This ensures long-term advantages for real estate investors who can purchase and hold properties until their values increase.
- Popular Tourist Destination - Tourism is one of the main industries that support Carlsbad's economy. Thanks to Legoland, the charming flower fields, surfing ops, scenic beaches, golf courses, museums, and beautiful parks, the city is one of the top vacation destinations in the United States, welcoming more than 3.5 million tourists every year. This makes the local real estate market a suitable one to invest in short-term vacation rental properties.
What are the best neighborhoods to invest in Carlsbad?
- While rental properties are always on demand all over Carlsbad, areas like the City Center, Cedarbridge Way, and El Camino Real are truly sought-after by residents as well as newly-arrived tenants and buyers. Their popularity is based on high safety rankings, convenient location, and appealing amenities. Hence, these places are suitable for real estate investors who want to purchase properties that can generate a profitable return on their investment.
- Carlsbad's home prices are among the priciest in California. However, real estate investors can benefit from the city's flourishing economy, expanding tourism sector, and increasing rental prices. These factors lead to high appreciation, decent property rental incomes, and regular cash flow likelihood, which contribute to Carlsbad being a good investing option.
Popular Streets in Carlsbad, CA
- Adams St
- Amberwood Ct
- Anillo Way
- Arbuckle Pl
- Avalon Ave
- Bowsprit Way
- Calle Posada
- Caminito Puerto
- Caringa Way
- Coastline Ave
- Cobalt Dr
- Coralwood Cir
- Corte Langosta
- Corte Selva
- Eider Ct
- Fiona Pl
- Gladstone Ct
- Hataca Rd
- Lanai Ct
- Mica Rd
- Paradise Rd
For more information, refer to our Knowledge Center and visit our Carlsbad, CA Property Management for local landlord tips and information. Our local team has vast knowledge and experience in local San Diego property management and can help you to have a better investment experience. We educate on topics in the San Diego area ranging from repairs and maintenance, leasing, rules and regulations and even dealing with emergencies! We look forward to furthering your rental property education.