jmoor17 / Getty Images
Commitment to readers
The GOBankingRates editorial team is committed to delivering unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services. Our reviews and ratings are not influenced by advertisers. Learn more about our editorial guidelines and how we review products and services.
20 years
Helping you live a richer life
trusted
millions of readers
For many Americans, the dream of buying real estate in California is out of reach. This state consistently ranks in the top five states as one of the most expensive places to buy a home with extremely high mortgage rates. However, there are certain cities where the investment will pay off in the short and long term for a well-informed buyer.
GOBankingRates spoke with Joe Stance, a commercial real estate broker with Stance Commercial Real Estate, and Miriam Cruz, a real estate agent with eXp Realty Inc. in Northern California. Here are some insights into the best areas across California for buyers to find their upcoming properties. 5 years.
Also check out affordable cities in California.
Inland Empire (Riverside and San Bernardino)
Based in Riverside, Calif., Stance recommends buying real estate in two cities in the Inland Empire over the next five years. His specific recommended cities are Riverside and San Bernardino.
Apart from affordability, Riverside's strategic location and accessibility make it a great choice for real estate investment. As they continue to move into the area, the city is becoming more popular with major companies, which is contributing to job growth and boosting the city's economy, Stance said. Riverside also offers incentive programs for new developments.
Similarly, San Bernardino has real estate available at affordable prices to potential buyers. The city's economy is also improving and a revitalization similar to what's happening in Riverside is underway.
“Always evaluate job growth, urban planning, and development incentives for potential investments,” Stance recommends. “With the right leverage, Inland Empire cities are ready for investment.”
san diego
If you can afford it, Cruz recommends buying real estate in San Diego within the next five years.
Citing May 2024 data from the California Association of Realtors, Cruz said the median sales price for single-family homes in San Diego is $1.025 million. While this amount is expensive, homes typically stay on the market for an average of 12 days, she said. Real estate in San Diego is in high demand and is gaining popularity thanks to its pleasant climate, thriving cultural scene, and beautiful beaches.
thank you!
Another big advantage is the robust job market. San Diego is great for career opportunities, especially for people in the technology and health care industries, Cruz said.
sacramento
Looking for a Northern California city? Cruz recommends buyers looking for an affordable cost of living without leaving the state consider purchasing property in the state capital, Sacramento.
The median sales price of single-family homes for sale in Sacramento is $555,000, according to the California Association of Realtors. The average market time is 15 days. This is only 3 days more expensive than homes for sale in San Diego, but significantly lower prices for those seeking a less expensive housing market.
“(Sacramento) has a growing economy with a government and health care sector that provides stability and abundant employment opportunities,” Cruz said. “The city's rich history, diverse culture and proximity to outdoor activities make it even more appealing.”
san jose
If you're looking to buy Silicon Valley real estate in the next five years, Cruz suggests considering San Jose.
Despite the median sales price of single-family homes for sale being $1.77 million, Cruz said San Jose homes spend an average of only eight days on the market.
“This rapid turnover rate shows that the market is energized by high demand and competitive bidding,” Cruz said.
Purchasing real estate in San Jose is an attractive idea for those who work in the technology industry and plan to live and work in the area. Additional benefits of this investment include a high standard of living, excellent schools and numerous recreational facilities, according to Mr. Cruz.
