3 Key Reasons Why the East Bay is Ripe for Real Estate Investing

The Bay Area’s buzzing residential real estate market has migrated east. (Sorry, San Francisco.) And that’s great news for anyone considering real estate investing in Alameda and Contra Costa counties in 2018.

Our so-called sunny side of the Bay has one of the hottest real estate markets in the nation. And despite concerns that the cycle might be peaking, home values continue to increase, rents are forecast to grow, and economic tailwinds are bringing in more people and jobs.

“Rents are high and appreciation is strong,” said broker and Abio co-founder Cameron Platt, who owns and manages multiple investment properties around the East Bay. “Even with the presence of eviction restrictions and rent control within many East Bay cities, our investor clients agree that the East Bay is an excellent place to invest for long-term gains and stability.”

Forecasts for 2018 predict regional housing sales will grow about 1 percent, and prices will rise about 5 percent.

This healthy economic picture has entrepreneurs eyeing multi-family properties as well as single-family homes. In fact, one of the world’s largest real estate investors, Brookfield Property Partners, announced in November that it is investing in a 333-unit project by the 12th Street BART station in Downtown Oakland. And a 615-unit apartment complex in Alameda recently sold to an investor for $231 million in the Bay Area's largest multifamily deal of 2017.

While investors are attracted to an already robust market, they also want one with growth potential. And the East Bay is that place – with several promising, up-and-coming ZIP codes.

Here at Abio, we’ve been tracking Castro Valley in Alameda County, which is buzzing with new buyer activity. A recent Realtor.com ranking of the nation’s hottest ZIP codes placed Castro Valley in the top 10. And we are watching other hidden pockets of affordability,  including San Pablo, Martinez, Brentwood, and the Berkeley and Oakland flats.

So, whether you are interested in investing in housing property to flip or to rent, you still have time to plant your interests in the East Bay and watch them grow.

To recap, your 3 Key Reasons to Invest in East Bay Real Estate:

1. Property Values

Residential property values have been rising steadily in Contra Costa and Alameda counties, and market forecasts say they will continue growing in 2018 because of the areas’ desirability and the shrinking number of homes on the market. In Alameda, for example, the median home price rose by 7 percent between August 2016 and August 2017. The median in Richmond rose by 3 percent. And the median jumped 13 percent in Antioch, according to the East Bay Association of Realtors.

2. Job Growth
Tech start-ups and major companies have been setting up shop in the East Bay, especially in Downtown Oakland. High-profile moves include Pandora Media; Oracle, which signed a lease on a downtown office tower in a big expansion project; and Blue Shield, which is moving its headquarters and 1,200 workers from San Francisco. Sungevity, Clorox, and Kaiser also call Oakland home. The city of Fremont approved a major expansion plan at Tesla’s manufacturing facility that could potentially double the company’s site.   And this just in: Facebook just leased two large office buildings, reportedly with enough space for 950 employees, in Fremont’s Ardenwood district.

Firms are drawn to the East Bay because they can get more office space for their money than in San Francisco. Housing is more affordable for their employees. The hip and urban areas of Oakland and Berkeley appeal to a millennial workforce. And the suburbs appeal to families who prefer the quiet and top schools.

3. Population Growth

Job growth and affordable housing are driving the population growth, which is expected to continue in 2018. Dublin, Brentwood and Hercules are among the fastest growing cities. Dublin alone grew by nearly 26 percent between 2010-2017 and ranked third on Realtor.com’s study of America’s “10 Top Suburban Neighborhoods.”

---
Want to know more about investing in East Bay real estate? Reach out to our top Abio agents for their best advice. Contact us at 888-400-ABIO (2246) or [email protected].