The Fresno real estate market is one to watch. Why? It's located in California's Central Valley, rapidly becoming one of the hottest markets. Affordability and high demand for short-term and long-term rentals are attracting homebuyers and real estate investors to the area. Anyone interested in entering this market should act quickly before the demand outweighs the supply.
Fresno is in the San Joaquin Valley region of California's Central Valley, approximately halfway between San Francisco and Los Angeles. Fresno is known for its natural beauty and the 1.8 million acres of farmland surrounding the city. Fresno is also home to Woodward Park, a gorgeous 300-acre public park.
Real estate investors can find nearly every property type in Fresno's homes for sale. They include everything from condos to multi-family and single-family homes. Whether you're looking to invest in a short-term vacation rental or long-term rental, Fresno has something for you.
The Fresno area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Bullard, Clovis, Hanford, and Madera.
Two other neighborhoods and suburbs worth noting are Fig Garden, a neighborhood known for its large trees and landscaped lawns, and Selma, a small, family-friendly city that happens to be the "Raisin Capital of the World." Whatever you're looking for, Fresno homes have something to offer.
Fresno is one of California's more affordable markets with high long-term and short-term rental demand.
According to Realtor, the median listing price in Fresno is $238 per square foot with a median sale price of $380,000. Zillow's Home Value Index reports an 18.8% change since last year. The median rent in Fresno is $2,200 per month. Fresno's long-term rental market is strong. Nearly half (46%) of households are renter-occupied, and the city has a vacancy rate of 4.5%.
Fresno also has a robust short-term vacation rental market. According to AirDNA, Fresno has an average Airbnb occupancy rate of 71%. The average daily rate is $166, and hosts generate an average $2,294 monthly rental income.
With such a solid long and short-term rental market, a Fresno rental property has the potential to increase cash flow through passive income for real estate investors and property management companies.
Fresno is the fifth largest city in California, just ahead of Sacramento, and growing at a rate of 0.87% each year. It's also the seat of Fresno County, which is ranked first in the U.S. for agricultural production.
Fresno's primary industry is agriculture. This industry employs 20% of the population and generates roughly $3.5 billion for the local economy. Other industries in Fresno include government, transportation, utilities, education, healthcare, and manufacturing. The largest employers are Fresno County, Saint Agnes Medical Center, the University of California Fresno, and Fowler Packing. These employers provide jobs and fuel the city's economy.
The Fresno real estate market offers an affordable way for real estate investors to enter California's competitive housing market. The Fresno area's demand, appreciation, and economy combine to make a great investment opportunity.