Investing in Socal but outside of LA ?

[Joshua Piche]

I have been looking to get into real estate and being in Socal more specifically the South Bay area of LA prices are just to high and out of my budget which is why I have been heavily looking into out of state . But it never occurd to me to look in other areas such as Apple valley , palmdale, Victorville , Canyon country , santa clarita , Lancaster . I have seen some properties for 300-500k , but because I don’t see/ hear much about these markets Im not aware of whats in demand or if theres any at all . 

So what Im looking to get out of this post is . The areas mentioned above or surrounding areas . Is there a demand for rent whether it be single or multi family ? Whats the appreciation like ? Is Job stability an issue ?

[Paul Haefele]

I’m based out in the High Desert, mainly around Victorville, Apple Valley, and Hesperia, so I can give you some first-hand perspective.

Rents here are strong. A clean single-family in Victorville or Apple Valley will lease quickly, and typical rents run between $1,800 and $2,400 depending on size and location. A lot of tenants come from LA and Orange County after being priced out, which keeps demand steady. Vacancy usually isn’t the concern. The bigger challenge is making sure you place the right tenant.

Appreciation has been more steady than the coastal markets. You don’t see the extreme ups and downs that Los Angeles experiences, but values have consistently trended upward over time. During COVID, demand jumped as people moved out here for more space, and while things have cooled off a bit since, the long-term outlook remains positive.

On the job side, stability is decent. The local economy is spread across healthcare, education, retail, and a lot of logistics and distribution. Major companies run distribution hubs here, and many residents also commute down the hill for work. There’s also a major project underway in Barstow (the BNSF International Gateway). It’s a multi-billion dollar rail and logistics hub expected to bring thousands of jobs to the region over the next several years, which should only strengthen housing demand across the High Desert.

If you’re comparing markets, Santa Clarita and Canyon Country are closer to LA and more expensive, which makes them attractive to families looking to move up. The High Desert cities like Victorville, Apple Valley, Hesperia, and Adelanto are where investors tend to find the better entry price points along with reliable rental demand.

In short, there is demand, appreciation has been steady, and the job base provides a good level of stability. If your goal is cash flow with room for long-term growth, these areas are worth a closer look.