Sacramento prejected as the number 1 market for growth in 2021

18 Replies


7.4% price growth and 17.2% volume 


Other big numbers are San Jose (10.8/10.8) Seattle, Phoenix, Bakersfield, Austin, Boise, San Diego, Palm Beach, Oxnard-Ventura, Sarasota, KC, Denver, Charlotte, Columbia, Samford CT, 

Originally posted by @Joe Bertolino :

7.4% price growth and 17.2% volume 

Other big numbers are San Jose (10.8/10.8) Seattle, Phoenix, Bakersfield, Austin, Boise, San Diego, Palm Beach, Oxnard-Ventura, Sarasota, KC, Denver, Charlotte, Columbia, Samford CT, 

 Does this include Elk Grove? I know there are lots of new developments in Elk Grove for around 500k.  How is the rental market in Elk Grove?

Originally posted by @Steven Nguyen :
Originally posted by @Joe Bertolino:

7.4% price growth and 17.2% volume 

Other big numbers are San Jose (10.8/10.8) Seattle, Phoenix, Bakersfield, Austin, Boise, San Diego, Palm Beach, Oxnard-Ventura, Sarasota, KC, Denver, Charlotte, Columbia, Samford CT, 

 Does this include Elk Grove? I know there are lots of new developments in Elk Grove for around 500k.  How is the rental market in Elk Grove?

Yes,   rental market in EG is strong.  I have a client buying there right now.  I ran the numbers on 40'ish  properties and there are some very attractive 2-4 units.  Saw a 4 plex that would be at $7400/mo in current market rents on a $800K purchase price.   Cash flow was $3200.  I am able to find $500+ per door consistently with some digging.  

Just a point of reference on New construction when we are talking about a "ton of units' in Elk Grove or Natomas or Lincoln.   The entire Sacramento area has about 17,000 units under construction,  9,000 of which are in Folsom Ranch.    DFW has 43,000 apartment units under construction and 22,000 Single family homes.  

  

Originally posted by @Joe Bertolino :
Originally posted by @Steven Nguyen:
Originally posted by @Joe Bertolino:

7.4% price growth and 17.2% volume 

Other big numbers are San Jose (10.8/10.8) Seattle, Phoenix, Bakersfield, Austin, Boise, San Diego, Palm Beach, Oxnard-Ventura, Sarasota, KC, Denver, Charlotte, Columbia, Samford CT, 

 Does this include Elk Grove? I know there are lots of new developments in Elk Grove for around 500k.  How is the rental market in Elk Grove?

Yes,   rental market in EG is strong.  I have a client buying there right now.  I ran the numbers on 40'ish  properties and there are some very attractive 2-4 units.  Saw a 4 plex that would be at $7400/mo in current market rents on a $800K purchase price.   Cash flow was $3200.  I am able to find $500+ per door consistently with some digging.  

Just a point of reference on New construction when we are talking about a "ton of units' in Elk Grove or Natomas or Lincoln.   The entire Sacramento area has about 17,000 units under construction,  9,000 of which are in Folsom Ranch.    DFW has 43,000 apartment units under construction and 22,000 Single family homes.  

What class neighborhoods (A/B/C) are those 4plexes in that cash flow $500+ a door? Are the lots large enough to potentially add an ADU? How has appreciation been in Sac? I know lots of people from the Bay Area are moving to Sac.

 

Originally posted by @Steven Nguyen :
Originally posted by @Joe Bertolino:
Originally posted by @Steven Nguyen:
Originally posted by @Joe Bertolino:

7.4% price growth and 17.2% volume 

Other big numbers are San Jose (10.8/10.8) Seattle, Phoenix, Bakersfield, Austin, Boise, San Diego, Palm Beach, Oxnard-Ventura, Sarasota, KC, Denver, Charlotte, Columbia, Samford CT, 

 Does this include Elk Grove? I know there are lots of new developments in Elk Grove for around 500k.  How is the rental market in Elk Grove?

Yes,   rental market in EG is strong.  I have a client buying there right now.  I ran the numbers on 40'ish  properties and there are some very attractive 2-4 units.  Saw a 4 plex that would be at $7400/mo in current market rents on a $800K purchase price.   Cash flow was $3200.  I am able to find $500+ per door consistently with some digging.  

Just a point of reference on New construction when we are talking about a "ton of units' in Elk Grove or Natomas or Lincoln.   The entire Sacramento area has about 17,000 units under construction,  9,000 of which are in Folsom Ranch.    DFW has 43,000 apartment units under construction and 22,000 Single family homes.  

What class neighborhoods (A/B/C) are those 4plexes in that cash flow $500+ a door? Are the lots large enough to potentially add an ADU? How has appreciation been in Sac? I know lots of people from the Bay Area are moving to Sac.

 B/B+ areas.   Old Elk Grove near downtown. or the nicer parts of Fair Oaks,  Elmherst, Arden (95864).   Lots of large lots with room for ADUs.  Appreciation is high,  the story suggested 7.4% in 2021 I see that as being realistic.  

 

@Joe Bertolino I’ve seen Elk Grove as one of our hottest markets in both renting and selling. Most rentals we list are receiving multiple approved applications within 1 week. It’s not uncommon to receive multiple offers on the Elk Grove sales either. Sac in general is on fire.

Nice very interesting article glad to know im going to be living around the top 2 areas as far as growth in the US. Guess i gotta start investing in Sacramento area. 

Originally posted by @Sayantan Satpati :

Here is the original article posted at Realtor.com: top-housing-markets-2021

Is this still a good time to invest in Sac area? Also, any thoughts on SFH vs Multi Family?

Cities I had in mind: Roseville, Rocklin, Folsom, EG, Natomas area?

These are the surrounding suburbs of the Greater Sac area. Our teams' vacancies are taking much longer to fill in our Downtown/Midtown areas, where the days on market in Roseville, Elk Grove, and Natomas are dropping dramatically. A lot of the clients we're bringing on are purchasing in these areas. Some others that are becoming popular are West Sac and Arden areas (these tend to have older-build properties though). SFH is great because you are exempt from the CA rent-cap and just-cause laws that came through January 2020, but your returns are typically higher as you scale up in multi-units.

 

I'm a broker from Rocklin area. Yes, the market is very hot here in Roseville, Rocklin and Lincoln area. Let me know if  can be any help buying.

Thank you,

Ranjit Sandhu

NMA Real Estate

@Joe Bertolino I am looking for multifamily units in the Elk Grove and Davis area with good cash flow. I saw that you mention that you saw "a 4 plex that would be at $7400/mo in current market rents on a $800K purchase price. Cash flow was $3200. I am able to find $500+ per door consistently with some digging." I am interested in these properties.