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The question of 'the best neighborhood to buy a property in Davis, California' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At WhatsmyCashFlow, when we write a blog post or when we update our real estate spreadsheet for Davis, we want to bring solutions for everyone.
Enjoy the read, and please remember that we are not financial or investment advisors. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Davis, California?
The housing market in Davis, California, is dynamic and continuously evolving, making it an intriguing prospect for buyers and investors.
One of the city’s strengths lies in its unique combination of a thriving academic environment, picturesque surroundings, and a tight-knit community. The presence of the University of California, Davis (UC Davis), a top-tier research institution, creates a high demand for housing as students, faculty, and staff flock to the city for educational and employment opportunities. Why does it matter? Because this influx of university-affiliated individuals drives up property values, making it a lucrative market for investors like you.
Let’s be honest - Davis offers attractions and amenities that are rare elsewhere.
The city's iconic Davis Farmers Market, renowned for its fresh produce and local goods, and the extensive network of bike paths that have earned Davis the title of "Bicycle Capital of America" are just a few examples. Its unique geography, with proximity to both the Sierra Nevada mountains and the San Francisco Bay Area, provides a blend of urban and natural experiences, contributing to the city's appeal.
People who are looking to buy in Davis often include university professionals, students, and young families seeking high-quality education and a safe, community-oriented environment. The diverse cultural landscape, excellent public transportation, and progressive values also attract a wide array of buyers.
For those interested in buying and renting out property in Davis, the high demand for rental units from transient students and short-term residents ensures a steady stream of potential tenants, making it a sound investment.
The real estate market in Davis is exceptionally dynamic. For instance, the median home price saw a year-over-year increase of around 8% recently, indicating a robust and competitive market. This constant flux in property values and demand underscores the market's vibrancy and potential for significant returns on investment.
One very specific aspect of Davis properties is the prevalence of mid-century modern and ranch-style architecture, which adds a unique charm and historical value.
These architectural styles, characterized by clean lines, large windows, and integration with nature, are highly sought after and can command premium prices. This architectural uniqueness is a significant draw for buyers who appreciate the city's historical and aesthetic value.
As mentioned before, several factors contribute to the future appreciation of property values in Davis. The ongoing academic growth, limited housing supply due to zoning regulations, and continuous influx of university-affiliated individuals are key drivers.
Additionally, ongoing urban development projects and infrastructural improvements, such as the expansion of public transit and revitalization of certain neighborhoods, will likely further boost property values up.
Top neighborhoods in Davis to consider for living
Areas in Davis that are budget-friendly
| Neighborhood | Average Price per Square Meter ($) | Characteristics | Resident Demographics | Strengths |
|---|---|---|---|---|
| Central Davis | 6,000 | Older housing stock, proximity to university, ripe for renovation, increasing investment in infrastructure | Students, faculty, young professionals | Community spirit, increasing connectivity, bike-friendly streets |
| West Davis | 7,500 | Laid-back, suburban feel, distance from downtown, proximity to parks | Long-time locals, retirees, young families | Strong sense of community, good schools, recreational opportunities |
| South Davis | 8,000 | Variety of property types, on the cusp of change, vibrant community | Families, professionals, students | Family-friendly environment, relative affordability |
We’ll be transparent - when you’re looking to buy a property in Davis, California, finding an affordable and budget-friendly area can be quite the challenge.
However, there are still a few neighborhoods that stand out for their relative affordability and potential for future growth.
Let’s dive into three of these areas: Central Davis, West Davis, and South Davis.
Central Davis
Central Davis is one of the last frontiers for budget-friendly properties in Davis.
Historically, it has been one of the city's less expensive areas due to its older housing stock and proximity to the university, which can lead to a transient population. However, recent years have seen significant investment in infrastructure and housing, leading to a gradual transformation.
The area is dotted with single-family homes, many of which are ripe for renovation. The average price per square meter hovers around $6,000, making it one of the more accessible areas in the city.
The community here is diverse, with a mix of students, faculty, and young professionals starting to move in.
Central Davis’s strengths lie in its community spirit and increasing connectivity with the rest of the city, especially with the Unitrans bus system and bike-friendly streets.
However, it still struggles with perceptions of noise and lacks some of the amenities found in more affluent neighborhoods.
West Davis
West Davis offers a more laid-back, suburban feel while still being within the city limits.
It’s cheaper primarily because of its distance from the downtown core and the fact that it’s a bit more removed from the university buzz, which some people find less appealing.
That said, the neighborhood has a unique charm with its proximity to parks and the tranquility it offers.
You can find a mix of single-family homes and a few apartment complexes here, with an average price per square meter around $7,500.
The residents are a blend of long-time locals, retirees, and young families who appreciate the slower pace.
The strengths of West Davis include its strong sense of community, good schools, and recreational opportunities at Arroyo Park and the Davis Greenbelt. On the downside, it can feel isolated, and the distance from downtown isn’t for everyone.
South Davis
South Davis is another neighborhood worth considering.
It’s cheaper because it hasn’t yet seen the gentrification that other parts of the city have, but it’s on the cusp of change. The area features a variety of property types, including single-family homes and multi-unit buildings.
The average price per square meter here is about $8,000. South Davis is home to a diverse population, with a strong representation of families, professionals, and students. The neighborhood’s strengths include its vibrant community, family-friendly environment, and relative affordability.
However, it lacks some of the polish and high-end amenities of more developed areas and has pockets that can feel a bit rundown.
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Areas in Davis that are popular and upscale
| Neighborhood | Average Price per sqm | Type of Properties | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Old North Davis | $7,000+ | Craftsman bungalows, mid-century modern homes, newer constructions | University professors, young professionals, families | Walkability, safety, top-rated schools, local amenities | High cost of living, limited parking |
| South Davis | $5,500 | Single-family homes, modern townhouses | Young families, retirees, professionals | Quiet streets, green spaces, strong community | Isolated from downtown, limited public transportation |
| West Davis | $4,500 | Ranch-style homes, newer developments, affordable housing | Diverse community | Affordability, safe environment, strong community ties | Fewer dining and entertainment options, longer commute to downtown and university |
Old North Davis
If you're considering investing in Davis, Old North Davis should be on your radar. This neighborhood is one of the most sought-after areas in the city, known for its charming, tree-lined streets and historic homes.
While not as pricey as San Francisco's Pacific Heights, Old North Davis still commands a premium, with average prices per square meter often exceeding $7,000. This area attracts a mix of university professors, young professionals, and families who appreciate its proximity to downtown and the UC Davis campus.
Properties here include beautifully preserved Craftsman bungalows, mid-century modern homes, and a few newer constructions, all offering a unique blend of historic charm and modern convenience. Old North Davis is likely to remain popular due to its prime location, community feel, and aesthetic appeal.
The strengths of this neighborhood include its walkability, safety, and access to top-rated schools and local amenities like the Davis Farmers Market.
However, the downside is the high cost of living and limited parking, which can be a challenge for residents.
South Davis
South Davis is another emerging hotspot, known for its suburban feel and family-friendly environment. It's relatively more affordable, with average prices around $5,500 per square meter.
This area attracts a diverse mix of residents, including young families, retirees, and professionals who commute to Sacramento or the Bay Area. Properties here range from spacious single-family homes to modern townhouses, many featuring large yards and community amenities.
South Davis is likely to stay in demand because of its excellent schools, parks, and easy access to Interstate 80, making it a convenient location for commuters.
The neighborhood's strengths include its quiet streets, abundant green spaces, and strong sense of community.
On the flip side, South Davis can feel somewhat isolated from the vibrant downtown area, and public transportation options are limited.
West Davis
West Davis is gaining popularity among those looking for a more relaxed and affordable option. It is less expensive than Old North Davis and South Davis, with average prices per square meter around $4,500.
This neighborhood is known for its open spaces, bike-friendly streets, and close-knit community.
Properties here include a mix of ranch-style homes, newer developments, and affordable housing options.
West Davis's appeal is likely to grow due to its welcoming atmosphere, good schools, and proximity to the UC Davis campus and local amenities.
The neighborhood's strengths are its affordability, safe environment, and strong community ties.
However, the trade-offs include fewer dining and entertainment options compared to other parts of Davis, and a longer commute to downtown and the university.
Areas in Davis that emerge as new hotspots
| Neighborhood | Description | Key Attractions | Current Property Prices | Future Outlook |
|---|---|---|---|---|
| South Davis | Traditionally a quieter residential area, now popular for its family-friendly atmosphere and excellent schools. | Pioneer Park, South Davis Greenbelt, new shopping centers, dining options. | Relatively affordable compared to central parts of the city. | Prices likely to rise as more people discover its potential. |
| Downtown Davis | Transformed into a vibrant and bustling area with modern apartments and trendy amenities. | Trendy cafes, restaurants, boutique shops, tech startups, co-working spaces, lively nightlife, cultural events. | Climbing, but still lower than in comparable urban centers. | Strong demand and potential for property value appreciation. |
| North Davis | Once considered too far from the city's core, now sought-after for its peaceful environment and well-maintained green spaces. | North Davis Greenbelt, Davis Bike Loop, new cafes, specialty shops, community events. | More affordable than central parts of the city. | Property values expected to rise as more people seek its unique charm and tranquility. |
If you're looking to invest in a neighborhood with strong long-term rental demand and the potential for significant returns, these emerging hotspots in Davis, California, are worth considering.
South Davis
South Davis, traditionally a quieter residential area, has seen a surge in popularity in recent years.
Known for its family-friendly atmosphere and excellent schools, South Davis is attracting a mix of young families and professionals. The area boasts a variety of parks and recreational facilities, such as the expansive Pioneer Park and the South Davis Greenbelt, which are perfect for outdoor activities.
The recent development of new shopping centers and dining options has added to the neighborhood's appeal, making it a convenient and desirable place to live.
Property prices in South Davis are still relatively affordable compared to the more central parts of the city, but as more people discover its potential, prices are likely to rise.
Downtown Davis
Downtown Davis, once primarily known for its proximity to the University of California, Davis, has transformed into a vibrant and bustling area.
The conversion of older buildings into modern apartments and the influx of trendy cafes, restaurants, and boutique shops have revitalized the downtown area. The presence of tech startups and co-working spaces has further enhanced its appeal to young professionals and entrepreneurs.
With its walkable streets, lively nightlife, and cultural events, Downtown Davis offers a dynamic urban lifestyle.
While property prices here are climbing, they are still lower than in comparable urban centers. The blend of historic charm and modern amenities makes Downtown Davis particularly attractive to renters, ensuring strong demand and potential for property value appreciation.
North Davis
North Davis, once considered too far from the city's core, is now becoming a sought-after neighborhood.
Known for its peaceful environment and well-maintained green spaces, North Davis has long been a hidden gem for those seeking a more relaxed lifestyle. Recent years have seen an influx of new cafes, specialty shops, and community events, reflecting the area's growing appeal to a diverse demographic.
The proximity to the North Davis Greenbelt and the Davis Bike Loop provides ample opportunities for outdoor activities, making it ideal for nature enthusiasts and cyclists.
Real estate prices in North Davis are still more affordable than in the central parts of the city, partly because it's perceived as being on the periphery. However, as more people seek out its unique charm and tranquility, you can expect property values to rise.
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Top neighborhoods in Davis to invest in propertyAreas in Davis with a strong long-term rental demand
| Neighborhood | Types of Tenants | Types of Properties | Rental Income | Rental Yield | Tips for Increasing Income |
|---|---|---|---|---|---|
| Downtown Davis | Students, young professionals, academics | Modern apartments, condos | $1,800 - $2,200/month (1-bedroom) | 5-6% | Opt for properties close to UC Davis campus or Davis Amtrak station |
| South Davis | Families, professionals | Single-family homes | $2,500 - $3,200/month (3-bedroom) | 4-5% | Consider properties near South Davis Bike Path or Nugget Fields |
| West Davis | Students, faculty, professionals | Single-family homes, townhouses, apartments | $2,800 - $3,500/month (3-bedroom) | 3-4% | Focus on properties with access to green spaces like Westwood Park or Putah Creek Bike Path |
If you're considering investing in rental properties in Davis, California, targeting areas with strong short-term rental demand can significantly enhance your returns. Three key neighborhoods stand out: Downtown Davis, South Davis, and West Davis.
Downtown Davis
Downtown Davis is the heart of the city, bustling with activity and attracting a diverse mix of students, young professionals, and academics due to its proximity to the University of California, Davis (UC Davis).
Tenants here typically seek modern apartments and condos with amenities such as secure bike storage, communal study areas, and proximity to cafes and restaurants.
One-bedroom apartments in Downtown Davis can fetch around $1,800 to $2,200 per month. The rental yield here can be attractive, ranging between 5-6%, thanks to the high demand and premium rental rates.
Opt for properties close to the UC Davis campus or the Davis Amtrak station to ensure lower vacancy rates and higher rent.
The main drawback is the area's susceptibility to seasonal fluctuations, particularly during the summer months when students may leave town, impacting demand.
South Davis
South Davis is another hotspot, popular for its family-friendly environment and suburban feel.
This area appeals mainly to families and professionals who enjoy the quieter, residential atmosphere. Tenants in South Davis often look for single-family homes with spacious yards and access to good schools and parks.
Here, three-bedroom homes can rent for about $2,500 to $3,200 per month. Rental yields can be solid, around 4-5%, given the consistent demand for family-oriented housing.
To maximize rental income, consider properties near the South Davis Bike Path or the Nugget Fields, which are popular with local residents. However, be mindful of the competition from other family-friendly neighborhoods, which might affect rental rates.
West Davis
West Davis is a prime neighborhood known for its blend of suburban tranquility and proximity to UC Davis. It draws a mix of students, faculty, and professionals who prefer larger homes and a quieter environment.
Properties in West Davis often include spacious single-family homes, townhouses, and well-appointed apartments. Rental rates for a three-bedroom home here can reach $2,800 to $3,500 per month. Due to the high property values, the rental yield might be lower, around 3-4%, but the area offers stability and lower vacancy rates.
Focus on properties with access to green spaces like the Westwood Park or the Putah Creek Bike Path to attract top-tier tenants and command higher rents. The primary downside is the higher initial investment and the competitive market for high-quality properties.
Areas in Davis with a strong short-term rental demand
| Neighborhood | Demand Reasons & Tenant Profile | Preferred Properties & Amenities | Average Nightly Rate & Tips |
|---|---|---|---|
| Downtown Davis | Proximity to University of California, Davis, shops, restaurants, and cultural attractions. University visitors, parents of students, and business travelers. | Modern apartments or charming bungalows with high-speed internet, comfortable workspace, and easy access to public transportation. | $150-$250/night. Invest in properties near the university and popular eateries; focus on dedicated workspace and cozy interiors. |
| Old East Davis | Historic charm, close-knit community, proximity to Davis Farmers Market and Central Park. Tourists and professionals. | Well-preserved historic homes or modernized cottages with a well-stocked kitchen, outdoor space, and proximity to local attractions and public transportation. | $175-$275/night. Invest in properties close to the park and market; emphasize historic vibe and community feel. |
| West Davis | Quieter, suburban experience with easy access to the city center. Families and professionals. | Spacious, well-furnished homes with a backyard, garage, and proximity to schools and shopping centers. | $200-$300/night. Focus on family-friendly areas with good schools and parks; offer modern conveniences and a welcoming atmosphere. |
If you want to reduce the risk of your property investment in Davis, California, and especially the vacancy rate, aim for these 3 neighborhoods.
Downtown Davis
Downtown Davis is a prime area for short-term rentals due to its proximity to the University of California, Davis, and a bustling array of shops, restaurants, and cultural attractions.
The typical tenants in Downtown Davis are university visitors, parents of students, and business travelers who appreciate convenient, well-appointed accommodations.
They look for properties with high-speed internet, a comfortable workspace, and easy access to public transportation. For a one-night stay in Downtown Davis, you can expect to charge around $150-$250.
To maximize rental income in Downtown Davis, invest in modern apartments or charming bungalows near the university and popular eateries. Properties with a dedicated workspace and cozy, inviting interiors will attract higher-end tenants and reduce vacancy rates.
Old East Davis
Old East Davis is another neighborhood with strong short-term rental demand, attracting tourists and professionals who appreciate its historic charm and close-knit community feel.
The area is known for its tree-lined streets, historic homes, and proximity to the Davis Farmers Market and Central Park.
Tenants in Old East Davis are often looking for unique, character-filled properties that reflect the neighborhood's historic vibe. They appreciate amenities like a well-stocked kitchen, outdoor space, and proximity to local attractions and public transportation.
The average nightly rate in Old East Davis ranges from $175 to $275. To get better rental income in this area, consider investing in well-preserved historic homes or modernized cottages close to the park and market, known for its community events and local produce.
West Davis
West Davis is a desirable location for short-term rentals, attracting families and professionals seeking a quieter, suburban experience with easy access to the city center.
This neighborhood offers a mix of newer developments and established homes, with plenty of parks and recreational facilities.
Tenants in West Davis typically prefer spacious, well-furnished homes with modern amenities. They look for properties with amenities such as a backyard, a garage, and proximity to schools and shopping centers.
The average price for a one-night stay in West Davis is between $200 and $300.
To increase rental income, focus on properties in family-friendly areas with good schools and parks. Offering modern conveniences and a welcoming, homey atmosphere can attract a high-end clientele and ensure consistent bookings.
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Areas in Davis where property prices might increase in the future
| Neighborhood | Why Prices Are Low | Current Developments | Factors for Price Increase |
|---|---|---|---|
| South Davis | Somewhat overlooked in the past. | Cannery development, South Davis Specific Plan bringing new housing, retail spaces, and parks. | Large-scale redevelopment, increased desirability and livability. |
| West Davis | Not as well-known as other parts of the city. | West Davis Active Adult Community project improving sidewalks, lighting, and bike lanes. | Proximity to public transportation, infrastructure upgrades, hidden-gem status. |
| Downtown Davis | Prices higher than South Davis or West Davis but still relatively reasonable. | Davis Commons project turning old retail area into mixed-use neighborhood with offices, homes, and retail spaces. | Proximity to University of California, Davis, new job opportunities, urban development. |
As these neighborhoods continue to develop and attract more residents and businesses, you can expect property values to rise, making them smart choices for investment.
South Davis
South Davis is a neighborhood that’s experiencing significant growth and transformation.
Prices here are still relatively affordable because the area has been somewhat overlooked in the past.
However, with the new Cannery development and the South Davis Specific Plan, there's a lot of investment pouring in. These projects are bringing in new housing, retail spaces, and parks. As the area becomes more desirable, expect a rise in property prices.
Single-family homes and townhouses will be in high demand as families and young professionals move in looking for more space and a community vibe.
The key factor here is the large-scale redevelopment, which will transform the neighborhood into a more attractive and livable area.
West Davis
West Davis is another neighborhood with great potential. It’s one of the last affordable areas in Davis, partly because it’s not as well-known as other parts of the city.
However, it's gaining attention due to its proximity to public transportation and the ongoing improvements to local infrastructure, like the West Davis Active Adult Community project.
This project aims to revitalize the area with better sidewalks, lighting, and bike lanes.
Properties like multi-family units and condos will see high demand here, especially because they cater to the young professionals and families looking for reasonably priced options with good commute access.
The ongoing infrastructure upgrades and the neighborhood's hidden-gem status make it ripe for appreciation.
Downtown Davis
Downtown Davis is already somewhat trendy but still has room to grow.
Prices are higher than South Davis or West Davis, but still relatively reasonable compared to more central neighborhoods.
The big draw here is the proximity to the University of California, Davis, and the vibrant local scene.
With new developments like the Davis Commons project, which is turning an old retail area into a mixed-use neighborhood with offices, homes, and retail spaces, Downtown Davis is becoming increasingly desirable.
High-demand properties will include modern lofts and apartments that appeal to university staff and students looking for a short commute and a vibrant local scene.
The combination of new job opportunities and exciting urban development will drive property prices up.
How to get the best ROI out of a property investment in Davis, California?
Picking the right neighborhood in Davis, California is not everything.
Each neighborhood has potential if the strategy is right, but it cannot be based on gut feeling. You need to analyze the data and make financial projections. This approach will save you from a lot of mistakes and money losses.
This is where we can help with our real estate spreadsheet for Davis. Our tool provides a comprehensive overview of your property investment in Davis. With this tool, you get all the key metrics you need, such as Net Operating Income (NOI), Loan-to-Value (LTV), cap rate, net yield, and more. It's specifically tailored to the Davis market, incorporating the latest real estate data, so you don't have to spend hours researching.
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You don’t need to worry about complex calculations or confusing setups. Our tool is straightforward and intuitive, helping you make informed decisions without the hassle.
One of the standout features of our spreadsheet is its comprehensive data set. It includes all the average and median values for sale price, price per square foot, cash on cash returns, rental income, and occupancy rates for Davis. This means you can make accurate, data-driven decisions specific to the city's market conditions.
We've also included a dedicated scenario analysis tab. This allows you to modify key parameters like interest rates, rental income, and operational costs to see how different scenarios impact your investment. By exploring best, worst, and most likely cases, you can uncover hidden risks and opportunities, giving you a solid foundation for decision-making.
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If you have any questions, feel free to reach out to us at team@whatsmycashflow.com. Also, you can read this detailed article that explains how the Davis spreadsheet works.
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