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1) Fresno's "vacancy rate" of 4.5% shows a bustling and competitive market with most spaces filled
Signal strength: strong
The vacancy rate in Fresno is currently at 4.5%, which is considered very low. This low vacancy rate indicates that the rental market is highly occupied and competitive, suggesting strong demand for rental properties.
When demand is high, it often means that property values are likely to appreciate over time, making it a potentially lucrative investment. In such a market, single-family homes in good condition are particularly sought after, especially in areas like the Woodward Park neighborhood.
These types of properties tend to be easily rented out due to their appeal to families and professionals looking for a stable living environment. However, if the vacancy rate were to rise above 7% or higher, it might indicate an oversupply of rental properties, which could affect rental income and property values negatively.
Sources: NeighborhoodScout, DataUSA, USCensus
2) Fresno's "livability score" of 63 indicates a favorable living environment
Signal strength: moderate
Investing in real estate in Fresno is promising because the livability score of 63 indicates a favorable environment for residents.
This score is considered good in the United States, partly due to Fresno's affordable cost of living, which attracts a diverse population. Additionally, Fresno boasts a strong agricultural economy, providing stable employment opportunities and economic growth.
Moreover, the city offers proximity to natural attractions like Yosemite National Park, enhancing its appeal to both residents and tourists. These factors contribute to a positive living experience, making Fresno an attractive place for potential homebuyers and renters.
If the livability score were to drop below 50, it might indicate a decline in these favorable conditions, potentially affecting property investment prospects.
Source: AreaVibes
3) The Veterans Boulevard Project in Fresno, set to complete by 2026, will improve connections with a new road and "interchange."
Signal strength: moderate
The Veterans Boulevard Project in Fresno, expected to finish by 2026, is a significant infrastructure development that enhances connectivity with a new roadway and interchange.
This project includes the construction of a new six-lane super-arterial roadway, which is designed to improve traffic flow and accessibility in northwest Fresno. By reducing congestion and facilitating smoother commutes, the project is likely to make the area more attractive to potential homebuyers and businesses.
Additionally, the interchange at State Route 99, along with grade separations over the realigned Golden State Boulevard and future California High-Speed Rail Authority tracks, further enhances the area's connectivity. This improved access can lead to increased demand for properties, as it becomes easier for residents to travel to and from the area.
The northern and southern extensions of Veterans Boulevard to Herndon Avenue and Shaw Avenue, respectively, expand the reach of this connectivity, making more areas accessible and potentially increasing property values in these regions.
The inclusion of a 12’-wide Class I multipurpose trail adds recreational value, appealing to those who prioritize outdoor activities and healthy lifestyles. This feature can attract a diverse range of buyers, from young professionals to families, further boosting the real estate market.
Moreover, the installation of adaptive intelligent transportation technology for traffic synchronization is a forward-thinking addition that enhances the efficiency of the transportation network. This technology can lead to reduced travel times and improved safety, making the area more desirable for living and investment.
Sources: Veterans Boulevard Project
4) Fresno, California, is experiencing a population increase of 0.18%
Signal strength: moderate
The population growth in Fresno, California, is a key indicator of potential investment opportunities in the real estate market. A growing population often signals increased demand for housing, which can lead to property value appreciation over time.
In Fresno, the city population is projected to grow steadily, albeit at a slow rate of 0.18% annually. This growth, while modest, suggests a consistent demand for housing as more people move to or are born in the area. As the population increases, the need for residential properties, rental units, and related infrastructure typically rises, creating a favorable environment for real estate investors.
Moreover, the Fresno metro area has shown a more robust growth rate of around 1% annually in recent years. This trend indicates a healthy economic environment that can attract businesses and residents alike, further boosting the real estate market. A thriving metro area often leads to job creation, improved amenities, and enhanced quality of life, all of which contribute to making property investment more attractive.
Historically, Fresno has experienced significant population growth, with an average annual increase of 1.16% from 2000 to 2023. This historical trend provides a strong foundation for future growth and stability in the housing market. Investors can take confidence in the area's ability to sustain population increases over the long term, which can translate into steady returns on property investments.
Sources: Macrotrends, ABC30, World Population Review, Neilsberg, World Population Review
5) The "cash-on-cash return" of 5.0% for Airbnb in Fresno is fairly appealing
Signal strength: moderate
The cash-on-cash return on Airbnb in Fresno is 5.0%, which is considered moderately attractive for investors. This percentage indicates that the income generated from short-term rentals is relatively healthy compared to the initial cash investment.
Fresno attracts a variety of short-term tenants, including business travelers, families visiting nearby national parks, and students attending events at local universities. These groups often seek convenient and affordable accommodations, making Airbnb properties a popular choice.
Additionally, Fresno's proximity to Yosemite National Park and Sequoia National Park draws tourists who prefer staying in the city for its amenities. This consistent demand from diverse groups helps maintain a steady occupancy rate, which is crucial for achieving a good return on investment.
If the cash-on-cash return were to drop below 3.0%, it might indicate a less favorable investment due to reduced profitability from short-term rentals.
Source: Mashvisor
6) The "cash-on-cash return" of 8.0% in Fresno is quite appealing
Signal strength: moderate
The cash-on-cash return of 8.0% in Fresno indicates a moderately attractive investment opportunity.
This percentage suggests that the annual cash flow relative to the initial investment is promising, which is a positive sign for potential investors. In Fresno, the rental market is often supported by long-term tenants such as families and professionals who are looking for stability and affordability.
These tenants typically seek affordable housing options with good amenities, making Fresno an appealing location for them. Additionally, the city's growing economy and job opportunities contribute to a steady demand for rental properties.
If the cash-on-cash return were to drop below 5.0%, it might indicate a less favorable investment scenario, potentially deterring investors.
Source: Mashvisor
So, is it worth buying property in Fresno? Absolutely!
Fresno presents a compelling case for property investment, thanks to its vibrant and competitive real estate market.
With a low vacancy rate of 4.5%, the demand for rental properties is strong, indicating potential for property value appreciation. The city's livability score of 63 highlights a favorable living environment, supported by an affordable cost of living and a robust agricultural economy. These factors make Fresno attractive to a diverse population, enhancing its appeal to homebuyers and renters.
Moreover, the upcoming Veterans Boulevard Project will significantly improve connectivity, likely boosting property values and demand. Fresno's steady population growth of 0.18% annually further underscores the increasing need for housing, creating a promising environment for real estate investors. Additionally, the cash-on-cash return of 8.0% offers a lucrative opportunity for those looking to invest in rental properties.