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Thinking about investing in Riverside real estate in 2025? You're on the right track.
Despite economic shifts, Riverside's property market shows promising stability and growth potential.
In this blog post, we will explore why investing in Riverside real estate remains a solid option.
We rely on reliable data and statistics from trusted sources to provide a comprehensive analysis.
By the end, we draw our own conclusions based on this thorough examination. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Riverside's "vacancy rate" is just 5.0%, showing it's a bustling and competitive market
Signal strength: strong
The vacancy rate in Riverside is 5.0%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, meaning there is strong demand for housing.
When demand is high, it often leads to increased rental prices, making it a potentially lucrative opportunity for property investors. In Riverside, single-family homes in good condition are particularly sought after, especially in areas like the Canyon Crest neighborhood.
These types of properties are easily rented because they offer desirable living conditions and locations that attract tenants. If the vacancy rate were to rise significantly, say to above 10%, it might indicate a less favorable market for investment.
Sources: NeighborhoodScout, DataUSA, USCensus
2) Riverside has a "livability score" of 67, indicating it's a pleasant place to live
Signal strength: moderate
The livability score of 67 in Riverside is considered good because it reflects a balance of essential factors that contribute to a high quality of life. This score indicates that Riverside offers a combination of amenities, climate, and community engagement that make it an attractive place to live.
Firstly, Riverside is known for its pleasant weather, with mild winters and warm summers, which is appealing to many potential residents. Secondly, the city has a strong sense of community, with numerous local events and activities that foster a welcoming environment. These factors contribute to the overall livability and make Riverside a desirable location for homebuyers.
Additionally, Riverside's proximity to major cities like Los Angeles and San Diego provides residents with access to urban amenities while enjoying a more relaxed suburban lifestyle. This strategic location enhances the city's appeal and supports the assumption that buying property here is a sound investment. The combination of these characteristics makes Riverside a compelling choice for real estate investment.
If the livability score were significantly lower, it might indicate issues such as poor infrastructure or lack of amenities, which could deter potential buyers and investors.
Source: AreaVibes
We created this infographic to show how property prices in Riverside compare to other big cities in California. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) By 2025, the "Riverside Transmission and Reliability Project" will improve Riverside's electric system and increase property values
Signal strength: moderate
The Riverside Transmission and Reliability Project (RTRP) is a significant infrastructure development in Riverside, California, aimed at enhancing the city's electric infrastructure.
This project involves the construction of approximately 5.9 miles of new overhead 230-kV transmission line and 4.1 miles of new underground 230-kV transmission line, along with a new 230-kV Wildlife Switchyard. These improvements are designed to support a safe and reliable electric distribution system, which is crucial for the city's growth and development.
With the RTRP expected to be completed by 2025 or 2026, it is anticipated to boost real estate value in Riverside. A stable and reliable energy infrastructure is attractive to both residents and businesses, making the area more desirable for living and investment.
As the project supports the city's growing electric demands, it aligns with the expected increase in new housing, industrial, commercial, and educational developments. This makes buying property in Riverside a potentially good investment, as the enhanced infrastructure could lead to increased property values.
Sources: Riverside Legistar, Riverside Capital Improvement Program
4) Riverside County is experiencing population growth, with a rise of 0.73%
Signal strength: moderate
Riverside County's population growth, with a 0.73% increase, is a positive indicator for real estate investment. When a region experiences population growth, it often leads to increased demand for housing, which can drive up property values over time.
Historically, Riverside County has seen a significant population increase of 59.88% from 2000 to 2023, with an average annual growth rate of 2.60%. This consistent growth suggests a strong and stable market for property investment. As more people move into the area, the demand for housing, amenities, and services rises, potentially leading to higher rental yields and property appreciation.
Moreover, the forecast for the Riverside-San Bernardino market indicates a population change of 6.3% over the next five years and 14.1% over the next ten years. This projected growth further supports the idea that investing in property in Riverside County could be financially rewarding in the long term.
In addition to population growth, the area's economic development, infrastructure improvements, and proximity to major cities like Los Angeles contribute to its attractiveness as a real estate investment destination. These factors combined create a favorable environment for property investors looking to capitalize on the region's growth potential.
Sources: Neilsberg - Riverside, CA Population by Year, Synergos Tech - Population Forecast for Riverside-San Bernardino, CA, Neilsberg - Riverside County, CA Population by Year, World Population Review - Riverside County, California Population 2024
Our team designed this infographic to show how competitive the real estate market in Riverside is vs. other major cities in California. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Airbnb or "short-term rental" in Riverside offers a fairly appealing profit margin of 4.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Riverside is 4.0%, which indicates a moderate level of profitability for property investors. This percentage suggests that the income generated from short-term rentals can cover a significant portion of the investment costs, making it a potentially viable option for those looking to invest in real estate.
Riverside attracts a variety of short-term tenants, including tourists visiting the nearby attractions such as the Mission Inn Museum and the Riverside Art Museum. Additionally, the city is a hub for business travelers attending conferences and events at the Riverside Convention Center, which further boosts the demand for short-term accommodations.
Moreover, Riverside's proximity to educational institutions like the University of California, Riverside draws in students and visiting faculty who require temporary housing. This diverse pool of renters ensures a steady stream of potential guests, enhancing the appeal of investing in short-term rental properties in the area.
If the cash-on-cash return were to drop below 2.0%, it might indicate that the investment is less attractive, as the income generated would not sufficiently cover the costs associated with the property.
Source: Mashvisor
So, is investing in Riverside real estate a solid option in 2025? Absolutely, it is.
Investing in Riverside real estate in 2025 is a promising opportunity due to several compelling factors.
Firstly, the low vacancy rate of 5.0% highlights a bustling and competitive market, indicating strong demand for housing. This demand often leads to increased rental prices, making it a lucrative opportunity for investors. Additionally, Riverside's livability score of 67 suggests a pleasant living environment, further attracting potential residents and homebuyers.
Moreover, the completion of the Riverside Transmission and Reliability Project by 2025 is expected to enhance the city's infrastructure, boosting property values. The county's population growth of 0.73% also supports increased housing demand, potentially driving up property values over time. Lastly, the 4.0% cash-on-cash return for Airbnb properties in Riverside indicates a moderate level of profitability, appealing to investors interested in short-term rentals.
Related analyses:
- Here is why prices are going to climb in 2025 in Riverside