When investors think about the best places to invest in real estate on the West Coast, California immediately comes to mind. But with consistently higher prices and a slip in demand, real estate investors in California have been hesitant and unsure how to navigate business in the Golden State.
However, recent trends in business, shifts in population density, and economic growth have many experts believing California real estate is poised for a strong comeback in the second half of 2025 and beyond. You just need to know where to look.
In this article, we’ll explore the top 5 markets for real estate investors in California based on population growth, economic indicators, amenities, and demand.
1. Sacramento
Sacramento by the numbers:
- Median Home Price: $485,641
- Average Rent Price: $1,571
California’s state capital, Sacramento, has made major improvements in its infrastructure and housing supply over the past five years. The city has become a massive tech hub, with nearly 90,000 tech jobs, and is home to several major tech companies, including:
- Apple
- IBM
- Intel
- Accenture
With a strong job market, Sacramento continues to attract homebuyers and renters alike. The city offers consumers both the benefits of proximity and affordability. Sacramento’s downtown provides transportation and walkability, while suburban markets outside the city’s metropolis offer quiet neighborhoods all within distance of great schools, dining options, and other alluring amenities.
Best of all, Sacramento is an affordable alternative to similar California markets, like San Diego or Los Angeles. The city’s median home price ($485,641) is nearly half the statewide average ($866,100). Additionally, city officials and planners are actively working to accommodate the latest demands and trends in the real estate market. Most notably, the demand for multi-family living options, as the city’s Midtown and East Sacramento continue to build new homes with flex and shared space options–ideal for young professionals and new families. With the average rent ($1,571) already below the national average ($1,850), Sacramento is quickly becoming one of the best places to buy rental property in California.
2. Oakland
Oakland by the numbers:
- Median Home Price: $695,221
- Average Rent Price: $1,845
With the median home prices in LA teetering on the line of $1 million, many Los Angeles real estate investors are searching for more affordable investment opportunities. There is none more attractive for real estate investors in California than the Oakland area. Located in the San Francisco Bay Area, Oakland has always been known for its diverse communities, lively art scene, and major shipping ports.
However, given its proximity to Silicon Valley, the city is quickly growing into a major tech hub, with companies like Uber and Salesforce dropping anchor. The influx of tech giants and other businesses has fueled Oakland’s economy, leading to several urban renewal projects.
These plans aim to:
- Revitalize old neighborhoods
- Upgrade the city’s infrastructure
- Develop flex and multi-family homes
- Increase the city’s affordable housing options
With these enhancements, Oakland is quickly becoming one of the best places to invest in real estate in California in 2025 and beyond.
3. Fresno
Fresno by the numbers:
- Median Home Price: $419,994
- Average Rent Price: $1,598
Located in California’s San Joaquin Valley, Fresno is conveniently located between major cities like San Francisco and Los Angeles. Renowned for its agricultural roots, the city has always attracted families and young professionals looking to save money while reaping the amenities and benefits of city living.
California, and its major cities, are infamous for their high living costs (38% higher than the national average). However, Fresno’s cost of living is only 7% above the national average. Additionally, with homes selling for just under $420,000 and rent averages below the national average, Fresno has quickly become an alluring destination for consumers and real estate investors in California.
That is why Fresno continues to grow, adding nearly 13,000 new residents over the past five years–unlike several California metro areas experiencing population declines. In addition, Fresno boasts amazing year-over-year home (4%) and rent appreciation (10.8%) rates over the last three years, making it one of the best places to buy rental properties in California.
4. San Jose
San Jose by the numbers:
- Median Home Price: $1.5 million
- Average Rent Price: $3,892
How do real estate investors find deals in California’s highly-priced and competitive luxury markets? One of the best ways is to find markets offering tax breaks and other development incentives.
While San Jose’s luxury market remains strong in 2025, the city is taking proactive steps in addressing housing shortages by offering developers various tax incentives. Its City Council has approved a 50% reduction in construction taxes for units in growth areas in 2025 and a 25% tax reduction for future projects in 2026.
So, while San Jose is a pricey California real estate market compared to others on this list, the city’s tax-savings benefits give savvy new-build investors a pathway into its highly competitive luxury markets.
How to Invest in Real Estate in California
California has long been an attractive destination for consumers and investors alike, and with all indicators pointing to a real estate surge through the end of 2025, the time to invest is now.
Whether you’re new to the markets or a seasoned real estate investor in California, adequate and reliable financing is essential to real estate investing success in the Golden State. For over a decade, CIVIC has been delivering the most accessible, flexible, and simplest capital lending programs to help investors permeate and succeed within California’s vast real estate market.
We offer:
- Fix and Flip Loans
- Ground Up Financing
- Stabilized Bridge Loans
- Rental and Rental Portfolio Loan Options
Whether you’re looking to invest in new developments, home flipping opportunities, or long-term investment properties, CIVIC has the tools, knowledge, and capital backing to meet your unique investment needs.
If you’re a real estate investor in California and are looking to level up your portfolio, find a lending partner who can help you realize your real estate dreams. CLICK HERE to schedule a FREE consultation with a CIVIC team member today.
