What is the multi-family property future value outlook for the Sacramento, California area?

In Market Conditions - Asked by James C. - Apr 28, 2011
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Answer(s)

Aurelio M.
Broker/Agent
Torrance, CA

I believe the multi-family market will remain strong because many investors are shying away from retail and industrial investments because of the high vacancy rate and or the potential for long term vacancies. Multi unit residential is and will always be a safer but sometimes less profitable investment. Afterall people will always need a roof over their head. Also, follow job growth in Sacramento. No new jobs, equals no new tenants.

May 19, 2011
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Vivian C.
Owner/Investor
Redondo Beach, CA

Multi-family properties are also benefitting from the rising cost of land and stricter requirements to home ownership. They are consider more conservative investments compared to hospitality, office, and retail. Therefore, they have lower rates of return and lower cap rates. Sacramento is heavily political in its employment and therefore may be affected by the state budget. More people moving out of homes and renting.

Jul 19, 2011
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