San Diego real estate remains an investment opportunity despite a slowing real estate market.
SAN DIEGO, CALIFORNIA, October 24, 2022 — With an overall gradual slowing and even decline to of the real estate boom of the past two years, certain highly desired housing locations, such as San Diego, remain a good investment opportunity for the savvy spender. Real estate developer Elliot Adler sees a few opportunities for growth in the south California city.
There are options for the investor ready to flip, dedicated to long-term results or looking for steady rental income without a long-term commitment. The best locations for each investment type vary due to the diversity that abounds in San Diego real estate options.
Short-term and vacation rentals
For the Airbnd crowd, short-term rentals provide a great opportunity to tap steady income without the commitment of long-term leases and property management for renters. Short-term renters may be vacationers, workers who have temporarily relocated to San Diego for their career, or traditional employees who now work remotely according to Elliot Adler, San Diego investor.
For these flexible, higher-income earners, consider investing in affordable properties in the Pacific Beach area. For these renters, space isn’t as big of a concern as it would be for homeowners, so look for houses and convertible properties with a small footprint but easy access to amenities and experiences, such as the beach, shopping, walking trails and dining.
Singles and young couples housing
For young professionals, areas like Mission Valley remain popular, but real estate prices may dictate finding a fixer-upper or participating in a larger investment partnership to see a solid return in a reasonable timeframe. Also hot for those in search of nightlife is the uber-hip North Park. This area remains ripe for long-term growth due to its business profile and access to prime industrial real estate.
For investments in a more flip-ready sector — single-family homes, East Village is a solid investment opportunity with historically lower prices. The region has lots of access to amenities and great schools but remains a bargain option compared to nearby neighborhoods for now.
Despite lower property costs, rents are high, so investors building up a rental portfolio may find it a worthwhile location to explore, Elliot Adler advises.
Commercial real estate
When business rentals are more enticing, the extreme poles of San Diego real estate were hot in 2021, making the surrounding areas excellent targets for added growth. In 2021, Otay Mesa led the way in leased industrial space with Carlsbad and Chula Vista following shortly behind.
One sector fueling the boom is life sciences according to the Times of San Diego, making lab space or office space adjacent to lab areas a particularly coveted investment.