Renting vs Selling a Home in Riverside County, CA
With over 2.4 million residents calling Riverside County home, this up and coming community is quickly growing in demand. With all the incredible development and growth within the county, it poses an interesting question to homeowners: Is it better to rent or sell your home in today’s market?
Overview of the Riverside County Housing Market
Let’s take a look. Riverside has higher property values than the surrounding areas of San Bernardino, Chino Hills, and Corona. Its values are also growing at the fastest rate in the area, with the lowest breakeven horizon at just 1.9 years for new homebuyers.
- Population: 2.4 Million
- Housing Units: 840,000
- Median Home Listing Price: $432,000
- Median Home Sale Price: $408,300
- Owner-Occupied Housing Unit Rate: 65 percent
- Median Rent: $2,250
- Median Household Income: $60,807
However, while the median Riverside County home is listed at almost $432,950, the average sales price does not sell for above $407,000. That means that while homes are listed for a much higher price, they’re actually selling at significantly lower price points.
Therefore, homeowners stand to make much more renting their home than selling it in today’s current market.
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The rental market, on the other hand, is an entirely different issue. About 35 percent of the population in Riverside County are renters, which is higher than the surrounding areas. The median rent in Riverside County is around $2,250, which is also far lower than the $3000+ average rent within Chino Hills.
Most notably, though, is the shortage of rental properties in Riverside County.
2012 reported a 53 percent decrease in rental vacancies, meaning that more people are renting with far fewer properties available. There simply aren’t enough homes for the influx of transplants from larger (and more expensive) areas like San Francisco and Los Angeles, and soaring property values continue to be a deterrent for families who prefer to buy but are forced to rent instead.
Families are increasingly becoming boxed in by lowered wages, skyrocketing sales prices, and an overall lack of available real estate. Credit continues to be a growing problem in the States, and Riverside has been largely targeted by investment groups who are using cash to snatch up available properties and convert them into rental properties. In fact, cash sales have doubled within the last decade, all thanks to these big investors.
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“There are a number of factors contributing to this rise (in rent), including a growing Inland Empire population, an overall shortage of housing stock, and a recovering housing market being driven by investors, not homeowners.”
United States Representative, 41st Congressional District of California
Value of Holding a Rental Property
When the housing market crashed, it also stalled new development and construction all across the country, one of which in Riverside County. That created an incredible shortage of properties within the area, leading residents to search for rental properties in lieu of a forever home.
Representative Takano also notes that while wages have dropped over $5,000 since 2007, rent still continues to rise within Riverside County neighborhoods.
Meanwhile, it’s an incredibly advantageous time to be a homeowner, because property values are on the rise and are projected to stay that way for a while. Last year experienced a 4.6 percent rise in Riverside County property values, and this year is expected to bring another 3.9% increase. That means if you purchased a home at $374,900, your home’s value increased over $17,000 in one year, with an additional $14,621.10 expected within the next year. That’s almost $32,000 in two years
With an average 2 percent increase in rent each year, it could be an incredibly lucrative opportunity for homeowners looking for additional income.
Large investors don’t necessarily make the best landlords, either; they’re often criticized for poor maintenance and lack of communication. This creates a great opportunity for homeowners who can easily manage a few occupants, either on their own or with the help of professional service, like Onerent’s technology-enabled rental services.
Rent vs. Sell: Final Thoughts
It just doesn’t make sense for homeowners to sell in today’s market. As a landlord, you have the opportunity to benefit from additional income each month, all while your property increases in value in the meantime. With professional rental property management services in Riverside county like Onerent to take the work out of renting your home, you can sit back and relax while earning additional income! It really can be that easy, and we’re here to help.