Why Newport Beach is a Good Place to Invest Real Estate

Luxury seafront properties, high-end shopping and dining options, top-tier amenities, activities for the entire family, and more – there are many things to love about the fashionable and fun Newport Beach Homes for Sale. That includes a lucrative real estate market and a booming economy. With a median price of $3.74 million for single-family homes, Newport Beach real estate offers many reasons why it’s such a fantastic place for short-term and long-term investments. If you’re an investor looking into real estate, here are four reasons you should choose Newport Beach investment property as your next financial venture.

According to the latest report from the California Association of Realtors, there are only 198 active listings in the city of Newport Beach as of August 2022. With such a limited supply of properties in comparison to the demand, the market is ultimately geared toward sellers – and investors. With equity and appreciation steadily growing each year, you can buy a property, rent it out for a few years or live in it yourself, and then put it back on the market for more than what you originally bought it for. In addition, the sales-to-list percentage is 98.4%, meaning that most sellers are ultimately able to achieve their list price.

Newport Beach is a popular destination and one of the most affluent cities in all of the United States – there is a high demand for both single-family homes and rentals in its beautiful neighborhoods. You could easily invest in a single-family home and rent it out, generating profit while accumulating equity and increasing the property’s value. The investment is sure to pay off in a few years or so, depending on how long you’re interested in building your equity. Always keep yourself updated and informed on the housing market, especially since it’s always subject to change.

The government of Newport Beach reports that 43.5% of housing units are rented rather than occupied by the owner. That is no small number! With an average monthly rent of nearly $3,500 for just a 954-square-foot apartment, the renter’s market in Newport Beach is a highly lucrative one worth investing in. Any property type can be successful as a rental, from single-family homes to condos and townhouses. More spacious properties, of course, will command even higher rents, especially if they’re in a convenient location close to the many shops, restaurants, and amenities of the city.

The housing supply is already limited, meaning that people will more than likely settle for rentals if they’re unable to find a property to purchase. A wise investor can turn a Newport Beach home into an attractive single-family rental and reap the benefits of a rising renter’s market.

The unemployment rate in Newport Beach dropped over an eight-year period between 2010 and 2018 and is the lowest in the Orange County area, as reported by the city government. The unemployment rate has continued to drop and currently sits at 2.8%, based on a monthly report. As unemployment decreases, the job market and economy grow stronger. A growing economy guarantees you’ll have the most well-qualified buyers and potential tenants lining up to buy or rent your investment property. The better the economy, the lower the risk to your financial assets and investments.

Newport Beach alone is the epitome of luxury and elegance, but it offers so much more than gorgeous scenic views of the beach and sunny horizon. Popular among sailors, surfers, fishers, yachters, and even whale watchers, the city is a leading destination for tourists drawn to the sea and the recreational activities it offers. There are also plenty of options for high-end shopping and dining, as well as natural parks for people who prefer to stay on land.

Tourists also find themselves attracted to the beautiful seafront homes that line the shore. These major selling points make Newport Beach a popular choice for choosing a vacation rental over a hotel. There’s a worthwhile investment in furnishing and marketing a home as a short-term rental, allowing you to set rates according to the home’s value and location through a variety of popular services, such as AirBnB. With thousands of tourists flocking to Newport Beach every year, you’re bound to turn a high profit on a rental, while also accumulating equity on the number of properties you own.

Keep in mind, however, that these short-term rentals are limited to specific residential districts in the city and require both a business license and a City permit. It’s important that you research and understand the city’s rules and regulations before you consider investing in short-term rentals as a business.

With Newport Beach’s firm position as a popular destination for both affluent residents and sun-seeking tourists looking for a luxurious vacation rental, the real estate market will no doubt hold strong in the years to come. The market is steadily becoming more and more competitive as prices rise and inventory cannot keep up with demand. If you have any interest in Newport Beach investment property, now is the time to plan your next investment to strengthen your portfolio.

For expert consultation and guidance, consider hiring a top-rated real estate agent with extensive experience in Newport Beach real estate. The Summer Perry Group offers a skilled, professional team of knowledgeable agents to help you aim high. With plenty of experience both buying and selling property, the Summer Perry Group knows the inner and outer workings of the Newport Beach market. The team’s in-depth knowledge and familiarity with local housing trends and city ordinances will help you make the most out of your investment plans. The team also offers photography and concierge services whenever you prepare to market, sell, or rent out your property. Connect with an agent to start investing in the lucrative city of Newport Beach today!