Riverside has been getting a lot more attention recently from real estate investors & developers alike. Mainly due to the fact that Riverside has a growing economy, relatively affordable housing, and is in close proximity to major transportation hubs. Riverside also offers a variety of opportunities for renters. However, it is not all sunshine and rainbows in Riverside. To give an accurate grade on Riverside's current investment potential, we give it an overall grade of B based on its current market conditions.
Economy:
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Riverside's economy has consistently grown over the past few years, with industries like healthcare and education playing massive roles. Major employers like UCR and CBU bring a sense of stability to the local job market, which drives demand for housing, particularly among students, faculty, and healthcare professionals. Riverside's steady economic environment makes the area more attractive for investors, especially those seeing reliable rental income. However, it's important to note that while the economy is growing, Riverside does not have the same explosive amount of job growth as seen in areas like San Francisco and Los Angeles. Investors will find more stable returns here, but not necessarily the rapid appreciation often seen in more popular markets.
Affordability:
Riverside remains relatively accessible compared to other cities in California. Riverside's real estate market offers lower entry points, with properties appreciating at a more gradual pace. Single-family homes and multi-family units remain strong, providing consistent opportunities for generating rental income. However, home prices and rents have increased, making it more difficult for first-time buyers to break in. Additionally, in some neighborhoods, mainly those farther from downtown Riverside, there is a slower rate of appreciation, which poses challenges for those seeking quicker returns.
Infrastructure:
Riverside's infrastructure is undergoing various improvements, including plans to upgrade public transportation and road systems to ease the current horrid traffic congestion. These upgrades are a promising sign for long-term investors, as better infrastructure can drive up property values in the coming years. On the other hand, parts of Riverside still struggle with the aging infrastructure, particularly in the older neighborhoods. These areas often lack modern amenities and robust connectivity, impacting properties' appeal and short-term appreciation.
Crime & Homelessness:
As someone who lives in Riverside, I can easily say that one of the most significant challenges facing Riverside is its struggle with homelessness and above-average crime rates, especially in the downtown Riverside area. While there are a lot of ongoing efforts to address these issues, they remain a deterrent for some potential investors & residents alike. These challenges negatively impact property value and make tenant turnover more frequent. Investors must be highly selective about which neighborhoods they target, as areas with higher crime & homelessness, may not offer the same ROI as more secure, developed locations.
Who Should Invest in Riverside?
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Riverside is an ideal market for buy-and-hold investors, meaning those who want to purchase property and hold onto it longer, earning income through rent and watching the property's value appreciate over time. With its steady economic growth, increasing demand for housing, and ongoing city improvements, Riverside offers a solid foundation for long-term investment.
Additionally, Riverside is attracting more residents as nearby cities become less affordable, which is good news for landlords, as more people looking for housing means you're likely to see high demand for rentals. Investors who can lock in properties now and hold onto them for the long term stand to gain as the city grows and improves.
If you are looking for this as an investment, feel free to use our free ROI calculator!
Why Is Riverside a B?
Riverside earns its B grade because it presents a balanced mix of opportunity and risk. On the positive side, the city has a growing economy, a real estate market that remains relatively affordable, and infrastructure improvements on the horizon that could boost property values in the future. However, rising home prices, lingering infrastructure issues, and concerns over crime and homelessness lower its attractiveness.
Conclusion:
In summary, Riverside is a great place to invest for a seasoned investor looking to buy and hold assets. Focusing on well-developed areas with strong rental demand and future growth prospects will offer the best chances for success. Long-term investors with a careful approach will still find value in Riverside's evolving market.
