Most people who haven’t been to Bakersfield in a long time still think of it as a small town that is on the way to San Francisco or Los Angeles, maybe even Las Vegas. Driving through today, you will notice that it has expanded in all corners, and has all the amenities of a larger city with only more on the way.
Vacancy Rate Bakersfield
The vacancy rate is very important when investing. If the vacancy rate is too high, then getting renters at high rates is going to be very difficult. On top of that, with a low vacancy rate, the rents can be increased. The overall multifamily vacancy rate in the U.S. is about 6%, while the vacancy rate for multifamily units is Bakersfield is closer to 4.7%.
Rent Prices Bakersfield
Bakersfield is known as one of the most affordable markets in the State of California. Rents average around $970 while the national average hovers around $1350/month. This means that rents have room to grow in Bakersfield, and if we know anything about real estate investors, it will definitely happen in the near future.
Interesting Read: 9 Things To Know About Living In Bakersfield California
Multifamily Units Under Construction
When new units are constructed here in Bakersfield they skew the rents up in the area. This means that even though there are new multifamily units in the area, the fact that they are there has the potential to increase the rent on your personal rental property as well. There are a little over 200 multifamily units being constructed in Bakersfield right now, but this does not bring the shortage to where it needs to be. On top of that, it will not lower the shortage of smaller units, which are in need, not only for the size but the price. This means that rents should keep going up on all sides for the near future.
We have done many deals, and continue to do many deals that return our Clients a net return of 6%, 8% or even double digits on their real estate. If you are interested in real estate investing in Bakersfield, feel free to reach out to Synergy Real Estate and Property Management. You may also sign up to get unlimited access to our off market database.
We provide our real estate investing clients a one-stop shop service where you can be sure that you are buying a quality investment property, and having that property managed in order to preserve your initial investment capital.
Until Next Time,
Sanjeev (Sunny) Advani
3400 Panama Lane Ste J
Bakersfield, CA 93313