Pasadena Apts for Rent: An In-depth Market Overview
Whenever California’s real estate market gets mentioned, the first thing that comes to mind is San Francisco’s crazy rental rates. Although Pasadena’s real estate market often falls under the radar, the city has a booming property scene. Thus anyone who wishes to invest in Pasadena Apts for rent should know about the latest trends, prices, where to buy rental apartments, and what the future holds.
Trends and Prices in Pasadena’s Rental Market
Pasadena has a competitive rental market. The average monthly basis rent for Pasadena apartments is $2,487. Rental apartments in the city average 873 sq. ft. 43% of apartments in the city are renter-occupied. Raymond Hill and Lower Arroyo Seco have the highest average rental rates ($2,602), while the most affordable neighborhood is Madison Heights ($1,600).
There has been a steady increase in rental prices over the past few years. Between 2016 and 2019, rental fees for Pasadena apartments went up by 1.2%. The COVID-19 pandemic significantly affected rental prices in 2020. This is attested to by the slump in rental uptake and prices. Market analysts predict an upturn in 2021.
Where to Buy Pasadena Apts for Rent
If you wish to invest in Pasadena rental apartments, you should know about the best neighborhoods to invest in. The location creates desirability and demand, besides determining your return on investment. The rule of thumb is to invest in neighborhoods where property value will rise.
That said, N Arroyo Blvd, Downtown Pasadena, Madison Heights, and Altadena are some of the best neighborhoods to invest in rental apartments. These neighborhoods have high rental prices and appreciation rates.
What the Future Holds
Despite the slump witnessed in 2020, Pasadena’s rental market has never been more robust. Investing in rental property in the city will fetch you impressive returns in the long run. Prices will keep trending up in the coming years.
Rental property investors find Pasadena appealing due to the following reasons:
- A Growing Student Population
The city is home to several higher education institutions, including Pasadena City College, the Fuller Theological Seminary, and Caltech. Thus, the housing market can fetch good returns to investors who want to cater to the student population.
- A Strong Job Market
Pasadena has a relatively lower unemployment rate compared to other cities in LA County. Young professionals move to the city due to its high-tech job markets, and most of them prefer to rent apartments.
Key Takeaways
Pasadena has raised the bar by providing exceptional rental property investment opportunities. The rental market will only get stronger, which presents profitable opportunities to investors.
