Investing in real estate can be a lucrative financial strategy, but it can also be a risky one. As the market shifts and changes, the chances of receiving a return on a rental property investment can also change. If you want your rental property to be as profitable as possible, Realty Roundup in Stockton, California, encourages buyers to pay close attention to market trends. Their real estate professionals make it a priority to stay up-to-date. With rising rental prices and few available properties, now is the perfect time to make your move.

Below, the experts at Realty Roundup explain the key points that make the market ideal for investors:

• High Demand: According to a 2016 UC-Berkeley report, the demand for rental properties in California is skyrocketing. Gord Collins, SEO and Real Estate Guru, predicts investors “might see ROI [return on investment] of 30% or more on rental income property.” Much of this demand is due to the high number of millennials moving to California. They’re not interested in buying and settling down, but instead, they’re battling over the limited supply of rental properties.
• Scarce Supply: The limited supply of rental homes is due to more property owners selling their investment properties. The baby boomer generation is interested in securing their retirement nest egg, and selling property is a good way to do that. Fewer rental properties on the market mean property owners are in control. Renters are willing to pay more for the chance at a home they like, and the person who holds the keys will benefit.
• Healthy Economy: The National Conference of State Legislatures reports that unemployment rates in many states are significantly lower than in the past. March 2017 saw an average unemployment rate of 4.9 in California. More people with jobs means more people with money who are willing to pay for rental homes they love. Stockton is situated in an ideal location close to both San Francisco and Sacramento. As housing fills up in these cities, they’ll be looking nearby for other options.

The real estate market is complicated and continuously changing. For a more detailed analysis, talk to the professionals at Realty Roundup. Call them at (209) 477-1594. You’ll also learn more about owning a rental property on their Facebook page.