Is Benicia Real Estate A Good Investment?

Often, buyers looking to find a place to call home tend to look at very different metrics than investors in rental property might.  Investors looking at CAP Rates and ROI numbers for Benicia homes based on today’s sale prices as compared to current rents, might find it to be too close to breakeven to be worth the risk of the investment. I am a realist, and any good investment decision must rely on the numbers penciling out, including the cost of a high down payment. Buy and hold investors are finding many owner-occupied, decision-making metrics to be very promising. Here are three strong arguments that spell the word YES to invest.

Youth:  Benicia is known for its great schools and a multitude of activities for young people from sports to the arts to a wealth of educational opportunities. Home prices are directly tied to our schools’ success, and the general feeling of community Benicia exudes, especially as it pertains to our youth.

Environment:  Mild temps and close proximity to both San Francisco and Sacramento have long made Benicia a great home base for families and commuters. Vacancy rates and relatively low inventory for both the home sale and rental markets have proved this to be true over the decades. Additionally, the low crime rate and all the amenities offered by a full-service city make it an easy choice for those who want it all.  

Statistics:  Benicia’s residential building is at near capacity—only a few undeveloped city lots remain.  The law of supply and demand would suggest that if no new inventory will be made available, the existing inventory will appreciate and become more valuable. Here are some current numbers from Realtor.com that will show how Benicia relates to national and state averages.

Average Sold Price/Average Sold Price per square foot*
Benicia                        $456,299.00 / $252 per sqft.
California                     $559,980.00 / $302 per sqft.
U.S.                             $299,375.00 / $158 per sqft.

*Currently in Benicia, average monthly rent payment is only slightly less expensive than the average monthly mortgage payment.
Overall, the Benicia real estate market is healthy and homes are selling quickly with strong appreciation trends, and the inventory is predominantly being purchased as owner occupied. This being said, the savvy investor would do well to keep an eye on this gem of a community.

Categories: Community, Home + Garden, Miscellaneous

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