Property Investment Spotlight: Union City, CA
With its outstanding location, Google Employee Buses and striking proximity to East Bay and South Bay and the rest of the Bay area too, Union City remains very much a prime investment target for lots of buyers burned out on California’s high prices. There are opportunities in Union City.
The highly educated population won’t take no for an answer and in fact, some very wise city planning has kept the city growing even despite setbacks and a never quite fully realized recovery from the great recession (in many other much harder hit areas). Just about equi-distant between San Jose and San Francisco, Union City enjoys the advantages of both and some major advantages all its own.
In many ways, Union City is exactly what plenty of people think typifies the broader East Bay. At just shy of 80,000 residents, home prices are often sky high but still far from the most expensive in California. It’s a broadly mixed community divided into 15 neighborhoods and workers from nearly all levels are sharing the same city; from waged workers on up to management and top-management employees. Silicon Valley workers are very well represented, and a good 37% of the entire population has a college degree or better level of education. The business environment is considered robust with some of the best advantages in terms of logistics, ease of incorporation and easy proximity to some of the biggest players in the California economy as a whole.
Like lots of the East Bay, it’s also a very diverse community with a good 46% of residents having been born in another country. They take advantage of Union City’s relatively low prices, easier commutes (most of the time) and a community that is both welcoming and appreciative of what they bring to the table.
About 33% of households are renting across the Union City area, which actually places a lot of pressure on the rental market. It’s a very strong rental market and that is not expected to change. And with median incomes quite low for California, this rental market is not expected to change too much. As other communities grow with little or no limit, Union City faces a whole different set of restraints, and in fact rental properties do move very quickly.
The fact is, growth across much of the East and South Bays price many of Union City’s more residents out of a move to now much more expensive locales. On the contrary, Union City planners have kept some good control over quality of life and well-being issues that confront residents in more far flung communities. That means, renters are happy and they’re willing to stay put.
Making any rental property investment requires careful planning and analysis of a broad range of issues related to risk, returns and ultimate purpose. Whether you’re planning on selling, or retaining a rental property as a source of income, it helps to have partner who knows the business and the local rental market.