Popularity of the Venice California Real Estate Market

Venice Beach

Venice is one of the hottest real estate markets in Southern California. In fact, over the last few years, the popularity of the Venice California real estate market has grown dramatically, making it one of the highest priced communities in the state. Here’s a look at the many reasons why Venice has become so popular and what investors should consider when buying or selling.

The Community of Venice California

Venice is a neighborhood within Los Angeles and is well known for its beach and boardwalk. It has morphed from being strictly a tourist attraction to a popular hipster community complete with boutique shops, fine dining, and various forms of arts and entertainment. There is so much to do in Venice that it’s attraction is no surprise.

A Look at the Venice California Real Estate Market

With so few housing options and almost no new construction alternatives, even the smallest housing units in the Venice California real estate market are demanding top dollar. According to Realtor.com, the median list price of homes for sale is $2.4 Million. Here’s a graph from Realtor.com showing the pricing trends over the last few years.

 

According to Trulia.com, the average price of 1 bedroom units is just under $1.5 million. 4 bedroom units average over $2.1 million. Rental rates are not any more affordable at roughly $6,900 per month.

Is Venice California a Good Investment Market

Hot markets like Venice California aren’t necessarily easy to buy into, especially with high demand and low inventory. For investors, such markets are ideal for flip and fix properties. Since the Venice California real estate market consists of mostly aged homes (rather than new construction), opportunities do exist. Properties needing extensive repair tend to deter typical home buyers. However, keep in mind that the purchase price will still be higher than in other communities where you may fix-and-flip. However, the key is the after-renovation value. If you work the numbers properly, you can still earn a significant return on investment from homes in Venice.

Investors looking to purchase and retain properties as rentals can expect consistent demand for rental units. However, given the high cost of homes in the area, cash flow analysis should be carefully reviewed. Additionally, it may still be a good idea to target homes in need of repair as they offer the most potential for equity returns.

Some investors avoid high end markets, however, all markets provide great opportunities if you know what to look for and make smart decisions. If you’re new to real estate investing in Southern California, consider partnering with Homes, Inc. We have local knowledge and extensive experience to maximize your return on investment.