2019 ended on a high note with continued high demand for rental properties in the Central Valley and across the United States.
Now that we are already in the middle of the first month of the new year, most landlords want to know what is the economic outlook that they can expect in 2020.
This article will share with you our analysis for the economic outlook that we expect to see this year as well as some predictions regarding the upcoming presidential election and how that will affect the economy.
Rental Inventory Will Remain Tight in The Central Valley
Even with the addition of new laws like proposition 1482 in California, rental inventory in the Central Valley will continue to remain tight in 2020. The reason for this is due to the fact that California continues to have a supply problem, that’s unable to meet the demand for rentals across the state.
Thankfully, new measures to control rent increases in California will prove to be effective at slowing down the rate increases that we’ve seen over the last five years. This will hopefully give renters a financial break as they wait for new rental inventory to enter the market.
More Rental Inventory Will Be Available
As the California real estate market slows down, the good news is that there will be additional properties for sale across the Central Valley that will make excellent rental properties for landlords who are looking to add new properties to their portfolios in 2020.
Another reason for landlords to add new properties to their portfolios of investment properties this year is the fact that mortgage interest rates continue to remain historically low. This is good news for owners who plan on financing their properties this year instead of paying cash.
Demand for Rentals in The Central Valley Will Remain High
Central Valley’s rental market will continue to mirror the rental markets of other metro areas across California in that there will continue to be an intense demand for rental properties in cities like Stockton and Modesto.
The reason for the demand for rental properties is due in large part to the fact that local economies are stabilizing, and with more jobs available, more people are moving to the Central Valley area than ever before seeking employment.
Will The 2020 Elections Have an Effect on The Economy?
One of the big questions that investors in the Central Valley, and across the United States have is will the 2020 elections have an effect on the economy? The answer this question is likely no. The reason being that both political parties are eager to keep the economy moving forward at its current pace so it’s likely that there will not be any new tax increases or laws passed which could affect investors until after November 2020.
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