Investors who are looking to diversify their portfolios and get out of all the usual markets have a unique opportunity in central California that has largely been missed. We’re talking about Porterville, which is often called the gateway to the Sequoia National Forest. This small suburban city is on the eastside of the San Joaquin Valley and just at the base of the Sierra Nevada Mountains. To say its views are beautiful somehow minimizes the actual splendor of the area. It’s rich in outdoor opportunities, close to Visalia, and an agricultural gem in the state’s Central Valley.
Why has there not been a lot of investment here?
For starters, most people in Porterville have traditionally owned their homes. But with the marketing shifting and people embracing a lifestyle that allows for remote work, there’s a growing demand for quality rental homes in this underserved area.
That means investment opportunities.
Let’s take a look at Porterville’s hidden gems and the immediate steps you can take if you decide this is the next place for your investment portfolio to grow.
What’s So Special about Porterville, CA?
It starts with nature, for a lot of the people who live in and visit Porterville. The giant trees that surround the city are legendary, and there are an abundance of opportunities for hiking, biking, camping, wildlife watching, rock climbing, fishing, and hunting. Lake Success is a sprawling man-made lake where people like to boat, kayak, and fish. Farms can be found throughout the area, and agriculture remains a major economic strength for the people who have worked this land for generations.
But, it’s more than that. Porterville is growing.
We checked in with the city’s website, and the population has been steadily increasing since the 2020 census. There are more than 62,000 residents living within the Porterville city limits, and the numbers keep going up. The city is currently growing at a rate of 0.02% annually.
Household incomes are growing, too. This gives investors and property owners a well-qualified pool of tenants when they’re renting out homes.
According to the U.S. Census in 2020, around 55 percent of the local population owned their homes. That’s more than half, but it still leaves a large number of rentals, and the inventory of rental homes in Porterville isn’t exactly high.
Some Good Reasons to Invest in Porterville Real Estate
Why should investors start paying attention to the real estate market in Porterville? For a lot of reasons, and we’re highlighting a few here.
- Location
This is an ideal location for investors who want to own property in California but cannot quite scrape together the capital that’s required in some of the state’s larger cities. Porterville is in the Central Valley, placed between Los Angeles and San Francisco. This provides an expanding tenant pool, especially as renters become more fluid, choosing to move every few years instead of buying and staying in one place. It’s also great for attracting remote workers who may hold jobs in LA or San Francisco but want to live in places with a lower cost of living and a higher quality of life. Porterville provides that, and attracting work-from-home tenants is a great investment strategy when you’re renting out homes in this market.
- Small Town Vibes
It’s getting harder and harder to live in cities. It’s getting more complicated to invest in cities, too. And that explains why smaller, previously unnoticed markets are gaining both attention and traction. More and more people are choosing to live in places that are smaller, quieter, and just a bit under the radar. This is good for people raising children, it’s good for busy professionals who want to get their work done in a place that supports them a little more holistically, and it’s good for retirees, students, and an entire array of diverse demographics. Porterville is full of historic charm, easy access to conveniences like grocery stores, restaurants, and shops, and on the edge of one of our country’s most incredible natural wonders. The slower pace and the more casual lifestyle is embraced by the people living here and it gets the attention of those who visit. If you’re an investor who generally focuses on larger cities, this can be a great way to diversify your portfolio.
- Growing Residential Market
We have been tracking a rising demand for residential properties in Porterville for several years. Some of the things driving this demand include the area’s natural beauty, but the affordability of this city is also a huge factor. As residents move out of more expensive markets, they are looking for alternatives exactly like this one. Porterville’s steady growth and the appeal of a quieter lifestyle make it an attractive location for homeowners, renters, and investors.
- Investment Potential in Rural Properties
This is generally a suburban market, but it’s impossible to ignore the rich rural landscape that surrounds Porterville. This is something that investors may want to consider as their own goals and strategies shift to respond to changing market demands. Agricultural and rural areas can offer unique and diverse investment opportunities. More people are turning to farming and ranching, whether for business purposes, retirement hobbies, or a need to go back to a simpler way of life. By investing outside of the box, you might find yourself with an eager supply of both buyers and renters.
There’s Value in Underserved Markets
Why should investors make the shift towards underserved markets in underrepresented regions?
We have been watching the growing interest in real estate investors expanding their portfolios into underserved markets like Porterville, and we think it’s a winning strategy for most. The opportunities are here, and the combination of demand and the potential for high yields and profitability creates a compelling investment option.
There is definitely space for existing investors who want to diversify a growing portfolio, but there’s also a long list of good reasons that a market like this is ideal for first-time investors, too. It’s more affordable to buy something in Porterville than in larger and more established markets. The demand exists far beyond what many large investors can fill.
The shortage of high quality rental housing in areas like this affects the entire community.
By investing in areas like Porterville, owners can make not only an impact on their own portfolios, but on the health of a community as a whole. You’re meeting a need when you invest here, and that’s something to be proud of. Creating more social and economic development indicates a leadership role, and smart investors know that’s something to embrace.
Underserved Markets are Profitable Markets
In underserved and yet-discovered markets like Porterville, the potential for attractive yields and investment stability applies to existing investors and new investors who are looking for a reliable and less volatile starting point. We don’t have to tell you that rental housing consistently outperforms many other asset types. In a market such as this, there’s even more of an opportunity to create greater earnings thanks to a lack of real competition and a real opportunity for development and growth. Smaller investors can start or diversify their portfolios and access these benefits by enjoying the opportunities that come from direct investments.
As with any real estate investment, conducting thorough due diligence is critical. Professional guidance from property managers in the Porterville market is especially beneficial when investors are wading into the waters of a new housing market. We can help with:
- Understanding local market dynamics
- Evaluating potential investment opportunities
- Complying with regulations
These are crucial steps to success. We can tell you how much rent you’re likely to earn, what kind of updates and upgrades might make a difference in your rental value, and who the tenants are that will likely show interest in your property.
Collaborating with experienced investors who are already in the market, property managers like us, and even service providers in the local area such as brokers, lenders, and vendors can provide valuable insights and mitigate risks associated with entering a new real estate and rental market.
Navigating Porterville’s Real Estate Market: How to Get Started
If we have convinced you that the next best place to invest in is Porterville and hidden gems like this city, we’re here to help you navigate the market and set yourself up for success.
- Choose the Right Investment Property
The first step is in finding the right investment property. You’ll need a profitable rental, whether that’s a single-family home, a multi-family building, or even some agricultural space in a more rural area. When you’re looking for the right investment, consider all the usual things: location, size, and features. In Porterville, investors will find a range of neighborhoods, each with its unique charm and characteristics.
- Get Funding in Place
Deciding how to pay for your property is an important next step. You’ll want to have your financing in place before you make an offer or even start looking at potential investments.
- Study the Local Market Dynamics
Staying informed about the local real estate trends in Porterville is a great way to remain successful and even grow your local portfolio. The market can vary based on factors such as local economic developments, seasonal changes, and regional growth patterns.
We’re here to help you make good decisions. Contact us at The Equity Group to talk about your potential here.
