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One of California’s last bastions to buy cheap homes is also one of the hottest housing markets in the nation: Fresno.
Construction Coverage recently ranked Fresno as the 15th hottest real estate market in the United States, and the fifth California city on the list, below San Francisco, San Jose, Oakland and Los Angeles.
But what makes the city standout, is the far cheaper homes available compared to most California cities. The average house price in Fresno, $386,426 according to Zillow, sits more than a half a million dollars below Los Angeles’ and nearly a million below San Francisco’s average home price.
More than 35% of homes in Fresno went above asking price with a median sale price of $400,000, according to the survey. Home prices have risen in the area about 3% compared to a year ago.
“Fresno stands out because it’s seeing strong demand relative to supply,” the author of the survey said.
Fresno is especially competitive, and a local loan officer with American Pacific Market isn’t surprised by the ranking.
“That and the location. Literally, because it’s too high down in the south, too high down north, and on the coast, just forget about it,” Paul Salazar told ABC 30.
“It doesn’t surprise me, but it is kind of neat to see it happening right before your eyes,” he added.
City officials believes the market is especially competitive because of corporate landlords like JD Homes, which owns around 3,000 homes in the Central Valley. Fresno City councilmember Annalisa Perea told Fresnoland that she’s motivated by stories of corporate investors outbidding homebuyers.
“What I’d like to see long-term is more homeownership versus renters,” she told the outlet.
JD Homes has faced controversy for their properties before. The company lost a tenant lawsuit in 2021, which alleged JD Homes knowingly left tenants living in unsafe and uninhabitable conditions.
“This is the detrimental effect of what happens when you bite off more than you can chew,” Perea told Fresnoland, referring to JD Homes’ real estate portfolio.
Perea’s proposal to study area trends surrounding corporate landlords was just approved by the council. She also advocated to make it easier for tenants to find corporate landlords, who can hide their names with trusts or LLCs.
But others believe scarcity of supply is more responsible than corporate landlords buying up homes.
“There’s a big driver of our housing crisis, and that driver is a scarcity of supply,” Stan Oklobdzjia, a professor of housing policy at the University of California, Riverside, told Fresnoland. He added that an exception lies when corporate bidders buy up neighborhoods, and then “you become more of a price setter.”
The California Post spotted several sublime deals across Fresno’s housing market.
A stunning gated 3-bed, 3-bath home comes in at about $530,000 for nearly 3,000 square feet of space.
The 1920s’ two-story residence “blends classic architecture with modern-day versatility,” its listing says.
“From the moment you arrive, the gated circular driveway and iconic California palms create a striking first impression,” the listing describes the residence.
Complete with two towering pillars at its entrance, the home features a fireplace in the dining area, a porch, a jetted tub with a chandelier hanging over it, and space for an accessory dwelling unit for guest house if buyers are interested.
For those with simpler tastes, a more-rustic 4-bed, 3-bath 2,265 square foot estate is in order. The home, located in eastern Fresno, comes in at $495,000.
The single-family abode was built in 1977 and also features a fireplace and a spacious living room laden in wood. The house has colored-glass across the property and features a balcony as well.
For aquatic homebuyers, a pool sits in the property’s lush backyard.
Buyers more psyched about a desert vibe could like this 4-bed, 3-bath on the outskirts of eastern Fresno.
The 2,648 square foot home is priced at $515,000 and is complete with an “adorable covered front porch that makes a perfect sitting area to enjoy your morning coffee or a relaxing afternoon,” its listing says.
“Don’t miss out on the chance to embark on the exciting journey of homeownership with a property that combines practicality, potential, and proximity to all amenities.” the listing adds.
The home has stainless steel appliances and a back patio with a green grass lawn.
Another decent Fresno-area deal prices at $469,900 for 3 bedrooms and 2 bathrooms and 1,613 square feet. The home has a blue and white kitchen theme, a cozy backyard with a rocky path, and wood floors throughout.
It also has its own fireplace and a swing hanging off a tree in the backyard.
San Diego is one of the most stagnant housing markets in California, according to the survey. Home sale prices have dipped .2% and 31.9% of homes sold above asking. The cities of Bakersfield, Sacramento and Long Beach came in above San Diego on the list.
The hottest housing markets in the country are San Francisco, San Jose and Minneapolis, the list said.
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