Median home price in 2012: $115,000
Projected home price in 2015: $135,660
Projected annual rent in 2015: $10,628
When the housing bubble burst in Bakersfield, it really hit hard. Many residents lost their homes to foreclosure, leaving them little choice but to move into rental properties.
That has been a major boon for landlords in the area. In the 24 months ended in March, rents increased by more than 20%, according to Rent Jungle.
For those looking to get into the market, home prices are cheap at a median of $115,000, according to NAHB, That's almost 60% below the high set back in 2006.
Given that Bakersfield has a diverse range of industries -- oil and gas production, agriculture, manufacturing -- it's a lot less risky than a city like Detroit, said Winzer.
That said, Bakersfield is still struggling to recover from the severe hit it took when the housing bubble burst and unemployment -- which stood at 14.5% in April -- is still a major issue.
However, if jobs recover a little more quickly, real estate investors could be rewarded with some modest home price appreciation -- in addition to their rental profits, said Winzer.
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