This California coastal city has seen significant market changes since 2020—and it's only getting better.
The Newport Beach area in California has seen a steady increase in rental costs over the past five years, making this coastal city a great financial choice for investment properties. The area is popular for its large variety of luxury real estate, distinctly Californian lifestyle, and access to the Pacific Ocean and Los Angeles.
Investment properties: buying to rent
For those looking to invest in Newport Beach homes, buying to rent in the current market is a solid investment. There has been a steady increase in the average rental cost for 2-4 bedroom Newport Beach properties since January 2018. The median monthly rent for a 2-bedroom home in Newport Beach averages $3,936; for three bedrooms, monthly rent averages $6,512; and four bedrooms average $13,437.
Over the past five years, rental income has increased an average of 1.5% each year. With the steady increase in median rent, real estate investors in Newport Beach homes can expect their investment income to increase between 1.2-1.7% annually.
Why choose Newport Beach?
Aside from the financial benefits noted above, Newport Beach is a great place to live. It’s a city known for its boat-filled harbor and lively piers. The Newport Beach Pier and the Balboa Pier offer a range of activities for the whole family, including the Balboa Fun Zone, an old-school amusement park with a Ferris wheel and games. Newport Beach has top-rated schools and strong community leadership.
Residents, renters, and tourists are sure to enjoy the nearby beaches, including Corona Del Mar State Beach, Newport Beach, and the Wedge, where they can swim, surf, paddleboard, and parasail. The proximity to the Pacific Ocean provides opportunities to enjoy local marine life through whale watching tours, where guests can view whales, sharks, dolphins, and seals.
Outdoor enthusiasts can visit the Upper Newport Bay Nature Preserve for incredible bird watching. The Environmental Nature Center and Sherman Library and Gardens are perfect for plant photography. Newport Beach residents enjoy two golf courses: Pelican Hill Golf Club and Newport Beach Golf Course. Disneyland is only 20 miles away from Newport Beach for nearby fun, and Downtown Los Angeles is only 44 miles away.
There are numerous dining options to explore around Newport Beach homes for sale. A few favorite culinary destinations include:
Beachcomber Café: a 1950s themed restaurant popular for its breakfast menu, including coconut macadamia pancakes.
Cucina Enoteca: a French Riviera-inspired restaurant popular with locals.
Newport Landing Restaurant: a fresh seafood experience overlooking the Balboa Ferry, Balboa Island, Newport Center, and Newport Harbor.
Pizzeria Mozza: perfect for indoor and outdoor dining, takeout, and delivery
Royal Hen: billing itself as a “gastropub,” check out their beet hummus and zucchini blossoms, or entrées including coconut curry mussels and chicken pot pie.
When ready for a shopping day near Newport Beach homes, be sure to check out Fashion Island, Lido Marina Village, and Roger’s Gardens. Fashion Island in Easter Newport has 200 shops and restaurants, including the county’s only Neiman Marcus. Lido Marina Village offers artisanal shopping, including Alchemy Works: Harbor House, a farmers’ market on Wednesdays, a luxury consignment shop (The RealReal), and couture and contemporary fashion from brands like Elysewalker. Rogers Gardens showcases landscaping ideas for home and garden items, offers floral arrangements, and a very popular Halloween display every October.
Searching Newport Beach homes for sale?
When you’re ready to consider a real estate investment in Newport Beach, reach out to trusted Newport Beach real estate agent Annie Clougherty for expert assistance. With a wide array of access and activities to do around town, you (and your tenants) are sure to enjoy yourself in Newport Beach. Contact Annie and her team today for more information on Newport Beach’s dynamic market for real estate investing.