Real estate investors across the state of California have something to celebrate: the economy is improving, and the investments of house flippers and rental property owners are a big part of the reason why.
The LA Business Journal recently reported that California’s economy grew at a 4% annual rate in the second quarter of this year, marking a major increase over the 2.5% decline of the first quarter. This increase puts California’s economy in line with the national economy, which saw 4.2% growth.
According to a report released by City National Bank, the real estate and rental leasing industries accounted for nearly a quarter of the state’s economic growth, making real estate-related business the largest contributor to the state’s growth.
Both commercial and residential real estate improved over the second quarter as Californians continued to gain confidence in the housing market and businesses expand. Particularly in the tech industry, business growth has caused many budding companies to invest in large workspaces. Home sales also rose almost 7% as prices continued to go up, especially in hot markets like San Francisco, San Jose, Los Angeles, Oakland, and San Diego.
Real estate investors should rejoice at this news, which is both a good sign for their investments and for the state in general. The growing strength of California’s real estate market, largely fueled by investors, has led to accelerated employment. In fact, payrolls across California increased almost 3% this quarter over the previous quarter. This substantial growth puts California’s gross state product at $2.1 trillion, or 13% of the entire country’s economy. Put another way, California has the eighth largest economy in the world.
ZINC Financial is proud to work with investors who are making California’s economy stronger for every person who lives here. Our fix and flip funding gives entrepreneurs and investors the resources they need to improve neighborhoods, grow their businesses, and create jobs for craftsmen, contractors, and architects throughout the state. Contact ZINC Financial today by calling 559.326.2509 to learn more about our competitive house flipping loans or to find out why ZINC is one of the most respected private money lenders working in the great state of California.