The Escondido real estate market has been expanding over the past several years. While Covid-19 is predicted to press pause on the market, Escondido is expected to bounce back quickly and continue to rise long-term.
NEW DEVELOPMENTS
Integral Communities, the nation’s 12th-largest home builder, has agreed to purchase the 13.8-acre site of the former Palomar Hospital. They plan to build a 510-unit apartment and townhome residential community called Palomar Heights. Zoning for the acreage allows for more than 1,000 units. The city hopes to build as many units as possible to bring new residents into the heart of Escondido and in turn bolster the surrounding business community.
Safari Highlands Ranch is another proposed project in San Pasqual Valley. If approved by city council, Concordia Homes plans to build a gated community with 550 luxury and eco-friendly homes. The project is being called “Escondido’s First Sustainable, Garden-to-Table Neighborhood.” The community would feature a farm, garden and boutique greenhouses and partnerships with local farmers and schools for operations, resident training and a fresh produce stand. In addition, Safari Highlands is now proposing a “net zero energy” community. It would be the city’s first “carbon neutral” neighborhood, which supports and elevates Escondido’s new climate action plan goals, according to Concordia promotional materials.
These are just a few of the major developments planned for Escondido.
CURRENT HOME VALUES
Escondido home values rose about 5% in the past year. The average home is currently valued around $553,000. Despite Covid-19 challenges, the Escondido market is only predicted to fall -0.9% in the next year. By looking at past housing market trends, Escondido will bounce back with improved resiliency. In Escondido, 0.3 homes are foreclosed (per 10,000). This is lower than both the San Diego-Carlsbad Metro value of 0.5 and the national value of 1.2.
APPRECIATING HOMES
Despite the current impact from Covid, Escondido’s median property value is predicted to experience a long-term increase. In the next five years the average home value is predicted to rise to $600,000, according to market forecasts by Wallet Investor. Over the next 5 years, property values are expected to increase by 8.5%. By 2030, the average property value will be around $649,000--a 17% increase. This makes Escondido an ideal place for long-term property investments. The highest appreciating neighborhoods in Escondido since 2000 are N Midway Dr / E Lincoln Ave, Jesmond Dene, and Rock Springs Rd / Montiel Rd.
PROPERTY RENTALS
Around half of Escondido residents are currently renting their living space, and the demand will only continue to increase. Single family homes are the most common property units in Escondido and account for 50% of the total housing market. A vast majority of housing demand in the U.S. has been filled by single family units in the past few years. Some of the most popular neighborhoods in Escondido are Center City, Escondido Blvd / W Felicita Ave, E Lincoln Ave / N Fig St, and Dogwood Pl / N Iris Ln.
Apartment complexes are also in high demand and make up 30% of the housing market in Escondido.
JOB GROWTH
Escondido is home to a handful of major Fortune 500 companies, including Nokia, Nixon, Qualcomm, and even Callaway Golf. In 2018, Badiee Development and Exeter Property Group completed construction on the Exeter Industrial Park, a 212,000 square foot industrial distribution center in the City of Escondido. The record-breaking project is the largest building of its kind in the City of Escondido and is home to Veritiv, a national distribution Fortune 500 company. Other top employers in Escondido include Palomar Medical Center, Escondido Union School District, and the City of Escondido. Overall, Escondido’s job market grew 1.4% over the past year. Over the next 10 years, the job market is predicted to increase 33.6%, which is higher than the US average of 33.5%. As the job market continues to grow, rental properties will increase in demand.
Despite some Covid-19 setbacks, Escondido is on track for steady and continual growth in the future. The housing and job market is projected to increase within the next couple years as businesses grow and new and innovative developments revitalize the area. For landlords and property investors, Escondido continues to be a profitable city for long-term investments.
John Boruff, licensed real estate agent and managing broker, is the founder and president of Palomar Property Services. John’s experience in property management and real estate goes back to 1984, when he began leasing and managing multiple properties, including warehouses, small manufacturing plants and office buildings. He ventured into the business of residential property management by purchasing multiple single-family homes in the Oak Hill development of Escondido in 1990. John’s investment experience spans as close to home as Escondido, CA, the greater San Diego County region, and as far as St. Louis, MO. A talented negotiator, he can navigate even the most challenging real estate transactions with an intuitive ability to close the deal.
John has consistently served real estate investors with the highest level of property management services for over 12 years, and at Palomar Property Services, John and his team of licensed agents have become a one-stop, full-service real estate company. With customer service, efficiency, and state-of-the-art technology a priority to John, and combined with his extensive real estate knowledge, Palomar Property Services is second to none in San Diego County.
John consistently shows an unparalleled work ethic, earning him respect among both regional and local realtors. Throughout his professional life, honesty and integrity have been the building blocks of John’s success in his careers, resulting in one of California’s most premier property management companies.
