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.
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.
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.
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.
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.