California 2025 Housing Forecast

California's housing market is at record highs heading into 2025. However, prices could start to drop in the cities on this list due to a big increase in inventory and homes for sale.

10. Lake Tahoe
09. Los Angeles
08. San Mateo County
07. Stockton
06. San Bernardino
05. Santa Rosa
04. Oakland
03. Contra Costa County
02. Vallejo/Fairfield
01. San Francisco
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[ReventureConsulting]

California's housing market is up 3.6% over the last year. However, many cities in California have started to shift down. An exodus of people plus a slowdown in the economy is starting to weigh on the market.

It's reasonable to expect small to moderate price declines in the cities on this list, based on the current trends in the data. Access the data for your city and ZIP at www.reventure.app.

Note: the Reventure Price Forecast score did very well in predicting California's city-level price growth from 2023 to 2024, along with nationwide price growth. We expect the score will do a good job in 2025 as well.

Sign up for a premium plan to access the price forecasts for your neighborhood and ZIP code.

[williamJohnsonqf]

The housing market has high costs, maintenance issues, and can be illiquid. There are some smart digital investments that offer better liquidity and potential for higher returns than the housing market.

[gingerkilkus]

Back in the day, when I purchased my first home to live-in; that was California in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[MattsMkia]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[Kortneylove-]

Is buying a rental property here a good idea? I recently turned 22, and my aunt left me a significant inheritance. With enough to cover for most of the costs involved in getting a rental property, I'm now weighing whether it's a good and profitable idea at this stage in my life or if there are better options because I'll rather invest the money into something meaningful and ensure it grows, rather than risk not making the most of it.

[sarawilliam]

The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.

[DubDigital]

Bro, i live in ca. All the areas with prices going down is because crime is going up there...stockton, san bernidino, los angeles, santa monica, oakland. All have high crime rates

[LesterHess-tx]

In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200, 000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?

[SimoneSantos-nqci]

I live in Contra Costa, Walnut Creek.
Prices is not dropping.
Inventory is low so price is absurd.
In 6 years, the house I rent doubled the price.
1.2M now.
I can't ever buy.

[Erikkurilla]

Housing prices are unlikely to significantly decrease until there's a substantial increase in housing supply. In the USA, there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2025 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable, but others say it's risky. Any advice?

[aldoraine]

The California Housing market will never crash. Everyone on the planet wants to live here. If you drop the average price of a house in Cali by 50%, the influx new residents would be so massive it would be unmanagable. Developers are keeping inventory leverls low to keep home prices high. They need to be regulated and have a scheduled annual output on production if we want to see stable market.

[soulsoul]

I’m in Sonoma County. Bought my house last year for $850k and it’s now worth $1.2 mill. Market may cool, as it’s done seasonally… but not crash.

[MattTheMortgageGuy]

Here to admit I was pleasantly surprised with this video. More data based analysis, less fear mongering. Good analysis of the CA market. Cheers from Sacramento, CA

[theoptimist]

Our homes in Silicon Valley still sell in about 10 days. This guy is crazy. Same message from him for 4 years.

[larsedik]

You need to revise this video, taking into account the huge increase in demand following the fires in Los Angeles.

[ViiCiiOUZ]

Dude has been saying there is gonna be crash since 2020 dude he’s wrong

[bestiefswlady]

California is having a major homeowners insurance crisis, which has continued for the past two years and doesn’t show any signs of letting up yet. The urban areas and some of the suburbs haven’t been affected, but the semi rural places have been impacted greatly with some people seeing their homeowners insurance increase to up to $700 per month in certain foothill areas

[SeanHuangRealEstate]

Even a broken clock is correct twice a day.

[ristainoj]

Compared to other states, Florida...Texas.. is doing great !

[HaHa-gyvg]

They arent crashing bro. There ain't enough housing in Cali and there is a line of ppl waiting to pay a $7K a month mrtg or just pay cash for a million dollar crib at every open house.