Anaheim, California, has emerged as a prime destination for real estate investors seeking lucrative opportunities in the rental market. Known for its vibrant economy, world-class attractions, and strategic location in Orange County, Anaheim offers a compelling case for those looking to capitalize on both short-term and long-term rental properties. From its robust tourism industry to its growing population and infrastructure developments, the city presents a unique blend of stability and growth potential. In this blog post, we explore the key reasons why investors are flocking to Anaheim rental properties in 2025 and why this trend is likely to continue.
1. Thriving Tourism Industry Fuels Short-Term Rental Demand
Anaheim’s tourism sector is a cornerstone of its appeal for rental property investors. Home to the iconic Disneyland Resort, which includes Disneyland Park and Disney California Adventure, the city attracts millions of visitors annually. In 2017 alone, Anaheim welcomed 24.2 million tourists, a record-breaking figure that has continued to bolster the local economy. This influx of visitors creates a consistent demand for short-term rentals, particularly in neighborhoods like the Anaheim Resort area, where properties can generate significant rental income.
For instance, the Anaheim Resort area is noted for its high average rental income of $7,065 for short-term rentals, making it a top choice for investors in 2024. Properties in this area benefit from proximity to Disneyland, the Anaheim Convention Center, and other attractions like Angel Stadium and the Honda Center. These amenities ensure a steady stream of vacationers, business travelers, and event attendees seeking comfortable accommodations. Although Anaheim banned short-term rentals in some areas in 2018, strategic investments in permitted zones or traditional long-term rentals still offer substantial returns, especially given the city’s tourism-driven economy.
2. Strong Economic Fundamentals and Job Growth
Anaheim’s economy is a powerhouse, driven by diverse industries such as retail, manufacturing, healthcare, and tourism. The city boasts a low unemployment rate, which was reported at 3% in 2018, and a job market projected to grow by 38.9% over the next decade—surpassing the national average. Major employers like Disneyland, Carl’s Jr., Yogurtland, and Genisco Technology provide stable employment opportunities, attracting a steady influx of workers and residents.
This robust job market translates into a strong rental demand, as more than half (55.4%) of Anaheim’s population are renters, with a low vacancy rate of 4.5%. The high rental demand supports competitive rental rates, with traditional rental properties yielding an average income of $2,763 and short-term vacation rentals averaging $4,121. For investors, this means reliable cash flow and a favorable return on investment, particularly in neighborhoods like Anaheim Hills and Southwest Anaheim, where occupancy rates remain consistently high.
3. Rising Home Values and Market Resilience
Anaheim’s housing market has shown remarkable growth, with total home values surpassing the $1 trillion mark in 2025, placing it among elite U.S. metropolitan areas like New York and Los Angeles. Home values have surged by 12.1% over the past year, with the median sale price reaching $945,000 in October 2024. Despite a cooling trend due to rising interest rates, the market remains competitive, with homes receiving an average of three offers and selling in about 53 days.
This appreciation rate, which has been around 14% over the past decade, positions Anaheim in the top 30% nationwide for long-term investment potential. Investors benefit from both rental income and property value growth, making buy-and-hold strategies particularly attractive. The limited housing inventory, coupled with steady demand, prevents prices from dropping, ensuring that rental properties maintain their value over time. Neighborhoods like Anaheim Hills, known for larger lots and luxury properties, and The Colony, with its historic charm, are especially appealing for investors seeking appreciation and rental income.
4. Strategic Location and Infrastructure Development
Anaheim’s strategic location in Orange County, part of the Los Angeles metropolitan area, enhances its appeal for investors. The city is well-connected by major highways like I-5 and 91, offering easy access to surrounding areas such as Orange, Santa Ana, and Garden Grove. Additionally, the Anaheim Regional Transportation Intermodal Center (ARTIC) connects OCTA, Greyhound, Megabus, Amtrak, and Metrolink, with plans for a potential bullet train from Burbank to Anaheim. Properties near transit hubs benefit from higher appreciation rates, with median sales prices increasing 4-24% near transportation infrastructure.
Ongoing development projects further boost Anaheim’s investment potential. The $4 billion OCVibe project, a transformative initiative, includes public benefits like road improvements and affordable housing, enhancing the city’s livability and attractiveness. Similarly, revitalization efforts in downtown Anaheim and the Beach Blvd. corridor signal continued growth and modernization. These developments not only improve the quality of life for residents but also increase property values, making rental investments more lucrative.
5. Diverse Neighborhoods Catering to Varied Investor Goals
Anaheim’s diverse neighborhoods offer options for investors with different strategies and budgets. Here are some standout areas:
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Anaheim Hills: A luxury neighborhood in eastern Anaheim, known for larger lots, low crime rates, and highly rated schools. It’s ideal for investors targeting families and professionals seeking high-end rentals. Properties here command higher prices but offer consistent occupancy and strong rental income.
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Anaheim Resort: Perfect for short-term rental investors due to its proximity to Disneyland and major attractions. Despite regulatory challenges, permitted properties in this area yield high returns.
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The Colony Historic District: Located in downtown Anaheim, this area blends historic charm with modern amenities. It’s popular for its walkability, proximity to Disneyland, and appeal to renters seeking a vibrant community.
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Southwest Anaheim: Offers affordable properties with solid cap rates (2.03% for traditional rentals, 7.73% for vacation rentals), making it a favorite for budget-conscious investors.
This variety allows investors to tailor their portfolios to specific goals, whether focusing on cash flow, appreciation, or a mix of both.
6. Competitive Rental Market and Low Vacancy Rates
Anaheim’s rental market is characterized by high demand and low vacancy rates, currently at 4.5%. This scarcity of available rentals drives up rental prices, providing investors with a strong return on investment. Well-maintained single-family homes in desirable neighborhoods like Anaheim Hills and The Colony are particularly attractive to families and professionals, ensuring consistent occupancy.
The city’s livability score of 69 reflects a strong community atmosphere, supported by excellent schools, parks, and entertainment options. These factors make Anaheim appealing to long-term renters, reducing turnover and vacancy costs for investors. Additionally, the competitive market, where homes receive multiple offers, underscores the urgency for investors to act quickly to secure prime properties.
7. Supportive Real Estate Ecosystem
Anaheim’s real estate ecosystem is bolstered by experienced professionals, including realtors, property managers, and investment firms. Companies like California Realty Group and APG Properties offer comprehensive property management services, reducing the burden on investors by handling tenant screening, maintenance, and rent collection. Firms like Haven Home Buyers provide expertise in identifying high-value investment properties and navigating market complexities.
For novice investors, partnering with local experts can mitigate risks and maximize returns. These professionals offer insights into market trends, zoning regulations, and property valuation, ensuring informed decision-making. Additionally, platforms like HouseCashin connect investors with cash-flow opportunities, further streamlining the investment process.
8. Resilience Amid Economic Uncertainties
Despite rising interest rates and a potential economic slowdown, Anaheim’s housing market remains resilient. The city’s strong fundamentals—tourism, job growth, and limited inventory—support continued demand for rentals. Forecasts for 2025-2026 predict moderate growth and a balanced market, offering investors opportunities to enter at competitive price points. This stability makes Anaheim an attractive option for risk-averse investors seeking predictable returns.
Conclusion
Anaheim’s rental property market is a goldmine for investors, driven by its tourism-driven economy, strong job market, rising home values, and strategic developments. Whether targeting short-term rentals near Disneyland or long-term leases in family-friendly neighborhoods, investors can find opportunities that align with their financial goals. The city’s low vacancy rates, competitive rental market, and supportive real estate ecosystem further enhance its appeal. As Anaheim continues to grow and evolve, now is the time for investors to seize the potential of this dynamic market. By partnering with local experts and leveraging market data, investors can build a robust portfolio that delivers both immediate cash flow and long-term appreciation.
