Developers and flippers need to remain nimble if they are to satisfy ever changing buyer preferences in California in 2025.
The real estate market is a constantly evolving beast.
Buyer preferences in California are more fluid than in most states.
Environmental causes, economic trends and changing demographics have a significant impact on what property buyers not just want but need.
It forces developers and flippers to be flexible and think on their feet in order to maximise profits.
Here are the top trends expected to be in demand in California in 2025.
Sustainable and energy-efficient features
California has the most energy-efficient public policies in the US according to the American Council for an Energy Efficient Economy.
These policies resonate strongly with the majority of Californians and are strongly reflected in what features they value when buying real estate.
It means that houses with the following properties are seen as more desirable and likely to attract higher prices:
Solar power – solar panels and battery storage will be borderline non-negotiable in California in 2025
Energy-efficient upgrades – Highly efficient heating, ventilation and air-conditioning (HVAC) systems, smart thermostats and energy-efficient windows are in high demand
Green building materials – developers using sustainable materials such as reclaimed wood and non-toxic plants stand to be rewarded handsomely when they sell
Many of these choices do not come cheaply.
But developers and flippers can rest assured their investments will be returned.
Smart home integrations
Buyers put a higher value on homes with state-of-the-art technology and that ethos extends to home EV charging stations.
California has the highest uptake of EVs in the country with around 35 per cent being driven on roads in the Golden State.
It makes EV-ready garages a significant selling point.
In addition, more California buyers are demanding fully integrated smart homes with features like smart lighting, securing systems and voice-controlled devices.
Climate resilience
Many of California’s most devastating wildfires have carved their trails of destruction in the last decade.
More buyers are now seeking homes that incorporate fire-resistant materials and landscaping, especially in areas prone to wildfires.
Coastal and riverside properties are also being retrofitted with flood-proof designs and elevation adjustments.
Additional diagonal bracing, shear walls and higher quality materials can also strengthen a building’s resistance to earthquakes.
Wellness and biophilic design
Today’s fast-paced, stressful lifestyle is resulting in more buyers seeking a home that doubles as their personal wellness retreat.
To meet this goal, they search for a biophilic design that incorporates elements of nature to aid their wellbeing, reduce stress and sharpen their creativity and focus.
Features embracing natural light and ventilation and including shapes, sounds and smells typically experienced outdoors have this effect.
These homes always have an abundance of greenery and preference the use of wood over other materials.
Preference for smaller cities
Buyers in California in 2025 are expected to continue to shun bigger cities such as Los Angeles and San Francisco in favor of smaller cities like Redding, Bakersfield and Temecula.
These smaller cities offer greater affordability and more open spaces than bigger cities.
The work-from-home revolution and internet age has made it more practical and given more people the opportunity to abandon bigger cities.
It has given them the chance to prioritise lifestyle over proximity to their workplace.
Accessory Dwelling Units (ADUs)
In 2016, California legalized the building of ADUs on most residential lots.
Also known as ‘granny flats’, these units add significant value to a property because they give owners the ability to utilise them in one of two ways:
Rental income – ADUs are marketed as an investment opportunity for short or long-term rentals.
Multi-generational living – Many families are seeking homes that can accomodate elderly relatives or adult children.
Smaller, affordable homes
Despite two interest rate cuts in 2024 and the possibility of more in 2025, many people are still hurting from the cost of living crisis, triggered by rising inflation in recent years.
It has pushed smaller, more affordable properties to the forefront.
Tiny homes or micro homes take that push to the extreme and have gained further traction as a way to help solve the housing crisis.
Urban redevelopment
Flipping older properties into spaces combining retail, dining and residential units is expected to grow in popularity in California in 2025.
Living in these spaces is particularly attractive to younger people who enjoy the convenience and vibe of having shopping and entertainment options at their doorstep.
Converting commercial spaces into residential units in high-density areas is another key trend expected to grow.
Multi-unit properties
Renovating units in the same complex is also expected to continue to present strong flipping opportunities.
The location and condition of the building as well as the difficulty of the redevelopment should always be carefully considered.
Get advice today
Property redevelopment is an extremely competitive business.
That’s why developers and flippers must move with the times and ensure they are meeting changes in demand in California in 2025.
Market analytics that pinpoint profitable neighborhoods and trends is just one tool that can be utilised to good effect.
Allowing buyers to view properties remotely with high-tech virtual reality tours saves time and reaches a wider audience.
And finding the right source of finance is also critical.
That’s why hard money is often the best solution.
Hard money offers speed, flexibility and risk mitigation for investors to prosper in a difficult economic environment.
And in California, the hard money lender with one of the longest and most enviable reputations is Equidy.
At Equidy, our founders have an intimate and personal history with property, covering all aspects of real estate and property development in California for more than 40 years.
We stand by our core belief that anything is possible and we try to prove it every single day.
Even in challenging economic times, we love rewarding entrepreneurship and always strive to help you crystallize your wealth creation dreams.
But we are not just about the money.
We work creatively with you every step of the way, providing our wealth of knowledge and support network as your project begins to take shape.
We enjoy long and established relationships with serious investors, sellers and real estate professionals while leveraging our reputation and trust and using clear communication to minimise the risk to all parties.
Contact Equidy today to book your free strategy call.
