Why Real Estate Is a Safer Bet Than Stocks
When the stock market becomes unpredictable, investors often look for more stable assets. At LBC Mortgage, we believe California real estate is one of the strongest investment options during times of market uncertainty. While stocks fluctuate daily based on global events, real estate in California offers long-term value, income potential, and protection from short-term financial shocks.
Tangible assets offer predictability
Stock investments are exposed to economic news, interest rate hikes, and corporate performance. In contrast, real estate provides tangible value backed by land and property. You can live in it, rent it, or improve it. Real estate doesn’t vanish in a crash — it holds intrinsic value.
Less volatility, more stability
Historically, real estate prices move more slowly than stock prices. When the market dips, home values may soften, but they rarely plummet overnight. That makes real estate more attractive for risk-averse investors. During the recent market instability in 2025, property values in California remained relatively resilient.
As of November 2025, the average home value in California is approximately $761,003, down just 2.1% year-over-year, despite global market pressures. Compare that to stock indexes that have seen swings of 10% or more in the same period.
Why California Real Estate Stands Out
Strong economic backbone
California is the world’s fifth-largest economy, home to tech giants, entertainment hubs, global trade, and agricultural production. The state’s economic diversity creates consistent housing demand across multiple sectors.
Even during economic slowdowns, California’s workforce continues to grow. With nearly 40 million residents, the need for housing remains constant.
Persistent housing shortage
California faces a long-standing housing shortage. This drives property values up and creates strong rental markets. According to state reports, there’s a shortfall of over 1.3 million affordable housing units for low- and very-low-income households.
Because of this shortage, owning property in California can deliver strong appreciation and low vacancy risk. Even when buyers pause, renters remain — and investors benefit.
High rental demand
The rental market in California continues to show strength. As of late 2025, renters must earn 2.8 times the state minimum wage to afford average rents. That makes renting the only viable option for many Californians, especially in cities like Los Angeles, San Jose, and San Diego.
Rental vacancy rates also reflect this demand. In Southern California, Q3 2025 figures show vacancy rates as low as 3.6% in Orange County, while the statewide average is about 4.8%, offering excellent opportunities for consistent income.
Investing During Volatile Markets: What to Focus On
At LBC Mortgage, we help investors make smart choices even during financial uncertainty. The key is to invest strategically.
Prioritize cash flow over quick appreciation
In volatile markets, stable income is more important than speculative growth. Look for properties that generate positive monthly cash flow after all expenses. This approach ensures you’re not dependent on selling the property to profit.
Choose the right location
Not all parts of California offer the same returns. While San Francisco and Los Angeles have high price tags, emerging markets like Fresno, Riverside, and parts of Sacramento offer better cash flow potential. These areas benefit from population growth, job expansion, and more affordable entry points.
Our team at LBC Mortgage helps you evaluate markets based on your goals — whether it’s long-term appreciation, rental income, or a balance of both.
Lock in favorable financing
During stock market volatility, interest rates can fluctuate. We work with dozens of lenders to help you lock in the best available rate and mortgage terms that support your investment.
Fixed-rate mortgages are especially valuable now, giving you predictable payments in an unpredictable economy. We also assist with DSCR loans and non-QM solutions if you’re self-employed or investing through an LLC.
Plan for the long term
Real estate is a long-term asset. Expecting short-term gains in a volatile climate is risky. But holding property for 5–10 years or more allows you to ride out market cycles and benefit from compounding appreciation and rental income.
Real Risks — and How to Manage Them
No investment is without risk, including real estate. However, with the right team and strategy, these risks can be managed.
High entry prices
California property prices are higher than the national average. In November 2025, the median single-family home price is about $710,000. That means higher down payments and financing requirements. We guide clients through pre-approval, budgeting, and mortgage options that fit their financial profile.
Regulations and rent control
Some cities have strict rent control laws, which may limit how much income your property can generate. That’s why it’s crucial to choose locations with favorable regulations. At LBC Mortgage, we help you understand local laws and build a plan that supports your returns.
Natural disaster risks
California is prone to wildfires, earthquakes, and floods. These risks should be factored into your insurance and property maintenance plans. We can refer you to insurance experts and lenders who understand these unique local factors.
Why LBC Mortgage Is the Best Choice for California Real Estate Investors
We specialize in helping investors succeed in California — even during turbulent markets. Our deep knowledge of local markets and access to dozens of lenders allows us to create mortgage solutions that competitors simply can’t match.
We offer expert guidance on where and what to invest in, custom financing solutions for rental properties, vacation homes, and multi-family units, and access to competitive rates and flexible loan options. Our streamlined process keeps your transaction moving with less stress and more certainty.
Our goal is to help you build wealth through real estate — with confidence, clarity, and expert support.
Build Wealth with Stability
When the stock market is unpredictable, California real estate offers an opportunity to shift your strategy toward something more stable and tangible. With high rental demand, a limited housing supply, and long-term appreciation potential, California remains one of the best places in the country to invest.
At LBC Mortgage, we’re ready to help you take the next step. Whether you’re buying your first investment property or expanding your portfolio, we’ll help you find the right mortgage, the right location, and the right strategy.
