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Pasadena Real Estate Market Trends And Forecasts 2020

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If someone mentions California real estate market, the first thing most people think of is Los Angeles or San Francisco. However, in this article, our focus will be on the Pasadena real estate market and investment opportunities. Pasadena has seen steady growth in both residential and commercial property values in the past few years.

Original Photo via Pixabay

Although, the commercial real estate is booming in Pasadena and attracting a lot foreign investors but for now we shall be discussing about the residential real estate market of Pasadena. Pasadena is most famous for the Rose Bowl and the associated parade.

This suburb of Los Angeles is a full-fledged city in its own right, and it is arguably a better real estate market for investors over Los Angeles. Pasadena sits 11 miles northeast of Los Angeles. However, Pasadena is a city in its own right. It is home to nearly 150,000 people.

That makes it the ninth largest city in the LA area and fortieth largest city in California. More importantly, Pasadena is part of one of the largest, fastest growing metro areas in the United States. Is Pasadena going to be one of the hottest real estate markets for investors in 2020? Let’s take a deep look at the latest Pasadena housing market trends to come to a conclusion.

Pasadena Real Estate Market Forecast 2020

The real estate data from Zillow shows that the median home value in Pasadena is $826,900. Pasadena home values have gone up 1.2% over the past year and their Pasadena real estate market prediction is that the prices will rise 0.2% within the next year. The median list price per square foot in Pasadena is $587, which is higher than the Los Angeles-Long Beach-Anaheim Metro average of $439.

The median price of homes currently listed in Pasadena is $899,000 while the median price of homes that sold is $826,800. The median rent price in Pasadena is $2,900, which is lower than the Los Angeles-Long Beach-Anaheim Metro median of $3,200.

Here is the Pasadena, CA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 0.2% till Aug 2020.

Pasadena Real Estate Market Forecast
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Pasadena Real Estate Market Trends

We shall discuss some of the most recent housing trends in the Pasadena area. Currently, Trulia has 409 resale and new homes for sale in Pasadena, CA including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sale price in Pasadena, CA is $839,500. The current Pasadena real estate price trends show that the homes are selling for about $603/sqft.

Pasadena Real Estate Market Trends
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In the past month, 130 homes have been sold in Pasadena, CA, as reported by In addition to houses in Pasadena, there were also 144 condos, 46 townhouses, and 33 multi-family units for sale in Pasadena last month.

As per their real estate data, the Pasadena housing market is somewhat competitive. Homes in Pasadena receive 1 offers on average and sell in around 44.5 days. The average sale price of a home in Pasadena was $903K last month, up 0.0% since last year.

The average sale price per square foot in Pasadena is $567, up 1.2% since last year. Homes typically receive 1 offer. Properties for sale in the Pasadena housing market sell for about 1% above list price and go pending in around 45 days. If it is a hot home, it can sell for about 5% above list price and go pending in around 26 days.

Pasadena  Housing Market Trends in Sep 2019: Source
Median List Price$975,000
Avg. Sale / List101.10%
Median List $/Sq Ft$571
Avg. Number of Offers8
Median Sale Price$903,000
Avg. Down Payment21.80%
Median Sale $/Sq Ft$567
Number of Homes Sold130

There are 494 homes for sale in Pasadena, CA on 39 of which were newly listed within the last week. The Pasadena home prices range from $35K to $40.3M.  Additionally, there are 291 Pasadena rental properties for sale, and their rent price ranges from $800 to $50K per month.

According to their statistics, in August 2019, the Pasadena housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Pasadena sellers have held good leverage in these negotiations. A seller would always prefer scenarios which can yield a ratio of 100% or higher.

Pasadena Housing Market Trends
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In August 2019, the median list price of homes in Pasadena, CA was $1.1M, trending up 9.8% year-over-year. The median listing price per square foot was $587. The median sale price was $902.5K.

On average, homes in Pasadena, CA sell after 56 days on the market. The trend for median days on market in Pasadena, CA has gone up since last month, and slightly down since last year.

Pasadena Median Days On Market
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The median list price in Pasadena, CA is $1,067,500 on The median list price in Pasadena went down 1% from September to October. Pasadena’s home resale inventories is 270, which decreased 4 percent since September 2019.

The median list price per square foot in Pasadena is $588. In September 2019 it was $587. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.

Pasadena Home Prices Trends
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Pasadena, CA Single Family Homes Statistics

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.

As per the real estate company called, the median house price in Pasadena, CA is just $789,515, which indicates that home prices in Pasadena are well above the national average for all cities and towns in the United States.

Single-family detached homes are the single most common housing type in Pasadena, accounting for 43.30% of the city’s housing units. One or two bedroom single-family detached homes are the most common housing units in Pasadena.

Other types of housing that are prevalent in Pasadena include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Pasadena has a mixture of owner-occupied and renter-occupied housing.

Currently, there are 160 single family homes for sale in Pasadena, CA on Zillow. Additionally, there are 72 single family homes for rent in Pasadena, CA. Under potential listings, there are about 3 Foreclosed and 38 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Pasadena, CA Foreclosures And Bank Owned Homes Statistics

As per the Pasadena foreclosure data by Zillow, in Pasadena 0.0 homes are foreclosed (per 10,000). This is lower than the Los Angeles-Long Beach-Anaheim Metro value of 0.4 and also lower than the national value of 1.2.

The percent of delinquent mortgages in Pasadena is 0.5%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Pasadena homeowners underwater on their mortgage is 3.6%, which is lower than Los Angeles-Long Beach-Anaheim Metro at 4.1%.

Number of Foreclosures in Pasadena70 (RealtyTrac)
Homes for Sale in Pasadena225 
Recently Sold 1,128
Median List Price $884,000 (1% drop vs Jul 2018)

There are currently 70 properties in Pasadena, CA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 225. In August 2019, the number of properties that received a foreclosure filing in Pasadena, CA was 20% higher than the previous month and 38% higher than the same time last year.

Best Neighborhoods to Invest in Pasadena Rental Real Estate

If you are looking to invest in the Pasadena rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.

Desirability brings demand. Demand would raise the price of your Pasadena rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Pasadena real estate, you need to find places where the expected property appreciation forecast is positive.

The running costs for owning and managing an Pasadena rental property should be low. The neighborhoods in Pasadena must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

There are 13 elementary schools, 13 middle schools, 12 high schools and 53 private & charter schools in Pasadena, CA. There are 43 neighborhoods in Pasadena.

Some of the best neighborhoods in or around Pasadena, California are Downtown Pasadena, San Marino, Annandale, Northeast Pasadena, The Oaks, Normandie Heights, Janes Village, North Arroyo, Altadena, La Viña, Linda Vista, Brigden Ranch, and Northwest Pasadena.

Monk Hill has a median listing price of $2.6M, making it the most expensive neighborhood. Catalina Villas is the most affordable neighborhood in Pasadena, with a median listing price of $519.9K.

Here are the best neighborhoods to invest in Pasadena rental real estate because they have the highest appreciation rates (List by


 City Center


 N Summit Ave / E Washington Blvd


 N Arroyo Blvd / W Howard St


 Lincoln Ave / W Washington Blvd


 N Orange Grove Blvd / N Fair Oaks Ave


 Fuller Theological Seminary in California / E Walnut St


 E Orange Grove Blvd / N Allen Ave


 N Lake Ave / Atchison St


 N Los Robles Ave / E Penn St


 S Rosemead Blvd / E California Blvd

Is Pasadena a Good Place For Real Estate Investing?

Now that you know where Pasadena is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Pasadena rental real estate?

Many real estate investors have asked themselves if buying a rental property in Pasadena is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Pasadena housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Pasadena but we have collected ten evidence based positive things for those who are keen to invest in the Pasadena rental properties.

Investing in Pasadena rental properties will fetch you good returns in the long term as the home prices in Pasadena have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Pasadena real estate market which can help investors who are keen to buy an investment property in this city.

We’ll focus on real reasons to invest in the Pasadena real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.

1. The Massive Student Market For Pasadena Rentals

The Pasadena housing market is an excellent choice for those that want to cater to the student market. The city is home to the Art Center College of Design, Caltech, the Fuller Theological Seminary and Pasadena City College.

And unlike most college towns, the value of Pasadena real estate investment properties won’t rise and fall with the fortunes of the nearby college, because the Pasadena housing market is so strong in its own right.

2. The High Tech Job Market

If someone talks about a high tech job market, most people will think about Silicon Valley. However, Pasadena fits the bill, too, thanks to the Jet Propulsion Laboratory that’s nearby. And JPL is surrounded by many high-tech suppliers.

This leads to many good paying jobs in the area. And the Pasadena real estate market is a little cheaper than the area immediately around JPL, driving many of these people to Pasadena and inflating property values.

3. The Stronger Job Market

The unemployment rate in Pasadena is half a point to one point below the L.A. unemployment rate. However, people move to the Pasadena housing market to be close to the high paying jobs in the area.

They’re attracted by a job market where the average household income is almost a third higher than in neighboring LA. Pasadena is also expected to have slightly faster job growth than LA on the whole.

4. The Relatively Good Quality of Life

Quality of life rarely leads to someone to move across the country. However, quality of life will result people moving from Los Angeles to the Pasadena housing market. For example, Pasadena schools receive a B from Niche and an overall B+ score for families.

For comparison, L.A. schools receive a C and a B- for families. The only area where they are tied is in overall crime rates.

5. The High Potential ROI

The median home price in Los Angeles is just over 550K. The average home in the Pasadena real estate market is worth roughly 700K. This means the Pasadena housing market won’t win points for affordability. However, it may win in terms of overall ROI.

The median rent in the Pasadena real estate market is 1500 dollars a month, though a single family home will rent for much more. And those who want to rent a single family home face more competition since roughly half of homes are owned, not rented.

In contrast, the average LA rent is 1300 dollars. Furthermore, the greater abundance of apartments and small bungalows for rent results in lower overall rents for LA properties.

6. The Rate at Which Pasadena Rental Price is Rising

Rents for single bedroom apartments have risen by just over 50 percent over the past six years. Rental rates for larger apartments and homes have been rising at a similar rate.

More importantly, Pasadena doesn’t have city level rent control laws. In Los Angeles, many buildings do have to obey rent control rules that limit rent increases to 5 percent per year.

7. Real Estate Owner Friendly Climate

The entire state of California is hostile to landlords. However, the degree varies from city to city. For example, the Pasadena housing market is not as hostile to property owners.

The city was slower to adopt extreme tenant protection measures such as mandates to provide relocation benefits. Rule changes passed in 2019 mean you don’t have to pay relocation unless they were in two standing for two years before you sold a building.

Unlike a number of other cities, you can evict someone with 30 to 60 days’ notice without an officially allowed reason. One of the glaring discrepancies is the gap between demand for short term rentals and supply.

The city does not let you buy a Pasadena real estate investment property and rent it out for the Rose Bowl. Short term rentals are restricted to homes lived in at least nine months out of the year by the owner.

8. The Opportunity for Bargains

There are going to be property owners who want to sell multi-properties to end their relationship with troubled tenants. Others may want to sell before rent control laws proposed by the city tenant union pass.

This means you could find bargains in the Pasadena real estate market. Know that the rent control laws would only apply to apartments built before 1995, so there’s no risk of rent control hitting you if you buy a new, luxury triplex to rent out.

9. The Likely Future Lull in Pasadena Home Prices

We’ve mentioned the high property prices in the Pasadena real estate market. UCLA predicts a future lull in housing prices. UCLA expects a drop in housing starts, while there may or may not be a drop in existing home sales.

This means that there will likely be a spike in deal-making opportunities in 2020 whether or not there is a spate of property sales due to legislative changes.

At a minimum, housing prices in the Pasadena real estate market should be flat for 2020 before they start rising again in 2021.

10. The Impact of Geography

Pasadena, California contains the Jet Propulsion Laboratory though not the Mount Wilson Observatory. Several sections of the city border the Angeles National Forest.

Nor can the core of the city spread north toward the national park, because that land is already occupied by Altadena. This area is essentially 100 percent built-out.

This means the Pasadena real estate market will see prices go up, since you have to tear down or redevelop a site instead of building what is most profitable on an open piece of land.

Pasadena Real Estate Investment

Maybe you have done a bit of real estate investing in Pasadena, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Pasadena real estate investment opportunity would be a key to your success. If you invest wisely in Pasadena rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Pasadena rental properties are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with. However, it is not easy to get that kind of a deal in Pasadena as it is among the most expensive real estate markets in the U.S.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Pasadena you should also focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Pasadena, CA. A Pasadena real estate investment may cost more than the national or even LA regional average, but it has a number of points in its favor.

Property values will likely remain strong, since the Pasadena area is seen as better than LA. It is less hostile to landlords and has long-term trends that guarantee strong future appreciation.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Pasadena real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2020

Another fairly good market to choose for real estate investment is Irvine, CA. The Irvine housing market seems expensive, but that is in line with local real estate trends. The area remains stable and strong, though recent legislative trends along with ongoing regulations make this a great time to buy.

The Irvine real estate market hasn’t declined in value. However, property valuations are expected to rise one and two percent in 2020. This means that some properties are having their prices cut as people try to sell and demand levels off for the foreseeable future due to flattening demand.

Rental rates in the Irvine area are expected to go up 4 percent in 2020 because so many do want to live here but can’t afford to buy unless property prices drop significantly.

The other hot and affordable market to invest in real estate is Akron, OH. The Akron real estate market has hit its low and is starting to appreciate. This is a safer choice than buying in depressed areas that may never recover. It also presents a great opportunity for real estate investors.

The cost of living in Akron is considerably lower than many other urban markets. This is reflected in the price of housing. The Akron housing market is incredibly affordable for investors. The median home value is around eighty thousand dollars, nearly a third the price of the average home in the U.S. In Akron itself, the median home price is less than sixty thousand dollars.

Hudson is a notable exception. The average price of homes in that city hover around 300,000 dollars. This is the most expensive area between Akron and Cleveland. Yet the average home price here is less than 150 percent of the median home price in the country. In short, even expensive homes in the Akron real estate market are affordable by national standards.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.


About Pasadena,_California

Stronger job market

Quality of life

Higher potential ROI

Rent increases

Property owner friendly

Opportunity for bargains

Likely future lull

Market Prices, Trends & Forecasts                                                                                                        ­­­­­­dena

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