Palmdale/lancaster CA during downturn

[Andrew Yip]

Hi there,

Just wondering if anyone has had any experience with rental properties in Palmdale or lancaster area during downturn /recession.

What happened to your current tenants?  how's the rental situation during that time?  and how hard was it hit during the downturn?

I heard that properties went down to even below 100k.

Sorry to ask these questions, but I invested quite heavily in the area and I need to prepare for the worst. Thank you

[Nick Hedberg]

Hi Andrew Yip

These areas were hit hard compared to LA during the last downturn. Many people purchase in Palmdale/Lancaster because of the low cost of entry and decent rental return rates. The downside is these areas don’t have large economic engines and aren’t as resilient as Los Angeles.

I talked to a landlord and agent who has 15+ properties in the area and he said it can be tough to find good tenants here. Housing prices fell significantly during the last downturn and many of his tenants lost their jobs and stopped paying rent. Make sure you have plenty of reserves and you have great tenants.