San Luis Obispo, CA
San Luis Obispo merits investigation only for buyers who can accept a low current income return and weak employment alongside rising rents.
Why this market scores where it does
Written from the figures on this page and then checked against them: every number below had to appear in the source record or recompute from two that did, or the text was rewritten.
San Luis Obispo merits investigation only for buyers who can accept a low current income return and weak employment alongside rising rents. At a $911,434 median value and 3.73% gross yield, the entry cost leaves little rental cushion. Buyers dependent on near-term cash flow or job-supported tenant demand should avoid it; CES employment fell 1.31% year over year.
The opportunity is measurable rent growth: median asking rent rose 1.43% to $2,835 while home values also increased. The risk is affordability: rent absorbs 34.91% of median income and the price-to-income ratio is 9.35. That combination limits room for aggressive pricing even though rents are rising.
Supply conditions are mixed: inventory was 3.1 months, and 29.27% of listings had price drops. Net migration was -115 households, although incoming movers had average income $26,858 above outgoing movers. Inland flood is the dominant hazard, with a 0.2744% annual climate loss ratio, adding property-specific exposure to an already thin yield.
Frequently Asked Investor Questions
What do household migration and mover incomes show?
What do listing conditions show buyers?
What climate hazard is most relevant?
Investor Quick Takeaways
Computed from the current Zillow rent and home-value medians.
Zillow ZORI rent growth trend over trailing 12 months.
Originated investment purchase share (CFPB HMDA).
Annualized loss ratio evaluated for flood & hurricane risk.
Test the market, then test the deal
Keep San Luis Obispo as the starting point or move into a more specific property and rent check.
The current market in eight signals
Fast-moving Redfin conditions sit beside the slower fundamentals so a buyer can separate today's negotiating climate from the long-run investment case.
Rents versus prices, indexed to 2019
Both series start at 100. The gap between the lines is the investment case, and which line is closing it tells you what kind of market this is.
What each component measures
Weights are published, not hidden, and the arithmetic is shown. Five components, each measured as a national percentile across all tracked metros.
| Signal | Score | Weight | Points |
|---|---|---|---|
| Job growth | 8 | 30% | 2.40 |
| Rent trend | 23 | 25% | 5.75 |
| Affordability | 5 | 15% | 0.75 |
| Supply pressure | 51 | 15% | 7.65 |
| Climate risk | 12 | 15% | 1.80 |
| Published score | 18 | ||
CES employment fell 1.31% year over year -> tenant demand lacks support from current job growth.
Median asking rent was $2,835 and rose 1.43% year over year, but gross yield was 3.73% -> positive rent growth does not provide a large income cushion.
Rent consumed 34.91% of median income and the price-to-income ratio was 9.35 -> affordability constrains tenant budgets and buyer access.
Permitting totaled 1,000, equal to 3.55 per 1,000 residents, while inventory was 3.1 months -> buyers face current listing supply alongside ongoing construction approvals.
Inland flood is the dominant hazard and the annual climate loss ratio was 0.2744% of building value -> property-level water exposure requires attention.
What this market costs and what it earns
Every derived ratio below recomputes from the same source record used by the article and score.
What is being built, and for whom
Permits are the 12-to-24 month early warning. The total matters less than the mix: apartments compete with a rental the day they open.
Demand, and the competition for it
Tax filings say how many households moved and what they earn; mortgage disclosures say how many local purchases went to someone who will not live there. Moves between counties inside this metro are netted out of both flow figures.
What would make this a bad buy
Generated from the same figures with the instruction to argue against the score, and published unedited. A page that only agrees with itself is an advertisement.
Three ways the case breaks
- CES employment fell 1.31% and net migration was -115 households, leaving both current demand signals negative.
- The $911,434 median value pairs with a 3.73% gross yield and a 9.35 price-to-income ratio, limiting income and affordability support.
- Inland flood is the dominant hazard, and the annual climate loss ratio is 0.2744% of building value.
Move from the metro average to local evidence
County pages carry tax, migration, listing and hazard records. City pages appear only where direct city price, rent and Census evidence pass the publication gate.
No city in this metro has passed the current city evidence gate.
Metros that behave like San Luis Obispo
Nearest neighbours on price level, income, yield and job growth — not on geography. Every market page gets a different peer set, which is the point.
| Metro | Score | Price | Rent | Yield | Job Growth |
|---|---|---|---|---|---|
| San Luis Obispo, CA (Target) | 18 | $911k | $2,835 | 3.7% | ▼ 1.3% |
| Boulder, CO | 24 | $728k | $2,297 | 3.8% | ▼ 0.9% |
| Key West, FL | 19 | $966k | $3,320 | 4.1% | ▼ 1.4% |
| Santa Maria, CA | 43 | $998k | $3,294 | 4.0% | ▲ 0.3% |
| Oxnard, CA | 26 | $884k | $2,957 | 4.0% | ▼ 0.3% |
Where every figure came from
“Checked nightly” means every source is re-pulled and re-verified each night. It does not mean every source moves nightly — the release column tells you how fresh each number can possibly be.
| Dataset Source | Method | Release Period | Pulled Date |
|---|---|---|---|
| Census ACS 5-year — household income | direct | ACS 2024 5-year | 2026-07-26 |
| Census ACS 5-year — population | direct | ACS 2024 5-year | 2026-07-26 |
| BLS CES — payroll employment | direct | CES SM current | 2026-07-26 |
| BLS LAUS — resident employment | direct | LAUS current | 2026-07-26 |
| BLS QCEW — county employment and wages | direct | annual county employment and wages 2025 vs 2024 | 2026-07-31 |
| OMB/BLS delineation — metro geography | direct | OMB July 2023 delineation | 2026-07-30 |
| Census Building Permits Survey — permitted units | direct | BPS through 2026 | 2026-07-26 |
| Census ACS 5-year — city population, households and housing | direct | ACS 2024 5-year | 2026-07-29 |
| Census ACS 5-year — county housing value, tenure and stock | direct | ACS 2024 5-year | 2026-07-30 |
| Census ACS 5-year — cities and communities | direct | ACS 2024 5-year | 2026-07-30 |
| FEMA National Risk Index — hazard loss ratios | modelled | NRI counties (FEMA ArcGIS) | 2026-07-26 |
| FHFA House Price Index — annual county appreciation | direct | annual county HPI 2025 | 2026-07-28 |
| HMDA / CFPB — purchases by occupancy type | direct | HMDA 2024 purchase originations | 2026-07-26 |
| HUD Fair Market Rents — Section 8 standard | direct | FY2026 FMR | 2026-07-26 |
| HUD USPS crosswalk and Small Area FMRs — ZIP rent fallback | direct | ZIP-CBSA 2025Q4 + SAFMR FY2026 | 2026-07-26 |
| IRS SOI — county migration and mover income | direct | SOI migration 2022-2023 | 2026-07-26 |
| Freddie Mac PMMS — mortgage rates | direct | week of 2026-07-23 | 2026-07-27 |
| Census ACS 5-year — effective property tax | direct | ACS 2024 5-year | 2026-07-27 |
| Realtor.com Economic Research — county listing inventory | direct | county inventory 2026-06 | 2026-07-28 |
| Redfin Data Center — inventory, days on market, and price cuts | direct | metro tracker through 2026-05-01 | 2026-07-26 |
| Zillow ZHVI and ZORI — county values and rents | direct | county ZHVI/ZORI 2026-06 | 2026-07-26 |
| Zillow ZHVI — metro home values | direct | Metro_zhvi_uc_sfrcondo_tier_0.33_0.67_sm_sa_month.csv | 2026-07-26 |
| Zillow ZHVI — city home values | direct | zillow_zhvi_city.csv | 2026-07-29 |
| Zillow ZORI — metro market rents | direct | Metro_zori_uc_sfrcondomfr_sm_sa_month.csv | 2026-07-26 |
| Zillow ZORI — city market rents | direct | zillow_zori_city.csv | 2026-07-29 |
| Zillow ZORI — ZIP market rents | direct | ZORI ZIP 2026-06 | 2026-07-26 |