About the Hot Los Angeles Rental Market
In the city of Los Angeles, California, the house value median has increased to $677,400 in 2018. Los Angeles home values are on a steep rise – a gain of 8.7 percent in the last year. And there is a prediction that they will increase a whopping 12.1 percent in the following year. It is very unlikely to happen, but if the rate of this 2 year period were to continue for 7 years, real estate prices would about double.
This is a ridiculously high increase making housing less and less affordable. It also makes it more financially difficult to convert from renting a dwelling to purchasing a home.
Getting in the real estate market now for many people is like the race track dogs who chase the mechanical lure they never catch. It smells so delicious, but they can’t put their mouth around it.
It takes an aggressive savings plan to get into the housing market. Desire, strong will, and hard work are key ingredients to make it happen.
$508 is the list cost median per square foot in Los Angeles. The metro area of Los Angeles-Long Beach-Anaheim has a lower list cost median per square foot of $433.
$799,999 is the presently listed cost median of houses in Los Angeles. $699,900 is the cost median of houses that have been sold.
Rent costs are exceedingly high in Los Angeles and the Los Angeles-Long Beach-Anaheim Metro area. $3,550 is the rent cost median in the city of Los Angeles. The metro area of Los Angeles-Long Beach-Anaheim has a lower rent cost median which is $3,200.
These high rent prices are leveling off now because they are out of the affordability range of many people. This can give some relief to renters.
The rate of foreclosures is an important economic factor when it comes to real estate. A high foreclosure rate yields a lower real estate value for any particular location.
For every 10,000 houses in Los Angeles, 1.0 houses go through foreclosure. The metro area of Los Angeles-Long Beach-Anaheim has a lower foreclosure rate of 0.9. 1.6 is the foreclosure rate of the United States.
When home owners experience the following condition, they could very well be on the way to foreclosure. And that condition is called mortgage delinquency. What is mortgage delinquency? It is the condition of a home owner not making good on one or more mortgage payments on their home.
The value of houses dropped more than 20 percent in the United States as a result of the recession of 2008. This recession had such a negative effect on the value of homes that many homeowners are still underwater regarding their home mortgages. Being underwater on a mortgage has the meaning of the homeowner having a bigger mortgage debt than the value of their house.
5.4 percent of homeowners in Los Angeles are experiencing being underwater regarding their mortgages. The metro area of Los Angeles-Long Beach-Anaheim has a higher percentage of owners of houses being underwater on their mortgages, which is 5.6 percent.
Moving onto commercial real estate. There is a shortage of senior housing in Los Angeles, and this shortage is compounded by the lack of senior housing being located near public transportation. So many seniors need to be able to enjoy the freedom of traveling to many different locations. Movement is life.
Well, one Los Angeles project which will help meet this need is a development for senior housing of 70 units located next to Crenshaw/Slauson Station in Park Mesa Heights. This station is currently under construction. It is called the Curve senior housing project.
This development for seniors is to be a 52,777 square foot five-story building. What a gift it will be for the occupants – There will be 40 units for low-income seniors, and 29 units for very-low-income seniors. The remaining unit will be for the manager who will receive the unit at market rate.
The architecture is very interesting. It’s in the Art Deco style of the 1930s and 1940s – similar to the buildings of Crenshaw Corridor of the past.
In the area of this development, gentrification is taking place and housing is less and less available for those who live in the neighborhood and want to stay. When they get to retirement age, they face a serious shortage of senior housing in the area.
California is in the top 5 markets for those who want to invest in senior housing. There are a huge number of baby boomers retiring, and there are big challenges like the huge land costs, and the huge labor cost. There are now 1.5 million seniors in Los Angeles. By 2030 the retirement population is estimated to double to 3.0 million. And these retirement communities need to be near public transportation.
This current project, the Curve senior housing project will help give quality of life to some seniors as well as affordable housing.
The annual median household income in the city of Los Angeles is $55,909.
If you want a greatsource for learning about multifamily complexes to purchase in LA, click on https://www.theapartmentconsultant.com/
Apartment Loan Store is proud to serve the entire Greater Los Angeles area:
- Calabasas
- Agoura Hills
- Westlake
- Thousand Oaks
- Oak Park
- Newbury Park
- Simi Valley
- Santa Clarita
- Valencia
- Orange County
- Moorpark
