Los Angeles Housing Problems, Costs and Solutions…
I have been meaning to write about this “Subject”, for a while, but for some reason time always managed to get in the way. Los Angles has a huge shortage of homes in relation to people living and who are in the process of relocating or are considering relocating to Los Angeles. This of course translates to very expensive rental and purchase prices for living in Los Angeles. The short answer to the problem is ‘simple economics’: Supply & Demand!
As you look closer you can see, this problem is multifaceted: 1. One issue is that the Building Restrictions by the Los Angeles Building Department make it hard for developers to build new homes. This in turn translates to an extremely long time periods to get approvals to build; 2. Then in addition, the existing home owners are not helping this shortage, due to the fact that, there is a huge NIMBY-ism mentality. NIMBY (Not In My Back Yard), most home owners do not want anyone building in their back yard or next to them, if there are any vacant land left or a home that has outlived its economic usefulness. 3. Then to boot the cost of construction is quite expensive. It is not unusual to plan for $300-$700 per square foot to build. As most of you know as much planning you do there will be surprises, which translate to unplanned additional expenses; 4. Politicians are too busy to enrich their own pockets rather than solve the problems. (Ironically you can notice in what projects they help massage through the Building Approval Process or should I say fast track that should be reviewed)
To go a step further there is another factor to be considered, Los Angeles is a magnet for many who want to live in our market place. People from all over the United States as well as the Globe want to move here because they see opportunities to succeed. I am not even considering the climate which happens to be a plus.
Los Angeles ranks in the top ten best U.S. cities, where job seekers can find opportunities for employment. Los Angeles has been and remains to be one of the nation’s biggest destinations for job seekers. Anyone who dreams of becoming a success in the entertainment industry will look to Los Angeles as their first choice. Just to substantiate my point, in LA if you have a conversation with waiter or waitress before you can even ask, they will tell you that this is their second job and then if you ask what their primary job is, they will tell you that they are “actors”.
Now keep in mind Los Angeles is the second largest city after New York City in the country, based on population. There are almost four million people spread out, over a 470+/- sq. miles of living space in LA. Now with that said you can imagine that the second largest employer after the Entertainment Industry would be the Police Department, followed by the Health care providers.
Then to boot, due to the fact, that Northern California aka Silicon Valley became too price, Los Angeles reaped the benefit and had a huge migration of the Tech Industry and the Tech Startups. They felt that it would be a lot more cost effective to relocate to Los Angeles. Interestingly this was about the time the Real Estate Market tanked. Hence you can imagine how expensive Real Estate was in Northern California. Interestingly, now we call a section of Los Angeles as Silicon Beach.
So, you might as what is the solution? Interestingly the answer is quite simple. The building restrictions need to be lifted so it should not take 2-3 years for a new home to be approved by the Building Department. Increase the size of the work force that makes the approval process for all the builders. Most importantly use common sense when approving larger projects to make Los Angeles aka Southern California a better place to live. I have included a few illustrations that might be a head scratcher about the common-sense part of approvals. It would be worthy of a different post. Something to the headline: Who approved this? Or what were they thinking??
Now with that said if you are looking for a Relocation Realtor who understands your dilemma please reach out to me directly. If you are a developer and looking for land to build I am a Land Specialist in the Greater Los Angeles area.
If you are looking for a focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly!
If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or firstname.lastname@example.org or visit one of my websites at http://www.endrebarath.com. I contribute a portion of my commission to local animal rescue organizations.