The Economic State of Los Angeles is Good!
I think everyone wonders what the state of our economy is both locally and nationally. I don’t claim to have a crystal ball on the economy, but I do read a lot, and the stories seem to be connected, and point to the same conclusion - The economic state of Los Angeles is good!
The L. A. Times reported that, as of May 4, 2017, the population in the City of Los Angeles grew to 4,041,707. They call LA the dominate population center in California, growing more than double since 1950 when the population was at 1.9 million.
The Friday October 20, 2017 edition of the L. A. Times reported that unemployment claims have decreased to a 44 year low. They reported that the unemployment rate hit 4.2%, which is a 16 year low. Sounds like good news to me.
In October 2017, the L. A. Times reported that home prices hit highs not seen since 2007. They added that, in some corners, prices have already risen past their peaks. In L. A. County the median price is now $575,000. In a recent study by the USC Lusk Center for Real Estate, they reported that apartment rents are up and would continue to get even pricier over the next 2 years with the average rent being $2,304.
To some investors, that might seem like bad news because prices are so high. So, I took a look at New York City for a comparison.
In a story by CNBC they reported that the average rent in New York City is $3,680. I found a story by Mahita Gajanan for Fortune reporting that, in December of 2016, the average price of a Co-Op or Condo in New York City was over $2,000,000. He added that this was an increase of 91% since 2006!
My take away from that is that we have a long way to go to even get close to the pricing in New York City. If you look at the powerful economic engine New York City has, I think we can assume high or increasing prices don’t necessarily equal a troubled economy, but actually indicate a growing one. Los Angeles has a lot of room to grow.
Do the math on where we are in the LA area and where New York City is, and things look great for us out here. If you are thinking that all the pricey property is in New York, here are a few examples. In the October L. A. Times Hot Property section, I found 3 lots for sale if you want more space close to downtown. There is a nice lot in Bel Air with plans for $16,900,000. Want a better view? There was a 2+ acre site with plans for $45,000,000. Not big enough? Then we have a 4.6 acre site also with a view for $60,000,000 – sorry no plans.
In conclusion, we haven’t gone up 91% since 2006 like New York City, but we have rebounded past 2006 peak prices, and we are still growing. You don't need to invest in Bel Air to get rich. There's plenty of room for growth in the areas we invest in, and we can help you grow rich by investing there. Give us a call or send us an email, and we'll show you how, even with a small initial investment, you can start to work toward your early retirment.