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[ocspa-blog]

Where Are The Homeowners?

[ocspa-blog]

It’s hard to find reasonably priced housing in California, and even more so near the larger cities like San Francisco and Los Angeles. If you are lucky enough to live in one of these amazing cities, this isn’t news to you.

However, what is the deal behind increasing rates of rent over the past few years, and the sudden influx of people from all over the country moving into neighborhoods that were once dominated by locals who have been living in those communities for decades?

We asked around to some very prominent real estate investors who told us that rents are increasing because families who lived in neighborhoods like Echo Park and Inglewood, are selling their homes, or in some cases foreclosing on homes, and losing them to investors who then renovate the properties and sell them at a premium.

So then where are the families in Highland Park moving to? We aren’t sure but, in the past decade, real estate developers have build over a thousand housing tracts in cities like Moreno Valley, Perris, Hemet, Temecula and Apple Valley. The real estate developers can purchase large plots of land from individuals reaching retirement, or even from homeowners who have had their property go into probate and open for grabs after a certain period of time after their death. With this large amount of land, say 100 acres, a real estate developer can build tens of thousands of homes and sell them almost at wholesale value to people who can’t afford a home at a price point of $500,000 per a two bedroom in Los Angeles. In the newly built tract homes in the Inland Empire, homes retail for as low at $250,000 for a similar sized home.

Homeowners can live in luxury and comfort at a fraction of the cost that they would in larger cities. Homes in the newly developed areas also tend to have more land, allowing for upgrades like solar panel installation, pool installation, and hot tub delivery. Hiring contractors or specialized moving companies is important for certain odd moves.

We learned that most people who used to live in larger cities and raised their families there in the 80’s and 90’s have now reached retirement age, and have settled in smaller suburban cities on the outskirts of the major metropolitan area. There, they often feel safer, enjoy a lower cost of living, and access to more resources than were available in the inner city.

We also found out that more young people who live in areas live San Francisco’s Castro District typically move in from somewhere out of town. They usually have larger incomes, and are able to afford the higher rents, but still not able to afford homes in those cities.

[ocspa-blog]

Where Are The Homeowners?

It’s hard to find reasonably priced housing in California, and even more so near the larger cities like San Francisco and Los Angeles. If you are lucky enough to live in one of these amazing cities, this isn't news to you.

However, what is the deal behind increasing rates of rent over the past few years, and the sudden influx of people from all over the country moving into neighborhoods that were once dominated by locals who have been living in those communities for decades?

We asked around to some very prominent real estate investors who told us that rents are increasing because families who lived in neighborhoods like Echo Park and Inglewood, are selling their homes, or in some cases foreclosing on homes, and losing them to investors who then renovate the properties and sell them at a premium.

So then where are the families in Highland Park moving to? We aren't sure but, in the past decade, real estate developers have build over a thousand housing tracts in cities like Moreno Valley, Perris, Hemet, Temecula and Apple Valley. The real estate developers can purchase large plots of land from individuals reaching retirement, or even from homeowners who have had their property go into probate and open for grabs after a certain period of time after their death. With this large amount of land, say 100 acres, a real estate developer can build tens of thousands of homes and sell them almost at wholesale value to people who can't afford a home at a price point of $500,000 per a two bedroom in Los Angeles. In the newly built tract homes in the Inland Empire, homes retail for as low at $250,000 for a similar sized home.

Homeowners can live in luxury and comfort at a fraction of the cost that they would in larger cities. Homes in the newly developed areas also tend to have more land, allowing for upgrades like solar panel installation, pool installation, and hot tub delivery. Hiring contractors or specialized moving companies is important for certain odd moves.

We learned that most people who used to live in larger cities and raised their families there in the 80's and 90's have now reached retirement age, and have settled in smaller suburban cities on the outskirts of the major metropolitan area. There, they often feel safer, enjoy a lower cost of living, and access to more resources than were available in the inner city.

We also found out that more young people who live in areas live San Francisco's Castro District typically move in from somewhere out of town. They usually have larger incomes, and are able to afford the higher rents, but still not able to afford homes in those cities.