Real Estate Investment Market Extremes in South Bay, Los Angeles
If you own an income property in South Bay or are thinking of either putting yours on the market or buying a new investment property, you will quickly learn of the extremes that exist when it comes to property values. South Bay cities and neighborhoods within those cities are all about contrast. Many parts of South Bay are highly sought-after by the rich and famous and are extremely expensive to live in, while others (San Pedro, Lennox, and Harbor City, for example) are typically working class and not as pretty.
Know Your South Bay Statistics
The South Bay area is made up of 19 neighborhoods with a population of 735,964 (2000). Over 50% of South Bay area residents are renters. Hawthorne has the highest percentage of renters at 74.3%, while the affluent Palos Verdes Rolling Hills Estates area has the lowest at just 9%.
When you are considering renting your home, condo, apartment or investing in a new property, you must understand your area, the job market, competition, and comparables. In order to understand South Bay Real estate investment it is necessary to break it up and analyze each market in order to determine your potential for growth and your return on investment both in the short and the long-term (when you eventually sell your property).
Multi-Million Dollar South Bay Homes
A simple 5 minute drive through certain sections of South Bay is enough to gain a solid understanding about just how much money is in the area. There are a great deal of multi-million dollar homes in Manhattan Beach, Hermosa Beach, and Redondo Beach. The beach areas are hugely desirable for families looking to live outside of LA and commute, and those who love the beach lifestyle. The beach towns were minimally affected by the housing market crash and have maintained their value. The ‘McMansions’ of Palos Verdes on the other hand have seen dramatic drops in appraised value and many of those properties are now bank owned or available to rent. Rents in the beach cities have maintained and demand is still high. Overall, people are continuing to rent in the area because of difficulties securing financing and loss of confidence in the marketplace.
The Other End of the Real Estate Spectrum – San Pedro, Harbor City,
Areas such as San Pedro and Harbor City are great examples of the other side of the spectrum, where real estate can typically be purchased inexpensively. While many people believe these properties to be undesirable, the fact of the matter is that the future holds a great deal of promise for real estate in these areas. As many people are becoming more and more interested in rebuilding properties that have seen better days, desirability is on the rise. As a result, those who are looking for the perfect investment may find the low extreme worthwhile.
Trivia: Fun Facts About South Bay, Los Angeles
Donald Trump’s Mediterranean style Palos Verdes mansion sold for 7.4 million in Oct of 2011.