The changing face of Los Angeles - Gentrification areas

[Matt R.]

Ucla recently covered this topic. LA has 85 hoods and the population is predicted to grow 30% by 2030. The city is looking for solutions to help with the housing shortages including allowing granny flats in backyards. Where are you pioneering for gentrification today? 

[Joshua McGinnis]

Depending on how you look at the market, all of Los Angeles is gentrifying. 

It's estimated that we need 100K+ new units of housing just to meet current demand. Last year, Mayor Garcetti set a goal to build 100K new units by 2021 and I know from following him that he has been involved with ULI and local governments in identifying the causes behind the shortages as well implementing policy to enable/encourage more high-density development in the area.

I just returned from checking out some open houses in Compton, Inglewood, West Adams, and in the south side of Mid-City .

What I'm hearing from everyone I speak to is the same: there's no inventory so everything is flying off the shelves with multiple offers. Those who opt for conventional or FHA financing are usually the last to win and there are little signs of it slowing - even with looming interest rate hikes.

I've personally heard no one talk about water being an impediment to development.

That said, I'm long on the LA market. The addition of 4000+ jobs from Google in Playa Vista, the expansion of the tech sector from Santa Monica south into Playa / Marina, the revitalization of downtown / urban core, the weather, the economy, the attractions, the culture, expanding public transport, etc - are all factors in LAs continued growth.

Strategically, I would be BUILDING in the city as much as I can, anywhere in the LA metro area. Supply is the issue and so far as I can tell, there are few neighborhoods immune to the problem.

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The Los Angeles Urban Land Institute chapter is holding an event in August to discuss how to tackle the housing crisis in our city.

If you're interested in learning more about the state of LA's housing and what folks are trying to remedy the situation, you should attend: 
http://la.uli.org/event/partner-event-house-l-tack...

The mayor will be in attendance and speaking as well.