Los Angeles is one of the most expensive cities to live in the United States. This is partly due to high taxes imposed on residents and businesses. The city has a 9.5% sales tax, which is among the highest in the country.
Los Angeleshas experienced low vacancy rates over the past decade, which continues to drive rising housing costs.
Prospective investors in Los Angeles real estate are wealthy people from the United States and other countries around the world, such as China. In case you're out of the loop, Proposition 13 was a voting initiative that limited the amount local governments receive from property taxes. In theory, it was supposed to help homeowners pay incredibly high property taxes, but it has actually hurt the housing market. This includes labor and raw materials, which are vital aspects of any construction project.
Labor is a staggering 20% higher in California than in other states, which is only increasing as social unrest demands higher wages in the wake of the COVID-19 pandemic. It's true that prices in Southern California are extremely high compared to the Midwest, but I think you've hit the nail on why it's higher here. Demand, good weather and less land. The other thing I would like to point out is the opportunity.
There are many more high-paying jobs and big companies here than in the Midwest, and that opportunity leads people to live here. Those who do, can afford a lot and, therefore, prices go up. The main reason for people's attraction to Los Angeles real estate investment is its strong economy and high growth rate in terms of employment. Los Angeles real estate and real estate marketing can be the perfect investment that will bring you many thousands of dollars in profits.
I should also point out that he lived in his Los Angeles home for more than 40 years, raised his six children there, and it still sold for almost 600% more than what he paid. Not only does the average Los Angeles resident enjoy that sunny, 70°F lifestyle, but they also have access to all other types of climates without leaving the state. As a Los Angeles financial planner, many of my clients have owned homes, some since before my parents were born. Dick Platkin is a former Los Angeles urban planner reporting on local planning issues for CityWatchLA.
Nearly 60 percent of Los Angeles businesses in a recent University of Southern California survey said the region's high cost of living was affecting employee retention. Los Angeles enjoys an average of 284 days of sunshine per year and an average temperature of 63.7 degrees Fahrenheit. The more money you have to spend on a home in Los Angeles, the more options you have to buy, with less competition. For these reasons, every new home built in the Los Angeles area must meet strict earthquake building regulations.
But, unless someone discovers some hidden piece of land on which tens of thousands of homes can be magically built (quickly), there is little reason to expect a slump in the Los Angeles housing market. The result is that Los Angeles hosts thousands of people who earn more than a million dollars. When he sold his home in the greater Los Angeles area and moved to a new retirement home, it was during the housing recession of the 90s in SoCal. The only other thing that could really cause a crash in the Los Angeles housing market would be a wave of coronavirus-related foreclosures.
While Los Angeles has a robust mass transit system known as the Metro, only about 7% of the population takes advantage of buses, trains and light rail. .