Simon Dimitrashchuk
Los Angeles Residential Real Estate Market

Los Angeles County has the largest population of any county in the U.S. and it has a larger population than 43 states. The county has 88 cities, of which the city of Los Angeles is the largest, followed by Long Beach, Glendale, and Santa Clarita. In addition, Los Angeles County has the largest county economy in the nation and would be the 21^st largest economy in the world if it were a country.  Los Angeles County is also the top exporter of any county in the U.S. (Robert A., Kimberly , Ferdinando, George & Dymphna , 2014).That’s not counting other counties that Los Angeles is bordering and contribute to the regional economy.

Los Angeles County entered 2014 with momentum from a county labor market that slowed during the second half of 2013. Almost all of the major private sector industries added jobs in 2013. In 2013 nonfarm jobs in Los Angeles County grew at a year over year rate of 1.6%, matching the growth rate nationally but slightly behind the state’s 1.7% growth rate. The Unemployment rate is expected to fall to 8.7% this year and drop to 7.8% in 2015
(Robert A., Kimberly , Ferdinando, George & Dymphna , 2014).

Major industries include Entertainment, International Trade, Professional Services and Technology. Entertainment includes motion pictures, sound recording sector and broadcasting. Motions pictures and sound sector employment rose to just over 118,000 jobs and broadcasting reached the 19,860 jobs. International Trade, which involves two-way trade and goes through San Pedro Bay port and Long Beach, accounted for $414.5 billion. Trading is expected to rise in future years. Professional Services and Technology is a big sector in employment, in Industry employment stood at 276,800 and growth is expected to continue up coming years 8,800 jobs this year and 9,000 jobs next year.  The technology sector employed last year 186,400 workers and is expecting 1.4% rise. (Robert A., Kimberly , Ferdinando, George & Dymphna , 2014)

Population eclipsed the 10 million mark in 2013 and will rise steadily. Personal income in Los Angeles County in 2013 was $451.1 billion and is expected to rise to $493 billion by 2015 (Robert A., Kimberly , Ferdinando, George & Dymphna , 2014). Los Angeles’ has about 3,857,786 people in housing market. Occupied housing units are 1,332,587 and apartments are 562,516 (Robert A., Kimberly , Ferdinando, George & Dymphna , 2014).

California Association of Realtors states that the media home price in LA County is $378,390, which makes it $1,820 monthly bill with taxes and fees. Family has to make at least $72,730 in order to be able to buy a house (Adrian, 2013).

Apartments see a rise in renters, median price to rent an apartment in Los Angeles is $1688. There were about 6,100 new units added last year and 9,000 more are planned for 2014 (Adrian, 2013).

With All these statistics and numbers we see a positive outlook for Los Angeles County. It seems that it’s a healthy environment to invest in. The area has good stable economy with great cash flow and billions of income. I would imagine that it’s best to invest into apartments as their rent going up and it’s a great cash flow investment.

Sources:

Smith, K. (2014, February 19). New jobs, recovering housing market restoring California economy. San Gabriel Valley Tribune. Retrieved from http://www.sgvtribune.com/business/20140219/new-jobs-recovering-housing-market-restoring-california-economy

Adrian , K. (2013, December 10). Los angeles has the highest percentage of renters in the us. Los Angeles Curbed. Retrieved from http://la.curbed.com/archives/2013/12/los_angeles_has_the_highest_percentage_of_renters_in_the_us_1.php

Adrian, K. (2013, November 18). La rents now higher than they were before the recession. Los Angeles Curbed. Retrieved from http://la.curbed.com/archives/2013/11/la_rents_now_higher_than_they_were_before_the_recession.php

Andrew , K. (2013, November 13). http://www.latimes.com/business/money/la-fi-mo-

los-angeles-county-rents-20131112,0,6431756.story

Robert A., K. P. D., Kimberly , M., Ferdinando, G., George, E., & Dymphna , M. (2014). 201 4 - 201 5 economic forecast and industry outlook california and southern california including the national and international setting. Los Angeles County, Retrieved from http://cdn.laedc.org/wp-content/uploads/2014/02/LAEDC-2014-15-February-Forecast-Report.pdf