THE DIFFERENCES BETWEEN OWNERS AND RENTERS

October 15, 2014 on 4:40 pm | In Buyers, Charts + Statistics, Curious, Experts Say, Fascinating Information, Market Snapshot, Trends, Uncategorized, WOW | No Comments

by Jodi Summers

Fascinating facts and boring charts on owners and renters, according to the 2012 American Community Survey:

WHO OWNS

The typical owner-occupied household is headed by an individual between 45 to 54 years of age.  The median household income in 2012 was $65,514. The average household size was 2.7 occupants with the most common household type being married.

WHO RENTS

The typical renter-occupied household is headed by an individual between 25 to 34 years.  The median household income in 2012 was $31,888. The average household size was 2.53 occupants with the most common household type being single.

 

AGE

Nearly 17 million or 22.7% percent of all owners are between 45 to 54 years.  The largest share of renters falls within the age bracket between 25 to 34 years. Just over 11 million of 26.4% of all renters are between 25 to 34 years.

INCOME

The median income for rent-occupied households was $31,888. The median income for owner-occupied households was more than twice that amount at $65,514.

A large share of renter-occupied units is single-income households. Nearly ten million or 26.1% percent of all renter-occupied units are single-income households. Only 13.3% of owner-occupied units are single-income households. The largest share of owner-occupied units is married households at 60.1%.

According to the Bureau of Labor Statistics 2012 Consumer Expenditure Survey, average income for married couples with children was $98,104. The average income for all married couples was $90,393 in 2012.

**

http://eyeonhousing.org/2014/04/18/characteristics-of-owners-and-renters/

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SOCAL MULTIUNIT REAL ESTATE BLOG – OCTOBER 2014 > BIGGER AND BETTER THAN EVER

September 30, 2014 on 9:31 pm | In Buyers, Charts + Statistics, Curious, Economy, Experts Say, Fascinating Information, fUNNY...mONEY, Government, Market Snapshot, Of Local Importance, Sellers, Trends, Uncategorized, WOW | No Comments

by Jodi Summers

Word in from the Los Angeles County Office of the Assessor is that the value of the taxable property in city of Los Angeles rose by 6% over last year’s figures. Woohoo to all property owners!

The aggregate value of property in Los Angeles County totaled $1 trillion > $62 billion increase from the prior year, and the 2014 assessment roll is the largest in County history.

“While the largest factor for the increase this year was residential real estate, international investors are also pouring money into large mixed use projects in downtown L.A., including projects like the Wilshire Grand Tower and Metropolis,” observes Anthony Crump, Special Assistant of Communications at the County Office of the Assessor.

These super-charged numbers reflect four consecutive year of growth. Clarus Market Metrics charts two year’s growth of apartment buildings in the County; examining August 2012-August 2014, concluding that the median price of for sale properties is up 18% and the median price of sold properties is up 95%.

Breaking it down, the aggregate value of property in the City of Los Angeles was $467 billion. Long Beach had the second-highest property valuation, coming in at $49 billion, followed by Santa Monica at $29 billion, Santa Clarita at $26 billion and Torrance at $26 billion.

Bradbury, a city of about 1,200 about 22 miles northeast of downtown Los Angeles, experienced the greatest percentage increase in assessed value, rising 12% year over year. Lancaster came in second with a 10% increase, and Claremont, Palmdale and Arcadia followed closely, each with 8% increases. Five of the 10 cities with the largest increases in assessed valuations were in the San Gabriel Valley, pointing to increased investment in the area.

The assessed values are the foundation of the property tax system and are used to divvy up tax revenue.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.labusinessjournal.com/news/2014/aug/28/los-angeles-real-estate-more-valuable-ever/

http://www.socalmultiunitrealestateblog.com/?p=2746

https://www.terradatum.com

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LIVABLE CITIES – WHAT’S NEW IS OLD

September 15, 2014 on 10:06 am | In Fascinating Information, Green, Historic Properties, New Developments, Of Local Importance, Trends, Uncategorized, WOW | 2 Comments

by Jodi Summers

Bet you didn’t know that the ancient Sumerian city of Uruk was one of the first master-planned cities. Uruk was situated on an ancient channel of the Euphrates River, some 30 km east of modern As-Samawah, Al-Muthannā, Iraq, The city was the main force of urbanization during the Uruk period (4000–3200 BC).

Like history? The Uruk epoch saw a shift from small, agricultural villages to a larger urban center with a full-time bureaucracy, military, and stratified society. Uruk period culture, exported by Sumerian traders and colonists, had an effect on all surrounding peoples, who gradually evolved their own comparable, competing economies and cultures.

Millennia has passed since the days of ancient Uruk, as well as other early planned cities such as Harappa, Lothal, and Mohenjo-daro in the Indus Valley Civilization (in modern-day northwestern India and Pakistan). The ruins of these antiquated cities display the earliest examples of deliberately planned and managed cities. Streets were paved and laid out at right angles in a grid pattern, with a hierarchy of streets from major boulevards to residential alleys. Archaeological evidence suggests that many Harrapan houses were laid out to protect from noise and enhance residential privacy; many also had their own water wells. These ancient cities were unique in that they often had drainage systems, seemingly tied to a well-developed ideal of urban sanitation.

The earliest multifamily dwellings date back to ancient Rome and the first century BC. The insulae (singular insula) were large apartment buildings where the lower and middle classes of Romans (the plebs) dwelled. The floor at ground level was used for tabernas, shops and businesses with living space on the higher floors. Ancient Roman insulae in Rome and other imperial cities reached up to 10 and more stories, some with more than 200 stairs.

Essentially, some elements of smart urban planning and harmonious living are thousands of years old. Today, as urban planners rethink livable cities and green communities, we borrow many elements of these early civilizations.

Look Backward

The past is a great source of ideas that work. “Density and adjacency increase sociability,” observes , says Donald Powers, principal of Union Studio Architecture & Community Design.

Time-tested elements like mid-block alleys – a staple of residential planning from the 1920s and ‘30s – lessen emphasis on the car. Small setbacks and stoops help houses relate to the sidewalk. Courtyards encourage interaction. Corners are important; houses built on them should play to the street. “Give 5 more feet to the corner lot and let the porch wrap,” affirms says Carson Looney, principal of Looney Ricks Kiss. “The house is just one element, not the element.”

Build for History

“Built with craft and care, well-designed places that people want to spend time in never lose their luster. They remain vital and continue to appreciate in value,” offers Stefanos Polyzoides, principal of Moule and Polyzoides. A big part of is ensuring that there’s interest and variety in the streetscape.

Appealing neighborhoods are a long-term proposition. Forest Hills in Queens, N.Y.—widely seen as one of the most successful master planned communities ever—started 100 years ago; it earned that inviting patina over time. “Once upon a time, the trees were little twigs,” Powers offers. “Fifty years from now, people will say Kentlands was the Forest Hills of its time,” says Powers of the Gaithersburg, Md., community developed in the late ’80s. “One of the goals is to create a pattern that will be picked up on and connects the new with the old,” as opposed to erecting buffers between them.

Social Sidewalks

“Four-foot sidewalks aren’t wide enough for couples to stroll, or for people to stop and talk and a baby carriage to pass by,” Looney says. “Four and a half feet is good, and 5 feet is better.”

“Each place is different,” says Speck, but “home builders who are interested in long-term value will insist that all streets are lined on both sides by trees approximately 30 feet on center.”

Experts agree, street trees should be as many and as big as the budget allows. Choose variations that are in full glory in the fall while others are blooming in the spring.

Encourage Interaction

Design public spaces as outdoor rooms with a sense of enclosure. Configure them so storefronts face each other. At home, large front porches to encourage neighborhood interaction while providing a buffer for private living spaces. Special care needs to be taken for porches that are very close to the sidewalk. Savvy urban planners elevate these types of porches 3 feet or 4 feet to help homeowners feel comfortable with instead of vulnerable to action from the street.

Be Wise with Commercial Tenants

“If you take the first tenant who comes along, you might end up with a cell phone store, a dollar store, and a liquor store,” instead of a coffee shop, a bookstore, a clothing store, and a restaurant, Powers advises. “Pick tenants that contribute to each other and to the public realm.”

**

http://www.builderonline.com/mixed-use-development/why-smart-builders-care-about-walkability_o.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=BP_030514&day=2014-03-05

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THE MEN WHO MAKE THE MOST DEVELOPING CALIFORNIA

August 31, 2014 on 1:56 pm | In Charts + Statistics, Fascinating Information, fUNNY...mONEY, Uncategorized, WOW | 2 Comments

by Jodi Summers

All totaled, California has 111 billionaires – more than any other state. Indeed, if the Golden State were its own country, it would be tied with Russia for third-most billionaires in the world, behind only the United States and China.

More than one-third of California’s billionaires are in tech, focused in Silicon Valley. San Francisco has 20 billionaires alone, second in U.S. cities only to New York City’s 66. Palo Alto, Calif. ranks eighth among U.S. cities with nine billionaires, and Woodside, Calif. is tied for 10th with eight. In total, California billionaires personally hold assets worth $485 billion, more than the entire GDP of all but 24 countries in the world.

There are seven billion dollar property tycoons living in California, many of them own thousands of rental units. Indeed they are an admirable bunch…

Rank Name Net Worth Age Source Country of Citizenship
#60 Donald Bren $15.8 B 82 real estate U.S.A.
#328 John A. Sobrato & family $4.8 B 75 real estate U.S.A.
#443 Edward Roski Jr $3.8 B 75 real estate U.S.A.
#755 George Argyros $2.4 B 77 real estate, investments U.S.A.
#820 Richard Peery $2.2 B 75 real estate U.S.A.
#960 John Arrillaga $1.9 B 76 real estate U.S.A.
#996 Donald Sterling $1.9 B 78 real estate U.S.A.

**

http://www.forbes.com/billionaires/list/3/#tab:overall_industry:Real%20Estate

http://www.forbes.com/billionaires/list/#tab:overall

http://www.forbes.com/sites/erincarlyle/2014/03/04/meet-the-20-richest-real-estate-billionaires-on-the-forbes-billionaires-list/

http://lovesiliconbeach.wordpress.com/2014/12/08/who-are-californias-real-estate-billionaires/

http://www.forbes.com/billionaires/list/2/#tab:overall_industry:Real%20Estate

http://www.forbes.com/sites/danalexander/2014/03/07/california-leads-all-states-and-all-but-2-countries-with-111-billionaires/

http://www.socalofficerealestateblog.com/?p=2609

http://blogs-images.forbes.com/danalexander/files/2014/03/US-billionaires-map-white-space1-e1393970035433.jpg

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LOCATION! LOCATION! LOCATION! AWESOME BEVERLY HILLS DEVELOPMENT SITE AVAILABLE…AGAIN

August 20, 2014 on 4:27 pm | In Buyers, Curious, Experts Say, Fascinating Information, For Your Purchasing Pleasure, Investment Opportunities, Of Local Importance, Uncategorized, WOW | 2 Comments

by Jodi Summers

Looking for your fantasy Beverly Hills mixed use development project? One of the most desirable pieces of real estate in the country —9900 Wilshire Blvd., is for sale again. Price in the mid-$300-million range for the 8-acre parcel.

“A truly rare circumstance in the highly regulated and supply-constrained city of Beverly Hills,” note the experts.

The site of the former Robinsons-May department store in Beverly Hills has been vacant for more than a decade and has changed hands a number of times. The current sellers, Hong Kong private equity firm Joint Treasure International, intended to complete an existing plan to build 235 condos on the site.

They had already navigated Beverly Hills’ arduous city planning process and were successful is getting approval on a mixed use complex design by Richard Meier, architect of the Getty Center.

“Upon transfer of ownership, the incoming buyer will leverage the value already created and be able to immediately commence construction — a truly rare circumstance in the highly regulated and supply-constrained city of Beverly Hills,” the selling brokers said in a statement.

The Meier plan includes 876 underground parking spaces and almost 21,000 square feet designated for office space, shops and restaurants.

The property at 9900 Wilshire Blvd. is, “one of the most desirable pieces of real estate in the country,” the L.A. Times writes. The paper notes that the property, located along Merv Griffin way, “has seen multiple owners who have so far been unable to bring a condominium complex designed by a famous architect to life.”

In 2010, Hong Kong private equity firm Joint Treasure International bought the parcel for $148 million. In 2007 the parcel sold for $500 million in one of the largest transactions in the history of Los Angeles County. The company that purchased it subsequently went bankrupt, which is how Joint Treasure International acquired the property.

Will you be the next owner developer for 9900 Wilshire?

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.loopnet.com/xnet/mainsite/news/News.aspx?DocID=85599&Region=losangeles&intcpt=false&sourcecode=1lne0t006N20140424LN&linkcode=&utm_source=loopnet&utm_medium=emailmarketing&utm_campaign=LoopNews

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SOCAL MULTIUNIT REAL ESTATE SNAPSHOT – AUGUST 2014 – KEEP IT COMING

August 5, 2014 on 9:52 am | In Buyers, Charts + Statistics, Economy, Experts Say, Fascinating Information, Investment Opportunities, New Developments, Of Local Importance, Rents, Sellers, Trends, Uncategorized | 2 Comments

by Jodi Summers

“Developers are saying that as they look forward to 2016 and 2017, they see no let up in this demand, so they’re out looking at new projects to build even more multi-family housing in the county of Los Angeles,” proclaims Senior Economist Jerry Nickelsburg in the 2014 midyear UCLA Anderson Forecast.

Here’s the hypothesis: the demand for multi-family housing stems from household formation. The rate of household formation in California was decimated by the Great Recession of 2008-09. The recent growth of jobs in the State (employment is now above pre-recession levels) induces new household formation as the kids are able to move out of their parents homes, friends out of friends homes, and Mom and Dad out of their children’s homes into their own space. An increase in the rate of household formation increases the demand for rental housing, particularly multifamily housing, thereby driving up occupancy and rents.

The Los Angeles multifamily market is regionalized. The Valley differs from Downtown, which differs from Mid-Cities, the South Bay and the West Side. Marcus and Millichap have done a grand job together compiling statistics from all areas…and here are some noteworthy highlights…

Housing and Demographics

■ In the first quarter, average rents at 2000s-vintage apartments were $41 less than the monthly mortgage obligation on a median-priced home. One year ago, effective rents were $370 per month higher.

■ The median home price soared 15% during the past 12 months to $418,900, while median household income inched up a modest 2% to $55,800.

Vacancy + Rents

■ The strongest rent growth over the past year was observed in 1990s-vintage apartments, where rents climbed 4.5% to $1,684 per month. At apartments constructed in the 1970s, effective rents advanced 3.9% over the last 12 months to $1,473 per month. Rental rates on new units have stalled. Rents rose 3.4% nationally for the 12-month period ending in June, according to the Wall St. Journal.

■ Over the past 12 months, vacancy declined across every vintage of unit, with the exception of those properties constructed since 2000. At 2000s-vintage assets, vacancy inched up to 4.3% as a combination of new construction and tenant resistance to higher rents impacted operations.

■ One-bedrooms are preferred – One-bedroom apartment vacancy was flat over the past year while the rate declined in both two-bedroom and three-bedroom units. Although the decline was modest, early signs that renters are “doubling up” are emerging.

■ Outlook: The impact of heightened competition will keep rent growth modest this year. Effective rents are projected to climb to $1,750 per month in 2014, up 2.3% from the end of 2013. Last year, effective rents advanced 2.8%.

Sales Trends

■ Average cap rates in Los Angeles County are in the mid-5% range, though first-year returns vary significantly by region. In the coastal communities, first-year returns are close to 4%.

■ Outlook: In Los Angeles County, buyers outnumber sellers by a large factor. Treasury yields are low, reducing the attractiveness of purchasing government bonds.

Construction

■ The construction pipeline has swollen to 14,500 rental units, including 12,200 market-rate units. At the end of the first quarter, nearly 29,000 rentals were planned in the county, which is roughly 50% higher than the number of units on the drawing board the year prior.

■ Outlook: “There’s going to be a very severe housing-shortage problem,” Moody’s Chief Economist Mark Zandi told WSJ. “People are going to be in very difficult situations. This is a problem that’s going to be increasingly severe over the next few years.”

Conditions in the Los Angeles apartment market have tightened significantly during the past few years, which would typically usher in a period of elevated rent growth. However, development activity will bring 2014 construction to 11,000 new units – the highest level in more than a decade. (Last year, builders completed 5,600 units in the county.) Subsequently, this will keep operators at existing properties cautious when considering lifting rents.

Buyers will outnumber sellers through the end of 2014 as low interest rates keep financing obtainable and equity remains prevalent.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.inman.com/wire/rents-rise-for-18th-consecutive-quarter-amid-tight-credit-and-inventory-shortage/?utm_source=20140702&utm_medium=email&utm_campaign=dailyheadlinespm#.U7SaEbGf3Qs

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