by Jodi Summers
People in Los Angeles are going to be renting for a long time. Did you ever calculate how long you have to work and save in order to afford a home? If you did, you understand why everybody’s renting. Here’s a nifty little chart courtesy of The Atlantic Cities to help you calculate the numbers.
Enjoy figuring out how many years it takes to save enough for a down payment in Los Angeles or any of the 100 largest U.S. metro areas. The statistics come from factoring in local average wages from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages as well as local housing prices based on the median asking price per square foot of homes listed on Trulia.
The study estimated that people saving for a down payment set aside 10% of their pre-tax earnings and will earn an annual return of 1.5% on those savings. They assumed a 20% down payment, the minimum you can put down without paying insurance on your mortgage.
Notice that affordability varies hugely across metro areas. Sure, individuals have the potential to earn more money in most metros with higher housing costs – but those high wages usually aren’t high enough to offset the even higher housing costs. Among large metros, average weekly wages range from $655 in El Paso to $1809 in San Jose – almost three times as much. But median price per square foot runs from just $46 in Detroit to $459 in San Francisco – nearly ten times as high.
As you can see from the table below, in Los Angeles County, you’ll need to work 15.5 years in order to save enough for a 20% down payment on a typical 2,000 square-foot home costing $236 per square foot….It takes even longer in Orange and Ventura Counties….not to mention Santa Monica, were last month the average sale price is $660.38 per square foot for single family homes and condos combined. So, how long does it take to buy a home in the L.A. area? You do the math.
by Jodi Summers
Bravo! Sorgente Group of America has purchased the historic Fine Arts Building @ 811 W Seventh St in Downtown Los Angeles, for $28.5M. The Fine Arts Building is a12- story building built in the Romanesque Revival style designed by Walker & Eisen and built in 1925. It is located at 811 West 7th Street just east of Figueroa Street. The 120,000 sf building, also known as Global Marine House, was purchased by the same Italian-based company, which also controls Manhattan’s iconic Flatiron Building.
Sorgente Group of America president Veronica Mainetti has noted the company’s passion for acquisitions with “historic and architectural relevance,”
Riverrock Real Estate Group has been contracted to manage the property.
Real Estate Bisnow (LA)
THE SOCAL MULTIUNIT REAL ESTATE BLOG ~ NOVEMBER 2012 < HOW WILL NO MORE SMOKING AFFECT LEASE RATES IN SANTA MONICA?October 31, 2012 on 3:52 pm | In Curious, Fascinating Information, Market Snapshot, New Developments, Trends, Uncategorized, WOW | 2 Comments
by Jodi Summers
Santa Monica has often been nicknamed the “Republic of Santa Monica” for the City’s rather unique stance on various social positions. Santa Monica’s latest set of rules may or may not be unconstitutional, but it will no doubt impact multiunit properties throughout Los Angeles. The City of Santa Monica has declared that all new occupancies after Nov. 22, 2012 are non-smoking. No ands, ifs, and certainly no butts.
Will this affect the desirability of one of the world’s best beach cities? We will need to watch. In September and October 2012 in Santa Monica, according to the MLS, 98 properties were leased in Santa Monica. The median lease rate was $4,000 or $3.31 per sq ft per month. The lowest lease rates were $1,500 for several studios and one bedrooms east of Lincoln Blvd., and the high being $14,100 for an Ocean Ave. penthouse. Properties averaged 38 days on the market.
Existing Santa Monica law already bans smoking in residential outdoor and indoor common areas, including balconies and patios and any area within 25 feet of any door, window or vent. The new smoking rules that affect all multi-unit housing in the City
include the following:
- All new occupancies after Nov. 22, 2012 are non-smoking: Anyone moving into an apartment or condo in Santa Monica after November 22 can’t smoke in the unit.
- Owners and condo associations are expected to conduct smoking surveys by January 21, 2013. Prior to this date, all landlords and condo homeowners’ associations must conduct a survey of current occupants, who must then designate their units either “smoking” or “non-smoking.” Current occupants are grandfathered in. Existing occupants can continue to smoke inside their units if they designate the units as “smoking.”
- Results must be distributed. Once the survey is done, landlords and HOAs are expected to give out the updated list of all units’ smoking status to all occupants. In the future it must be kept updated, and given to all prospective renters and buyers along with a copy of the attached information sheet, from www.smconsumer.org.
Important Info For Landlords, Tenants, And Condominium Owners
Santa Monica has passed a law with new smoking rules that affect all multi-unit housing:
- All new occupancies after 11/22/12 are non-smoking: Starting November 22, 2012, all newly occupied units in multi-unit residential properties in Santa Monica are declared non-smoking. This includes all apartments and condos. So, anyone moving into an apartment or condo after November 22 can’t smoke in the unit.
- Owners must start smoking survey by 1/21/13: Before January 21, 2013, all landlords and condo homeowners’ associations are required to begin a survey of current occupants, who must then designate their units either “smoking” or “non-smoking.” For details about this process, go to smconsumer.org.
- Results distributed: Once the survey is done, landlords and HOAs must give out the updated list of all units’ smoking status to all occupants. In the future it must be kept updated, and given to all prospective renters and buyers along with a copy of this information sheet. (Also available at smconsumer.org)
- Common areas too: Existing Santa Monica law already bans smoking in residential outdoor and indoor common areas, including balconies and patios and any area within 25 feet of any door, window or vent.
Q: Are there exceptions to the law? If a property is already 100% smoke-free, the designation process is not required. The law also does not apply to temporary special needs housing for people with disabling conditions.
Q: How is the law enforced? Most compliance is achieved through communication. If that fails, and a person persists in smoking inside a non-smoking unit after getting a written notice, the person may be taken to small claims court and is liable to pay damages starting at $100. Any person can enforce the law by giving notice and eventually going to court.
Q: Are property owners required to enforce the law? No. They are only required to conduct the survey and keep updated lists available. They are not required to enforce violations of the no-smoking rules.
Q: What happens if a property owner refuses to conduct the initial survey and give out the required information? The owner can be prosecuted for violating the Municipal Code.
Q: What about medical marijuana? If a unit is non-smoking, then medical marijuana can’t be smoked inside. If a doctor specifically requests that a disabled occupant may smoke marijuana indoors, and the occupant can’t take marijuana in non-smoked form, then the smoking might be permissible under the “reasonable accommodation” standard for disabilities. For more information call the City Attorney’s Office, 310-458-8336.
Q: Where can I get help with quitting? Go to nobutts.org, or call 1-800-NO-BUTTS.
Q: Where can I get more information? Go to smconsumer.org, or call the City Attorney’s Office, 310-458-8336.
We’re here to help you with your property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – email@example.com or 310.392.1211, and let us move forward together.
by Jodi Summers
How has the Great Recession limited the hopes and dreams of young adults? Educated young adults are not about seeing the world or joining the Peace Corps, they’re about financial security. According to a recent report from the Heldrich Center for Workforce Development at Rutgers University, today’s college students and recent graduates are seeking financial security above all other major life goals.
The Center surveyed juniors, seniors and graduate students at four-year colleges — as well as working college graduates of earlier generations — about life, career and goals.
The results show today’s generation of young people think differently. Fresh out of school, you’d think they’d be more idealistic, pursuing their ideals and passions rather than money…Ironically 91% of college students and 95% of millennials (college graduates between ages of 21 and 32) said that being financially secure was either essential or very important to them.
Having come of age during the Great Recession, young people have been heavily impacted by the terrible economy they are graduating into…has the recession limited them to dreaming big dreams?
When asked to dream, smaller shares of young people felt equally driven about being a leader in their community or having a job with an impact on causes they cared about. < There’s the idealism…keep America dreaming…
This is a good generation of Americans…with values akin to the 1950s. They would like to achieve and keep America growing. Capitalists, they say wealth is a key life goal…at least they’d like to get rid of their school loans.
Did you know Millennials, after all, have unusually high volunteering rates compared to earlier generations of young people?
This is the first time the Heldrich Center asked these specific questions, so it is unclear as to what extent these generational differences are due to aging, current economic conditions or something culturally specific to each age group. But, if you take the results to heart, you’ll realize that the country will be in good hands with this motivated and capable generation.
Sellers, you will love the results. There is money to be made in the multifamily marketplace in the near future. If you have been contemplating selling your apartment property, let us save you several night of restless contemplation. For new-to-the-market, well-priced apartment properties, it’s easy to get satisfying sales results.
You’ve been hearing great praise for the Los Angeles area apartment market for some time. But with a tremendous number of new multiunit properties in the pipeline, cap rates will come down – particularly on older properties. That’s why now is the time to move.
The number of Under Contract properties is up 59%
The median sold price is up 61%
The median price of for sale properties is up 19%
The average months supply of inventory is down -72%
The number of For Sale properties is down -46%
The number of New properties is down -23%
>>>> If you’d like to know more about a specific neighborhood, please let us know. <<<<
Also signs are go. Now is a particularly good time to be proactive, as there are many multiunit properties in the construction pipeline. In the UCLA Anderson Forecast national report, senior economist David Shulman expressed optimism about 2013 and 2014, buoyed by, “the lone bright spot in the economy” — the long-awaited rebound in housing construction.
“Led by multi-family construction,” he writes, “housing starts are ramping up, from 612,000 units in 2011 to 763,000 units this year and just under 1 million units in 2013. By 2014, we anticipate that housing starts will be in excess of 1.3 million units and the growth in housing will account for about a full percentage point in GDP growth by 2014.”
The National Association of Home Builders notes that starts in buildings with five or more apartments for June came in at 213,000 (at a seasonally adjusted annual rate). On a year-over-year basis, five-plus starts were up 29%, reflecting the generally upward trend that has prevailed in this segment of the construction industry since the end of 2010.
And as we currently stand, fresh into 4Q 2012, prices are up, inventory is down. If you’re thinking of selling < now is the season.
We’re here to help you with your commercial and investment property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – firstname.lastname@example.org or 310.392.1211, and let us move forward together.
by Jodi Summers
This story is good for cocktail party conversation. Check out these results of the 2011 American Time Use Survey from the Bureau of Labor Statistics as they compare to the stats from 2007. Life has changed considerable since the days before the Great Recession < now it has been quantified.
Fewer men at work: Only 50% of men aged 15 or older worked on an average day in 2011, down from 54% in 2007.
- More sleep: With more people out of work, average sleep time increased from 8.57 to 8.71 hours per night.
- More home cooking: The percentage of people who participated in food preparation and cleanup on an average day grew from 51 to 53%.
- More schooling: The percentage of people aged 15 or older who attended classes or did homework on an average day climbed from 7.9 to 8.4%.
- Fewer watching TV: The percentage of people who watch TV on an average day fell by more than 1 percentage point between 2007 and 2011–from 79.5 to 78.3%. Among those who watched TV on an average day, however, viewing time grew from 3.30 to 3.51 hours.
- Fewer caring for kids: As births fell from their 2007 peak, the share who care for household children on an average day fell by a full percentage point–from 21.8 to 20.8%.