Tag: real estate

Los Angeles House Prices Continue to Rise

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Los Angeles’s real estate landscape isn’t just heating up as summer approaches—it’s sizzling. Reports from Zillow reveal a robust 9.3% climb in home prices this past March from the year prior, with the average single-family home in the sprawling Greater Los Angeles area now priced at an eye-watering $959,400.

The critical shortage of available homes is a significant factor propelling this increase. The market remains fiercely competitive despite a marginal 2% rise in new listings since 2023. Nearly half of the properties sold in Los Angeles recently fetched more than their list price, with homes flying off the market in an average of 13 days—shaving nearly a week off the time to sale compared to last year.

The surge comes amid steep mortgage rates, with 30-year loans hovering around 7.9%. Yet, industry insiders anticipate that even if these rates taper off, the hunger for Los Angeles homes will likely intensify, potentially driving higher prices. This expectation is grounded in the city’s ongoing allure, bolstered by its diverse job market and vibrant cultural scene.

Los Angeles, a global entertainment and innovation epicenter, offers many economic opportunities that attract individuals from various sectors, including technology, fashion, and manufacturing. The city’s economy is diverse, with a burgeoning tech scene in Silicon Beach where startups and significant tech companies converge. Also, Los Angeles’ position as a Pacific Rim trading hub enhances its appeal to business professionals seeking to engage with international markets.

Culturally, Los Angeles is without peer. It boasts an array of experiences, from world-class museums like the Getty and the Broad to iconic music venues such as the Hollywood Bowl. The city’s culinary scene is a mosaic of global flavors, attributed to its rich mix of cultures and the influx of innovative chefs making their mark on the local food landscape. Los Angeles is also known for its commitment to the arts. It hosts numerous festivals, including the famed LA Film Festival and the Los Angeles County Museum of Art’s film series, celebrating the creative spirit.

Moreover, the city’s commitment to sustainability adds to its allure. Initiatives like the Sustainable City Plan transform Los Angeles into a leader in green energy, waste reduction, and water conservation, making it an attractive option for environmentally conscious residents. This green ethos is seen in expanding public transportation and developing green spaces throughout the city, enhancing the quality of urban life.

Outdoor enthusiasts and nature lovers are equally drawn to the city’s geography, which allows for beach days, hiking in the Santa Monica Mountains, or skiing in nearby resorts, all within a day’s trip. The mild climate further enhances outdoor living and activities year-round, making it an ideal location for those seeking an active lifestyle.

With a robust 9% increase in property values and no signs of a market slowdown, the investment appeal of Los Angeles real estate is undeniable. The city’s ongoing housing shortage intensifies demand, sustaining high property values even amid fluctuations in the broader economy. Furthermore, with interest rates expected to decline, affordability could improve, potentially attracting more buyers and investors. This creates a fertile environment for real estate ventures, positioning Los Angeles as a prime target for seasoned and novice investors.

April 19, 2024
Knightscope Security Robots Join Security Team Near Crypto.com Arena

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A 50-year-old real estate company purchased and installed two autonomous security robots from Knightscope near the Crypto.com Arena in Downtown Los Angeles. Knightscope contributes to blue light emergency communications systems and automated security systems.

The area surrounding the Crypto.com Arena is a busy section of Downtown Los Angeles that houses several restaurants, bars, concert venues, convention centers, hotels, and more. The multi-use area sees enormous foot and vehicle traffic but has yet to be known for being a particularly secure area. The two new K1 towers will provide residents, visitors, and employees with a safer environment per Knightscope’s mission.

Knightscope’s long-term goal is to make the United States the safest country globally by providing top-of-the-line security and emergency response systems. In a recently released blog post, the company described its plan for securing commercial real estate like the Crypto.com Arena area. Knightscope outlines a four-step plan that uses K5 ASRs to monitor parking lots, K1 Hemispheres in building lobbies, and K5 and K3 ASRs to patrol interior areas. The company advocates using ASRs to lighten the workload on overnight security guards.

The K1 towers now in use in Downtown Los Angeles are positioned at the front of two buildings, which aligns with Knightscope’s recommendations. According to the blog post, the K1 Hemisphere towers record and stream eye-level HD video from 360 degrees 24/7. The technology can also recognize the faces of unwanted visitors and alert security teams that the person in question is on the property. People Detection helps eliminate threats like unnecessary liabilities and workplace violence.

The buyer of the Knightscope technology employs thousands of people across the country and is one of the largest and most established real estate developers in North America. The company has constructed over 15,000 homes, owns and manages more than 11,000 rental apartments, and built over 18 million square feet of office, retail, and industrial space. The company also currently has 28 million square feet of space in various stages of development, representing several opportunities for expansion and the installation of more Knightscope ASRs.

Besides commercial real estate, Knightscope security systems are active in airports, casinos, hospitals, hotels, schools, and public parks. Law enforcement has embraced Knightscope technology and uses its autonomous security robots as crime-fighting partners. ASRs aid in monitoring government offices and buildings, patrolling interiors, and providing security footage. ASRs can also help businesses like hospitals comply with security regulations.

While Knightscope’s smaller ASR models, like the K5 and K3, are designed with self-driving technology to patrol areas, the K1 towers installed in Los Angeles are stationary machines. The K1 towers weigh 150 pounds and are 69 inches in height, 28.8 inches in width, and 11.2 inches in length. Knightscope states these machines strongly affect crime rates in their monitored areas. Results include a 46% drop in crime reports, a 27% increase in arrests, and a 68% reduction in citations. The towers’ capabilities work to prevent incidents, but their physical presence is also designed to deter criminals. The intimidating-looking machines marked as security fend off people with bad intentions just by appearing imposing.

January 4, 2024
Mansion Bonus: Bag a Bentley When You Buy a Hollywood Estate in LA’s New Mansion Tax Era

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Luxury homes in Los Angeles are up for grabs, with mansion owners getting extremely creative with their sales tactics. Picture this: a majestic manor plus a gratis luxury vehicle to cruise the glitzy boulevards.

As the clock ticks toward the enactment of Measure ULA on April Fools’ Day, purveyors of LA’s swankiest dwellings scramble to entice buyers with irresistible markdowns and closing boons. Dubbed the “mansion tax,” the measure aims to bankroll affordable housing by imposing heftier levies on home sales exceeding $5 million. Property sales exceeding $5 million and homes over $10 million will attract a 4% transfer tax and a 5.5% tax, respectively.

Los Angeles City’s homeless situation has recently worsened, with people building tents in parks, sidewalks, and under freeways. Following a rigorous campaign by housing advocates and labor unions to get Measure ULA on the ballot, it was approved with 57% of the vote in November 2022. The tax’s backers previously projected that it could raise $1.1 billion for affordable housing projects, but last week, the city reduced that forecast to $672 million.

Desperate to beat the taxman’s deadline, real estate impresarios are devising all manner of inventive inducements. In one instance, an exquisite Bentley dangles like a shimmering carrot to beguile potential buyers. Since the seller must pay the tax, individuals with houses on the market use all possible measures to encourage quick closing.

Josh Altman, celebrity realtor and CEO of Altman Brothers Real Estate, explains that these extravagant enticements are, in fact, prudent cost-saving maneuvers once the ULA tax kicks in, offloading these lavish residences will prove even costlier than dispensing decadent perks. “We gave out a one million dollar perk to every realtor who brought a buyer to our properties if we closed the deal by April 1,” he said.

The ULA supporters perceive that the money collected from the levy would fund affordable housing initiatives and lower the city’s homeless population. The money will also help low-income seniors and increase housing affordability.

However, many top brokers and realtors oppose the new regulation and believe there may be more effective ways to fund low-income housing efforts. They claimed the tax is ill-advised and has caused a sudden sell-off among the city’s wealthiest homeowners. According to them, there are many available funding programs and more options to get the money than taxing individuals. “Are the programs operating properly? Are they being managed most effectively?” one of the agents asked.

Another argument against the tax from the opponents is that since it will be applied to all real estate transfers, including those of commercial and multifamily properties, it might have the unpremeditated consequence of encouraging developers to build homes outside the city limits. “The housing market is in trouble. And we’re discouraging housing developers from building. Therefore, it makes no sense to me at all,” added Mr. McKillen, a luxury agency broker.

LA’s quest for supplementary tax revenue to combat homelessness is not new. In 2016, the city greenlit a $1.2 billion bond proposal, “Proposition HHH,” earmarked for constructing thousands of affordable housing units. Regrettably, progress has been sluggish. Merely a third of the projected 12,000 units have materialized, while construction costs have skyrocketed. A 2022 audit revealed some units’ expenses surpassing a staggering $800,000.

Since Proposition HHH’s approval, LA’s homeless population has swelled by a disheartening 45%. As the mansion tax looms, it remains to be seen whether this novel strategy will succeed in its mission to alleviate homelessness or become another well-intentioned but ultimately faltering effort in the City of Angels.

September 12, 2023