People are really starting to balk at the ever increasing rents in DTLA. Seriously, we are in the $3-$4.50/sf range. What's justifying the high rents is the fact that people keep renting! Why is this happening? A few reasons:
1. DTLA has gotten so popular as a livable, walkable area, people are willing to spend a larger portion of their income on rents.
2. A growing number of residents have high income as evidenced by the demand for luxury rentals and condos in the area.
3. Housing prices have increased so much so that priced-out buyers have no choice but to rent for longer, keeping rental demand high.
This means that it's a great time to invest in DTLA if you plan on renting the place out. If you're planning on buying, then expect to have to hold on to the property before seeing significant gains, since price increases are expected to slow down.
Wednesday, March 9, 2016
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