Thanks, Millennials: L.A.'s Population Tops 4 Million for the First Time (Los Angeles: renting, condos)

[PDR2015]

As real estate prices rise, there will be more reason for home owners to renovate/expand their homes. People are less likely to drop $50-100k to redo a home when the home is only worth $300k but they probably will when the home increases to $800k... with higher prices come higher expectations. Look at certain neighborhoods where people are building a second story on their property as the neighborhood value increases... those old outdated single family homes will eventually be redone should the land value increase above a certain point.

This notion that Millenials prefer to rent over own is bogus. The reason for renting is very much due to employment uncertainties and of course, affordability. I also think Millenials will turn to single family homes as they get older and start families. A young couple with no kids and an active social life is going to have a different set of criteria when it comes to buying than a slightly older couple with 2 kids and a dog...

[jm1982]

Millennials Prefer Single-Family Homes in the Suburbs - WSJ

Another article. You don't have to live in an apartment to walk to things or be near amenities.

[jm1982]

Originally Posted by PDR2015

As real estate prices rise, there will be more reason for home owners to renovate/expand their homes. People are less likely to drop $50-100k to redo a home when the home is only worth $300k but they probably will when the home increases to $800k... with higher prices come higher expectations. Look at certain neighborhoods where people are building a second story on their property as the neighborhood value increases... those old outdated single family homes will eventually be redone should the land value increase above a certain point.

This notion that Millenials prefer to rent over own is bogus. The reason for renting is very much due to employment uncertainties and of course, affordability. I also think Millenials will turn to single family homes as they get older and start families. A young couple with no kids and an active social life is going to have a different set of criteria when it comes to buying than a slightly older couple with 2 kids and a dog...

Yeah that makes sense. The whole keeping up with the Jonses' thing. Plus with that much equity if they bought at 300k they should easily be able to get the loan to remodel if it's worth 800k.

Millennials are not just college kids or recent college grads.
They are in the age range from about 18-34..that's a big range.
The income and choices of the younger ones will likely be a lot different than the 'older' ones.
Even if they could afford renting or buying single families in their teens or early 20s , I don't see them "wanting to live in apartments" as the article stated.

[highlanderfil]

Originally Posted by jm1982

So all the apartments in EP are going to be new and have tons of 'amenities' ? I see a lot of run down apartment buildings there too..

You are really not good with this whole concept of thinking outside very narrowly-construed constraints, are you? But sure, I'll play along. No, they won't all be. But there's more of a chance. How much new single-family construction do you think there is in EP?

L.A isn't the type of city with a centralized downtown though . We have a downtown area (DTLA) , but even though it's urban, walkable, many don't consider that the 'center of the city' .

Be that as it may, there are plenty of neighborhoods within the greater Los Angeles that do have walkable "downtowns": Santa Monica (not ONE single-family home within blocks of said downtown), Venice (a few, but still not many), Manhattan Beach (even there, with all the beachfront homes which I can promise you most millennials can't come near affording, there are plenty of apartment buildings), Mid-Wilshire, Koreatown, Westwood, even Glendale, Burbank and Pasadena...I can go on, but I think I've made my point.

Pretty much every neighborhood in L.A is going to have apartments and single family homes for the most part.

And..?

You could pick pretty much any neighborhood and have the option of a house or apartment and have the option of walking to get to essential shopping, dining and entertainment.

I'm not even going to bother arguing this point. It's just wrong. Even if it's wrong by a couple of blocks, it's still wrong.

Which parts of L.A are you thinking of where you can't find single family homes about the same distance from amenities as apartment units?.. Besides DTLA which has a population which is a tiny percentage of the total city population.

See above.

[REITS4life]

Originally Posted by PDR2015

As real estate prices rise, there will be more reason for home owners to renovate/expand their homes. People are less likely to drop $50-100k to redo a home when the home is only worth $300k but they probably will when the home increases to $800k... with higher prices come higher expectations. Look at certain neighborhoods where people are building a second story on their property as the neighborhood value increases... those old outdated single family homes will eventually be redone should the land value increase above a certain point.

This notion that Millenials prefer to rent over own is bogus. The reason for renting is very much due to employment uncertainties and of course, affordability. I also think Millenials will turn to single family homes as they get older and start families. A young couple with no kids and an active social life is going to have a different set of criteria when it comes to buying than a slightly older couple with 2 kids and a dog...

Is anyone saying Millennials prefer to rent over own?

The only statement I've read is that Millennials prefer to live in dense, urban, walkable neighborhoods rather than suburbs.

You can rent a home in the suburbs or you can buy a condo in a downtown highrise.. The form of ownership is not equal to the type of domicile.

[highlanderfil]

Originally Posted by PDR2015

This notion that Millenials prefer to rent over own is bogus.

[highlanderfil]

Originally Posted by REITS4life

Is anyone saying Millennials prefer to rent over own?

Wall Street Journal seems to be, in the graph I posted above.

The only statement I've read is that Millennials prefer to live in dense, urban, walkable neighborhoods rather than suburbs.

Bingo. And contrary to jm1982's conviction, dense, urban and walkable = apartments.

[highlanderfil]

Originally Posted by jm1982

Millennials Prefer Single-Family Homes in the Suburbs - WSJ

Another article. You don't have to live in an apartment to walk to things or be near amenities.

Can't access the link, but in addition to the graph above, I can provide you with a quote from a different WSJ article: “The millennials are telling us they want to own a home eventually, no different from the aspirations of their parents or grandparents,” said Doug Duncan, chief economist for Fannie Mae. “But they’re not in a hurry. They still need some income rebuilding.”

So, while the millennials may ASPIRE to own homes, they don't ACTUALLY own them.

[highlanderfil]

Originally Posted by jm1982

The whole keeping up with the Jonses' thing.

A phrase popularized by the Boomers and one very few millennials actually relate to.

[REITS4life]

Originally Posted by highlanderfil

Wall Street Journal seems to be, in the graph I posted above.Bingo. And contrary to jm1982's conviction, dense, urban and walkable = apartments.

Well no. That's the point I was trying to make.

Apartments are multifamily renter occupied residential buildings.
Condominiums are multifamily owner occupied buildings buildings.
Townhomes are multifamily owner occupied residential buildings.

All 3 of these can (and do) make an area urban and walkable. The fact that an area is 90% rental vs 90% owner occupied does not make an area urban and walkable. It is the density of population, retail, entertainment clusters, and urban design/fabric of the neighborhood.