Where is the money in LA coming from? (Los Angeles, San Francisco: real estate, 2015)

[Commonproject]

So it's widely known that SF has insane costs of living, mostly driven by the tech industry with all the big names (FB, Google, etc.) and also VC funded start ups showering young professionals with money and stock.
However when I look at LA, it's definitely less expensive but not by THAT much. There are those who make it big in the entertainment industry and live it up, but what about everyone else? Wages on average seem to be a lot lower than the Bay Area.

[jm1982]

Do you live in L.A?
L.A is similar to NYC in that it attracts global wealth .

Pretty common to hear about someone rich from NYC , Europe or Asia buying a home in L.A

Example ; Jayz a New York native just bought a $88 million home in Bel Air.

You are right that average household wages are low but there are a lot of rich people that make L.A their home for pretty obvious reasons .

There are other places were local wages aren't high but there is a lot of wealth .
Many places in Florida are like this too .

Most people in Beverly Hills or Bel Air don't have regular jobs.
They have inherited wealth or own businesses for the most part .

Many of them don't have to live where they live but they chose to because they can live anywhere .

[Exitus Acta Probat]

Speaking of people in Beverly Hills without regular jobs, are there any Sultans racing super cars around there lately? Some time ago when such an incident made the news, somebody somewhere stated that it often happens, though i don't believe anything has been in the news of late.

[Exitus Acta Probat]

Here's the story -- is this a regular thing over there?


https://www.youtube.com/watch?v=tFMgwbDIEfs

[ryanms3030]

Originally Posted by Exitus Acta Probat

Here's the story -- is this a regular thing over there?


https://www.youtube.com/watch?v=tFMgwbDIEfs

That's a regular thing in Glendale

[Kings Gambit]

Originally Posted by ryanms3030

That's a regular thing in Glendale

Sure is, but there arent any Sultans in Glendale. There you have Armen and Aram racing around in their black salvaged title BMWs and Mercedes thinking they are all hard and tough. Also, Armen and Aram are living with their parents along with grandma, grandpa, couple of aunts, an uncle and a few cousins - 9-11 people in ONE 2000 square foot house or apartment.

[jm1982]

"The L.A. area ranked No. 1 in North America in a survey of global real estate investors who have a combined total of $1.7 trillion to spend on property in 2017. "

"Property prices in Los Angeles are also considered a bit of a bargain by international standards, Tydlaska said. “L.A. is still a value compared to San Francisco.”"

Los Angeles ranks as the top choice in the U.S. for international real estate investors - LA Times

[jm1982]

Article from a couple days ago

"last year venture capitalists plunked down an estimated $4.2 billion to back 213 LA-area tech companies, according to Built in LA, which tracks entrepreneurial activity. This is a 38 percent hike from the amount raised in 2015 and nearly fivefold the $871 million for 100 or so area companies raised in 2012."

Billions pour into LA as it gears up to be the next Silicon Valley
https://www.cnbc.com/2017/09/26/bill...on-valley.html

[disgruntled la native]

From third world oligarchs (that includes China and Russia) who exploit their masses to get rich and then exploit us by driving up housing prices.

[Mr_Geek]

China, your parents/grandparents who bought a house for cheap, your 20 roommates who share one house/condo/apartment with you.