Does anyone else think Downtown LA Real Estate is too expensive? (Los Angeles: apartments, condos)

[iama30something]

So, I’m in the marketing for a condo (sort of). I broke down and finally admitted to myself that I’m intrigued by downtown. I used to work down there and know the area well. I like the urban feel, the lounges, restaurants, etc.. and I’m sure it’s going to be the next big LA neighborhood to boom. It may take 10 years, but I feel like I should buy now while the prices are lower (than what they will be once it blossoms).

However, the condo prices are the same in downtown LA as they are in Santa Monica, West LA, and Brentwood. Why is it so expensive? It doesn’t have the cliche compared to other parts of LA such as the Westside, West Hollywood, Beverly Hills, Silver Lake, etc… (yet).

If it were priced right, I feel like it would attract young professionals and help the area grow bigger, faster (than it is already growing). Why would a majority of people want to move downtown for the same price as it is to be close to the beach, unless it was close to work?

Someone please explain this to me…

[jm1982]

It's hard to say if it's overpriced.

Prices have already gone up considerably . In my opinion it is the hottest area , not up and coming .

It could definitely go up more .

Not everyone cares about living near the beach . Look at NYC it's expensive and it's very cold there most the year . Even though they have bad weather especially this year .. I doubt people will move .

I haven't looked at places in dtla recently but I'd be surprised if they are more than Santa Monica across the board . Is that for the same sq footage etc ?

Personally I think dtla has a lot more upside than Santa Monica . Santa Monica is already gentrified , but dtla still has skid row and run down buildings , places can still be renovated and it can still be more attractive , especially for young people it could be more attractive than west la because of the walk ability transit , etc .

[RudyOD]

Supply and demand. There is practically NO supply. Downtown Los Angeles currently has one of the lowest vacancy rates in the nation when it comes to residential units.

In fact, just about all residential units BEING BUILT (so not actually available yet) in downtown right now are luxury apartments, not condos. I believe the only real major condo development there is Barker Block (in the Arts District), and even then it will only add 68 units to a market that currently has a strong demand.

[GoBears98]

The HOA's are what I find a bit hard to accept, on top of a high 4, low 5's number for essentially a 1 bedroom/loft. Really like the future upside of the Arts District though.

[iama30something]

Originally Posted by jm1982

It's hard to say if it's overpriced.

Prices have already gone up considerably . In my opinion it is the hottest area , not up and coming .

It could definitely go up more .

Not everyone cares about living near the beach . Look at NYC it's expensive and it's very cold there most the year . Even though they have bad weather especially this year .. I doubt people will move .

I haven't looked at places in dtla recently but I'd be surprised if they are more than Santa Monica across the board . Is that for the same sq footage etc ?

Personally I think dtla has a lot more upside than Santa Monica . Santa Monica is already gentrified , but dtla still has skid row and run down buildings , places can still be renovated and it can still be more attractive , especially for young people it could be more attractive than west la because of the walk ability transit , etc .

A typical 2bed/2ba 1000 sq/ft. condo in DTLA is going between $500k - $600k and each has high HOAs (between $500 - $800 a month). The numbers skew a bit lower if you are south of Main St. or North of 3rd. The South Park district seems the most expensive. The other issue is that the inventory is extremely low - there just isn't much to choose from downtown.

A typical 2bed/2ba 1000 sq./ft. condo in Santa Monica is going between $475k - $600k (depending on your location to the beach) with much lower HOAs ($300 - $500 month).

These are just rough and dirty numbers I found while on the MLS for the past few weeks. DTLA has come a long way in the 4 years I've been here, but with Skid Row, the huge homeless population, older buildings that need to be renovated, etc.. I think Santa Monica is much more desirable for now. I guess I'm wrong..?

[iama30something]

Originally Posted by calbear629

The HOA's are what I find a bit hard to accept, on top of a high 4, low 5's number for essentially a 1 bedroom/loft. Really like the future upside of the Arts District though.

1000% agree on this.

[GoBears98]

Originally Posted by iama30something

1000% agree on this.

good luck on your hunt and always try to negotiate a commission rebate. every little bit helps

[nightlysparrow]

Originally Posted by iama30something

It doesn’t have the cliche compared to other parts of LA such as the Westside, West Hollywood, Beverly Hills, Silver Lake, etc…

LOL I think you meant cachet, but it's funny as is

[jm1982]

Yeah that is true. Downtown la is definitely less cliche than Santa Monica, Beverly Hills , etc.

Not too many movies or shows where the character lives in downtown .

I'm sure that will change though

[iama30something]

Originally Posted by nightlysparrow

LOL I think you meant cachet, but it's funny as is

Whoops!