New Giant, expensive apartments. Why? (Long Beach, Anaheim: apartment complexes, lease, neighborhood)

[Mr_Geek]

Well, you see, people are willing to pay the prices they will be charging to live there. This is why they are building them.

[Electrician4you]

Btw I just heard on the radio this morning that rents are going up yet again due to the possibility of rent control measures coming up.

[Chaminade]

Originally Posted by Astral_Weeks

Huh..apartments weren't getting built 50 years ago?

There was more vacant outlying land for suburban development so I wouldn't be surprised if there was a larger share of Single-Family homes being built. But make no mistake with the baby boom growing up/moving out....there was plenty of apartment construction in and around LA 50 years ago.

The context of "they" was the giant, expensive apartments being built today in contrast to the smaller ones built all over the place in the 1950s and 1960s.
Also, it wasn't clear if "giant" meant square footage of each individual unit OR the huge four story, block long footprint these buildings take up.

[Astral_Weeks]

Originally Posted by Chaminade

The context of "they" was the giant, expensive apartments being built today in contrast to the smaller ones built all over the place in the 1950s and 1960s.
Also, it wasn't clear if "giant" meant square footage of each individual unit OR the huge four story, block long footprint these buildings take up.

Yeah, I don't know what the OP meant by that either.

No disagreement from me that many (most) of the monolithic apartments being built today are garbage (architecturally) as compared to the courtyard housing built in the 1920's.

[VCGirl]

Yes, I think I danced around the subject and didn’t say what I actually meant. And I did this because after looking at the replies, it almost seems a little “well you should know the answer but I’ll tell you curtly” but what I’m really asking is if there is this giant pool of super successful people earning $150,000+ that can pay $3,000 a month for a studio? I know there are rich and poor people and all levels of income, etc, but THOUSANDS of people are looking and the need is there?

[Chaminade]

Originally Posted by VCGirl

is if there is this giant pool of super successful people earning $150,000+ that can pay $3,000 a month for a studio? I know there are rich and poor people and all levels of income, etc, but THOUSANDS of people are looking and the need is there?

I would think so as those who own the land and financed the construction have a lot at stake and I would think they would have researched this thoroughly. Market research, zoning, communication with county supervisors indicating what types of businesses may be setting up shop, numbers of employees, characteristics of these employees, etc.
One of the examples of forward thinking that still boggles my mind is Mission Viejo. It was on the drawing boards in the late 1950s, early 1960s. Yet, when the first homes were sold in 1967, there were no Irvine jobs, no 405 freeway, nothing - yet people waiting in line for those homes. Closest jobs were maybe in Huntington Beach, Long Beach (again no 405), Fullerton, and Anaheim. The Mission Viejo people KNEW south OC was going to grow to a gold mine.
So, those people building those huge apartments almost certainly know what they're doing. Sure, there are occasionally 1980s Moreno Valley type failures but most of the time those buildings are successful.

[DabOnEm]

Originally Posted by Electrician4you

Btw I just heard on the radio this morning that rents are going up yet again due to the possibility of rent control measures coming up.

That's fine but let's also keep in mind the rent increases in LA have slowed down significantly this year because a lot of new construction has been completed. This has eased the burden on many older units. Where rent is increasing the most in the region is places like Long Beach and Anaheim that were more affordable before, but have seen a huge increase in people escaping the LA rent increases.

I think what it shows is new construction does decrease overall housing costs and immediate gentrification is very overrated. Strip centers need to keep being taking over by mixed-use developments and LA will be fine for decades before even touching single family neighborhoods. Hardest battle is fighting the NIMBYs.

[Texamichiforniasota]

Originally Posted by VCGirl

Yes, I think I danced around the subject and didn’t say what I actually meant. And I did this because after looking at the replies, it almost seems a little “well you should know the answer but I’ll tell you curtly” but what I’m really asking is if there is this giant pool of super successful people earning $150,000+ that can pay $3,000 a month for a studio? I know there are rich and poor people and all levels of income, etc, but THOUSANDS of people are looking and the need is there?

Yes, there are renters who can afford them. Rental vacancy, even in expensive buildings, is low, and from what I've read it's consistent with the normal turnover of people moving. There are probably a few exceptions with more open units, but in general there is plenty of demand.

As for why only expensive units are being built, often it's the only thing that pencils out. Construction labor and materials are extremely expensive right now, not to mention land and legal costs in LA. I was surprised at the expenses when I did construction at my home last year. You can't build middle or lower class housing and make money in LA currently.

As for how it helps middle class and poor renters, when wealthy people move into a new unit, it opens up their old unit for someone else. Conversley, if new units aren't built, wealthy people will outpay middle class people for whatever units are available, rents go up, and you get displacement of those with less money.

[VCGirl]

I need a new job. With what I make I can afford to live in my car..with a roommate. Lol

[CA4Now]

Originally Posted by VCGirl

... what I’m really asking is if there is this giant pool of super successful people earning $150,000+ that can pay $3,000 a month for a studio? I know there are rich and poor people and all levels of income, etc, but THOUSANDS of people are looking and the need is there?

I'm with you. It's hard to believe that there are so many people making that kind of $ who would be content in studio apartments at those prices.