More on the Rising Cost of Gas & its Impact on Real Estate

In my June 20 post, I shared my thoughts about a Los Angeles Times article regarding rising fuel costs. The Times article showed how ridership throughout LA’s public transportation system has increased recently. This mostly likely has to do with the high cost of gas.

I believe that rising fuel costs are going to increase demand in LA’s most desirable neighborhoods, where people can work, eat, and play without hopping in the car.

The rules of the road are changing quickly. Until very recently, parking and traffic were what made car travel such a pain. You’d have to brave our city’s congested freeways only to find yourself paying for parking once you arrived. Now, the cost of fuel is so high that parking your car seems like a bargain in comparison to the price you pay at the pump.

Global warming, green consciousness, and high gas prices will change the way people buy and sell homes. We’re going to see more people seeking to work closer to home. Not only because the commute is so expensive, but because of growing awareness of the impact of cars and their greenhouse emissions.

What does this mean for places throughout LA's Westside--neighborhoods like Santa Monica, West LA, Beverly Hills, and Brentwood? Demand for housing will increase. But I’ll also add that mega mansions may not be the sought after places to live. They are not only expensive to maintain, but people are growing concerned about their environmental impact.

When words like sustainability, carbon footprint, and arctic snowcaps are entering our everyday conversations, it’s clear that we, as real estate professionals, must adjust to how climate change will affect our industry.

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