Rising Fuel Prices Increase Demand for L.A.’s Hot Properties
The LA Times ran an article today regarding rising gas prices and increasing use of public transportation.
With gas reaching $5 a gallon, it’s no surprise that commuters are exploring ways to avoid the pump. One alternative is LA’s Metolink and MTA systems.
In the article one rider revealed that he was spending $460 per month on gas. Now he buys a $230 monthly commuter pass instead.
This leads me to the following observations:
It used to be that homebuyers would look outside of L.A’s neighborhoods and opt to live in the Valley or other outlying areas. Prices were lower there, and they’d get more home for less money.
But with the surge in gas prices—and with no promises of relief—I predict that buyers will add the price they’re paying at the pump into their overall home buying budget.
For example, if it costs someone $460 per month to get to work because he lives far from the office, it would make sense that he would consider paying $460 more in his mortgage to live closer to home. The house may be more expensive than in an outlying neighborhood, but he’d save in gasoline and time. Time is money after all.
If high gas prices are the norm—and that ‘s what the news indicates most—then we can expect to see demand in neighborhoods in Los Angeles’s desirable neighborhoods continue to increase.
By desirable I mean communties like Westwood, West LA, and Los Feliz. Places where families live close to work and within walking (or stroller) distance eat good food, shop in chic stores, and attend fabulous performances.
It seems like being tied to the car is becoming less desirable as fuel prices surge. And there's little relief in sight. The result will benefit L.A.’s hottest areas. ♦Digg it ♦del.icio.us ♦Add to Technorati Faves
With gas reaching $5 a gallon, it’s no surprise that commuters are exploring ways to avoid the pump. One alternative is LA’s Metolink and MTA systems.
In the article one rider revealed that he was spending $460 per month on gas. Now he buys a $230 monthly commuter pass instead.
This leads me to the following observations:
It used to be that homebuyers would look outside of L.A’s neighborhoods and opt to live in the Valley or other outlying areas. Prices were lower there, and they’d get more home for less money.
But with the surge in gas prices—and with no promises of relief—I predict that buyers will add the price they’re paying at the pump into their overall home buying budget.
For example, if it costs someone $460 per month to get to work because he lives far from the office, it would make sense that he would consider paying $460 more in his mortgage to live closer to home. The house may be more expensive than in an outlying neighborhood, but he’d save in gasoline and time. Time is money after all.
If high gas prices are the norm—and that ‘s what the news indicates most—then we can expect to see demand in neighborhoods in Los Angeles’s desirable neighborhoods continue to increase.
By desirable I mean communties like Westwood, West LA, and Los Feliz. Places where families live close to work and within walking (or stroller) distance eat good food, shop in chic stores, and attend fabulous performances.
It seems like being tied to the car is becoming less desirable as fuel prices surge. And there's little relief in sight. The result will benefit L.A.’s hottest areas. ♦Digg it ♦del.icio.us ♦Add to Technorati Faves
posted by Myra Nourmand at
4:57 PM
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