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Los Angeles Renters Are Paying The Highest Rents In California

Los Angeles renters in 2017 spent more of their income on rent than any other metro in California.   Financial experts recommend a tenant limit their cost for shelter to no more than 31% of their income. This is fine and well in most parts of the country, but is exceeded for tenants in almost all parts of California, especially Los Angeles.  Compared to the historical average — between 1980 and 2000 — California tenants at the end of 2017 spent:  48% of their income in Los Angeles, up from the historical average of 36%;  42% of their income in San Francisco, up from the historical average of 30%;  To put some perspective on this, consider Los Angeles, which has reached a crisis level for desperate tenants. In eight years, the extra $8,200 spent per year on rent would almost get you to a 0% down payment on the average priced home in many areas. Los Angeles tenants have it the worst in the state, due to the steady population increase from newcomers consistently outpacing new rental construction. In fact, the last time rent in Los Angeles was near the recommended 31% of tenant income was in 1979. The solution is ultimately more housing. This will be accomplished by:  1)       loosening zoning restrictions & allowing higher density  2)      Make the permitting process for low- and mid-tier housing easier  3)      Incentivize builders of low- & mid-tier rental housing  Some of these actions have already begun, primarily with the package of affordable housing bills pas......
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City of Angels Can Thank Multifamily Real Estate for $63B Boost

City of Angels Can Thank Multifamily Real Estate for $63B Boost
What force added 534,900 jobs and $63.1 billion to the local Los Angeles economy? Well, according to a survey conducted by the National Apartment Association (NAA), that powerhouse is multifamily real estate. To find this data, the NAA conducted a 2013 survey and analyzed data from the area’s apartment industry operations, new construction costs, and resident spending. According to this recent report, multifamily's contribution to the Los Angeles economy is greater than in any other metropolitan area in the United States. According to Jim Clarke, Executive Vice President of the Apartment Association of Greater Los Angeles, they’ve done this type of survey before and have seen comparable results in the previous year. He reports, however, that for some individuals who aren’t aware of the multifamily market’s contribution to and impact on their local economy, this might come as a huge surprise. Breaking down these numbers, we see that the multifamily construction sector added approximately $5 billion, followed by overall apartment operation costs that contributed over $11 billion. The biggest contributor to the Los Angeles economy's influx was renter spending which accounted for a total of $47.1 billion. The survey also analyzed the job markets that were impacted by the multifamily industry. Of the 40 individual markets, the multifamily community generated over half a million jobs in the Los Angeles area and supported 1.3 million jobs for the entire state of California. Looking at the multifamily industry from a global perspective, we see that the apartment industry for the year generated over $1.3 trillion for the worldwide economy, and supported a total of 12.3......
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Inspections: Failing is not an option!

Inspections: Failing is not an option!
If you own a property in Los Angeles then you know how important inspections are. Inspections could be the breaking point of your profit if you fail, therefore it is important for owners to be informed of the inspection process. The Los Angeles Housing Code Enforcement Divison is cracking down on unapproved construction and unsafe living conditions. It is stated in the their mission statement "It is the mission of the Los Angeles Housing Department Code Enforcement Division to identify and facilitate the abatement of physical conditions and characteristics of substandard and unsanitary residential buildings and dwelling units which render them unfit or unsafe for human occupancy and habitation and which conditions and characteristics are such as to be detrimental to or jeopardize the health safety and welfare of their occupants and of the public." On top of the routine inspections given by the Housing department, there is a separate division under it called the Complaint Department. This department's sole purpose is for tenants living in a property who feel their living conditions are unsuitable for them to live in. The city inspection department answers within 72 hours. After, the department has spoken to the complainee, an inspector will come to visit the property and unit of the tenant that made a complaint. In most cases the owner is unaware of the inspection happening because it is not required to inform the property owner until after the inspection is completed. If the inspector finds three or more violations in the building,......
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