Looking for the New Upcoming Areas to Create More Affordable Hip Housing

Apartment building prices are rising; renovation costs are rising, and rent growth may be slowing.  For example,  rents in Echo Park and  Silver Lake are rising to the point that many of the YUPs  (young creative professionals) may  longer be able afford the rents.  Other markets may start to experience affordability ceilings.  One way to offer more affordable rents is by moving the boundaries of the neighborhood to adjacent areas where apartment building prices are lower.  Gentrification is fanning out from West Adams to Los Felix/Silver Lake and from West Hollywood to Highland Park and adjacent areas..  Gentrification depends on the growth of higher paying jobs that are now occurring in tech and media and the service firms that support these industries.  It may be time to start scaling back rent growth projections for the coming years.

 

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