All reports show that baby boomers are our up-and-coming home buyers. Baby boomer professionals with money are looking to settle down and buy parcels of land that they can call their own and, if they have children, pass on to coming generations. Baby boomers mostly live, work and play in downtown Los Angeles and that is why this article suggests that alternative commercial hard money lenders may want to consider focusing their business on that area.
Downtown Los Angeles
Downtown Los Angeles is the central business district of Los Angeles, as well as a diverse residential neighborhood of some 50,000 people at this time of writing. A 2013 study found that the district is home to over 500,000 jobs. Wikipedia mentions that the district declined economically and suffered a downturn for decades until the early 2000s. Now, construction is brisk. Old buildings are being modified for new uses, and skyscrapers have been built. Downtown Los Angeles is known for its government buildings, parks, theaters and other public places.
Downtown Los Angeles is flanked by Echo Park to the north and northwest, Chinatown to the northeast, Boyle Heights to the east, Vernon to the south, Historic South Central and University Park to the southwest and Pico-Union and Westlake to the west. It is bounded on the northeast by Cesar Chavez Avenue, on the east by the Los Angeles River, on the south by the Los Angeles city line with Vernon, on the southwest by East Washington Boulevard and on the west by the 110 Freeway or Beaudry Avenue, including the entire Four Level Interchange with Highway 101.
In 2013, a study by Downtown Center Business Improvement District (DCBID) showed that of the 52,400 people resided in Downtown Los Angeles, the demographic breakdown was 52.7% Caucasian, 20.1% Asian, 17.0% Latino, and 6.2% African-American; 52.9% female, 47.1% male; and 74.8% of residents were between the ages of 23-44.The median age for residents was 3. The median household income was $98,700. The median household size was 1.8. In terms of educational attainment, 80.1% of residents had completed at least 4 years of college. The study was a self-selecting sample of 8,841 respondents across the Downtown LA area. It was not a “census” but rather a comprehensive survey of Downtown LA consumers.
Downtown Los Angeles and baby boomers
Downtown Los Angeles seems to be the territory of baby boomers. Research shows that baby boomers gravitate towards work/live/ play environments and LA certainly has all of that. According to a map from JLL that tracks millennials and baby boomers, Downtown Los Angeles outnumbers baby boomers by 10% in a consumer market. In most of the industry markets in Los Angeles, the breakdown is 25% millennials to 21% baby boomers. zodiac signs elements
Taylor Coyne, researcher of JLL, says that this information indicates where we need to build housing:
There is a huge demand for affordable housing in L.A. and understanding where one of the largest population groups wants to live, what amenities are most important to them, and what neighborhoods they can currently afford, could help guide development.
Baby boomers living in LA have upped their income during the last few years. They are focusing on their investment portfolios. A large number of baby boomers live in downtime LA. It only makes sense to construct there. It would also make sense for private money lenders to take another look at this area.