Wildfires' Economic Impact? A Blip on the Long Beach RadarWildfires will probably not drive up Long Beach rentsWill Long Beach property investors see a spike in rent rates due to the displaced homeowners from the California wildfires?
Probably not. The economic impact of the wildfires in Southern California will certainly be in excess of $1 billion. The sagging construction industry and home improvement industry should see an immediate rise in spending. Most of the property damage happened in the Santa Clarita Valley and Northern Orange County. It is most probable that displaced homeowners will seek to rent homes near their property so as to supervise the construction. Investors in nearby communities should see a rise in rental rates during that reconstruction; Long Beach investors wil probably not feel that affect.
Long Beach home prices, however, could see some stablity from the fallout. We believe that many displaced homeowners will see this disaster as an opportunity to accelerate a relocation. What I mean to say is that the baby boomers, owning property in the suburban areas most likely to be affected by future disasters, may "jump start" their plan of moving to a beach town and proactively start the relocation they planned for 2011. Disasters can induce a "flight rather than fight" reaction. The San Gabriel Valley homeowner, with two college age children, may decide to start looking for a "retirement" home, in downtown Long Beach, tomorrow rather than put off that dream for later.
The rise in construction spending will create more jobs. Long Beach homes priced under $500,000 may see more potential buyers as the construction jobs lost to the sub-prime mortgage collapse are replaced. The reconstruction should replenish that all important segment of California's labor force.
There aren't many silver linings in this smoke filled cloud. Downtown Long Beach, however, may be one solution for the Los Angeles County "suburbanite" looking to return to the convenience of urban living in a beach town. Related PostsLong Beach Police Officers and Firefighters Down Payment Grant ProgramCountrywide Troubles Can Affect Long Beach Home Buyers Grandpa Economics and Purposeful Planning Long Beach New Construction Falling? There is a Silver Lining in This Cloud The Little Things Matter http://www.longbeachrealestatehome.com/00135C Posted on October 27, 2007 18:24:31 by Brian.Brady
Comment from: Flat Fee Realty Louisville [Visitor] · http://louisvilleproperties.com Way to look at a bad and horrible situation positively! :) Just trying to make sense of this stuff. I'll keep thinking about it and reporting here. Comment from: Scottsdale az real estate [Visitor] · http://realestateinscottsdaleaz.com I fully agree, I don't think we'll see much change in rent prices at all. Comment from: Kaye Thomas [Visitor] Brian.. I think you may be right about people relocating to places near Long Beach and the South Bay if they work in the areas. People moved out to otutlying cities when prices were climbing. We may see a return now that prices are going sown a bit. Comment on this article This post has no comments awaiting moderation. |
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