Long Beach Real Estate-Long Beach Condos

Will 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.

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges