Keep in mind that there are a couple unique factors at play in the downtown LA real estate market...
1.) Rents peak in August every year(or at least it seems that way) as USC and FIDM students arrive.
2.) Extremely limited inventory for purchase. There are two markets...one is cash only and the prices for cash only vs loans varies ridiculously. Cash only theoretically has a great return. Mortgages are more expensive than renting once you factor in HOA.
3.) Landlords in the DTLA market kept prices high at the cost of multiple vacancies for an extended period of time.
4.) DTLA has a median income of around $86K. So residents do have income to support the rents. However, it remains to be seen exactly how overbuilt DTLA is compared to the population.
So the evidence:
$1350 is the very cheapest price I've seen for an $800 sq ft loft in the main area of DTLA. Even though there are issues with this building, that sort of price used to get you only around 600 sq ft.
Same as the above property. $1700 for over 1000 sq ft. Cheapest I've seen at that price. I should note that this building(SB Grand) has been a hotbed of investor activity over the past year with a constant barage of ads, each one apparently cheaper than the one before it. I wonder how low some will need to go to get tennants.
Less than my rent in a larger place. Low floor though.
Same as above.
Washer and dryer included as well as parking. I don't beleive I've ever seen this combo at that price($1420/mo). Considering the building is new, close to some of the better downtown stuff, and reviewed ok, this is probably the best deal I have yet to see in DTLA in the year+ I've lived here.
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FollowBefriend (3)28 threads747 comments Tarzana, CA
Guess we are in the minority here being from LA. I remember when there really wasn't a downtown to speak of. Glad 'something' is going on there. :-)
FollowBefriend (2)2 threads71 comments
Downtown LA is owned mostly by CALPERS and other retirement funds. They are sitting on vast capital losses and have been very unwilling to lower rents because their long term projection rely on the rents being different from what the market can support.
FollowBefriend (28)171 threads4,206 comments Premium
DTLA is so convenient. You can buy T-shirts, lighters and party favors without even going inside a store.