In the beginning of the year I wrote about Santa Monica having the most expensive rent in the nation. The demand for rentals continues to rise and available rentals, especially units priced less than $5,000 are leasing very quickly. The Los Angeles Times wrote about a study done by Zillow that a 5% rental price increase could cause a spike in homelessness if more rental units are not constructed. According to that study, the County of Los Angeles has a 2.6% lower vacancy rate than New York and San Francisco, great news for owners of these rental properties. Currently renters spend more than the recommended 30% of their income on rent. While most home owners suffered during the last recession landlords were not affected, the rental market skyrocketed during those years with people losing their homes being forced to rent. With the City and State seeking ways to accommodate the lack of housing by allowing the now Accessory Dwelling Units, this could be an ideal time to enter into the income property ownership realm.
Currently in Santa Monica there are 39 income properties listed for sale and since January, a total of 31 properties have sold. The least expensive was a 2 unit building that sold for $1,075,000 on Ocean Park Blvd. and the most expensive is a 20 unit building for $6,700,000 on Lincoln Blvd.
Santa Monica has very strict rent control laws; Los Angeles is only slightly more moderate, however Orange County has no rent control whatsoever. State Assemblyman Richard Bloom has put a hold currently on a bill that would be a state-wide rent control due to strong opposition. Economists are noticing that rent control is not benefiting the poor. The Obama administrations previous Housing Development Toolkit states that “local policies acting as barriers to housing supply include land use restrictions that make development land more costly than it is inherently, zoning restrictions, off street parking requirements, preservation requirements, residential conversion restrictions, and unnecessarily slow permitting processes.” Stay tuned in regards to any regulations being lifted.
Two new off market closing have occurred that I will write about next week. For now, just know that they are huge sales for Santa Monica. One on Woodacres and one on San Vicente Both over $40M!
Two new listings have come to the market:
235 19th Street – Newly constructed 6 bedrooms and 8.5 bathrooms over 8,000 square feet. Full basement with wine cellar and movie theatre. Backyard with swimming pool and spa. Listed for $9,000,000! Last sold June 1, 2012 for $3,200,000. If this home sells for anywhere near its $9M price tag it will be a new record for spec homes on 60’ wide lots.
727 21st Place – Two story traditional with 3 bedrooms and 3 bathrooms approximately 2,569 square feet. Listed for $3,495,000. Nice grassy backyard with fruit trees and detached garage. Last sold May 1, 2000 for $1,240,000.
Three homes went under contract last week.
210 21st Street – Close to San Vicente approximately 8,934 square foot lot, listed at 3,650,000. Smaller home with 3 bedrooms and 3 bathrooms, build new or remodel. Last sold April 14, 2009 for $1,700,000.
633 24th Street – Getting the price under their original list price of $6M+ did the trick. This re-list at $4,449,500 represents good value. 5 bedrooms and 6 bathrooms approximately 5,280 square feet. Covered backyard patio with detached garage. Last sold October 12, 2006.
224 19th Street – Only on the market for one week! Charming California Craftsman style home with 5 bedrooms and 4.75 bathrooms approximately 4,175 square feet. Indoor-outdoor floor plan with lots of natural light. Large grassy backyard with detached garage and plenty of room for a pool. Last sold way back in January 12, 1984 for $405,000. Listed by Pence Hathorn Silver.
One closed MLS sale to report:
734 18th Street – 3 bedrooms and 2 bathrooms. Sold for $3,195,000.
Call me for a couple of upcoming attractions that are not yet listed in the MLS, priced from $1.9 million to $16 million. And….here are a few that we have listed in the MLS:
238 19th Street– 5 bedrooms and 6.5 bathrooms $6,495,000
621 21st Place – 4 bedrooms and 4.5 bathrooms $4,550,000
224 19th Street – 5 bedrooms and 4.75 bathrooms $4,275,000
426 Mesa Road – Vacant Land, $1,440,000
1717 S. Barrington Avenue #101 – 4 bedrooms and 3.5 bathrooms $1,395,000