A report that was published back in January from Apartment Guide indicates Santa Monica has the highest rents in the entire Country. 29 Cities in California rank the highest out of 50 across the Nation.
On a National level, rental prices are on the decline, in New York for example rental prices have decreased slightly. Not the case here as local rents are getting more expensive. It seems like everyone knows of Santa Monica and what a desirable place it is to live. Much to the dismay of local landlords, many tenants rent the same apartment for years, so there is very little turn around, mostly due to the long standing rent control laws. Since the 1970’s Santa Monica has had a shortage of rental units and a high demand for them. Like most large cities with tenant majority, tenants voted to implement rent control, only allowing for landlords to increase rents annually at a maximum allowable rate. Due to the high demand for more rental units Santa Monica residents voted “no” back in November on Measure LV. Measure LV would require that residents vote for all developments over three stories tall. A similar measure required Developers to include an affordable/low income component to any residential development they build. In 1990, Proposition R was passed requiring that 30% of all new income housing be offered at affordable prices. In the early days of this law, developers could sometimes pay “in-lieu of” fees to the City rather than actually build the low income housing units. Now, the affordable housing must be on-site. In spite of all the fees, taxes, rules, regulations and time it takes to get a building permitted and built, developers remain a hearty and ambitious bunch. The stratospheric sale prices and record setting rents tell us there is still enough profit for developers to prosper and if you build it, they will come.
If you want to invest in apartments buildings, please call me.
Here is a quick update on the SFH 90402 real estate market:
Two new listings came on the market:
323 21st Place– 5 bedroom and 8 baths, $7,950,000. This three story home was built in 1994 and is approx. 8,100sqft, it includes a basement with a home theatre and a sun deck above the garage. Last sold in June 4, 1992 for $740,000.
457 19thth Street– 5 bedroom and 5.75 baths, $4,979,000. Updated Spanish house with lots of original character, private courtyard and backyard with a pool & spa . Last sold in December 16, 2013 for $3,495,000.
One listing under contract:
401 Ocean Avenue– 7 bedrooms and 5.5 baths, $9,500,000. The Henry Weyse/Charles Morris House built in 1910 by Robert D. Farquhar located on the corner of coveted Georgina and Ocean Avenue, approx. half an acre. Property is deemed a historic landmark.
Four closed sales to report:
513 Marguerita Avenue– 4 bedrooms and 2.75 baths. Sold for $5,500,000.
335 16th Street– 3 bedrooms and 1 bath. Sold over asking for $3,450,000. Listed and Sold by Pence Hathorn Silver just 1 week after coming on the market!
629 Palisades Avenue– 3 bedrooms and 2 baths. Sold for $2,100,000.
427 14th Street -2 bedrooms and 2 baths. Sold for $2,800,000.
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:
1024 Palisades Beach Road – 6 bedrooms and 7.5 baths $9,250,000
323 Adelaide Drive – 4 bedrooms and 6 baths $6,750,000
920 Alta Avenue – 6 bedrooms and 6.5 baths $6,595,000
1338 Longworth Drive – 6 bedrooms and 7.5 baths $6,395,000
1023 S. Bundy Drive – 2 bedrooms and 2.5 baths $2,049,000
435 Arnaz Drive #101 – 2 bedrooms and 2.5 baths $890,000