Los Angeles County Property Prices Rise For 11th Consecutive Year Despite Pandemic



The cost of residential real estate

The cost of residential real estate “rolls over”.

The already expensive real estate market in Los Angeles is getting more and more expensive.
The Los Angeles County Assessment List for 2021, which takes into account all taxable real estate in the county as of January 1, rose $ 62.9 billion to $ 1.76 trillion, the 11th straight year.

“We were all pleasantly surprised to learn that the list of grades, despite the pandemic, will continue to grow during the downturn caused by the pandemic,” said Los Angeles County expert Jeff Prang.

Real estate sales increased sales by $ 44.9 billion, while the mandatory CPI adjustment to Proposition 13 added $ 16.4 billion and new construction added $ 8.8 billion.

The total roll valuation is $ 17 billion in property taxes. The money, Prang said, will go to public education, emergency services, public health and other services.

“This is a positive, forward movement that means local governments and schools will have an increase in property tax revenues that will provide jobs, services and things that people rely on during the pandemic,” Prang said.

Some decline
However, not all measures have increased over the recent period. The personal assets of businesses fell by $ 5.5 billion, this category includes cars, boats and airplanes.

“This is mainly because many restaurants that pay property tax on their kitchen equipment have been tax exempt,” Prang said. “Since it was not used, they were given a reduction in the appraised value.”

Prang said some types of assets, such as the hospitality business, were affected, while “residential real estate skyrocketed.”

According to him, the assessed value of single-family homes increased by an average of 22%.
Stuart Gabriel, director of the UCLA Zeeman Center, said he has noticed an increase in the desire for homes, especially in suburban areas.

“With pandemic and post-pandemic, there has been a remarkable evolution in what we call intra-city or intra-city location preferences,” he said. “This can be roughly summarized as follows: the suburbs were not popular before the pandemic and preferred them after the pandemic.”

“We are seeing a very significant increase in demand,” he added.
John Loper, assistant professor at the USC School of Public Policy, said the trend is also seen among tenants.

“If you look at rents, suburban areas are doing much better in rental markets than urban areas,” he said.

Lauper added that during the Covid-19 pandemic, more and more millennials have also decided to buy houses.

Industrial profit
According to Prang, in addition to housing, things are doing well with industrial assets.
“Another area that won is warehouse space, manufacturing space, and many companies have moved to telecommuting and mail-order, they needed warehouse space to handle the shipment of goods,” he said.

Meanwhile, the cost of refineries has dropped as fewer people have been driving.
Prang said that so far this year the home sales situation has remained “relatively stable,” but there is still some commercial uncertainty, especially with the new delta variant of the coronavirus.

“It will take us a little longer before we can predict what will happen next year,” Prang said. “While things seem to be moving in a relatively optimistic direction at the moment, there is so much uncertainty and the residential property market is overheated.”

However, he expects an increase in the number of businesses applying for cost reductions.

Prang is also actively researching properties such as hotels to see if their value has dropped and will consider providing some tax breaks if they come down.

For requests for reprinting and licensing this article, CLICK HERE


Source link