Economics 101 – Supply and demand.
The supply in El Segundo is and always has been horrible. Because of it’s proximity to the beach, weather, freeway access and great schools there has always been strong demand. Because of those factors plus the other intrinsic values most residents find when they move here, many people do not leave.
This town is filled with people who’s families grew up here. People stay in El Segundo.
I write about greed because as I get older and find myself on the short side of the supply equation I get angry and frustrated. I saw a post on a closed, but popular, Facebook group for El Segundo Parents/residents. It was an ad for a one bedroom one bath apartment for $2500/month.
Advertised with the typical zeal found in real estate copy.
“extensive upgrades”, “granite counter tops”, “new dishwasher”
To me this is pure greed. It’s also pure stupidity. You can hope and wish there are people looking for a very basic apartment that are willing to spend $2500/month. Simple math says a person should make an annual salary of $90K to afford an apartment that costs $2500. The shitty thing is that even at $90k this person will be spending about 50% of their after tax income on rent.
It blows my mind that the owner/lessor thinks that this is good economics. We don’t even need to talk about the socioeconomic ramifications of raping your neighbor for rent.
This is an average los angeles shit-hole apartment with a “fancy” counter top. It’s half of a duplex so I guess you get to see the asshole ripping you off pretty frequently. My guess is it will sit vacant until supply and demand meet.