I had a conversation the other day with a friend that lives in Mt. Washington. For those of you who don’t venture too far east of the 405, Mt. Washington is an area around the 5 and the Glendale freeway close to Eagle Rock. It’s part of the gentrification that is spreading from Eagle Rock. Can’t afford eagle rock? You start to venture to Mt Washington, Glassel Park and if you can’t afford that you look in Highland Park. In his area he’s seen prices escalate, the local small shops get pushed out for hipster juice bars and restaurants….new restaurants and people attract new interest…rents and home prices go up…working and lower class people get bumped out. He builds equity and looks to move to a nicer area. It’s the Southern California two step. Buy what you can barely afford, watch the price go up, take your gains and move to a better area or bigger house.
In lower class areas with bad schools, higher crime, graffiti and more brown people we call it gentrification. Not sure what the word is here in El Segundo but the premise is the same. If you can’t afford to keep up with the crazy real estate inflation you will eventually get bumped out.
I reading a frightening post on the El Segundo Parents Network where many residents expressed their fear that they are getting priced out of El Segundo (it’s not just a fear it’s reality).
Some of it sounds like whining and the belief that people deserve to stay in El Segundo because of their parents or jobs or that they have been here for a long time. Tell that to the Native Americans.
My point is the same thing is happening all over LA…all over southern California, Nashville, Dallas, Portland…. the list goes on. Blame the fed and their cheap interest rates.
Want to know why so many people in the Pacific Northwest hate people from Southern California? Because we walk in and see nice houses for $400K and don’t mind throwing an extra $50k to win the bidding war because it still seems cheap. We win, the local loses…. Notice the No California Sticker on the sign? It ain’t no joke.
We will continue to see people get priced out of our area and to many that’s frightening. Maybe I’m wrong, maybe silicon beach and SnapChat and Facebook will continue to drive prices higher, forever, exponentially…..
I could be wrong, it very well may be different this time. Remember MySpace, friendster, the tech bubble, the real estate bubble….