Take Hollywood Hills. The name alone conjures the star-studded luster that Los Angeles has to offer. But there’s more to Hollywood Hills than its silver screen name.
We’ve seen everything Los Angeles real estate has to offer over our four decades in Californiareal estate. Let’s explore what makes a real estate market so strong in the first place and how those trends make Hollywood Hillsreal estate a great investment.
What Makes Hollywood HillsReal Estate So Special?
When it comes to investing, there are plenty of options available.
Why choose real estate?
Real estate assets are remarkably stable, and for a good reason. They have unique economic characteristics that set them apart from other asset classes. Let’s look at these four economic characteristics that make real estate a steady investment.
- Permanence of Investment
Through improvements on the property, investors can have a direct impact on the value of their assets.
If you buy a stock, there’s nothing you can do personally to increase its value—your investment depends on the whims of the market.
With a real property like real estate, investors can make additions to the property or improvements to the building that increase its value. These types of progress have a wide range, from a complete gut and renovation project to new bathroom counters.
The ability to affect the value of a property means that investors have more control over the performance of their asset, thereby improving your chance of a better return.
When you already have a high-performance asset, like a property in Hollywood Hills, additional improvements could help you skyrocket its value.
Permanence of Investment
The permanence of investment inherent to real estate assets makes them an alluring long-term investment.
Fixity means that the increase in value of the real estate is generally a permanent one. Property improvements, especially expensive ones, are relatively indestructible. Connecting a home to the electrical grid or setting up a waste disposal system are effectively intractable investments.
Additionally, the property is immobile, meaning that those improvements are squarely set on that property.
Scarcity is baked into real estate, ensuring that its value remains relatively high.
Supply and demand is the most fundamental law of economics. When supply is low and demand is high, the value rises. Demand for a property almost always exceeds the supply. This is due to the scarcity inherent in real estate.
For one, the land is a finite resource. As an area becomes increasingly developed, the supply necessarily decreases, driving up the value. Furthermore, development costs significant time and money. This puts a natural buffer on the supply; when it takes so long to build up more real estate, supply will rarely exceed demand.
At the end of the day, real estate is all about location.
Location is the seminal factor that determines the difference in value between assets—the effects location has on a given property can be profound. Even a carbon copy of the same exact building can drastically differ in value depending on location.
Property located on Laurel Canyon Blvd in Hollywood Hills, for example, will be vastly more valuable than the same exact property in rural Oklahoma. That means that investors can make smarter decisions on where they decide to invest in real estate based on the performance in a given location.
What Makes Hollywood Hills a Good Investment?
The strengths of real estate assets and the trends that determine a hot market can be hard to determine in practice. But after a closer examination, you can start to see how these signs of a lucrative market present themselves.
Let’s look at some defining features that make Hollywood Hills, Los Angeles 90068, such a high potential real estate market.
Where are the Hollywood Hills Located?
The Hollywood Hills are a residential neighborhood of Los Angeles. They’re located about 16 miles away from the Sunset Strip, giving residents a secluded, relatively sparsely populated suburban area that still offers an urban feel.
The hills are tucked between the Santa Monica mountains and Cahuenga Pass, adding to their secluded feel.
Areas surrounding Hollywood Hills include Burbank, Universal City, and Studio City to the north, Hollywood proper to the south, and Hollywood Hills west to the west. Hollywood Hills is a quality location situated in the Los Angeles area.
Seclusion Is Selling Point For Hollywood Hills Property
The secluded location of the Hollywood Hills makes it ideal for folks who want all that the city has to offer without too much of the hustle and bustle of more populated areas in Los Angeles.
What’s the Population of Hollywood Hills?
The last census clocked over 22,000 people living in the Hollywood Hills neighborhood. Over a 7 square mile span, this neighborhood has an attractive population density, far lower than other parts of the city.
Thirty-seven years old was the median age for the neighborhood, with a median household income of about 70,000 dollars. The people living in Hollywood Hills tend to be more affluent, with plenty of capital circulating in the area.
Of all the neighborhood’s housing units, more than half of them were being rented. There’s a lot of rental income to be tapped in this neighborhood for investors willing to invest in Hollywood Hills property.
Hollywood Hills Has High-Value Rental Potential
With a commendable level of renters in the neighborhood mixed with the affluent demographics of the neighborhood, rental income can be a highly lucrative passive income source for Hollywood Hillsreal estate.
What Are Hollywood Hills’ Defining Features?
Though it’s a serene area tucked away from the city, some killer features make Hollywood Hills a fulfilling place to live.
The famous Hollywood Bowl is in the neighborhood. A Los Angeles cultural institution. Named one of the top 10 musical venues in the country by Rolling Stone, the Hollywood Bowl draws some of the best musical, theatrical, and comedy acts touring every year.
There’s also the John Anson Ford Amphitheater for even more cultural options for residents.
But far and away, the most defining feature of the Hollywood Hills is the iconic Hollywood letters sat up on the hillside overlooking the city. You can get a prime view of the sign from Mulholland Drive in Hollywood Hills.
Hollywood Hills Are A Hot Cultural Hot Spot
There aren’t many neighborhoods like the Hollywood Hills.
It is the legendary cultural hotspot in its backyard and perhaps the single-most iconic feature of sunny, star-filled Los Angeles in the Hollywood sign. Hollywood Hills has a magnetic appeal that makes it a highly valuable area to invest in real estate.
How Are The Schools in Hollywood Hills?
Residents choosing their long-term homes consider the local educational system. Schools can have a huge impact on the value of local real estate. Families want the best for their kids, so high-performing schools make single-family homes and other housing units more competitive.
The education level of the community at large speaks to the high degree of brain power fueling Hollywood Hills. Over half the residents in the area have attained at least a four-year degree, making Hollywood Hills well-above-average when it comes to education.
For the younger generations, there are plenty of high-performing schools in the area to choose from:
- The Neilson Academy on Woodrow Wilson Drive
- Cheremoya Avenue Elementary School on Franklin Avenue
- The Oaks on Franklin Avenue
- Valley View Elementary on Woodrow Wilson Drive
- Immaculate Heart Middle and High School on Franklin Drive
Hollywood Hills Has A Strong School System
With such an exclusive, high-performing school district for a population of just over 20,000, the school system in Hollywood Hills makes it competitive for families. As a result, local real estate is equally competitive.
How To Identify A Good Hollywood Hills Location
The economic characteristics of real estate can manifest into a wide array of trends that determine the market’s potential.
Identifying these trends in a particular area, like Hollywood Hills, and observing their performance give investors the information to make better investing decisions.
- Job Growth
- Employment Rate
- Rental Demand
- Population Growth
- Talk to a Real Estate Firm
When more people find work in a given area, investors can safely assume that more capital will flood that location.
With more capital in the location, the likelihood there will be an increased exchange of goods goes up. Real estate is one of the most likely markets to see growth when people find new, gainful employment.
For one, folks in the area have more resources to upgrade their living situation, now flush with the capital with which they can purchase a new home. Secondly, the likelihood of more people moving to the area for their new job means that both property sales and rental demand increase.
If jobs are growing in the area, investors can rely on the value of property to increase.
Similar to job growth, the area’s employment rate provides investors with crucial information to determine an area’s potential for real estate investment.
Job growth may show an increase in an area’s employment, but the total employment rate shows the community’s overall health.
High employment means that there is economic stability in the area. With more people in the community gainfully employed, investors can count on rental payments for leased properties to be made.
The demand for rental properties in an area is one of the clearest indicators a given location is prime for investment.
High demand means that the value of rental properties is going up, making it an opportune time to step into rental property ownership. Demand for rental properties can be determined with just a little research.
Finding the supply of real estate listings in an area available tells investors how strong the demand is. In addition to the supply, identifying how quickly new listings go off the market lets investors know that the demand is high.
High population growth in an area is a good sign that real estate will increase in value soon.
People need places to live and operate their businesses. With more and more people flooding a given real estate market, they naturally need these accommodations for their needs. As the population increases, competition for the supply of real estate assets increases, driving their value.
Talk To A Real Estate Firm
Doing your research indicates that you’re committed to finding a good investment.
However, one of the easiest ways to get a clear idea of the health of real estate in a given area is by asking a real estate investment firm.
At Christina, we’ve found successful investments in Los Angeles yearly. We’ve trained an eye for hot real estate investments from Santa Monica to Beverly Hills, Bel Air, Kirkwood, and Hollywood Hills.
Curious about Hollywood Hills? Just reach out and ask for advice.
Invest With The Best
Investing in hyper-prime real estate like Hollywood Hills is virtually impossible to do on your own.
Our agency has the skill set, the capital, and the network to effectively navigate this highly lucrative market.
Skip the open houses. Invest in Hollywood Hillsreal estate with Christina. Get started today.