The question for investors isn’t about whether they should invest in real estate but where they should make their real estate investments.
Here’s why you should check out the Playa Del Rey neighborhood in Los Angeles, California, for your next real estate investment.
Choose Playa Del Rey Real Estate
The forecast for the future of the global economy is grim: inflation is increasingly getting out of hand, and recession looms on the horizon.
High-value real estate provides investors a critical hedge against rising inflation. Rising prices may lift property values. Rental properties earn higher returns as inflation increases, meaning investors increasingly turn to real estate as a more stable investment to protect their wealth as markets grow weaker.
Christina has successfully invested in Los Angeles real estate for over four decades. Take it from us; Playa Del Rey has some of the highest potential real estate in the entire country.
Now is the time to get into one of Los Angeles’ most hyper-prime neighborhoods: Playa Del Rey.
Where Is Playa Del Rey?
Playa Del Rey means “beach of the king” in Spanish — this neighborhood is aptly named, as it’s located right on the Pacific coast. Playa Del Rey includes a few neighborhoods with beachfront property in Los Angeles.
Playa Del Rey is on the westernmost edge of the city’s Westside neighborhood, just south of Venice in the middle of the L.A. coastline.
What Are Playa Del Rey’s Surrounding Neighborhoods?
Surrounding neighborhoods include El Segundo to the south. Playa Vista is its east, and the suburban expanse of Westchester is just beyond. Venice and Santa Monica lie to the north, with only the Pacific Ocean to its west.
What Are Playa Del Rey’s Boundaries?
Route 1 — Lincoln Blvd — marks Playa Del Rey’s easternmost border. Its southern border follows the Westchester Pkwy west. To the north, Playa Del Rey stops at Ballona Creek. All told, Playa Del Rey is a modest 2.75 sq miles.
Why Do People Move to Playa Del Rey?
Given its small size, Playa Del Rey hits far above its weight class regarding the market appeal. This niche neighborhood has critical features that make for highly competitive within its borders.
Here are a few reasons why people move to the neighborhood.
- It’s within Silicon Beach.
- It’s in a great location.
- It has strong community foundations.
How Does the Silicon Beach Phenomenon Affect Playa Del Rey?
The Westside region of Los Angeles has undergone a transformative economic boom, earning it a new moniker: Silicon Beach. The name is a play on Silicon Valley in northern California’s Bay Area, where tech giants have established a strong culture that promotes.
In 2011, Google established a vast campus in Playa Del Rey’s neighbor to the north, Santa Monica. Since then, some of the biggest names in tech have established expansive campuses and headquarters all along these coastal neighborhoods, including Playa Del Rey.
The presence of a single tech giant is enough to revitalize a city entirely. The Westside region has added dozens and dozens, transforming every facet of the economy to real estate.
Silicon Beach Affects Playa Del Rey Real Estate in Two Ways
- Commercial spaces become more valuable.
- Residential properties have become more competitive.
The onset of the Silicon Beach phenomenon has made Westside neighborhoods like Playa Del Rey a nexus for tech talent. Businesses new and old are concentrating on this increasingly rich industrial ecosystem.
Office space and commercial real estate have exploded in value as high-budget tech giants compete for the supply of property.
Along with the increased tech businesses, people are moving to the area in droves. It may be because their company is setting up shop there or finding a career in the tech world. Additionally, it could be to build their start-up in this well-connected tech environment.
This translates to high-income earning folks renting or buying property in the area. With more capital circulating in highly sought-after neighborhoods like Playa Del Rey, property values for residential and commercial can be expected to rise.
What Makes Playa Del Rey Such a Great Location?
Location is a seminal feature of any real estate asset.
Waterfront properties, or properties close to the waterfront, are virtually guaranteed to increase in value. One of the most outstanding features that draw people to Los Angeles is the access to high-quality beaches.
Playa Del Rey has some of the best beachfront properties in the entire city. Playa Del Rey beach makes up the whole western border of the neighborhood.
It’s not just the beachfront property that makes Playa Del Rey such a great location. Route 1 is easily accessible from the neighborhood, connecting residents and businesses to a principal arterial roadway.
Crucially, LAX is the largest airport in western North America. With such a short commute to the airport, Playa Del Rey has the entire world at its doorstep.
Playa Del Rey Is in an Unbeatable Location
Few neighborhoods can boast Playa Del Rey’s advantages. Its proximity to crucial travel hubs and the easy access to the beach means that everything is within arms for residents.
What Makes Playa Del Rey Such a Strong Community?
The real estate market is only as strong as its community.
Playa Del Rey possesses all the civil amenities that make for strong bonds within the community.
The quality of education in the neighborhood is exemplary. Within this small neighborhood, more than a half dozen schools serve the community. Here are just a few:
- Paseo del Rey Elementary School
- STAR Little Dippers Pre-School Program
- WISH Academy High School
- Wish Charter Middle School
- Loyola Village Elementary School
- St. Bernard High School
- Katherine Johnson STEM Academy
- Otis College of Art and Design
Loyola Marymount University is just on the other side of Route 1, promoting strong education roots that elevate the entire community in and around Playa Del Rey.
Playa Del Rey beach offers walking trails and bike paths for residents to take in natural scenery and protected wildlife reserves to the north in the Ballona Wetlands Ecological Reserve.
The Community Offerings Make Playa Del Rey an Attractive Place To Live
The more attractive a neighborhood becomes, the more valuable its real estate.
People looking for a strong school district for their children or folks who want to wake up surrounded by a beautiful natural landscape will find what they’re looking for in Playa Del Rey.
Playa Del Rey serves up the kinds of community amenities that encourage people who move there to settle and put down roots, making for a strong, stable real estate market.
What Are The Population Demographics for Playa Del Rey?
Getting to know the people who make Playa Del Rey their home gives investors critical insights into the present and future of the real estate market.
Here are a few key demographics worth knowing:
- Population Stats
- Income Stats
- Employment Stats
Population Stats
Playa Del Rey is home to 12,915 people. The population veers on the older side at 41, indicating the population is relatively settled.
Most households are non-family units at 60%; families only make up 40% of the total population, and only 10% of households have children.
44% of folks living in Playa Del Rey have never married, followed closely by married couples at 41%.
Income Stats
Playa Del Rey is one of Los Angeles’ more affluent areas.
The median household income is $104,814 yearly, while the average household is almost $150,000 annually. The average yearly income has increased since last year by .06%.
The most affluent age bracket is the 25 to 44-year-olds, with a median income of about $114,000 annually. The next wealthiest income bracket by age are folks 65 and older, with $108,000 a year.
Playa Del Rey is an excellent place to retire, but as more young people move into the area in the wake of the Silicon Beach phenomenon, things could change.
Employment Stats
The overwhelming majority of the workforce in Playa Del Rey are white-collar workers at 98%; of those white-collar workers, most work in the private sector at 62%, followed by self-employed entrepreneurs at 19%, government workers at 11%, and non-profit workers at 8%.
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What Are the Real Estate Trends in Playa Del Rey?
- Property values
- Number of housing units
- Average listings and days on market
Property Values
The median price for homes sold in Playa Del Rey is $871,000 — an impressive 8.9% from last year. 68% of homes in Playa Del Rey have sold above the list price.
The average listing price for homes is about 3% less than what homes sell for, indicating that the market for Playa Del Rey property is heating up. Some more sought-after homes have sold at 7% above their listing price.
Housing in Playa Del Rey
Playa Del Rey has 7,164 housing units, 6,685 currently occupied.
Homeowners and renters nearly have an even split on the available housing units; the homeowner occupies 49%, and 51% are rented.
Development of new housing units in Playa Del Rey saw its most significant increase in the 1970s, with 2,072 added to the supply. Since then, the neighborhood has seen a substantial drop in development; only 30 new units were built in the 2010s, preceded by 465 new units added in the 2000s.
Average Listings and Days on Market
There are currently 44 homes for sale in Playa Del Rey, lower than the average amount compared to other years.
Amidst this dwindling supply of homes on the market, the median number of days on the market for homes is 28, down 12 days from last year. Homes are going quickly in Playa del Rey, as houses are going faster with fewer hitting the market.
What’s the Future of Playa Del Rey Real Estate?
The strong performance of homes in Playa Del Rey indicates that the future may be bright for the neighborhood.
As the Silicon Beach phenomenon continues to bring more tech companies to the area, more and more young people are likely to move to neighborhoods like Playa Del Vista.
Between the beach, the community amenities, and its proximity to the airport, it’s an ideal neighborhood for upcoming professionals.
Get started with your Playa Del Rey real estate investments and help protect your portfolio for tomorrow.
Sources:
In the U.S. and around the world, inflation is high and getting higher | Pew Research Center