There’s never been a better time to get into high-value real estate, considering the current state of the economy. But with so many different areas to choose from, it can be challenging to know where to start.
Christina has four successful decades in Los Angeles real estate and we’ve trained our eyes for hot markets. If you’re looking for a sensible real estate investment, you can’t do better than Venice is Los Angeles.
Here’s why you should consider investing in Venice real estate.
Why Do People Move to Venice, California?
Getting a sense of why people are so drawn to Venice in the first place gives you a better idea of why it’s such a bankable neighborhood.
Venice’s appeal boils down to three main points:
- It’s a great location
- It has a rich cultural history
- It’s resident friendly.
Where is Venice, California?
Venice is tucked right up against the Pacific coast. Just south of Santa Monica, southwest of Culver City, and due west of Inglewood, it draws in all the beachgoing folks that want to catch the golden, sunny beaches that L.A.’s beach fronts offer.
Its beachfront location makes it a prime spot in the city.
It’s not just homeowners and residents who enjoy the proximity to the beach; commercial businesses and upscale boutiques have established themselves in this tiny neighborhood catching all the buzz drawn to this excellent neighborhood.
The Venice Boardwalk alone houses tons of businesses that service the teeming streams of people strolling up and down the shore every day.
Venice Is An Ideal Location For Homes And Businesses Alike
Proximity to water is a massive boost to a location’s appeal—people like being close to the water. Beyond that, Venice is close to L.A. neighborhoods, making it an ideal place for residents and businesses.
Venice Has Rich Cultural History
The city of Venice was founded in 1905 by Abbot Kinney. It originally served as a resort due to its prime location near the beach.
Over the years, Venice has gone through many transformations that have cemented it as a legendary California locale.
Prominent beatnik poets and artists took up residence in the neighborhood during the 1950s, giving rise to its reputation as a bohemian haven. As the countercultural revolution exploded throughout the 1960s, famous rock stars passed through Venice, adding to its storied history.
Surfing and skateboarding culture as we know them today were nurtured on Venice’s beaches and sidewalks.
Venice’s Iconic Background Deepens Its Appeal
Los Angeles is already well known for its cultural impact. But considering Venice’s relatively tiny size, it perhaps has the most cultural history per sq/ft.
There are cultural landmarks around every corner in Venice: motels that housed musicians on the brink of fame like Jim Morrison and Jimi Hendrix, cafes whose walls reverberated with Beatnik drum circles.
Venice has an enduring legacy as a cultural hotspot, which adds a one-of-a-kind appeal that people flock to.
Venice Is Resident Friendly Neighborhood
Venice has one of the highest walkability scores in Los Angeles county: 83.
Some neighborhoods in Los Angeles often require residents to have a car to get to work, go to the grocery, or carry out their daily errands. And in a city where public transportation can be lacking, neighborhoods often become more car-centric than they need to be.
The charm of Venice is its high navigability. Its non-car-centric design from the early 1900s once turned off residents. Now people are clamoring for the foot-friendly vibe Venice offers its residents.
Venice Has What Everybody Wants In A Neighborhood
People can have all their needs met within a smaller area. Venice has plenty of grocery stores, retail locations, and nightlife opportunities evenly dispersed throughout the neighborhood—people are like that.
Real Estate Trends in Venice, California
Venice strongly appeals to all sorts of folks from across the country and for all kinds of reasons.
Let’s look at a few of the real estate trends that make Venice such a high-value investment for real estate assets.
Property Values in Venice
Venice houses high-value real estate assets. This value is reflected in the property value.
The median sales price for a Venice home is about $2,100,000 dollars. That’s high compared to the rest of Los Angeles.
But considering its prime location and chic appeal to affluent residents, it isn’t a surprise that one of the most sought-after neighborhoods in the city also has some of the highest property values.
The average rent is around $3,000 for a one-bedroom apartment in Venice. Rent is higher than average compared to the rest of the city, meaning property owners can get a high return on their rental properties.
Average Active Listings in Venice
The average active listings in a market let investors know how expansive the inventory of a real estate pool is for a given area.
There are about 17,500 units of housing in Venice, most of which were constructed in the late 1960s. Of those 17,500 units, about 15,302 are currently occupied. 35.24% are owned by the occupants, whereas 64.76% are rented—the rental market accounts for almost two-thirds of the housing units.
There are currently 162 active listings for homes for sale in Venice, CA. In June, 161 homes were sold. The year before, it was 164. In general, the average listing size hovers around the 160 range.
At the moment, there are 38 apartments available for rent in Venice.
Average DOM For Venice Properties
Knowing the average DOM—or days on the market—lets you know how competitive the market is.
New listings stay on the market in Venice for about 41 days. The year before, it was 53 days—properties are going faster in Venice this year.
Compared to Los Angeles, homes last a little longer on Venice’s market. Houses will last about 33 days in Los Angeles.
Income Statistics of Venice Residents
The income level of a market’s resident pools establishes a capital baseline of an area, letting investors know how competitive real estate assets can be.
The average annual household income of Venice residents is around $165,000. That number has been up by 5.7% over the past year, meaning more affluent people are moving to the neighborhood. With more capital moving into the community, investors can reasonably expect property values to increase.
White-collar workers make up the overwhelming majority of Venice residents: 95%. Of those white-collar workers, nearly a quarter are self-employed entrepreneurs. 62% work in the private sector, and almost 6% work for the government. The remaining 4% are blue-collar workers.
Why Should You Invest in Venice, California Real Estate?
- More people are moving to Venice.
- Property values are on the rise.
- Properties are going faster.
There are currently around 29,135 people living in Venice, up 2.2% from last year. With more people moving to this charming neighborhood, the home market increases competitiveness.
Property values have increased due to this increase due to the increased competitiveness in Venice real estate. The selling price of homes is up 11.4% from the year before.
Despite this increase in value, homes are still going faster than they have in years prior.
The increased demand, alongside the rising property prices here, means that investors can expect the value of their investments to rise in the coming years. The increasing demand for these increasingly valuable properties means that investors can feel more confident that their properties have an advantage in the market.
The real estate market in Venice is advantageous to prospective real estate investors. Here are some key benefits investors can expect from an investment in Venice property.
Learn more about Christina’ strategy towards Los Angeles real estate has informed our investing so you can make smarter investments.
Benefits of Property Ownership In Venice, California
- Provides investors a hedge against inflation
- Gives investors high cash flow returns on rental properties
- Asset values are reliably appreciated
How Does Venice Real Estate Hedge Inflation?
Inflation creates a severe risk to our savings. Inflation is worse than the general rising of prices across sectors of the economy; it means that the dollar’s purchasing power grows weaker as inflation increases.
This means the money locked into your savings or retirement funds is being eroded as the dollar grows weaker; the depreciating value of the dollar outpaces the interest generated on your savings, losing your money.
High-value real estate investments don’t just help you endure inflation; they allow you to generate more income.
Rent is one sector of the economy affected by the rising prices associated with inflation.
Rental properties can give property owners a better return as prices rise. To offset rising ownership expenses, landlords simply pass the rising costs onto the tenant, giving investors a stable income stream that grows with inflation.
Why Do Venice Real Estate Assets Have High Cash Flow?
High cash flow supplies investors with a steady stream of income that can be used for additional investments.
Gross cash flow describes the total amount of cash going in and out of a financial asset. In the case of rental properties, this refers to the ownership expenses like property tax, maintenance costs, etc., going into the property and the rental income coming out of it.
Net cash flow establishes the total balance after the numbers have been crunched on an asset. High net cash flow means that the cash produced by a purchase exceeds the money going into the asset.
Real estate has a consistently high cash flow.
Property owners generally expect a rental property to have a high net cash flow. After all, for a property to generate a profit, rental income from the property must necessarily exceed the costs of ownership.
The high-value properties in Venice produce high net cash flow due to their high average for rent. A Venice rental property will consistently make regular monthly rental income for investors.
Why Does Venice Real Estate Appreciate?
Appreciation describes the increase of an asset’s value over time. Compared to other asset classes, real estate appreciates at a highly reliable rate. Since the 1960s, the average sales price of homes sold in the United States has increased yearly, almost without fail.
Because real estate is inherently scarce and development is so slow and costly, the property is almost guaranteed to appreciate over time.
Venice real estate is almost guaranteed to appreciate.
Property in Venice is some of the most sought-after in all of Los Angeles. The market trends that increase demand in Venice make its already scarce real estate even more valuable.
As more and more people move to this small neighborhood, the limited amount of housing units will continue to increase in value. Even in the short term, investors can expect their real estate assets to appreciate very quickly.
Invest In Venice, California With The Best
L.A. is one of the best markets in the country. To break into this highly competitive market, work with the city’s best real estate investment firm: Christina.
There’s never been a better time to get into the Los Angeles real estate market.
Don’t miss out on this once-in-a-lifetime opportunity. Get started with Christina today.
Sources:
Living In Venice Los Angeles | WalkScore
Venice Housing Market | Redfin
Venice Demographics | Point2Homes
Average Sales Price of Homes Sold For The United States | Economic Research