Angelenos are faced with many tough questions when deciding to buy a home. Most will ask… How bad is the commute to work? What amenities are close by? Is the HOA affordable?
According to the Los Angeles Economic Development Corporation, more than half of a million people commute more than 60 minutes each way to jobs in Los Angeles County every day. This includes commuters traveling into Los Angeles from Ventura, Orange, Riverside and San Bernardino Counties. Many of these commuters work in areas with high job concentrations, including Downtown, Long Beach and West L.A. For a long time, a large supply of new and affordable single family homes could be found only in the peripheral areas, far from the Los Angeles job centers.
In 2005, the City of Los Angeles adopted the Small Lot Subdivision Ordinance, which allows for a new style of dense, fee simple homes, closer to the jobs and amenities of the Los Angeles core.
Land Advisors’ L.A. Basin Urban Infill Team is currently involved in several small lot subdivision projects throughout Los Angeles and sees a tremendous increase in interest from builders, developers and home buyers for the product. The projects vary in style from Spanish style contemporary to sleek, modern designs. In addition to the variety of product, many subdivisions are located within 15 minutes of Downtown, Hollywood, Dodger Stadium, Staples Center, job centers and other entertainment venues.
A somewhat unnoticed, but extremely beneficial aspect of the small lot subdivision is the lack of a Homeowners Association. Many HOA fees in Los Angeles exceed $300 per month, while a typical small lot subdivision project has no fee or a maintenance fee under $100 per month. This is an additional $200+ per month which could translate to more than $40,000 during the course of a 30-year mortgage.
As the Small Lot Subdivision popularity gains momentum, Land Advisors continues to track newly permitted projects and sales data for active communities. For more details about the small lot subdivision ordinance, developable sites and how active projects are selling, please contact Land Advisors’ L.A. Basin Urban Infill Team.
Source: Chris Gomez-Ortigoza, Marketing Consultant, (626) 376-9840 ext. 14