22 Apr Why Invest in Santa Monica Multifamily During a Pandemic
Yes we have Prop 10 2.0 looming in November. Yes Santa Monica has some of the worst rent control in the Nation at 1-2% increases per year. Yes Santa Monica is majority renters meaning pro renter vs pro landlord will most likely always prevail in regards to local rules and regulations. Ultimately, despite these three issues, Santa Monica offers too many benefits to list that outweigh the three challenges above.
Santa Monica is an A+ location for real estate investors, with some of the largest concentration of legacy, multigenerational, owners in the region, that will never sell, for good reason.
- Schools – some of the best public schools in the region which both owners and renters enjoy
- Shopping – there’s a lot of great retail in Los Angeles, though Santa Monica offers boutiques to luxury along 3rd St Promenade, Main Street and Montana
- Restaurants – from street food to James Beard and Michelin rated restaurants
- Proximity – the beach, Malibu, transit, freeway, Venice, Brentwood, Universities, Santa Monica is within a reasonable drive, transit, bike, walk to everything Los Angeles has to offer from work, school, fun, family, shopping, errands, everything
- Tenant base – 67% of the population has earned their bachelors degree compared to 31% for the nation, making for a strong, qualified tenant base with the ability to pay some of the highest rents in the country
- The Median Income – for the house hold is $94k and $72k per capita over $30k more than the rest of the county
- The Median Value of Housing Units – $1.2M versus $202k for the nation
The demographics above have led to consistent rent payments so far in April, despite the pandemic, with a majority of retirees, family wealth and many young tenants with the ability to work from home and still pay rent. The fundamentals in the demographics leads to fantastic qualities of why to invest in Santa Monica, either in a downturn or upswing, to preserve capital as seen in this previous post (click here) while earning modest cash flows similar to surrounding neighborhoods of Palisades, Venice, Playa Del Rey, Beverly Hills, West Hollywood, Brentwood.
If interested in Santa Monica multifamily real estate investments, give me a call, text or email by clicking here.