Friday, September 16, 2005

Does LA's Downtown Have Immunity?

Kathryn Maese, a reporter for the Los Angeles Downtown News reports that people keep paying ridiculous prices for lofts in some dicey parts of downtown LA because they believe the area, which has been depressed for decades, is poised for a comeback. Here's an excerpt:
With the Downtown market as hot as ever, local sellers, developers, agents and even speculators seem to be ignoring the word that is casting a shadow over much of the nation's housing market. They simply have no fear that a Downtown "bubble" will soon burst.

"What I tell people is that while Downtown exists within the context of the real estate world, it also has a little life of its own," said Stephen May, whose company Downtown Residential Real Estate has weathered the ups and downs of the market for 15 years. "When I started there was no Museum of Contemporary Art, no Disney Hall, and only four condo buildings on Bunker Hill. Now there are at least 25 condos projects in development."

May and others think Downtown is insulated from a real estate downturn because of a unique set of factors. Urban appeal, historically distinctive buildings, billions in investment, a hub of public transportation and perceived profit potential, they believe, will keep Downtown humming even as other communities take a housing hit.
Read the entire story at this link.

— The Boy in the Big Housing Bubble