The great transfer of wealth or what I’m calling the Millennial Migration is underway. Los Angeles Real Estate will soon see the largest shift in buyer and seller demographics.
Affluence and wealth transfer coupled with the optimal generational cycle is a long-term trend for a new generation of families and individuals. Over the next 5 years, Millennials will account for 50% of the luxury home purchases and sales. Conventional wisdom says home values in most California markets will remain steady with equity value already built into most current home prices.
Cities throughout California and in the Southern California and Los Angeles markets are building and updating infra-structures and commencing new construction to meet future demand.
Two key trends and indicators of support in a strong California housing market are:
The Generational Shift: “Baby Boomers” to “Millennials.” Baby Boomers (ages 57-76) account for approximately 42% of homeowners. Millennials (27-41) today make up about 17% of homeowners.
The Future of New Construction In Los Angeles
In 2021, new construction starts were up 7% in California; a reverse of a declining trend since construction starts peaked in 2019: That year was a recovery trend from the years following the financial crisis of 2008. Today, there are other challenges for builders including supply chain issues and other economic factors, however, the future indicators are favorable
For Los Angeles, Millennials will be the primary drivers and beneficiaries of the new wealth of digital economies and digital currencies. Many will own or hold key company positions with corporate offices located anywhere throughout the nation and the world. The remote working environment will favor Los Angeles with its cultural and talent base, education and higher learning opportunities, a favorable entrepreneurial environment, multinational diversity, and of course, its desirable mild weather and year-round outdoor recreation. Make your stake today.
