The State of California is very complex and all the areas do business differently. The diversity of our state creates opportunities in the real estate field that no other state can match. LRS Realty & Management's footprint covers an approximate 1\3 of California. LRS manages properties in seven different counties. We have properties in Los Angeles, Orange, San Bernardino, Riverside, Ventura, San Diego, and Kern counties. Each county is special; demographically, culturally, religiously, politically, all combining to create that local opportunity for just about anyone.
There is definitely a different landscape here compared to other counties. Although the unemployment rate is currently 16.5%, rent collections have remained the same within our portfolio. Rents are increasing and properties are rented within a couple of weeks. Mojave (30 minutes away from Tehachapi) attracts large aerospace businesses including
Mojave Spaceport, Masten Space Systems,
Virgin Galactic, The Spaceship Company, Stratolaunch Systems, Firestar Technologies, and others. This is creating the need for additional homes for both rent and sale. Bakersfield, which is the largest real estate market in Kern County, is growing and one the best places for investors to purchase properties.
As with Kern County, Orange County LRS collections have remained high, leasing robust, and rental rates are overall stable. Orange County has more diverse technology than many US States. "When compared to several states Orange County was the second most diverse with 15 out of 19 tech industries having higher employment concentration when compared to 200 metro areas in 2018".This has created a highly skilled labor pool, bringing extremely qualified renters and buyers into the county. With beautiful beach communities, such as Huntington, Newport and the City of Irvine, making the top "best of" listed cities in the country, Orange County has a lot to offer.
I have read that San Diego has the "best climate in the world". The 50 miles of sun soaked coastline, lakes, hiking trails, emphasis on conservation, outdoor activities, spectacular downtown, and so much more. As with Kern and Orange County, San Diego rental rates are holding their own and sales activity has become relatively stable. Forbes called San Diego the "most inventive City in the world". San Diego is home to the " number 3 ranked public university UCSD in the US and 17th in the world". It is also ranked No. 1 for the lowest average commute times among peer cities. A great destination for international trade, manufacturing, military and tourism. From the beaches, to the mountain communities, properties with acreage, and a beautiful downtown city life, the diversity of San Diego is something to behold.
The Inland Empire's annual growth "stood at 2%, outstripping growth in the US (1.4%), California (1.8%), Los Angeles metro area (1.3%), Orange County (1.2%) and matching San Diego (2%)". The size of this area along with its proximity to Los Angeles, (with lots of underdeveloped areas) with cheaper housing costs, has many LA residents choosing to commute to and from work. As more people work from home, this trend should continue. The Inland Empire has many outdoor sports, from snowboarding to four wheeling. It has the beauty and grandeur of Lake Arrowhead and Big Bear and the desert tranquility of Joshua Tree National Park. As with the other counties the unemployment rate is around 15%, but the rentals rates seem to be holding up. Properties are renting out relatively fast, with many potential residents applying each day.
One of the best things about living in Los Angeles are the "escape valves", within a short period of time you can be at the beach, the desert, or the mountains. There are many cultures, languages, and of course cuisines. If you want it, Los Angeles has it! "Seventy seven percent of all site investments today are based on location quality, not cost. And the #1 factor is availability of talent". Los Angeles County has that talent making it a very creative and diverse city. The unemployment rate is at 16.3%., higher than the other counties in the state of California. LRS has been reaching out to those affected by Covid 19, setting up payment plans that make sense to their situations. Properties are taking a little longer to rent out, being "price sensitive" but every property gets rented in a very timely manner. The key for LRS is to price it right, and to always be available to answer the inquiries.
Going Forward:
LRS Realty & Management has been in business since 1988. Through the good and bad, the ups and downs, we continue to push forward. We continue to service our clients while never stopping because things have changed and we tap into the diversity of this state. We create new methods working with all our partners in all the counties, meeting our obligations with the knowledge and experience needed to service our communities.
