Hawthorne Real Estate is Heating Up
At Ali Safavi Real Estate we’ve talked at length about how to find good investment properties. For those who have flexibility on their location, finding real estate in emerging markets is a great option. But how can the average person spot an up and coming location before it hits its stride? A great case study lies right here in Southern California: Hawthorne.
Ali Safavi Real Estate has had their eye on Hawthorn since the late 2000s. Back in 2007 the median home price was $530,000 according to CoreLogic. Thus, it made for a good enough option for Angelenos looking for an "affordable" real estate. Industrial property was also cheap at $.50 a square foot. No glitz or frills, It was working class city with a medium income of around $40,000 and a crime rate which was more than double the national average.
So how do companies like Ali Safavi Real Estate know that growth is on the horizon? There were some very clear signs that a movement was afoot - and it all centers around business. Back in 2005, SpaceX moved into a complex previously occupied by Northrop Corp. The space start-up is owned by Elon Musk, who also decided to move Tesla into the same space. Combined these two companies employ thousands of people, many of them well paid. This was part of a larger migration in the late 2000s of companies moving into Hawthorne to take advantage of the cheap real estate.
As we say at Ali Safavi Real Estate, business begets business. Larger companies bring a large workforce which then fuels the need for ancillary businesses like restaurants, bars, coffee shops, and retail stores. Now buildings that were once desolate are now bustling with both residents and commuters.
Now for the cherry on top - the LA Rams will soon be calling Hawthorne home. Current homeowners may begrudge the increase in traffic jams, but they can't ignore the almost 9% increase in their home value in the last 10 years.
Hawthorne is still packed with real estate opportunities that will be cheaper than Los Angeles. The transformation is still underway, but the upward trend isn’t set to slow down anytime soon.
Where do you think the next SoCal hotspot will be?
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