HOUSING
Housing:
The industrial vacancy rate in the San Gabriel Valley is only 1.9%. In 2005, nearly 2.3 million square feet of space was under construction, expected to rent for $0.51 per square foot per month (lower than the Los Angeles county average of $0.56). The real challenge in the Valley is finding land for new development. The office vacancy rate in mid-2005 was 10.0%. At this healthy level, developers tend to start thinking about new projects, but again there is the challenge of finding suitable locations. Sites that are available often have Brownfield issues. A Brownfield is a site, or a portion of a piece of property, that has actual or perceived contamination and an active potential for redevelopment or reuse. Many areas across the country that were once used for industrial and commercial purposes have been abandoned — or are underused, given their location. On the residential front, new homebuilding in the San Gabriel Valley is difficult because there are few large parcels of land, and communities are concerned about growth, traffic congestion and impact on public services.  Pasadena has seen an increase in transit-oriented residential development and a surge in multi-family units. For the Valley as a whole, the bulk of new building permits have been for single-family residencies. The resale housing market has a wide range of prices. La Canada Flintridge and San Marino are at the high end of the spectrum, with averages of $1,250,000 and $1,200,750 respectively. The most affordable cities in the Valley are Pomona and Baldwin Park, at $375,000 and $380,000 respectively. Those who choose to live in one of the region's 31 communities find that the San Gabriel Valley truly has something for everyone. Housing options range from new starter and move-up homes to select executive-level properties in some of the most exclusive neighborhoods in California. And, all these varied choices are within a short distance of quality educational institutions and enjoy a year-round temperate climate. To find housing in the San Gabriel Valley, you can visit the House and Home San Gabriel Valley website at: http://www.socalhomesmls.com/. This site features useful San Gabriel Valley real estate information for buyers and sellers, as well as interesting links.

Average

January 2005

January 2006

% Change

Sales Price

$405, 991

$457, 157

13%

$/SGFT

$234

$236

13%

Days on Market

89

92

3%

Total Transactions

5,534

3,854

-30%

 San Gabriel Valley Housing & Real Estate SWOT Analysis:

Strengths:               

Wide variety of housing options available in all price ranges.

Low vacancy rates indicate a large potential labor force.

Large manufacturing base.

Higher re-sell value of homes over time.

Weaknesses:

Running out of land for any type of development.

Some economically disadvantaged areas.

Workforce education.

Ability to attract talent pool needed for technology-based industry.

Opportunities:

Desirable location with close access to many other markets.

Redevelopment of Brownfield sites.

Ability to develop high-tech firms.

Threats:

High land prices drive up development costs.

As high tech startups get larger, they often move out of the San Gabriel Valley due to cost issues as well as availability of an educated talent pool.

 
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