Los Angeles has a diverse creative economy – from film and music to strong entrepreneurship and technological growth. With the growth of industry, there has been an even larger effect of sprawl and lack of public transportation in LA.
Thriving Business
Along with government incentives for start-ups and a large network of funding opportunities for small businesses, LA’s many thriving industries attract a diverse and creative pool of talent. With the merging of the traditional entertainment market with tech brands – like Netflix – there is a growth of new generation media in the LA market. As technology businesses are beginning to leave the over-crowded Silicon Valley for LA’s emerging Silicon Beach, the city’s established sectors (aerospace, oil, tourism) continue to contribute to its booming economy too.
Attracting Investors
Investors are well aware of its credentials. The city is frequently among the top U.S. contenders for foreign real estate investment against the oversaturated markets of New York City and San Francisco – in comparison, LA pricing seems affordable.
Immigration, one of the defining characteristics of the vibrant and fast-moving city, has been a positive driver for the LA real estate boom. Large Korean and Chinese communities, for example, help encourage a lot of foreign investment, thus stimulating real estate leads. Once a rundown neighborhood with abandoned buildings, the downtown area is currently being revitalized in the biggest building boom since the 1920s, with Chinese developers pouring over $4 billion into luxury hotels and apartment towers.
The Olympics, to be held in LA in 2028, is also driving regeneration. As preparations become reality in the coming years, city officials are fast-tracking plans to bolster urban infrastructure before hundreds of thousands of visitors descend upon its developing public transport system and formidably congested roads.
Last year, LA voted to pay more tax to be funneled into what has become one of the country’s largest local transportation funding streams. The increase to transport spending will be allocated to the development of the metro system, developing links between unconnected areas such as Mid-Wilshire, Century City and Westwood where the University of California, Los Angeles is based.
The goal of investing so heavily in the metro system is to lessen the intense traffic across LA county. As the city continues to grow and develop, there is a major catch up game to change the car-centric population and culture of LA to one centered around public transport, which has traditionally been lackluster throughout the city.
A project is also underway to modernize LA’s International Airport, which is the fourth-busiest in the world by passenger volume. Last year LAX was voted one of the worst airports in the world for long delays, lengthy security lines and congestion in the roads surrounding the airport.
Modern development
Connecting the different regions of the LA sprawl could be the catalyst for a new, more sustainable – and attractive – mode of urban growth. LA is a massive metropolitan area. Redeveloping into different local markets, without a clear center, is something that investors might have trouble wrapping their minds around. But opportunities for development are popping up all over the city.
With planned metro links, the movement away from a commuter market is showing a trend of people and businesses beginning to cluster by industry. Exhausted from the long commute, companies are looking to realign and locate close to their talent.
Take the downtown area – this central business district is now attracting numerous new residential developments. Developers see a lot of real estate opportunity in LA, and this overall belief is generating increased confidence in the LA market.
Hosting the Olympic Games is another sign of confidence as LA looks to boost its brand on the world stage – and 2028 will mark the third time LA has played host. Because the infrastructure to host the games already exists in LA, the focus can be more about the global perception Of Los Angeles.
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