Lately, many first-time homebuyers are being priced out of desirable LA neighborhoods. This has created increased interest in moving to neighborhoods close to USC and to the west, where an expanding Expo light rail line is seen as a significant regional amenity. It is a convenient public transportation option, as well as a property value booster. The areas of Jefferson Park, Leimert Park, and West Adams are experiencing renewed interest from buyers and investors. Properties in these neighborhoods are more reasonably priced while also offering a convenient link to either the Westside or Downtown via the rail link.

This influx of interest has driven up prices in these neighborhoods. According to DataQuick, the median home price rose 40.6 percent to $450,000 in the ZIP codes that house these properties. House flipping is known as a sign that residential real estate activity is heightened. Flips accounted for 11.5 percent of all home sales in the aforementioned areas. This flipping rate surpassed investor activity in the similarly desirable neighborhood of Highland Park. Developers are buying and improving these homes, typically Craftsman and Spanish-style, and selling them for profit to Westside, Downtown, and West Hollywood newcomers.

Jefferson Park, Leimert Park, and West Adams were once primarily white and black neighborhoods prior to the 1970s. A recent surge of Latino immigration has now changed the makeup of this region to mostly African American and Latino residents. New homebuyers that arrive in this region are usually white. Many features apart from the rail line attract the newcomers – an abundance of historic housing, a declining crime rate, and the proximity to a revitalized downtown that keeps improving. It is up to businesses to recognize this trend and act on the demands that these newcomers will bring. People are increasingly looking to neighborhoods where all of their needs may be met, rather than having to commute to restaurants and retail destinations.

USC already has big plans to open a mixed-use development featuring retail and expanded student housing on Jefferson Boulevard. Activists that are against USC’s plans because of gentrification fears reached an agreement with the university for a $20 million investment for affordable housing. This is a drastic increase from the university original $2 million proposal. 

Source: http://www.latimes.com/business/la-fi-property-report-20140501,0,255322.story?page=1&utm_content=section&utm_campaign=linkbox_override&utm_source=wwwlatimes