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And building high-density urban housing on land previously used for other
purposes has caught on.
Ive seen a shift from a small niche segment of our industry
doing infill to the point now where most builders — certainly the
majors — have included this type of building in their business
models, said Rich Ambros, chief executive of the Building Industry
Assn. of Southern California. In the years to come, youll see a
greater supply of workforce housing.
Squeezing more houses onto smaller acreage is widely acknowledged among
urban planners, academics and a growing number of city officials and
builders as a solution to housing Californias booming population. The
Wilshire Corridor, Hollywood, downtown Los Angeles, Anaheim, Fullerton and
Inland Empire cities such as Ontario and Fontana now have high-density
developments either built or going up, with jobs and public transportation
close by.
Thats great for some, but for other buyers and renters, its
still a Herculean struggle to live within their means and maintain a
reasonable quality of life in Southern California.
Tim Morrison, a 45-year-old executive at a construction-financing company,
has commuted 50 miles each way from Glendora — on three trains and a
bus — to his Northridge job each day for eight years. His wife,
Edwina, 49, a nursing communications technician at Cedars-Sinai Medical
Center in Los Angeles, has commuted for 12 years. It was worth it, Tim
said, to provide a larger home and good schools for their kids, who now are
out of the house.
Tim had a Thomas Edison moment last year when he saw an advertisement for
new Standard Pacific condos about to go up across the street from Union
Station. Morrison knew he had to get one. The day the sales office opened
in March, he and Edwina were among the first to purchase. They bought a
$586,000, two-bedroom condo with a view at Axis at Union Station, which
they expect to move into this month.
For us, moving downtown near transportation was a no-brainer,
Tim said. As soon as I saw the sign for these condos, I knew it was
what we were looking for.
Bentley Hodges and his wife, Catherine, both 28, thought they knew what
they were getting into house-wise when Bentley accepted an
investment-banking job in the west San Fernando Valley 2 1/2 years
ago.
After selling their three-bedroom, 2,000-square-foot home in Minneapolis
for $270,000, they felt sure they could find a Los Angeles home for
$350,000. That optimism quickly turned to despair after the couple looked
at junky, 800-square-foot homes in the West Valley, Bentley
said. They finally found a two-bedroom major fixer in West Los
Angeles for $580,000.
Bentley said he has endured a dawn-to-dusk commuting schedule so that he
and Catherine, a physical therapist, can live in a decent house they can
afford (barely). He leaves home for his office at 7 a.m. and returns after
6:30 p.m., when traffic eases.
But a recent move by a co-worker has gotten Bentley to thinking. His
colleague transferred to Plano, Texas, and used the profits from the sale
of his home here to purchase with cash a five-bedroom, five-bathroom house
for $400,000.
We like L.A., but you get more value for your dollar out of
state, he said. Im not sure where the future will lead
us.
Generation Y Us?
The Hodgeses, who were able to use home equity to buy, are the lucky ones.
As baby boomers children — the bulging demographic dubbed
Generation Y — think about entering the market, the inability to
findhouses they can afford has pushed home-buying far into the future
for some.
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