Lack of workplace housing is risk to booming San Fernando Valley economy

The exodus of workers is part of a broader statewide trend as housing prices climb

Los Angeles /
Feb.February 28, 2019 05:18 PM
The middle class is being thinned out in the San Fernando Valley (Credit: iStock)

The San Fernando Valley economy is booming. But high housing costs are contributing to the exodus of an increasing number of working-age adults, shrinking the region’s middle class and putting pressure on companies in the area.

The lack of workplace housing is one of the biggest risks to the Valley’s economy, according to a report by the Center for Economic Research and Forecasting at Cal Lutheran University, which was reported by the Los Angeles Daily News.

The exodus of workers is part of a broader statewide trend as housing prices climb. Despite recent signs of a cool-off, housing data shows that the media cost of a single-family home in the 818 ZIP code rose 9 percent last year to $675,000.

“Many hundreds of thousands of employees in retail trade, leisure and hospitality and education and health services are finding it increasingly difficult to live in the Valley,” the CERF report said.

Matthew Fienup, CERF’s executive director, said there has been a “hollowing out” of the Valley’s middle class. He called that a “cautionary note” in the otherwise positive outlook for the region’s economy, which has been outpacing the rest of Southern California.

Gross Domestic Product in the Valley grew by 4.3 percent from 2014 to 2018, compared to 3 percent in Los Angeles, and zero growth in Ventura County.

CERF expects growth in the Valley to average 4 percent over the next two years, the Daily News reported, which will “significantly outpace” Greater L.A. [LA Daily News] — Alexei Barrionuevo


Related Articles

arrow_forward_ios
Joseph Penner and the apartment building

Hill Street Realty pays $27M for Tarzana rental complex

Hill Street Realty pays $27M for Tarzana rental complex
20460 North Sherman Way (Google Maps)

Manasseh Building plans 59-unit complex in Winnetka

Manasseh Building plans 59-unit complex in Winnetka
Affirmed Housing CEO James Silverwood and the development site (Affirmed, Google Maps)

Affordable developer proposes complex in Chatsworth

Affordable developer proposes complex in Chatsworth
The 97-unit complex (Credit: Google Maps)

In San Fernando Valley, 97-unit complex sells for $26M

In San Fernando Valley, 97-unit complex sells for $26M
WS Communities CEO Scott Walter and VP of Finance Gregory Proniloff, Madison Realty Capital’s Josh Zegen, 1433 Euclid Street in Santa Monica; and rendering of mixed-use project at 3030 Nebraska Avenue in Santa Monica (Credit: Google Maps and Madison Realty Capital)

WS Communities nabs $150M loan for six renovations and a development site

WS Communities nabs $150M loan for six renovations and a development site
8940 N Reseda Boulevard (Credit: Google Maps)

Developers eye Northridge site for 51-unit apartment complex

Developers eye Northridge site for 51-unit apartment complex
3M CEO Mike Roman and Altaris Capital Partners Principal Garikai Nyaruwata

N95 mask-maker 3M sells Northridge manufacturing plant

N95 mask-maker 3M sells Northridge manufacturing plant
Fewer homes are selling across Southern California, but low supply helped push pricing up across the region.

Far fewer SoCal homes traded in April, but prices rose

Far fewer SoCal homes traded in April, but prices rose
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...