The Demand for Land: Los Angeles County

There are 2 major population areas in California.  The San Francisco Bay Area (SFBA) has 7.7 million people within a 90 mile circle that expands out to Sacramento.  In Southern California, there is an area called the 60-Mile Circle with a population of nearly 19 million or one half the California’s population.  It has a density factor 4 times that of the SFBA.  Economic data has been collected on the 60-mile Circle for over 30 years.

The 60-Mile Circle is the 11th most powerful economic region in the world. It also has the most diverse economy in the world. The ports of LA are bigger than New York, and so is the garment industry. It has entertainment, oil & gas, and breweries.  It’s the toy capital of world. There’s aerospace, manufacturing, and it is the financial capital of west coast.  The diverse job market attracts 50% of California’s population growth.

Here we have all the fundamentals for unencumbered growth and the only destination for the influx of the additional 6 million people expected in the next 10 to 15 years.

• One third of the 60-Mile Circle is water, the Pacific Ocean.  Another third is The San Gabriel mountain range. 
• The predicted six million influx of new LA residences will be needing housing.  Employers will need areas for expansion with almost no developable land left in the LA Basin.
• There is literally no other place to go but to the northern region of LA County, Antelope Valley.

Over the years, the area of Palmdale and Lancaster has seen unprecedented growth.  One can see the cities take shape from 1978, when the population was a combined 97,000 to a current combined population of 330,000. In 10 years, the population of the Antelope Valley is expected to be 1.2 million to 1.5 million.  LA County’s 30 year master plan is driven by this expected growth… and so are land values.

Aerospace, agriculture, transportation and warehousing are pillar industries in Lancaster and Palmdale.  The existence of the 66-square mile Enterprise Zone and Free Trade Zone continues to attract businesses and industries that want to take advantage of the area’s affordable prices and plentiful space, and build their business in the 11 largest economies in the world.

Housing has always been in demand due to affordable prices.  There are 21 major homebuilders in the area.  To date, the demand for new homes, at a median home price of $290,000, still exists.  This bodes well for land owners.

Retail businesses abound in the area.  Here you can see representation of literally all the big box stores like Target, Lowe’s, Home Depot, and Sam’s Club.  The growing population continues to support these stores and attract growing numbers of new stores and additions.  The area supports 3 Wal-Marts, including the largest Wal-Mart in the country.  Hotels, car dealerships, restaurants, and small retail commercial parks are prevalent in the area.

Read Los Angeles County Economic Studies.