Some of LA’s highest increasing home values are along the yet-to-be-completed Metro Crenshaw Line. The Crenshaw Line, which is expected to open by 2019, is crucial to filling gaps in LA’s expansive transit system. It will cost more than $2 billion to complete, with $545.9 million coming from a federally-backed Transportation Infrastructure Finance and Innovation Act loan. The Crenshaw Line will connect the Expo Line to the Green Line, as well as provide much needed direct access to LAX. Later expansion will even connect the Crenshaw Line to the Red and Purple lines. The Crenshaw Line’s 8.5 miles of light-rail will be strategically integrated with stops along LAX’s planned people-mover, allowing passengers to move directly from the Metro system to their terminal and vice-versa. Most of this new transit infrastructure will be funded by Measure R, the half-cent sales tax increase approved by LA voters in 2008. A large portion of the Crenshaw Line will be at-grade with a dedicated pathway that will not cross paths with automotive or pedestrian traffic. This is far cheaper to build than completely digging underground for heavy rail projects like the Purple Line, which will run underneath the Wilshire Corridor, finally connecting UCLA and much of the Westside to the rest of the city.
of LA Residents
live near transit stops
Transit-Oriented Development (“TOD”) is Los Angeles’ go-to strategy for increasing density and meeting its skyrocketing demand for affordable housing throughout the metropolitan area. TOD benefits renters and homeowners by helping them live in closer proximity to public transit as well as denser, more walkable neighborhoods. As of 2016, only 11% of residents in the Los Angeles metropolitan area live near transit stops.
Investors and developers benefit by the ability to create profit and value where there was little before. Property within walking distance of public transit demands higher rent and tends to have a higher property value than the surrounding area. New multi-family developments can help keep the neighborhood affordable to long-time residents as housing costs soar, as well as create a more walkable, liveable environment for residents.
demand means that rents are practically guaranteed for property owners
All this demand means that rents are practically guaranteed for property owners, especially if their tenants have Section 8 vouchers. Traffic is another major problem in Los Angeles, but it is not destined to stay that way forever. LA’s network of rail lines is expanding, more people are choosing to live car-free, and advancements in autonomous car technology are happening faster than lawmakers and planners can keep up with them.
Measure JJJ, which was approved on the November 2016 ballot makes accommodations for additional transit-oriented development in Los Angeles. More than 63% of Angelenos voted for it, showing an upward trend in the acceptance and yearning for improved transportation and related projects in the region. It helps incentivize developers to create affordable housing, increased density, and decreased parking minimums. This does not apply solely to Metro Rail (like the Crenshaw line), but also bus rapid transit (such as the Orange Line), Metrolink stations, and major bus stops. Additionally, developers can receive incentives from the state government to build transit-oriented housing.
The City of Inglewood is practically begging developers to build
The City of Inglewood is practically begging developers to build there. For decades, Inglewood was seen as a distressed neighborhood, however, the city is on the verge of change. In the next decade, this Crenshaw corridor will see new venues rise, such as the NFL Stadium, Hollywood Park redevelopment, and potentially a stadium for the Los Angeles Clippers. The recently renovated Forum will continue to be a hotspot for concerts and other touring events as well as the venue for the gymnastics events during the LA 2028 Summer Olympics. There is a plethora of opportunities for developers to cash in on a red hot housing market. Inglewood and Hawthorne could be the next Silverlake or Echo Park.
The area will be served by both the Crenshaw Line light rail, Silver Line BRT, as well as numerous local bus routes.This will allow for easy access to other parts of the city for work or leisure while allowing the neighborhood to maintain more affordable rents, relative to other desirable areas, such as Silver Lake or West Hollywood. Larger developments are often mixed-use, where retail and restaurant space occupies the bottom floor of a building while the upper floors are reserved for offices or residences helps maintain a more livable neighborhood and increase property values.
The next decade will be a period of rapid transformation along the Crenshaw Corridor. Metro’s rail and other transportation projects are just the tip of the iceberg for the rapidly urbanizing neighborhoods the Crenshaw line will pass through. When the project is complete, we can expect to see walkable, livable neighborhoods with access to a fantastic LA-area transportation network as well as world class venues for sports, shopping, and entertainment right in their own backyard.