Study Says New Wave of Downtowners Have Money, and Are Ready to Spend
by Jon Regardie
Executive Editor
How real is the Downtown Los Angeles residential boom? Real enough to account for a 21% population increase in two years, according to a local business group. Even more significantly, the median income in new Downtown households is just a shade under $100,000, making it one of the most affluent communities in Los Angeles County. And while it's hard to say if the average Downtowner is smarter than other Angelenos, Downtown residents are on the whole well-educated, as more than three-quarters of them have a college degree.
On Tuesday morning, the Downtown Center Business Improvement District released the results of an expansive survey designed to paint a portrait of the thousands of residents who have streamed into the community since the passage of the adaptive reuse ordinance in 1999. The two-part study included the "Downtown Los Angeles Market Report," which detailed the entire area, and the "2006 Demographic Study of New Downtown Residents," which provided information on those who came to the community in the wake of the condominium and apartment building boom.
"The basic bottom line is this is phenomenally good news for Downtown Los Angeles and therefore for the region, because we are spurring so much economic activity that ripples out over every neighborhood that is adjacent and well beyond in terms of tax revenues, employment, and business tax revenues that are created by this economic growth in Downtown," said Carol Schatz, president and CEO of the DCBID. The study, prepared by the Los Angeles Economic Development Corp., found that:
• An estimated 28,878 people live Downtown, and that there are 9,431 market rate residences and 9,568 affordably priced units. A similar DCBID study released in early 2005 found that 23,894 residents lived in the area, marking a 21% population increase.
• The median income of households in the new buildings is $99,600, a 3% climb from the 2004 figure of $96,300.
• Downtown residents are investing in the community, with 30.2% of area inhabitants buying condominiums. Two years ago, 18% of the respondents had purchased units.
• More than three out of four Downtowners have at least an undergraduate degree, and 28% of the local populace has a graduate or professional degree.
• The median age of new Downtown residents is 31, and more than 60% of area inhabitants are single. Slightly more than half, 53.5%, are male, and 46.5% are female.
• Of the new area inhabitants, 24.3% left the Westside for Downtown. More than half of the residents, 55.1%, also work in Downtown.
• Pets have found their way into the urban landscape, as 18% of the new households have dogs and 13.5% have cats.
• The residential rise is leading to an across-the-board boost, as the number of businesses based in Downtown climbed 8.5% in the last two years, from 11,559 to 12,545. These businesses generated $1.7 billion in sales taxes in 2006, a 7% climb over the previous year.
The study was based on surveys mailed to 5,400 residents of Downtown Los Angeles buildings that have opened since 1999. The response rate was higher than 17%, said Schatz. Jack Kyser, chief economist and senior vice president of the LAEDC, said that the study shows that Downtown has the type of affluent market that many retailers seek, even if they're not yet aware that it exists in Downtown. "The residents have a lot of disposable income. The people who work in Downtown have a lot of disposable income," he said.
