LOS ANGELES—Hollywood, Downtown Los Angeles, Culver City, Koreatown—what do all of these neighborhoods have in common? All three are emerging markets in Los Angeles, and most have pushed their developments in the last few years. These markets have each found their own niche, but they are all transit-oriented and they all have created live-work-play environments. While each of these cities have their own culture, the emergence of so many incredible neighborhoods at once really says a lot about real estate and migration trends in Los Angeles.

“I believe that when Los Angeles is compared to other submarkets nationally and internationally, L.A.'s price point for the commercial world and the rental structures are lower than many cities internationally, as compared to the population density and the income levels of the city,” Lee Shapiro, EVP at Kennedy Wilson, tells GlobeSt.com. “A lot of foreign capital has viewed Los Angeles as a real opportunity for investment. In this cycle, we have seen a lot of interest from foreign capital come into the market. That has pushed out markets and created competition for domestic capital that is trying to acquire property.”

Not only has the market grown because of the quality location and strong pricing—both of which are irresistible to developers—but it is also changing because of the cost of real estate. Building up gives developers a better return on their investment. “The accessibility to capital in general coupled with the existing land cost has pushed developers to build vertical development, due to the cost of the dirt,” explains Shapiro. “That has moved the older model into more mixed-use and urban development. That is the only way that there can be a return on the development. Plus, cities themselves create more apartments. We are one of the highest price cities for apartments in the country. That is because we need more supply. Once we get to that point, the price of apartments will fall.”

Los Angeles, however, is going through a lot of changes that could be sparking the growth of these neighborhoods. Mass transit—at least the addition of mass transit—if another reason developers are excited about L.A., and all of the markets that we mentioned are near transit. “Culver City was definitely built around transit. I think the retailers and developers are becoming accustomed to it, and consumers are becoming accustomed to it as well,” she said.” Developers have historical success of building near the transit corridors. Developers believe that building near mass transit will give them returns.”