Demographics Shuffle in L.A.’s Trendiest Neighborhoods
Millennials are taking over in neighborhoods like Santa Monica and Culver City, which had been primarily dominated by baby boomers.
“In general, a lot of these changing demographics are the result of two phenomenon- millennials fully entering the workforce and baby boomers retiring,” Matt Kaufman, research analyst at JLL, tells GlobeSt.com. “Yes, millennials are moving to these areas for their local amenities like food and shopping, but many see proximity to work as a key step in maintaining work-life balance. Most of the region’s office jobs are located within the urban areas of Los Angeles, and living within driving range of those opportunities has shown to be a major selling point for these neighborhoods.”
Baby boomers have a different set of lifestyle needs than millennials. “Baby boomers on the other hand are either approaching or enjoying retirement, so the allure of an easy commute to work does not really apply here, “says Kaufman. “If anything, living in a dense urban area might be a deterrent for many boomers if the goal of retirement is to have a quitter life.”
As millennials overtake baby boomers in these neighborhoods, baby boomers are leaving the neighborhoods and the even the state. “There are several signs that point to a trend among Baby Boomers to leave the state altogether,” says Kaufman. “Last year, California saw negative net migration with a net total of 38,000 people leaving the state. By comparison, every other state along the West Coast—Nevada, Washington, Oregon, Utah, and Arizona—is seeing positive net migration. Southern California’s neighbor, Arizona, has seen the second highest net migration of any U.S. state at 82,000.”
As baby boomers exit these markets, millennials are purchasing their properties. “The prevailing belief is that many baby boomers are opting to sell their much-appreciated homes and are heading to nearby states for retirement,” says Kaufman. “Places like Arizona offer a cheaper cost of living with inexpensive home prices and lower tax rates. For those retirees no longer rooted to the California job market, moving one state over seems like a smart move.”
As millennials overtake baby boomers, gen-Z is starting to enter college and young adulthood. However, it is too early to tell the impact that the demographic will have. “That remains a big question for a lot of companies. Personally, I believe that it is too early to tell. Most Gen-Z’ers have yet to reach adulthood, and many of their current attitudes and behaviors are still subject to change,” says Kaufman.