San Fernando Valley

The San Fernando Valley is an urbanized valley in southern California, lying mostly within the city limits of Los Angeles.

House prices skyrocket

Prices for houses in the Valley are some of the highest in the U.S. In August of 2005, the median price of an average one family, two bedroom, one bath, home in the San Fernando Valley reached over $600,000. In 1997, it was only $155,000. In the summer of 2003, it reached $400,000 and by July 2005, it reached $578,500. From July to August (one month) 2005, it rose by $100,000. At this rate, the average home is expected to reach $1 million sometime soon.

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The extreme price rise is due to overpopulation and real estate speculation. There are too many people and not enough houses to live in. California's population is expected to continue to grow rapidly. California's Building and Safety codes are some of the toughest in the nation, pushing out small construction businesses. Building contractors and speculators are getting wealthy, while many low income families must rent apartments rather than own a home, because they cannot afford the high down payment. The entertainment industry is drawing hopefuls from all over the U.S. Large Latino families and new legal and illegal immigrants are also contributing to the population increase, as well as the large number of jobs available.

Related Topics:
Overpopulation - Real estate - Speculation - Construction - Contractor - Speculator - Low income - Down payment - Entertainment industry - Latino - Immigrant

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