THE CALIFORNIA HOUSING MARKET STAGFLATION EFFECT ON POPULATION PROJECTIONS - A year ago, population projections for the Inland Empire and for the
Coachella Valley in particular were dynamic. The Coachella Valley
was growing at a rate of 29.5 percent compared to 9.7 percent for
California as a whole and 4.9 percent for the ...
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THE CALIFORNIA HOUSING MARKET STAGFLATION EFFECT ON POPULATION PROJECTIONS
A year ago, population projections for the Inland Empire and for the
Coachella Valley in particular were dynamic. The Coachella Valley
was growing at a rate of 29.5 percent compared to 9.7 percent for
California as a whole and 4.9 percent for the U.S. as a
whole.The was growing by 47 people per day. In the , the rise in the past six years has been even
more dramatic, rising by 62.7 percent.
So what effect has the stagflation of the housing market in California
had on the Inland Empire and the Coachella Valley? These two
areas, both in the fast-growing area of the Inland Empire, now have so
much to offer, they are likely to keep growing just as rapidly if not
more so in the coming years.
For the two decades from 2000 to 2020, the Inland Empire’s population
is expected to rise from 3.26 million to 5.28 million, up more than 2
million people. This is more people than most entire states
expect to grow in the same period, and more than Los Angeles alone or
most of the other areas of Southern California combined.
So what is happening in the Inland Empire and in particular, in cities
such as Temecula which has risen from 57, 716 in the year 2000 to a
figure that may now be close to or exceeding 100,000 people? In
part, the Inland Empire’s population explosion is the result of the
fact that the area still has large amounts of undeveloped land, land
that other counties such as Orange County, have run out of, for the
most part. Land, space, housing, are all less expensive and
easier to get to. People will work for less in areas where they
don’t have to drive three hours through rush hour traffic and employers
recognizing this have started to make the move to the Inland Empire.
The Inland Empire has also become Southern California’s logistics
hub. Cargo flowing in and out of Southern California must, by
necessity pass through the Inland Empire either through the Cajon Pass,
the San Gorgonio Pass and through the area’s freeways.
The demand for rail shipments is reportedly forcing the BNSF Railroad
to double their capacity and Union Pacific Railroad may need to seek an
intermodal site in addition to its main switching yard in Colton.
Container traffic in the ports of Long Beach and Los Angeles is
soaring. Southern California’s trucking firms have their major
cargo sorting facilities in the Inland Empire. And UPS, Federal
Express Ground and DHL have major hubs now in Southern California at
Ontario International Airport, in Rialto and at March Air Force Base,
respectively.
Ontario International Airport is already the second largest cargo
airport in Southern California and March Air Reserve Base is expected
to rank third by 2030.
As areas such as San Diego feel the same growing pains and traffic
problems that Orange County suffered before them, cities such as
Temecula are reaping the rewards with its equally pleasant weather and
its setting among the wineries of the Temecula Valley. As with
other cities in the Inland Empire compared with San Diego County and
Orange County cities, Temecula offers an educated population and labor
force, lower lease rates for space, lower home costs, lower crime
rates, and less traffic congestion. While not as inexpensive as
it was before, land is still less expensive in the Inland Empire than
in San Diego or Orange County and the Inland Empire has a logistics
advantage being close to logistics hubs.
The Coachella Valley, once much more of a seasonal area, is now
comprised primarily of full-time residents. New buyers have made
the move either because of the lower cost of housing or because people
who previously purchased vacation homes in the Palm Springs area have
now moved there permanently.
The Coachella Valley has only begun to focus its attention on a younger
segment of the State’s population with its affordable wealth and as
more cutting edge developments, recreation and nightlife come to the
area such as the Hard Rock Hotel planned for Palm Springs and the large
scale casino developments with the entertainment and concerts they can
attract, the Coachella Valley will almost certainly continue to grow at
the same rapid pace if not faster. Further down valley, La Quinta
has perhaps the most spectacular mountain settings that are common to
all of the Coachella Valley cities, combined with new developments such
as the Griffin Ranch which offers equestrian estates to horse lovers.
Clearly, with population increases of nearly 30 percent in the last 6
years in the Coachella Valley and 62.7 percent in the Temecula Valley,
and with the advantages that these areas have to offer, certain areas
of the Inland Empire will continue to do extremely well, even in this
time of stagflation for the housing market in California. What
may also be common to each of these growing areas is the intangible
attraction of nature. In the Temecula Valley it is the natural
setting of the vineyards that gives the area it’s feeling of
peacefulness. In the Coachella Valley, it is the mountains
populated with bighorn sheep that offer both desert views and
snow-capped peaks in winter.
Sebastian Gibson is both a realtor and a real estate lawyer in California of Sebastian Gibson Properties in Rancho Mirage, California dealing in , Palm Springs Desert Homes Land For Sale, Desert Area MLS and is the Senior Attorney with the Firm from San Diego, Los Angeles, Orange County, the Palm Springs Desert Area, SoCal
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