‘Hipster-Flippers’ Making Mark on Los Angeles Real Estate

(Businessweek photo)

You can call them hipsters or, as the U.S. Census Bureau defines them, the “creative class,” but however you prefer to acknowledge this large segment of the Los Angeles community they are beginning to put their mark on the L.A. housing market.

According to a story in Businessweek, “hipster-flipper” shops with names like Better Shelter and ModOp Design “are bringing an artful take to the renovation game” in Los Angeles. What they are doing is entering formerly run-down segments of Los Angeles and refurbishing the homes there with that hipster flair.

“There’s an inexhaustible supply of hipsters in L.A.,” said real estate developer Steve Jones. “You saw the same thing happen in Brooklyn. The hipsters pushed out until they got to the water.”

Rather than the quick and cheap flips that are pervasive in real estate, L.A.’s creative class is making serious upgrades to homes that match their aesthetic. Jones said that has changed the face of Los Angeles real estate.

“What the market had been offering in terms of renovated homes was bad laminate flooring, granite countertops—the Home Depot school of remodeling,” Jones told Businessweek. “There had to be a buyer who appreciated better design.”

The U.S. Census Bureau defines L.A.’s creative class as people who work in the fields of tech, business, media, entertainment, law and health care. They earn in average of $81,000 a year and make up 34% of the workers in Los Angeles.

What’s really got the real estate world buzzing is these buyers are paying big money for homes “with a suitcase full of money.” One real estate professional told BusinessWeek people are paying over 10% of the asking price—all cash—and with no contingencies.

In fact, almost one-third of home sales in Los Angeles were all cash during the first quarter of the year. The median price of these purchases was $351,000.

About Gary Gold

Gary Gold is a marquee name in luxury real estate and his sale of The Playboy Mansion sets a record as the first residence to sell over $100,000,000 in Los Angeles. Gary is also one of its most successful trend setting agents. He’s an internationally recognized expert known for his creative use of technology, marketing and publicity to sell some of the finest homes in the world. Gary is further distinguished by the rare ability to secure high net worth, qualified buyers from digital marketing. This success, year after year, continues to produce a steady stream of buyers from not only the Los Angeles area, but throughout North and South America, Europe, and Asia.

Gary has sold thousands of estates and luxury properties over the course of his career. High-end developers have consistently relied on Gary’s broad expertise on projects ranging from luxury condominium developments to major estates. He is a sought after speaker, panelist and educator at industry conferences. Gary has been cited as an expert for publications and broadcasts that include CNN, Fortune, Barron’s, Wall Street Journal, The Washington Post, Access Hollywood, CBS Evening News, e! Entertainment Television and The London Telegraph.

Gary Gold began his career in real estate over 25 years ago and has been a top producer with Hilton & Hyland since its inception. Hilton & Hyland is Beverly Hills preeminent luxury real estate firm, with over $2.7 billion in annual sales.