How Venice Beach Became a Neighborhood for the Wealthy
Just over a week ago, The Wall Street Journal called the neighborhood where I rent, Venice Beach, California, the toughest place in the United States to build new housing, pointing to it as an extreme example of what is happening in a lot of wealthy urban enclaves.
“Apartment developers have stepped up production focused largely on the inner cores of big U.S. cities, where millennials are flocking for high-paying jobs and easy commutes, and where development is often welcomed,” the newspaper reported. “Meanwhile, surrounding low-rise neighborhoods—many filled with older structures and historical character—are keeping developers out. Residents of these older urban neighborhoods generally have resisted newcomers, complaining about congestion on roads and public transportation and seeking to preserve architecture, sunlight and views.”
It’s easy to understand what motivates anti-growth homeowners. Their financial interests are powerfully aligned against allowing the supply of residences to grow over time. And most of them moved to a given neighborhood because they liked it at the time. Of course, they changed Venice Beach when they arrived. And their failure to pay forward the ability to move here by preventing growth over several decades guarantees that over time this geographically small, highly desirable enclave by the ocean will lose its bohemian vibe, ending up as a neighborhood for the increasingly old and very rich, like Laguna Beach, La Jolla, and Carmel-by-the-Sea.