SOUTHERN CALIFORNIA S POPULATION BOOM: WHAT YOU DON T KNOW COULD COST YOU A FORTUNE!

In the year 1542, when the Spaniards discovered California, native Indians occupied the land. The Spaniards settled in California, later the Mexicans became the landowners, and finally it was the Americans. By 1940 the State of California grew to 10 million residents. This explosive growth started after the Second World War. U.S. soldiers from the East and Midwest passed through Southern California on the way to the Pacific, saw the marvelous climate, the ocean, and the mountains, and came by the hundreds of thousands. At the same time, it brought a tremendous influx of "New Americans" from Europe, Latin America and the Pacific Rim, giving Southern California a diversity of nationalities, languages, and cultures unmatched in the world. Today, Southern California has the largest population of Filipinos outside of Manila, the greatest Hispanic population after Mexico City, the greatest Iranian population outside of Tehran, and a large, growing Asian population. This alone guarantees this region''''''''s dynamic population growth. Also for cultural and religious reasons, many of these newcomers have a much higher birth rate than the rest of the nation: "Every sixth baby born in the United States is born in California. People who are born here and put their roots down; stay here." In view of this, present population predictions are probably too low.

CALIFORNIA S EXPLOSIVE POPULATION PROJECTIONS

The California Census projected that by the year 2000, the State of California would reach a population of 30 Million people. They were low in their projection, because by 1998 we had about 33 million residents in California. According to the California Department of Finance Report issued in February 2005, the State of California’s July 1, 2004 population climbed to 36,591,000. Experts are projecting that in the year 2020, the population of the State of California will reach 50 Million with people coming from all over the world. We believe this is just the beginning for the Golden State.

CALIFORNIA IS THE FIFTH RICHEST ECONOMY IN THE WORLD

Each year the Los Angeles Economic Development Corporation (LAEDC) does an economic analysis to determine the world s richest nations. They only consider those nations with gross domestic products over $250 billion. They include the State of California, in order to compare its economy with the wealthiest countries in the world.

IN THEIR REPORT OF JUNE 11, 2001, THE LAEDC REACHED THESE CONCLUSIONS ABOUT THE FIVE RICHEST ECONOMIES IN THE WORLD: 

            - The United States was #1 with $9,966 billion.

            - Japan was #2 with $4,614 billion.

            - Germany was #3 with $1,867 billion.

            - United Kingdom was #4 with $1,415 billion.

            - California came in a close #5 with $1,330 billion.

This means that if California were an independent country, it would be the 5th richest nation on the planet. This is an amazing finding when you consider that California is only one out of fifty states in the entire United States.

THE APPEAL OF SOUTHERN CALIFORNIA DRAWS NEW RESIDENTS LIKE A MAGNET 

There are few places in the world where you can relax near a warm lagoon, surrounded by a blast of colors from the broad varieties of flowers, where the temperature is moderate throughout the year - while viewing in the distance snow capped mountains.

Southern California is arguably the most geographically diverse location in the world. Where else can you be within an hour s drive of the ocean, mountains, desert, lakes and deep forest? 

 Southern California s climate, ocean, beaches, bays, lakes, deserts, mountains, parks, educational institutions, industries, agriculture, sports, entertainment, airports, and our proximity to Canada and Mexico make it the most attractive area in the world. It is also the gateway to the multi-dollar Pacific Rim market, which is growing exponentially on a daily basis.

THE PHENOMENAL GROWTH OF SOUTHERN CALIFORNIA 

We already know that the entire State of California is projected to grow to 50 million residents by 2020. With 2/3rds of the population of the State residing in Southern California, the growth of this region has been nothing less than spectacular. They are forecasting SOUTHERN CALIFORNIA to grow from about 23 million to about 33 million people by 2020. This projected increase of about ten million people will result in traffic jams, overly crowded conditions, and sky-high housing prices. Today, the median price of single-family homes in Los Angeles, Orange and San Diego Counties has risen to about $600,000. The prices of vacant land in these areas have already gone through the roof, which is a major factor contributing to the high cost of housing.

Historically, countless fortunes have been made in land banking by individuals who understood the concept of buying and holding pre-developed land in the path of growth. They did nothing more than buy and hold land in Southern California s booming regions, in areas such as Los Angeles, San Diego and Orange Counties. Today, these areas have become very expensive. Commercially zoned vacant land in Orange County can sell for about $40 per square foot or about $1,724,000 per acre. The question remains: where can you still find affordable land in Southern California? Where will tomorrow’s Southern California residents find affordable housing?

Today, some of the greatest growth rates in the Nation are taking place in Southern California’s Victor Valley and Antelope Valley. The Victor Valley is situated inside of a 75-mile circle surrounding the Los Angeles Basin. It is also located in Southern California s Inland Empire, which contains both Riverside and San Bernardino Counties. The Antelope Valley encompasses both Los Angeles and Kern Counties, and is located within a reasonable drive from Los Angeles and other metropolitan areas. The Victor Valley and Antelope Valley offer affordable land and homes in dynamic growing regions of Southern California. New homes in these communities are priced from $200,000 to $400,000.

Our partner specializes in choice, close in land parcels in prime locations in Southern California. Many of these properties are zoned residential, industrial or commercial. Prime acreage parcels can be purchased with affordable long term financing.

A 75-mile circle surrounding Los Angeles encompasses the Victor Valley region of Southern California’s Inland Empire. Professional Land Corporation has a diverse inventory of prime Southern California properties in a multitude of locations, including the fabulous Victor Valley, and other Inland Empire locations that lie outside of the Victor Valley, such as Barstow and the surrounding communities.

The Inland Empire

The Inland Empire consists of San Bernardino and Riverside Counties. The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States. Furthermore, the California Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California.

THE CALIFORNIA DEPARTMENT OF FINANCE PREDICTS THAT THE INLAND EMPIRE WILL BE THE FASTEST GROWING AREA IN CALIFORNIA

According to the Economist, John Husing, in his Report for the year 2000, the CA Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California. The Inland Empire is projected to add 1.1 million more people by 2010, a 34.2% growth rate. That will represent an average gain of 110,121 per year. As a result, the 2010 population would reach 4,310,000. Moreover, according to the Husing Economic Report for 2003, for the period between 2000 and 2020, the Inland Empire is expected to add more people than Los Angeles County and just less than Orange, San Diego, and Ventura and Imperial counties combined.

THE U.S. COMMERCE DEPARTMENT HAS PREDICTED THAT THE INLAND EMPIRE WILL OUTPERFORM THE GROWTH RATE OF ANY OTHER AREA IN THE UNITED STATES

The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States. It has been further noted that by 2005, this area will have the same size population (3.8 million) as the 24th largest state (Kentucky) and personal income ($78 billion) as today’s 25th largest state (Alabama).

According to the Husing Economic Report for 2003, from 2000-2020, the Inland Empire’s population is expected to increase from 3.27 million in the year 2000 to 4.83 million in the year 2020, which represents an increase of 1.56 million people. That is more people than would be added by 45 of the 50 states, the exceptions being California (12.8 million), Texas (5.6 million), Florida (4.4 million), Georgia (1.7 million) and Washington (1.6 million).

This area has become a tornado of economic activity and job creation with hundreds of companies moving into the area or expanding their operations in the last three years. Many of them have relocated from Los Angeles, San Diego and Orange Counties. According to the Inland Empire Quarterly Economic Report, April 2005, the Inland Empire is projected to add 40,100 jobs in 2005, which would bring the region’s employment total to 1,208,633 in 2005.

SAN BERNARDINO COUNTY ASSESSED PROPERTY VALUES HIT A NEW RECORD HIGH FOR THE FISCAL YEAR 2005-2006, LED BY VICTOR VALLEY CITIES 

According to the Victorville Daily Press, July 9, 2005, the assessed value of property in San Bernardino County for the fiscal year 2005-06 rose by 14.5 percent to $126.5 billion, according to figures released July 8, 2005 by the San Bernardino County Assessor s Office. San Bernardino County encompasses the largest geographical area of the Inland Empire’s two counties. The countywide $15.9 billion increase for the 2005-06 fiscal period marks the largest assessed value growth in the county s history and has been the largest percentage increase in 15 years, Assessor Williamson said. "San Bernardino County continued to profit by the strong economic growth in the area. We are fortunate to live in a county with a diversified economic base and a unique quality of life."

The cities of the Victor Valley portion of San Bernardino County led the pack in these increases. Adelanto had the largest roll increase, rising 31.2 percent, which makes it the County’s fastest developing city. Victorville and Hesperia followed closely with increases of 28.6 percent and 25.8 percent respectively. Apple Valley experienced an increase of 18.5 percent. Assessed valuations in the city of Barstow increased 5.3 percent. While Barstow is not located in the Victor Valley, it is part of the Inland Empire.

ONTARIO HAS BECOME A POWERHOUSE IN THE INLAND EMPIRE 

Ontario Mills Shopping Mall

According to the San Bernardino Sun, March 11, 2003, the City of Ontario emerged as the Inland Empire s powerhouse in retail sales according to the 2001 State Board of Equalization Report on Taxable Sales in California. Ontario had a staggering $3.62 billion in taxable sales. Thanks largely to the Ontario Mills Shopping Mall and strong automobile sales, Ontario had $2.464 billion in sales at retail stores and $3.62 billion at all outlets. Jack Kyser, the chief economist with the Los Angeles County Economic Development Corporation, compared Ontario to retail powerhouses such as Costa Mesa and Beverly Hills. Costa Mesa s numbers in particular ($2.473 billion from retail stores, $3.16 billion overall) are very similar to Ontario s.

Ontario International Airport

Ontario also can brag about its International Airport. According to Airport World Magazine, February/March 2003, Ontario International Airport is listed among "six of the best" air cargo airports on the planet, and is ranked among the fastest growing and ambitious cargo airports outside of the thriving Asia-Pacific market. Airport World is the official magazine of the Airports Council International that has over 535 international airports and airport authorities in its jurisdiction, running over 1,400 airports in more than 165 countries. Air cargo traffic at Ontario increased 18.3 percent from 2001. "We have an excellent logistics and transportation at Ontario International Airport," said Dennis Watson, Ontario s Director of Public Affairs. This is good news for the entire Inland Empire region.

THE INLAND EMPIRE IS THE NATION S STRONGEST APARTMENT MARKET

According to the San Bernardino Sun, March 21, 2003, the Inland Empire topped the list in Marcus & Millichap s 2003 National Apartment Index, a study that rates the health of 40 apartment markets nationwide. The report is based on a series of 12-month, forward-looking supply-and-demand indicators, including employment growth, vacancy rates, construction, housing affordability and rent growth. According to the index, the Inland Empire has an expected rent growth of 4.5 percent for 2003, which is the highest among the 40 markets studied in the United States. This year''''''''s vacancy rate for the Inland Empire is 3.5 percent and falling. Employment growth is listed at 1.9 percent. "When we look at employment and the lack of new apartments, suddenly all the stars are in alignment, said Steve Johnson, director of Metrostudy Corp., a Riverside-based real estate consulting firm. "Our area should be a very attractive target for the Nation’s apartment builders. San Bernardino and Riverside counties have emerged as the West s strongest rental market with a 6% increase from the same period last year. According to the San Bernardino Sun, January 22, 2004, the Inland Empire’s apartment rents grew 6.4% in 2003 and showed the highest increase on a percentage basis of any other region in the Western United States. The metropolitan areas surveyed were in California, Washington, Colorado, Nevada, Oregon, Arizona, Idaho, Utah and New Mexico. Rents in Los Angeles, Orange and San Diego counties lagged the Inland Empire’s 6.4% increase and rose only from 3.3 percent to 4 percent, the study said.

THE INLAND EMPIRE IS THE NATION S STRONGEST HOUSING MARKET

According to the San Bernardino Sun, February 12, 2004, the Inland Empire s San Bernardino and Riverside counties registered the strongest rate of appreciation in the U.S.A. during the fourth quarter of 2003. "It s absolutely amazing what is happening. Every quarter is outdoing the previous one," said the owner of Riverside-based GMAC Park Place Realty. During the fourth quarter, the median price of an existing home in the Inland Empire reached $239,400, an increase of 28.9 percent from the comparable period a year earlier, the National Association of Realtors reported. The Inland Empire beat out Sarasota, Fla., to claim the national title for price appreciation. Median prices of existing homes in Sarasota jumped 26.1 percent to $222,100, the survey of 127 metropolitan areas found. The $239,400 median price is nearly $70,000 above the national median of $171,600. But John Husing, a Redlands-based regional economist, said that even with its increases, the local median is far below both the state median of $391,680 and the medians of neighboring coastal counties. "One of the reasons our prices are climbing so rapidly is because of a tremendous demand from people who can t afford to live in the coastal counties." With Orange County the second-most expensive in the nation at $526,800 and San Diego County third at $456,700, the two-county region still looks comparatively cheap.

INC. MAGAZINE NAMES THE INLAND EMPIRE THE NUMBER 2 BEST METRO AREA FOR BUSINESS IN THE U.S.A.

According to the San Bernardino Sun, 2-10-04, Inc. Magazine has named the Inland Empire (San Bernardino/Riverside metro area) as the nation s second best large metro area for business. Despite California s budget crisis, high workers compensation rates and high-energy costs, the two-county area edged out Las Vegas, San Antonio and West Palm Beach, Fla., which are the cities that round out the top five. Atlanta came out on top. Orlando and Phoenix ranked 11 and 12, respectively, while San Diego placed 15th in the survey. The Magazine based its findings on a review of job growth data in 277 cities. "San Bernardino/Riverside Counties (the Inland Empire) have consistently been on top of job growth (in the state) for years. The decline in the stock market really didn t affect it. Since 1990, more than 600,000 people have moved into the area, many of them minorities. "Such growth provides business opportunities for entrepreneurs," the article said. Michael Bazdarich, senior economist for the UCLA Anderson School Forecast, said the Inland Empire Region benefits from its location next to the huge Los Angeles market. The Inland Empire’s reasonable cost-of-doing business and business-friendly local government gives local businesses a leg up on the competition, he said.

WHY IS THIS HAPPENING IN THE INLAND EMPIRE?

The answer is jobs and housing. During the 1990’s Southern California suffered a strong recession and many jobs were lost to other states. However, there was no period when the Inland Empire’s job creation stopped growing. Between 1990-2000, the Inland Empire added 261,000 jobs, while Orange County added just 200,000 and Los Angeles County added about 100,000. In 2004, the Inland Empire added 2,200 professional jobs like civil engineers, accountants and lawyers. According to the Economist, John Husing, that number was equal to almost one-third of the total professional jobs added by the entire State of California. The Inland Empire is the home to 27 colleges and universities, which produce an educated and highly skilled labor force. This will help the future labor force of the region, and should continue to attract the interests of large corporations in the United States and worldwide for many years to come. This impressive labor force has contributed to Riverside and San Bernardino counties representing one-third of the Southern California housing market. When Data Quick started tracking the region 17 years ago, Riverside s and San Bernardino s slice of the regional homes sales activity was about half that size. In just the first two months of 2005, Inland Empire builders pulled building permits for 5,564 detached homes vs. 416 in Orange County, according to the Construction Industry Research Board.

The Inland Empire s land values have already become expensive. Commercially zoned vacant land in Ontario, Chino Hills and the Moreno Valley already sells from about $10 to $25 per square foot or about $435,000 to $1,089,000 per acre. Residential land values in these Inland Empire communities have also gone through the roof. On the other hand, the Victor Valley, located in the Inland Empire North, offers reasonably priced properties in a dynamic, growing region.