Don't Cry for Pacific Palisadies Recovery

{{ The average household income is $375,000, three times the city average, and the typical home is worth $3.7 million. The community is home to Hollywood royalty, chief executives, political donors and hedge fund managers.

Its deep-pocketed, well-connected residents have access to power that few have: They can pick up the phone and call Gov. Gavin Newsom, Los Angeles Mayor Karen Bass or Steven Soboroff, whom the mayor appointed as the rebuilding czar. The sheer concentration of affluence — coupled with the frustration that the government’s response to one of the biggest American catastrophes in recent history has been inadequate — could greatly shape the future of the Palisades.

Past disasters have shown that in the aftermath, wealthier communities fare better than their poorer counterparts, and in its resurrection, the Palisades will be more expensive and more exclusive than it was before the fire tore through it last month, according to Max Besbris, a sociologist at the University of Wisconsin-Madison, who studies how climate change impacts real estate values, residential decision-making and inequality. }}

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I get average. How does one define typical? Is that median?

And why would you suggest we refuse to have empathy for someone that lost their home, regardless of the value? You, a millionaire, of all people should not have such poisonous wealth envy.

Would you want us those with less wealth than you respond in the same way to you if you lost all your personal possessions?

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As a millionaire, I don’t even insure the value of my home. I can afford to rebuild without taking the haircut of involving an insurance company in the transaction. I got a 32% premium hike on my umbrella liability policy last month with no change in my risk. I’m now evaluating the wisdom of continuing that coverage. I’m really not involved in any activities that are likely to get me sued.

Most of the residents of Pacific Palisades can afford to replace their home – even after they get screwed by their insurance company. I worry more about their maids and gardeners, and the fire victims in poorer neighborhoods.

On average vs. median income. The median income for the Pacific Palisades zip code is $180,000/yr. I suspect a lot of residents are like me with a stock portfolio being managed to reduced current year taxable income. If you took a 4% withdrawal of their net worth as their “income”, it would be spectacularly higher. Just another artifact of the 40-plus year long project to throw more money and tax breaks at the top of the income/wealth pyramid.

I always get a kick out of these neighborhoods with a median $5 million home value, and a $200,000/year median income. Who do they think they’re fooling?

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California values are pretty weird. My brother and SIL in Southern California have trouble coming up with the money for a new roof but their net worth (from a modest home) is north of $2 million.

DB2

It’s not just California. Same thing in the wealthy precincts of Seattle and Westchester County, New York.

Median household income in Medina WA (where Bill Gates has a $140 million home) is $250,000/yr, median home price $8.2 million.

You’re not going to get a mortgage on an $8.2 million home on the strength of a $20,000/month pay stub. These folks have untaxed sources of income and wealth that don’t show up on their tax return.

And no, Medina, Washington doesn’t have any low income housing that’s bringing down the median income.

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