A new report shows Downtown Los Angeles is the country’s second-biggest “boomtown” in terms of household growth.
The report, authored by listing service Realtor.com, said L.A.’s 90012 zip code is expected to see the most growth in the number of households of any city in the U.S. over the next five years, with the sole exception of Gilbert, Ariz., which took the number one slot.
While the 90012 zip code doesn’t include all of DTLA, it does include the Financial District, Chinatown, the area around the Disney Concert Hall, Little Tokyo and the Arts-District-adjacent Eastside neighborhood of Boyle Heights.
The report — which was conducted based on forecasts for household formation, job creation, and new construction starts in 2016 — said roughly 22,000 new housing units are set to begin construction in the 90012 zip code this year, along with the creation of 65,000 new jobs.
Both of those factors indicate the area is growing six times faster than the average rate for zip codes within the country’s top 100 counties, according to the report.
Overall, the 90012 zip code’s households are slated to grow by 8.8 percent over the next five years. The report attributed the growth to a surge in interest in DTLA among higher income residents, driven by “cultural offerings…restaurants and nightlife, as well as new residential development.”
Henry Gjestrum, a senior analyst at JLL’s Downtown Los Angeles office, said growth in the zip code will be driven by areas around it, like the Arts District, which have recently seen major investment.
“Little Tokyo is an interesting area in L.A. that’s well established but also has the potential for future growth, and it connects to the Arts District,” Gjestrum said. “The (90012) zip code includes areas that are doing well, as well as areas like Chinatown where there is significant revitalization going on.”
He said the fact that the area includes Downtown’s 17-million-square-foot Civic Center is significant in terms of its economic growth.
“The Civic Center is one of the largest government centers in California, and outside of Washington, D.C.,” Gjestrum said. “A lot of federal, city and county agencies work there, so that is a factor that ensures future growth.”