Newly minted millionaires raid LA real estate market after stock sale bonanza — as desired neighborhoods revealed | Real Estate Market Insights

New-money millionaires — significantly those buoyed by their involvement in Elon Musk’s rising business success of SpaceX — are opening their newly filled purses for the LA real estate market, placing already highly desired neighborhoods under an even brighter highlight.

SpaceX’s current historic initial public offering (IPO) debuted June 12 at $135 a share, briefly topped $200, created practically 4,400 new millionaires, made Elon Musk the world’s first trillionaire, and raised virtually $86 billion.

Now, those contemporary LA millionaires are eyeing properties in the South Bay’s prosperous seashore cities — Manhattan Beach, Hermosa Beach and Redondo Beach — according to The Ankler.

The neighborhood of Hawthorne. the place many SpaceX staff still work, is being eyed by freshly minted millionaires. Tierney – stock.adobe.com

Hawthorne, the place the majority of SpaceX’s hundreds of staff still work at the company’s unique campus (despite the company transferring its headquarters to Texas in 2024), is also anticipated to see a soar, together with the Palos Verdes peninsula and Westside neighborhoods like Playa Vista, Venice, Santa Monica, Malibu and Brentwood.

Per a Hill.com report, of the 4,400 freshly minted millionaires, round 400 of them are projected to earn a whopping $100 million or more.

A former SpaceX worker who spoke with The Ankler anonymously to to his NDA told the outlet that even previous to the initial record-breaking IPO, he and his fellow staff at the time felt “that if the company were to go public, then it was definitely going to be house-buying money.”

Despite SpaceX’s IPO falling in current weeks — reaching a file low of $132.50 apiece in mid-July before rallying again — LA real estate professionals are still seeing a burgeoning curiosity in those with immediately heavier pockets procuring properties in the space’s notoriously ritzy neighborhoods, as noticed in real time by co-founder of Smith & Berg Property Group, David Berg.

Manhattan Beach is also anticipated to see a rise in property curiosity. Photothek through Getty Images

“We’re doing a deal right now where the prospective buyer is a longtime [SpaceX] employee and is making a big step up from a modest house on the Westside to a pretty proper house in the $13 million range in Brentwood,” Berg said.

That said, not all SpaceX staff affected have been spending their new money so lavishly.

“I think the price range that we will see affected most dramatically is probably the $2 million to $6 million range,” Lynnsey Ross, an agent with Douglas Elliman, told The Ankler.

Chris Furie, the co-founder of Insignia Mortgage who told the outlet he believed the money inflow would “have a huge effect on the real estate market,” agreed with this evaluation.

Though the most luxe areas of LA have always been engaging to patrons, the SpaceX IPO growth has upped the ante. Getty Images/iStockphoto

“I really think we’re gonna see a lot of activity under $10 million,” he added. 

While the curiosity in these luxe residing areas isn’t completely new — Lakers star Luka Dončić acquired a 5 bed room seashore home from tennis standout Maria Sharapova for a record-breaking $25 million in Manhattan Beach, per The Robb Report — the market’s elevated exercise by the SpaceX sitch (including current owners who’re hoping to tack on a “SpaceX premium” while promoting their properties) is action to watch.

“[The SpaceX effect] “is real,” said Berg. “But is it a wave? It’s too soon to say. Los Angeles is a city that attracts a lot of money. It’s a super-city. You already have so much money here. I mean, this is a place where money swirls around.”

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