Those are fascinating statistics! Speaking as someone that has lived in LA for 30ish years, I know nearly all of these areas quite well.
Here are a few of my initial thoughts:
-I agree that some of these homes are being purchased by “less eduated” people that *perhaps* do not qualify for the loans. They may have heard of the housing boom and just want to get in before it’s too late.
-The downtown area has seen quite a resurgence since 2000, with Staples Center, new restaurants, the subway, etc. The entire area has radically improved. It is possible that people working in these areas are chosing to buy and live nearby. If I worked downtown, I would consider purchasing a house nearby.
-I sincerely doubt that people from outside of the less desirable areas are purchasing inside “just to get in”. You really don’t want to live near downtown if you’re working in the valley, no matter how cheap it is.
