The Hyperloop is Coming and Maybe to a Town Near You

A half billionaire and venture capitalist who has funded Uber, Airbnb, Munchery among other ventures is backing Hyperloop Technologies. He is Shervin Pishevar and not long ago he made a pitch to Senator Harry Reid. Granted Senator Reid will soon be out of office, but this science fiction project is gathering attention. The billionaire Elon Musk is also pushing the program and both parties are conducting test programs in Texas and Las Vegas. The Hyperlook may not supersede the CalhighSpeedRail, but it will give many to pause. If cargo can be transported from Los Angeles to Denver or beyond via a Hyperloop then that changes transport costs. I will really change the way transport is done. It should clearly be a threat to the HighSpeed Trains, and the Airline industry. It this takes off like these innovators see it then it can eliminate the commute. A loop could run above a freeway and zip people for under ten dollars from downtown to LAX, or from San Francisco to San Jose and then maybe you can hope into a driver-less car to take you to the office. It is not that far off to being a reality.

Antelope Valley is the Silicon Sky

This is a reprint of an article from the AVPress by Jim Keen After suffering more than its fair share of down time, the Antelope Valley is on the upswing and the outlook for its leading industry, aerospace, is bright. In an essay titled "The Unfolding of Silicon Sky," economist Christopher Thornberg notes the Antelope Valley suffered through hard times in the 1990s from defense cutbacks and was hit hard than most areas in the housing market bust of the Great Recession. "The good news is that the Antelope Valley is on an upward swing and clearly recovering from the recession," Thornberg wrote in the essay, which appears in the 2016 Economic Roundtable Report produced by the Greater Antelope Valley Economic Alliance, or GAVEA. Thornberg is the founder of Beacon Economics and has been a frequent visitor to the Antelope Valley. Thornberg says signs of that upswing include home prices that are increasing at a 9% pace, falling unemployment, taxable sales growing at a healthy 5% rate, population growth holding steady at just under 1%, and overall job growth being at just above 2%. "While new construction remains subdued locally, growing unaffordability in the core areas of Los Angeles will undoubtedly create a new surge in local demand over the next few years," Thornberg wrote. The biggest bright spot is aerospace. "This isn't your father's aerospace industry, back when gutsy test pilots and bigger jet engines defined the industry," Thornberg wrote. "Today, it is all about material sciences and advanced computer technology." Thornberg notes some of the industry's recent milestones, including billionaire Paul Allen opting to build a giant airplane in Mojave to launch satellites into space, Northrop Grumman winning the contract to develop America's next bomber, and activity by the Air Force and the Navy in redesigning major weapon systems in the region. "All of these efforts require massive R&D activity and extensive high-tech supply chains - bringing in a new wave of suppliers and sub-contractors. These will be high-tech firms with highly skilled employees and represent an opportunity for the area to become a high-tech hub," Thornberg wrote. The key for the region is to make it as easy as possible for these companies and workers to come to the Antelope Valley, Thornberg said. The region will also need to make sure the area is a place where tech workers would want to live by improving education, expanding entertainment and retail options, and making space for high-end housing, Thornberg said.

Several Multiple Housing Tract Maps recently approved and extended in Lancaster

A recent planning commission meeting extended tentative tract map approval for a couple of investment firms. 64 acres at 80th West and Ave L was approved for a 60 day extension. The subdivion is for 204 homes zoned R-10,000. There was another 42 acre plot approved for a 60 day extension 40th Street West at H-8. This is approving 156 homes of R-7000 zoning. Another firm was approved for 66 home on R-10,000 zoning at 35th Street West at K-4. The same firm is getting another 39 home approved near this parcel. Another 40 acre parcel at 15th East at H-8 was approved for a 60 day extension on 151 homes also zoned R-7000. These extensions are currently only approving the tract map, so building doesn’t appear to be around the corner, but it looks positive that these firms are moving their plans forward for future housing development. It these all move forward then that is at least 550 new homes on the horizon. This will certainly put a dent in housing inventory. Stay tuned for future updates on these new developments.

SpaceX has Awarded MIT Team The design Contest for the Hyperloop

The Hyperloop is progressing. In this case it is Elon Musk's SpaceX financed Loop.The MIT grad students won out against a 100 other teams. This design will go into a proto-type in Hawthorne California. The proposed system would use pods traveling in tubes in a vacuum at 750 MPH from Houston to Dallas, or San Francisco to LA. The design is an elevated design above the ground and MIT design has been reported as using magnets. There are now several plans in place and all designed in the US. We will see which one or many work out. This certainly competes with a high speed rail in California which will cost billions. We are still unsure if the Hyperloop is really feasible as it will take a person at 750MPH. Some design include carrying vehicles. Hyperloop people say a person will not realize they are going 750 MPH, but how can it turn? Critics say a person can handle a change even gradual turns or rising and falling without getting sick. If that is the case then a Hyperloop would have to be at the same level from San Francisco to LA. It just seems impossible to be at say 50 feet up all the way since California is not flat. We will see where this goes.

The Hyperloop is coming to Las Vegas

Elon Musk’s radical transport system will be tested in Nevada in 2016. It has been recently reported that the Hyperloop is coming to Nevada for testing. Hyperloop Technologies and the Nevada Governor’s office selected 50 acres in North Las Vegas at Apex Industrial park to test out the prototype system. This proposed system will reach speeds to 700 plus MPH or San Francisco to LA in 30 minutes. This system will be tested by in Las Vegas. A rival test will be done by a separate company Hyperloop Transportation Technology north of Los Angeles. The Hyperloop plan will be elevated above ground and it will carry tubes powered mainly by solar energy. There may be some hic-ups in the engineering, but Elon Muck Hyperloop Technologies and the rival LA group Hyperloop Transportation Technology are both pushing this technology forward. There always seems to be a reference of the SF to LA, but this could work Dallas to Houston, or maybe NY to Washington. It is a rival to the California High Speed Rail and the Xpress West High Speed train from Los Angeles (Victorville to Las Vegas). The Cal High Speed Rail has broken ground in the Central Valley, but there are not enough funds currently to move it along to Palmdale. The Hyperloop has estimated that the cost per passenger from SF to LA maybe under $30, while the high speed rail will need $billions to complete will cost more per passenger. Let’s let this play out and see whose technology and if the State and Federal Government will approve a Hyperloop since they have already spent money and have voter approval on the Rail line.

New Positive Jobs News on the Antelope Valley Horizon

Northrop Grumman was awarded the “B3” new stealth bomber contract, but it is under appeal by Lockheed and Boeing. Lockheed also has a presence in Palmdale, if there is any change maybe Lockheed will get some input. The entire bidding process takes time, so it looks like Northrup will get the bid unless there was any illegal backdoor deals. But there is no evidence of that. Additionally, BYD is building electric buses and expanding their footprint in other cities and States. Also Kinkishiryo which is also in Palmdale has been building some rail cars for the Metro Rapid Transit system. They were going to pull out of Palmdale at one point, but tempers and accusations cooled. There are several solar power facilities taking place on the west side. These projects are being built and jobs are operating. Once the conduction faze is complete then many of those construction jobs will be gone. But it seems as soon as a project is completed then another one gets started. The sun keeps shining on solar in Lancaster and LA County land. More engineering jobs like these especially the new stealth bomber and the bus and train construction and manufacturing creates a need for housing in ownership and rentals. This all increases the value of land over time. This is all positive news for real estate and land investment.

Chinese Buyers are Buying Real Estate Across American and Beyond

The New York Times recently reported that Chinese buyers have been buying luxury high end apartments in London wealthier neighborhoods in Vancouver Canada and luxury condos in New York City and larger home in the Silicon Valley. These buyers are buying higher end properties in major cities which doesn’t affect the overall real estate market, but it does in more dense populated areas like New York and San Francisco. This pushes residences in these cities to pay more for living space and pushes up rent. These Chinese purchases make up a small amount of the overall sales in the United States. This is a disproportion of their money in high end properties according to the NT Times. They have bought one in every fourteen homes in the $1million plus range in New York. They are also buying land in the Antelope Valley. There are real estate agencies and marketing firms promoting fee simple properties in the Antelope Valley. Land has no maintenance needs so the buyer can sit and wait and just pay the property taxes. Larger condo’s need maintenance, HOA fees and security. The Chinese government doesn’t allow long term ownership of property in China. It is usually for a period of years, so property can’t be passed on to children. Additionally, in China land has to be development. This is partly why there are ghost cities in China, since the land was bought but requires development in a period of time in order to retain the property. This is why land within the path of growth that can be pass onto offspring is so enticing. The Chinese stock market and government cannot be trusted to provide security in an investment. This new overseas investment is helping property values in Lancaster and Palmdale especially closer in property to development.