By ROXY AYALA | Special to the Palisadian-Post
In the glamorous world of Hollywood, what happens behind the scenes can have surprising effects on the real estate market.
The Writers Guild of America, known for its powerful role in the entertainment industry, holds the pen that writes more than just blockbuster scripts. Let’s dive into the less academic side of things and explore how the WGA’s actions can send shockwaves through the real estate landscape.
Strikes and Real Estate Turbulence
Imagine your favorite TV show suddenly put on hold or a highly anticipated movie delayed indefinitely. That’s the kind of chaos that happens when the WGA decides to strike. These strikes cause a ripple effect, affecting not only studios but also the real estate market.
With production delays and financial uncertainty looming, potential buyers and investors get cold feet. They prefer to wait until the storm passes before committing to major financial decisions.
As a result, sellers might have to lower prices or hold off on selling their properties, while developers may delay new projects until the entertainment industry gets back on track.
Impact on Local Economies
When the WGA sneezes, cities like Los Angeles and New York catch a cold. These entertainment hotspots heavily depend on the industry’s success, and any disruption in the WGA’s world can spell trouble for the local economy.
In these regions, real estate markets and the entertainment industry dance a tango. When the WGA is strong and the entertainment business is booming, the demand for housing and commercial spaces soars. But when the industry faces a rough patch, the real estate market suffers, too.
It’s like a domino effect, impacting everything from property values to rental demand.
 The Great Migration of Writers
When the WGA fights for its rights, it can cause a shift in writers’ location preferences. Writers may seek cheaper housing options or move to cities that offer a better quality of life.
Cities with thriving entertainment scenes and strong WGA presence become magnets for industry professionals. This surge in demand can lead to skyrocketing property prices and a scramble for housing.
On the flip side, cities that lose their appeal, due to high costs or unfavorable working conditions, may experience a real estate downturn.
 Lights, Camera, Urban Development
Lights, camera, action—and real estate development.
When the WGA and the entertainment industry flourish in a city, real estate developers hop on the bandwagon. They invest in creating more housing, commercial spaces and infrastructure to cater to the growing population of entertainment professionals.
However, if the WGA’s actions lead to a talent exodus, developers may hit the pause button. This could mean underutilized properties, and changes in the look and feel of certain neighborhoods.
Conclusion
Beyond the glitz and glamour, the Writers Guild of America wields significant power that influences the real estate market in surprising ways. Strikes and economic uncertainty can cause turbulence, impacting property values and demand.
The WGA’s actions also play a part in shaping location preferences, leading to migration trends that affect housing markets. Lastly, urban development decisions often follow the entertainment industry’s trail, for better or worse.
For all the real estate players out there, understanding the influence of the WGA can be a game-changer. By keeping an eye on Hollywood’s script, they can navigate the waves of change, and make savvy decisions amid the lights, camera and impact.
Roxy Ayala is a sales partner at Amalfi Estates, whose team has sold over $2 billion in properties and was selected by the Wall Street Journal as one of the top 10 teams in the country out of one million agents. If you are thinking of buying a home or selling your own, contact Ayala at 310-694-0593 or roxy@amalfiestates.com.
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