El Segundo is a fantastic little town that has a small town feel that most areas can’t duplicate. While there are an abundance of townhomes and condos, the bulk of the homes are some version of the original beach bungalow. Many have been nicely updated and expanded while some are in fairly original condition.
Unlike neighboring Manhattan Beach, El Segundo hasn’t seen quite the same building boom creating oversized luxury homes and there are several reasons. The primary reason is that values, while having gone up considerably in the past 2 years, haven’t rocketed upwards to the same extent and builders eager to build high end luxury properties may not see the margins and are searching elsewhere.
So will El Segundo see an increase in luxury $2,000,000 homes? It still appears unlikely other than the rare case of a truly special home on an oversized lot in an A+ location. There will be a limited amount of homeowners that simply love El Segundo that build their dream house and at some point those homes will be sold, but it’s very unlikely we’ll see too many luxury spec homes built as the cost of lots/tear down homes, plus the cost of building makes for a challenging investment.