Beverly Hills conjures images of Hollywood glamour, palm-tree lined avenues winding past sprawling mansions, and streets paved with luxury boutiques and cafes catering to the super-rich. This Los Angeles enclave has become a global icon of extravagant wealth and celebrity, but this was not always the case. How did a relatively obscure area of empty farmland transform into one of the most affluent cities in America? This insider guide unveils the strategic expansion, neighborhood annexations, zoning laws, and infusions of Old Hollywood stardust that allowed Beverly Hills to cultivate its aura of fame and concentrate more millionaires and billionaires than nearly any other zip code.
From Barren Land to Boomtown: The Early Days
It‘s hard to imagine given its present-day reputation, but the early days of Beverly Hills were far from glamorous. Founded in 1914 on the largely uninhabited holdings of the Amiscaji-Shalimar Land Company, it was seen as remote and undesirable real estate. However, the growing film industry in nearby Hollywood quickly led to speculation. A number of key figures, like Burton Green, took risks purchasing land and building mansions designed to attract wealthy residents. When these initial mansions succeeded in drawing notables like Douglas Fairbanks and Mary Pickford, more luxury development quickly followed.
By the 1920s Beverly Hills was seeing rapid growth – the population exploded from just 700 to over 17,000 in ten years. However, this was not without controversy. Many areas zoned themselves to prohibit gas stations, apartments, commercial zones or other non-high-end development – effectively restricting affordable options. A stark economic divide emerged between enclaves of wealth abutted by working class districts – the latter often housing support staff and service workers serving Beverly Hills.
This divide only intensified when Beverly Hills strategically annexed a handful of neighborhoods over the coming decades – absorbing communities filled with Old Hollywood mega-mansions and A-list celebrities into the Beverly Hills identity.
Absorbing the Stars: Key Annexations Bring Fame
The Process of Beverly Hills expanding its borders to absorb adjacent luxury neighborhoods took place gradually from 1915 to the mid 1940‘s. Some of the most notable elite enclaves to join the area now recognized as Beverly Hills included:
Beverly Hills Adjacent (1915) – Luxury estates and country clubs including iconic locations like Beverly Gardens Park
Beverly Hills Hotel Area (1925) – Properties surrounding the famed Mission/Spanish Revival hotel attracting early Hollywood stars and tycoons.
Trousdale Estates (1955) – An ultra high-end 405 acre subdivision developed by industrialist Arthur Letts Jr in the 1920‘s. Known for attracting entertainment legends and celebrities.
Greystone Mansion Area (1976) – Including amenities like Greystone Park & Mansion (the Doheny Estate) on over 16 acres of grounds.
These annexations brought with them entire neighborhoods of Old Hollywood mansions, an influx of still more entertainment titans like Mary Pickford and Douglas Fairbanks, and later stars from the golden age like Frank Sinatra, Dean Martin and Elvis Presley.
By absorbing such an affluent tax base, the City of Beverly Hills could afford exceptional municipal services and schools – while actively branding itself ever more exclusively as a home for the rich and famous. Even today, iconic estates in areas like Trousdale regularly fetch prices from $10 million up past $50 million and beyond due to their history and star pedigree.
But while these absorption expanded Beverly Hills‘ geographic footprint and wealth, they also exacerbated divides…
Wealth, Poverty and Exclusion in 90210 By The Numbers
Today, Beverly Hills continues to stand apart as uniquely affluent even within the already wealthy Greater Los Angeles area. But this concentration of prosperity comes with undeniable downsides. Critics contend policies, codes and practices effectively turned Beverly Hills into a bubble – guarded to protect high-income residents from the very masses who support them.
Household Income:
Approximately 34% of Beverly Hills households earn over $250k per year. Compared to just 4.8% statewide and under 3% of households nationally.
Home Prices:
Beverly Hills real estate fetches staggering sums – whether buying or renting. Last year the median home listing price hit $5.7 million, against $1.3 million for nearby West Hollywood or $4 million in Bel Air.
Cost of Living:
UCLA studies show costs in Beverly Hills run 60% higher than the national average. Everything from groceries to utilities to property taxes cost a premium. This prices out all but the affluent.
However, the most stark contrast emerges when comparing the incomes of the richest Beverly Hills households against the majority of LA:
Income Inequality:
Beverly Hills takes the trophy for highest income inequality in all California. Approximately 64% of all household income accrues to just the top 20% of households. Contrast that concentration of wealth to California overall, where the top 20% of earners take home under 50% of all income.
Critics contend this effectively makes Beverly Hills akin to a gated community – guarded by policies, ordinances, construction restrictions and more – deliberately designed to protect property values by keeping out all but the super affluent.
Consider also the demographic contrasts versus more diverse, denser surrounding cities:
Race & Ethnicity
- Beverly Hills: 76% Non-Hispanic White Alone / 14% Asian Alone
- Los Angeles: 26% Non-Hispanic White Alone / 15% Asian Alone
- West Hollywood: 67% Non-Hispanic White Alone / 5.4% Asian Alone
Education:
63% of Beverly Hills adults hold college degrees against 32% nationally and 33% across California. Further evidence of an exclusive enclave.
Unemployment & Poverty
Beverly Hills enjoys one of the lowest unemployment rates in America. Poverty, as defined by California thresholds, sits at just 4.7% against an LA county-wide average of 14.9%
The picture becomes clear. Beverly Hills has strategically crafted policy and ordinances over decades to create one of the most disproportionately affluent single cities in America….for good or bad.
The Mansions of 90210: Exclusivity as Architectural Ivy
The homes of Beverly Hills themselves broadcast this elite status to the world. Extravagant architectural styles rarely found elsewhere in the country proliferate. These include sprawling Italian villas, French chateaus, and Spanish style mansions – often mixing influences into unique fusion luxury estates.
Home Sizes:
The average home size is around 6,500 square feet – dwarfing the nationwide average of under 2,400 square feet. However, it is the significantly larger ‘mega-mansions‘ defined as over 17,000 square feet that have come to symbolize Beverly Hill‘s concentrated affluence. There are approximately 80 of these expansive homes within city limits currently – some reaching past 40,000 or even 50,000 square feet.
For example, consider Chartwell Estate, the former residence of late billionaire A. Jerrold Perenchio. This French Neoclassical estate totals approximately 56,500 square feet on 10.3 acres including amenities like:
- 18 bedrooms & 24 bathrooms
- Several pools/spas + tennis court
- Ballroom with space for 800 guests
- Wine cellar, chandeliers and other Versailles-like features
Originally listed for $350 million, it sold in late 2022 for $195 million to WhatsApp billionaire Jan Koum. It exemplifies both the grandeur of Beverly Hills estates and what buyers are willing to pay to claim 90210.
Celebrity Pedigree:
Ownership of these estates often comes with bragging rights regarding past legendary occupants. From Elizabeth Taylor and Richard Burton‘s seaside villa to Elvis Presley‘s former residence to the Playboy Mansion of Hugh Hefner – homes reach higher prices due to celebrity pedigree.
Example Recent Sales:
- Woodbridge Estate (Richard Wood‘s former mansion) – $51 Million
- The Mountain (9300 sq ft contemporary) – $100 Million
- Owlwood Estate (12 acres formerly owned by Tony Curtis) – $90 Million
Current celebrity residents include Adele, Ashton Kutcher/Mila Kunis, Rod Stewart, Sofia Vergara, Sylvester Stallone, Dr. Dre and many more entertainment, music and business elites.
Ultimately Beverly Hills real estate has morphed into the equivalent of architectural Ivy – estates as exclusive status symbols for owners to flaunt. Which is why one more aspect remains key when unveiling secrets behind the wealth enclave of 90210 – the concept of aspirational luxury itself…
The Allure of the Unattainable: Beverly Hills As Aspirational Luxury
Much of Beverly Hills prestige stems not just from being high-end but from being uncompromisingly exclusive. Consider that true luxury has always involved factors of scarcity and ritual. Across industries, the higher the barrier to access, whether tangible (price) or intangible (connections), the more desirable that product/service becomes. Beverly Hills mansions take this to the extreme.
Like a Birkin bag costing six figures or an haute couture gown in a Paris atelier, part of the appeal lies specifically in the reality that only an incredibly thin sliver of the population can ever dream to partake. This heightens prestige.
Thus while much of LA laments insufficient affordable housing, long-time Beverly Hills residents and developers actually celebrate the deliberate scarcity of properties middle income earners can access here. Gatekeeping the 90210 mystique is considered a feature, not a flaw.
UCLA anthropologist Dr. Elizabeth Currid-Halkett has written extensively on this phenomenon of positional luxury. The elite seek out exclusive zip codes, services and products precisely because their sense of identity becomes intertwined with differentiating themselves from mass/common markets. This insider/outsider divide takes on exaggerated proportions in Beverly Hills where you see literal gates guarding exclusive neighborhoods.
This aspirational secrecy has fueled Southern California dreams for generations from Marilyn Monroe to the latest TikTok stars. So despite controversies around inequality, water usage, vacant homes and tearing down historic architecture – the Beverly Hills aura endures. The very exclusivity fuels desire – whether celebrities paying $100M+ for privacy orsightseers hoping to glimpse the unattainable glitz through the imposing gates. They‘re buying the sheets of goldpacks promise behind the fortress walls.
So while the rest of Los Angeles struggles with homelessness and unaffordable rents, demand for megamansions continues soaring. The Scarface-esque excesses remain Reserved for Cochise selected clientele who can afford such ritzy zipcode. Ironically, rapper 50 Cent once owned the actual Scarface mansion here – such is the marriage of entertainment fantasy and reality in 90210.
Perhaps author F. Scott Fitzgerald said it best regarding the wealth enclaves when he wrote: "The very rich are different from you and me". The culture of Beverly Hills eternity encapsulates this truism for a terrestrial world audience.
Now the final questions become whether anything can slow Beverly Hills‘ rapid growth and ever increasing separation from average Angelenos.
Love it or Hate it: Controversies Plague the 90210
Today, Beverly Hills faces no shortage of scrutiny around topics like inequality, foreign investment, tear downs of historic architecture and lack of affordable housing options.
Critics contend too many zoning codes, property tax structures, building restrictions and other policies effectively subsidize and encourage proliferation of mostly-vacant mansions.
There are an estimated over 1,000 vacant homes across Beverly Hills at any given time – purchased as passive investments rather than actual residences. Outrage has emerged over exemptions given for water use, landscaping and empty swimming pools especially during drought years.
Affordable housing is also hugely controversial. 90210 falls far below state mandated requirements for low income units. But city governance argues there simply isn‘t available land to build affordable options within municipal borders. Detractors claim this is deliberate policy to prevent middle or lower-income families from residing in Beverly Hills at all societal costs.
In 2016 Beverly Hills voters themselves passed a ballot initiative (Prop R) to severely restrict future development of multi-unit properties. It impacts condominiums, apartment buildings and anything not zoned for single family luxury homes.
Supporters considered Prop R necessary to preserve charm, property values and prevent overcrowding.
Critics counter it explicitly aims to exclude all but the richest buyers from accessing housing or renting long term around Beverly & Wilshire.
So what does the future hold for this famously exclusive ZIP Code? Can anything alter the cycles of tear downs and mega mansion proliferation?
UCLA Urban Planning professor Kurt Schneider shared his perspective: "For better or worse, expect the allure and controversy of Beverly Hills‘ concentrated affluence to continue driving conversations around inequality in Los Angeles for decades. Absent significant policy changes, 90210 heads towards becoming akin to the French Quarter of New Orleans – a bubble of historic luxury and fame increasingly detached from average incomes."
The urban planning reality is Beverly Hills straddles only 5.7 square miles – limited space for any serious demographic shifts. If the last century of history shows anything, it‘s that the Beverly Hills city governance structure will fighttooth and nail to restrict development threatening the enclave‘s rarified pedigree.
The forces of global wealth concentration, tech billionaire invasion and foreign investor infusions point towards ever increasing mansion sizes, asking prices and inequality persisting between Beverly Hills haves and Los Angeles have-nots through the 21st century.
Yet the glitz, glamour and aspirational cachet continue mesmerizing audiences worldwide. Rodeo Drive still draws millions, film fans chart bus tours of star maps hoping to glimpse aftermaths of luxury campuses, and mansions like The One and Oppenheim Estate make global headlines pushing price records into quarter billion territory.
So long as the promise of exclusivity and stardust persists, Beverly Hills real estate will keep inviting lionairesclub into this uniquely elite world. The Moorish palaces and Mediterranean villas ensure wealth separation is built into the architecture itself.
For visitors and Angelenos alike, the question is whether you see Beverly Hills as an exclusive urban oasis…or a glittering fortress excluding all but the rich and famous. Either way, the secrets behind the wealth, fame and layer intrigue of 90210 aren‘t disappearing any century soon.