The area encompassed by Pico-Union was developed as a middle and upper middle class residential district beginning in the 1910s. Easy access to downtown Los Angeles and the nearby Wilshire District drew large numbers of affluent homeowners. Following the Second World War, the Pico-Union area, like many inner city neighborhoods, experienced an outflux of residents to the suburbs. The loss of residents and business led to high vacancy rates and lower property values in much of the neighborhood by the 1960s.