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Are you thinking of entering the high-stakes Los Angeles real estate market?
As the largest city on the US West Coast and the worldwide hub of the entertainment industry, Los Angeles has always been a prime destination. Nothing’s changed in the post-pandemic Twenties—in fact, the market has only gotten hotter.
So what can we expect in the coming years? Let’s take a look at three emerging real estate trends in Los Angeles.
1. Low Housing Inventory
It’s no great secret that one of the major factors in the Los Angeles real estate market is a lack of inventory.
Things were not helped by the havoc wrought by the pandemic in 2020. Like the rest of the country, Los Angeles CA real estate took a hit in the early part of that year. People put their plans to buy or sell homes on hold during the lockdowns.
Later in the year, and continuing on into 2021, there was an explosion of activity as the market tried to catch up. In the intervening time, however, construction had also halted—and that meant fewer new homes and less inventory.
Los Angeles real estate has always been hot. But the truth is the city has far less inventory than the rest of the country, which is driving home prices skyward. This is a trend that will likely continue into 2022, as competition remains fierce for homes in the median price range.
2. High Prices
So we’ve established that the lack of inventory in the area is causing real estate prices to balloon. Even commercial real estate in Los Angeles is following this trend.
The scramble for new homes that followed in the wake of the pandemic has boosted real estate prices everywhere in the country. But this is particularly true in Los Angeles, where the average listing price is now over $2 million. That’s quite a bit over the nationwide median of around $408,000.
Needless to say, the average real estate agent in Los Angeles doesn’t have to worry about the market drying up anytime soon. Home prices are expected to increase in 2022, largely as a result of supply and demand issues.
An interesting consequence of this trend has also been an increase in “as is” home buyers, like SellersAdvantage, which pay cash for homes regardless of condition.
3. Growing Rental Market
All this brings us to our next trend—the growth of the Los Angeles rental market.
As is the case in many dense, populous areas, renting is more affordable in Los Angeles than buying a home. And the astronomical real estate taxes in Los Angeles only makes this option more attractive.
For investors and homeowners, this is a great way to make money off of real estate investments. Los Angeles is particularly prized by foreign investors, given its global reputation and entertainment industry clout.
Learn About Los Angeles Real Estate Trends
These are three of the most important emerging trends that will affect Los Angeles real estate in the coming years.
It really comes down to supply and demand: in Los Angeles, the supply is low and the demand is high. This is bad news for buyers, but great news for homeowners who are ready to sell.
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