Los Angeles Housing Market: Trends & Prices
Los Angeles Real Estate Market Overview
(Last Updated – 11/2021)
The City of Dreams has been continuously hyped over the years thanks to its eternally bustling film industry. The idea that Los Angeles offers glamour and excitement will probably never fade, though there are many reasons to appreciate LA aside from the silver screen.
You’re just hours (if not minutes) away from beaches, mountains, and theme parks, as well as countless museums and restaurants. And who could forget the sun? On average, the city receives 284 sunny days a year — which could be part of why as of October 2021 the median sale price in Los Angeles had risen to $909,000.
If you’re planning to go Hollywood, get ready to spend a lot of time in the car. LA was named the fifth worst city for traffic in the United States. Still, the average one-way commute of the nearly 4 million residents is only around 30 minutes.
According to the 2019 census, 36.8% of Los Angeles residents had bought property in the city, so it seems they find the traffic a fair tradeoff for all the opportunities the city has to offer.
Overall Los Angeles Market Trends
The Los Angeles housing market shows that the City of Angels remains a desirable place to live. Currently, home prices are up about 6% since last year.
The Los Angeles real estate market is considered to be somewhat competitive, with homes on the market typically selling for 3% above list price.
$909,000
Median Sale Price
$597
Avg. Price Per Sq. Foot
37 days
Avg. Time on Market
Los Angeles Housing Market Forecast
If you’re looking to make an offer on a home in Los Angeles, you may have to move quickly, as most listed homes sell in roughly 39 days, compared with 43 days a year ago.
Los Angeles home prices vary greatly by neighborhood but have gone up in the past five years, and experts predict the trend will continue in 2022.
How Hot Is the Los Angeles Housing Market?
Homes in Los Angeles are currently selling at 3% above list price on average, with some getting multiple offers. Popular homes can sell for roughly 8% above the list price in under three weeks.
Experts forecast that the Los Angeles real estate market will cool down somewhat after hitting record highs this past year. However, inventory remains low, so while recent trends indicate that the market is becoming less competitive for buyers, experts say it remains a seller’s market. LA homes may still see multiple offers, and average prices will likely rise over the next year.
The cost of living is high in Tinseltown, at roughly 49% above the national average, according to the Council for Community and Economic Research’s 2021 Q2 Cost of Living Index. That is to be expected in the second-largest metro area in the United States, though, and will likely not deter motivated buyers who want to call LA home.
Demographics of the Los Angeles Market
From Beverly Hills to Malibu, you’ll find plenty of career and recreational opportunities in greater LA. The beautiful weather combined with the allure of Hollywood makes this one of the most exciting places to live in the country.
Almost 4 million people call Los Angeles home, and over 2.5 million people work in this sprawling city. LA isn’t generally pedestrian-friendly, so the average household owns two cars. Be prepared to sit in some traffic, but the entertainment, food, and art offerings will be worth it.
Median Income: $62,142
Median Age: 35.9
College Educated: 34.4%
Homeowners: 36.8%
Married: 41.3%
Popular Los Angeles Neighborhoods
There are countless neighborhoods to choose from in Los Angeles, so you’re likely to find the right fit for you.
More than half a dozen regions make up Los Angeles, and each region contains many smaller neighborhoods worth exploring. Keep reading for breakdowns of some of the most popular neighborhoods in LA.
Westwood
Take advantage of all the benefits of living near a college campus without paying the pricey tuition. Westwood is home to UCLA, and therefore offers great restaurants, shops, and stores — many of which are within walking distance.
Quick Facts
Population:
50,433
Median Age:
22.6
Housing Units:
19,067
Bike Score:
55
Walk Score:
69
Transit Score:
65
Average Household Income:
$105,255
Westwood Housing Market
Housing prices in Westwood are higher than Los Angeles’, with the current median sale price of $1.3 million. Even so, this did not seem to deter buyers. Home values in this neighborhood are up 4% compared with last year.
On average, houses are currently on the market for 50 days and sell for roughly the list price.
Median Sale Price
$1,259,000
Average Price Per Square Foot
$733
Downtown
Downtown Los Angeles is a great location to live and work, especially if you’re passionate about the arts. Enjoy the chic Arts District and all of the galleries and museums it has to offer. Not to mention, you’ll be right next to Union Station, which makes getting around a breeze.
Quick Facts
Population:
59,180
Median Age:
39.2
Housing Units:
33,151
Bike Score:
78
Walk Score:
93
Transit Score:
98
Average Household Income:
$64,869
Downtown Housing Market
Home values in Downtown LA are up compared with last year, but this area is not considered very competitive. Houses sell for roughly 2% below list price and stay on the market for an average of 59 days.
Median Sale Price
$589,000
Average Price Per Square Foot
$639
Silver Lake
This hip area of Los Angeles is known for its indie music scene, modern restaurants, and fun bars.
Young people will love this neighborhood, but families will also find some good schools to choose from.
Quick Facts
Population:
31,582
Median Age:
36.2
Housing Units:
12,988
Bike Score:
51
Walk Score:
80
Transit Score:
54
Average Household Income:
$105,856
Silver Lake Housing Market
The average sale price in Silver Lake was up 26% in a year and is currently well above the Los Angeles average. Homes sell for about 7% above list price and stay on the market about 34 days.
Median Sale Price
$1,587,000
Average Price Per Square Foot
$942
Venice
Why not relax and head to the beach? If you love the surf and sand, then Venice might be the neighborhood for you.
This area has maintained the arty, hippie vibe it’s known for while modernizing at the same time. You’re guaranteed to have a blast people-watching at the boardwalk each weekend.
Quick Facts
Population:
28,522
Median Age:
39
Housing Units:
16,917
Bike Score:
85
Walk Score:
83
Transit Score:
53
Average Household Income:
$156,504
Venice Housing Market
Venice has been a popular neighborhood for decades in Los Angeles, and that doesn’t seem likely to change in the near future.
Current home prices are up 1.6% compared with last year. The average house sells for about list price and stays on the market for 66 days.
Median Sale Price
$1,930,000
Average Price Per Square Foot
$952
Sherman Oaks
If you’re intrigued by glamorous, old-Hollywood architecture, Sherman Oaks might be a great neighborhood for you.
You’ll cross paths with iconic roads like Mulholland Drive and Ventura Boulevard. Plus, the area has 1930s charm, perfect for putting down roots.
Quick Facts
Population:
69,214
Median Age:
38
Housing Units:
32,228
Bike Score:
52
Walk Score:
62
Transit Score:
44
Average Household Income:
$134,121
Sherman Oaks Housing Market
The Sherman Oaks housing market is considered somewhat competitive. After a year of highs and lows, prices ended up about the same as when the year started. Average homes sell for about 3% above list price and stay on the market 34 days.
Median Sale Price
$1,182,000
Average Price Per Square Foot
$602
SoFi Home Loans
It’s easy to see why Los Angeles remains attractive for homebuyers. There’s a wide array of neighborhoods to choose from, whether you’re young and single or have a family to look after.
If you think LA could be your home sweet home, then you may need to consider different mortgage loans during your home buying process.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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