Exploring the Latest Trends in the Los Angeles Real Estate Market

There's a reason that thousands of investors and home buyers are drawn to the Los Angeles market every year. It's not because housing is ultra-affordable, but because the area offers a chance to experience a unique lifestyle unlike anywhere else in the world. It's the art and culture scene, the beautiful people, the glitz, the glamor, the celebrity sightings, the gorgeous weather, and the proximity to the beach that make it such an enticing place to buy property.  

If you're serious about buying property in LA, consider some of the latest trends in the Los Angeles real estate market to help you make a more confident and informed buying decision: 

Increasing Home Prices 
It's no secret that the cost of living in Los Angeles is 51% higher than the national average, but this doesn't stop many serious buyers and investors from buying property here. Real estate has never been cheap in LA, but prices have seemed to skyrocket over the last few years. The average Los Angeles home value is $901,291, which is actually a slight decrease from the year before. The limited supply of housing and low-interest rates contribute to record-high home prices in LA. 

High Demand For Single-Family Homes 
Another factor in the rising home prices in LA is the increased demand for single-family homes. While LA is a great place for apartment living, more and more families are looking for bigger houses with yards and amenities. Remote workers are looking for homes that have space for a home office, and growing families are looking for homes with three or more bedrooms. This growing demand for bigger houses is a major contributing factor to the rising home prices in LA.  

Limited Supply Of Single Family Homes 
Another thing to consider when thinking about buying real estate in the Los Angeles real estate market is the limited supply of properties on the market. Homes don't stay on the market very long, and when they do they typically go for over the asking price. The demand for single-family homes is high, and limited land availability, strict zoning laws, and high construction costs make it harder to add new properties to the market. This is great news for sellers, because it almost always results in a bidding war, and usually means they end up receiving more than the asking price from desperate buyers. 

Booming Luxury Market 
One of the best things about LA is that almost everyone can find a community or a neighborhood that fits their budget and their lifestyle. However, luxury homes are dominating the market, often sporting multi-million dollar price tags. There's been a significant uptick in overseas buyers coming to LA to purchase these extravagant mansions, not to mention the tech executives and celebrities who want to buy a second or third home in one of the most luxurious cities in the world. For buyers and investors in the luxury market, LA is a hot place to do business. 

Demand For Eco-Friendly Properties 
The demand for sustainable and eco-friendly homes is also trending with buyers and investors. This means many buyers are looking for homes that prioritize energy-efficient technology and sustainable living features. Many new construction projects in LA are incorporating these green features and technologies to attract eco-conscious buyers. Solar panels, energy-efficient appliances, and sustainable materials like reclaimed wood are must-haves for many eco-friendly buyers. Along with being better for the environment, homes with these features are linked to lower utility bills, which eventually increase the resale value of the home. 

LA Apartment Trends 
But not everybody comes to La for a big house with a big yard. Many students, entrepreneurs, business owners, retirees, and artists in LA opt for the freedom, convenience, independence, and cost-effectiveness of the modern apartment lifestyle. The trends for the LA apartment market are similar to those of the single-family market. There is an uptick in apartment rental prices, higher demand for luxury apartments, and a renewed focus on eco-living and sustainability.  

Flexible Leasing Options + Luxury Amenities 
Many newer apartments are offering flexible leasing options, to cater to those who can't commit to a traditional one-year lease. Those looking for an apartment to rent in Los Angeles can easily find furnished apartments or apartments with short-term leases. Another popular Trend in the apartment market is the inclusion of higher-end amenities. Most apartments in the city have a clubhouse, pool, and fitness center, but luxury amenities like rooftop decks, co-working spaces, dog parks, and smart home technology are becoming more of the norm.  

Bottom Line 
The Los Angeles real estate market continues to evolve with the times and has remained strong, even with high demand and limited inventory driving up prices. NMS Residential remains one of the premier real estate management firms because of its commitment to researching, understanding, and analyzing current real estate market trends. While LA real estate is bound to go through many changes, one thing stays the same: NMS Residential's unwavering commitment to providing an exceptional living experience for our residents.