The cost of living in Los Angeles is notoriously high, and the lack of affordable housing has caused negative net migration in the area. This has resulted in an annual real estate appreciation rate of 9.42%, placing Los Angeles among the top 10% of cities nationwide. Despite this, many potential buyers are hesitant to purchase a property, leading to a sellers' market with more people looking to buy than there are houses available. The global pandemic has had an impact on investments for all types of real estate investors, but the Los Angeles real estate market stands out due to its large military population.
Retirees who intend to move to Los Angeles and want to buy a property to rent are ideal tenants, as 64% of Los Angeles residents are renters. Location is key when it comes to buying real estate anywhere, and so the value of homes in the Los Angeles housing market could continue to appreciate over the next 12 months, albeit at a much slower rate compared to the last two years. Data from last month showed that Los Angeles County was a sellers' housing market, meaning that there are more people looking to buy than there are houses available. The Los Angeles metropolitan area is a region of 5 that includes Los Angeles, Orange, Riverside, San Bernardino and Ventura. According to NeighborhoodScout, Los Angeles properties have experienced a total appreciation of 200.8% since the first quarter of 2000, representing an average annual rate of 6.1%.
While home prices in Los Angeles may increase slightly over the next year, there are plenty of homes available at fair prices. In conclusion, the Los Angeles housing market still has potential for real estate investors looking to invest in the region. The high cost of living and lack of affordable housing have caused an annual real estate appreciation rate of 9.42%, making it one of the highest 10% nationwide. Despite this, many potential buyers are hesitant to purchase a property due to the global pandemic and other factors. Location is key when it comes to buying real estate anywhere, and so the value of homes in the Los Angeles housing market could continue to appreciate over the next 12 months.
