Prime Los Angeles Real Estate Locations: Where to Invest

Los Angeles, a dynamic city celebrated for its entertainment industry, cultural diversity, and stunning landscapes, houses a real estate market that beckons investors with a plethora of possibilities. Navigating through this vast landscape requires more than just intuition—it demands data-backed insights. 

This comprehensive guide dives into both the numbers and the narratives, unraveling the best places to invest in Los Angeles real estate, along with the compelling data that makes these areas stand out.

If your objective is to enhance your real estate investment portfolio, contemplating an entry into structured debt for commercial real estate presents a prudent strategic choice. How so? The reliable and consistent cash flow stemming from fixed-interest payments forms the foundational underpinning of debt-oriented investments. Irrespective of the oscillations experienced by the market, borrowers persistently meet their monthly commitments. This steadfastness assumes a critical role in safeguarding the enduring worth of these investments across the passage of time.

Top Destinations to Buy Los Angeles Real Estate

1. Beverly Hills: Iconic Luxury and Steady Appreciation

The iconic Beverly Hills remains synonymous with luxury and status. The median home price in this prestigious enclave hovers around $3 million1. Over the past decade, property values have enjoyed an average appreciation rate of 42.3%2. This enduring appreciation combined with its reputation as a playground for the affluent solidifies Beverly Hills as an investor's dream.

2. Santa Monica: Coastal Bliss and Tech Integration

Santa Monica, where the sun kisses the Pacific shoreline, is a compelling fusion of coastal charm and tech innovation. With a median home price of around $2.1 million1, it's a testament to the area's desirability. Moreover, over the last ten years, property values have witnessed a commendable rise of 64.8%2. The proximity to Silicon Beach, the Westside's tech hub, further ignites its allure, making Santa Monica a blend of modern elegance and entrepreneurial vigor.

3. Downtown Los Angeles: Urban Renaissance and Investment Potential

Downtown Los Angeles (DTLA) stands as a testament to urban revitalization. With a median home price of around $690,0001, it offers relatively more affordable options compared to some Westside neighborhoods. DTLA's property values have surged by an average of 56.7% over the past decade2, a testament to its resurgence. The presence of cultural hubs like The Broad Museum and ongoing development projects paints an investment landscape marked by potential.

4. West Hollywood: Trendy Lifestyle and Strong Demand

West Hollywood (WeHo), the trendy heart of LA, boasts a bustling lifestyle, attracting young professionals and creatives. The median home price stands at approximately $1.6 million1. A decade's appreciation of 54.5% underscores the consistent demand for housing in this vibrant locale, promising investment with flair and future value.

5. Silver Lake: Creative Vibe and Increasing Popularity

Silver Lake's artistic energy has made it a magnet for creative souls. With a median home price of around $1.3 million, it offers an engaging lifestyle. Over the last ten years, property values have surged by an impressive 92.3%, establishing it as one of the city's fastest-growing areas. This growth, coupled with its unique vibe, positions Silver Lake as a canvas for creative investment.

6. Playa Vista: Tech Hub and Modern Living

Playa Vista, nicknamed "Silicon Beach," thrives at the intersection of tech and modern living. Boasting a median home price of approximately $1.3 million, it embodies the tech-savvy essence. Property values here have surged by an average of 72.4% over the past decade, mirroring the tech sector's growth. With tech giants and startups in close proximity, Playa Vista promises a synergistic investment environment.

7. Culver City: Entertainment Nexus and Family-Friendly Environment

Culver City, the entertainment nexus, is an alluring blend of industry and family-friendliness. With a median home price of around $1.2 million, it strikes a balance. Over the past decade, property values have risen by an average of 62.7%, a testament to its growth. With major studios and a burgeoning arts scene, Culver City's investment proposition is woven into its rich fabric.

8. Pasadena: Suburban Oasis and Historic Charm

Pasadena offers a suburban oasis rich in history and charm. With a median home price of approximately $1.1 million, it embodies tranquility. Property values have appreciated by an average of 52.6% over the last decade, attesting to its stability. Pasadena's investment appeal lies in its timeless serenity and community feel.

9. San Marino

Situated to the northeast of the city, San Marino is an exquisite suburban enclave of Los Angeles. Renowned for its captivating aesthetics and exceptional educational institutions, this locality boasts a charm that is hard to resist. The spectrum of home values ranges from $1.8 million to $8 million, a range that beckons real estate investors seeking substantial ventures. The average home value in San Marino settles at $2.5 million, accentuating its allure.

Forecast for Los Angeles Real Estate 2023-2024

Source: Zillow

Let's delve into the price trends observed through Zillow, a prominent real estate marketplace. As of May 31, 2023, the Los Angeles-Long Beach-Anaheim area holds an average home value of $885,564. Over the past year, there has been a modest 4.3% decrease in these values, indicating a slight dip in the real estate market. Furthermore, properties in this vicinity typically attract buyer interest and go pending within approximately 13 days, showcasing a rapid-paced market dynamic.

Forecasting Home Values

Analyzing the market data available up to May 31, 2023, a one-year market forecast for the Los Angeles housing sector hints at a 4.3% increase. Despite the preceding year witnessing a dip in home values, the projection envisions a rebound and an upward trajectory for home prices in the upcoming year. It's prudent to bear in mind that market forecasts are subject to multifaceted variables and require prudent interpretation.

Ratio of Sale to List and Price Patterns

As of April 30, 2023, the median sale-to-list ratio in Los Angeles stands at a robust 0.998. This ratio underscores that, on average, homes are fetching prices quite close to their list prices. This suggests a trend where sellers are typically achieving their desired sale prices with minimal divergence from the initial asking price.

Performance in Sales Prices

During April 2023, a notable 42.3% of home sales in Los Angeles were successfully concluded above the list price. This statistic unveils a competitive market environment wherein buyers are willing to pay amounts exceeding the listed price to secure a property. Conversely, around 45.1% of sales transpired below the list price, indicating instances where buyers effectively negotiated a purchase price lower than the initially quoted amount.

Median Duration to Pending

As of May 31, 2023, the median duration to pending for properties is a mere 13 days. This metric signifies the median timeframe within which a property garners an offer and enters a contractual agreement. A relatively low value for median days to pending signifies a swift-paced market, where potential buyers are actively engaging with properties and making judicious purchase decisions.

Bottom Line

The journey to discovering the best place to buy Los Angeles real estate marries quantitative insights with a qualitative appeal. From the luxurious Beverly Hills to the coastal magnetism of Santa Monica, the urban renewal of Downtown LA to the creativity of Silver Lake, each locale tells a unique story. As you tread the path of investment, allow data to guide your choices, but also let the intangible allure of each neighborhood resonate. By amalgamating statistical patterns with the heartbeat of each area, you stand poised to make a discerning investment in the vibrant tapestry of Los Angeles' real estate market.

Assetmonk stands as a thoughtfully curated alternative investment platform, specializing in structured debt opportunities within the commercial real estate realm. Starting at a modest entry point of $12,000, Assetmonk provides tailored and exclusive investment avenues for its esteemed investors.

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Q1. Will home prices drop in 2023 Los Angeles?

A. In contrast to the prosperous market of the previous year, there has been a decline in home prices, as indicated by First American's research. The median home price in Los Angeles for March 2023 was $870,000, marking a contrast to the $912,000 recorded a year earlier, signifying a nearly 5 percent reduction.

Q2. Why are LA housing prices so high?

A. The LA housing prices are so high due to the high demand and limited supply of housing.

Q3. Are housing prices dropping in Los Angles?

A. In June of the previous year, the median home price stood at $860,230. Nevertheless, it underwent a year-over-year decrease of 1.8%, in comparison to June 2022, as reported by the California Association of Realtors.

Q4. Is it a good time to buy property in Los Angeles?

A. As of June 2023, the housing market in Los Angeles County, CA, remains a testament to its vibrancy, featuring a median listing price for homes at $985,000. This represents a significant year-over-year surge of 9.6%. The median listing price per square foot is $629, while the median price at which homes have been sold settles at $852,500.