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Thinking about buying property in Los Angeles? 2025 could be the perfect time.
With steady demand and a resilient market, this year offers great opportunities to secure your spot in one of the nation’s most coveted housing markets.
Let’s explore why now is the time to make your move in LA.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Los Angeles housing market is growing (4% increase in median home prices to ... $1 million)
In 2024, Los Angeles experienced a 4% increase in median home prices, reaching $1 million.
This steady growth indicates a stable real estate market with healthy demand, suggesting continued appreciation.
The 4% rise reflects buyer and investor confidence, signaling a robust environment for property value increases.
This trend suggests 2025 is an opportune time to buy, as investing now could yield significant returns.
Current trends indicate it's a strategic time to enter the Los Angeles real estate market.
Source: Redfin
- Yes, Los Angeles is still a good place to invest in real estate in 2025
We created this infographic to show how property prices in Los Angeles compare to other big cities in California. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
2) Los Angeles' Home Affordability Index is currently at 16%, which is good
In 2024, Los Angeles' Home Affordability Index remained at 16%, indicating many households could afford a median-priced home.
With forecasted mortgage rate decreases, the index is expected to improve, enhancing homeownership accessibility.
This is promising for 2025 buyers, as stable affordability and lower rates make purchasing more feasible and financially sound.
If considering real estate, 2025 offers favorable conditions.
Source: California Association of Realtors
- Renting (and not buying), in Los Angeles, is a better idea in 2025
3) Los Angeles now has a very low rental vacancy rate (4.9%)
As of Q3 2024, Los Angeles had a rental vacancy rate of 4.9%, consistent with the previous quarter and slightly above 4.4% in Q1 2023.
This low rate indicates strong rental demand, beneficial for real estate investors seeking reliable tenants and steady income.
With high demand reducing vacancy risks, 2025 is an opportune time to invest in Los Angeles property, promising stable or appreciating values and potential long-term growth.
Source: Kidder
- Yes, running an Airbnb in Los Angeles is profitable in 2025
4) Los Angeles has, as of now, a 3.6-month housing inventory, which is very low
In 2024, Los Angeles had a housing inventory of about 3.6 months, below the balanced market range of 4 to 6 months, indicating a competitive market with more buyers than available homes.
This suggests strong demand and potential for rising property values.
Thus, 2025 is a promising time to invest in Los Angeles real estate, as current conditions favor property value appreciation, offering a good return on investment.
Source: Norada Real Estate Investments
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5) Los Angeles is issuing fewer and fewer housing permits (-5.3%), and less supply means higher prices
From January to September 2023, Los Angeles issued 11,437 housing permits, a 5.3% decrease from 2022.
This decline follows a 2022 peak of 23,422 units, including over 7,100 ADUs, indicating a slowdown in housing supply growth.
Fewer permits suggest a tighter housing market, potentially maintaining or increasing property values due to limited supply.
This controlled expansion prevents oversupply and supports a stable real estate environment.
With limited permits, 2025 could be a good time to buy property in Los Angeles, as values are likely to remain stable or rise, making it a promising investment.
Sources: Los angeles City Planning, The Real Deal Real Estate News, Urbanize Los Angeles, Hilgard
6) Employment is currently growing in Los Angeles (+1.1% in 2025)
Los Angeles County's employment growth is projected at 1.1% in 2025, down from 1.5% in 2024, indicating a stable job market that supports housing demand.
This slight decrease reflects a maturing market, beneficial for homebuyers as it suggests economic stability without inflated property prices.
The steady job market in 2025 makes it an opportune time to invest in real estate, with consistent housing demand supporting property values and offering a balance of affordability and potential appreciation.
Source: California Association of Realtors
7) The 2028 Summer Olympics in LA are fast approaching
The 2028 Summer Olympics in Los Angeles are driving significant infrastructure improvements, enhancing the city as a global hub and increasing property demand.
These developments aim to make Los Angeles more connected and attractive for residents and investors.
Upgrades to public transportation, roads, and public spaces are expected to boost property values, making real estate a compelling investment.
With the Olympics drawing attention, demand for housing and commercial properties is rising.
Investing in Los Angeles real estate by 2025 offers a strategic opportunity to benefit from these developments and the anticipated increase in property values.
Source: LAist
Our team designed this infographic to show how competitive the real estate market in Los Angeles is vs. other major cities in California. It shows the percentage of sales above the list price, a key indicator of market competition.
8) The very low foreclosure rate observed in LA means homeowners are financially stable
In the first half of 2024, Los Angeles reported 2,210 foreclosure starts, ranking third behind New York City and Chicago.
This low rate indicates a stable housing market with fewer distressed properties, suggesting less dramatic fluctuations in property values.
A stable market minimizes the risk of sudden value drops, offering a safer investment landscape.
With fewer foreclosures, Los Angeles is less likely to see price declines, making it attractive for real estate investment.
Given these conditions, 2025 is an opportune time to buy property in Los Angeles, promising potential appreciation and solid returns.
Source: Cal Home News
9) New metro lines and transit center boost will boost LA property values
The reconfiguration of the C and K Metro lines and the opening of the LAX/Metro Transit Center Station have significantly improved connectivity between Los Angeles International Airport and city neighborhoods.
This has boosted property values in nearby areas, making 2025 an ideal time to invest in Los Angeles real estate.
The new infrastructure links more neighborhoods to the airport, transforming commuting and enhancing living and working conditions.
Areas once considered distant are now more attractive to buyers and investors, driving up property values.
The improved transportation network is spurring housing demand, promising a strong return on investment.
With ongoing infrastructure expansion, property appreciation potential is high, making Los Angeles a prime investment opportunity in 2025.
Source: Metro
10) The mortgage rate will drop (from 6.6% to 5.9%), making Los Angeles homeownership more affordable
In 2024, the average 30-year fixed mortgage rate was 6.6%, with projections indicating a drop to 5.9% in 2025.
This decline could make homeownership in Los Angeles more affordable by reducing monthly payments and increasing purchasing power.
Buyers could save thousands over their loan's life, allowing them to consider more desirable properties or neighborhoods.
With these favorable conditions, 2025 is an opportune time to invest in Los Angeles real estate, offering potential financial savings and investment growth.
Source: California Association of Realtors
11) The 54-story Olympic and Hill tower has transformed Los Angeles' skyline
The completion of the 54-story Olympic and Hill tower in downtown Los Angeles has transformed the skyline and boosted the area's appeal.
This development symbolizes urban revitalization, attracting interest from homeowners and businesses, and is expected to increase property values.
With the city's commitment to development, 2025 is an ideal time to invest in Los Angeles real estate, offering a chance to capitalize on a growing market.
Source: Wikipedia
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So, is it a good time to buy in Los Angeles? Absolutely, it is!
2025 presents a golden opportunity to invest in Los Angeles real estate.
With a 4% increase in median home prices in 2024, reaching $1 million, the market shows stability and potential for appreciation. The Home Affordability Index at 16% and projected mortgage rate decreases make homeownership more accessible and financially sound. The low rental vacancy rate of 4.9% indicates strong rental demand, ensuring steady income for investors.
Additionally, a 3.6-month housing inventory suggests a competitive market with rising property values. The 5.3% decrease in housing permits points to a tighter market, supporting stable or increasing property values. Employment growth and infrastructure improvements, like new metro lines and the upcoming 2028 Summer Olympics, further enhance the city's appeal. With mortgage rates expected to drop from 6.6% to 5.9%, 2025 is indeed a strategic time to buy property in Los Angeles.