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Los Angeles’s Market Landscape

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When people talk about Los Angeles they talk about the sprawling landscape, not a city skyline. This is mostly due to the fact that when people talk about Los Angeles they are talking about the county and not the city, which is where Los Angeles greatly differs from other American cities.

Due to the far reaching corners of what is generally considered Los Angeles, roughly 50% is made up of single family residences and that number will not go down unless there are major rezoning laws passed. This is not impossible, this Curbed article goes further in depth in the history of zoning and housing in Los Angeles and how it was not always this way. But that is how it is now and a lot of people like it that way, or at least the image of it: residential streets lined with palm trees, wide streets with sidewalks, and well kept lawns.

And for homeowners, we like to keep it this way. But the issue at hand lies in the fact that housing is scarce in this ever-growing landscape. A new study shows just how unaffordable Los Angeles is becoming, not just to purchase but to rent as well. On average, a median household income is contributing 47% towards housing. Nor does it help that Los Angeles is where Millennials want to be and thus, moving into the city from all over.

It will be interesting to see what changes the housing market will undergo in the near future, if any at all, but the current situation is ripe for a change. Housing is expensive and limited yet people keep flocking into this city, it’s practically a textbook example of supply and demand and right now the suppliers are happy.

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