Los Angeles Investment Property for Sale - 2023 Rental Home Appreciation
The Los Angeles real estate market is considered one of the best markets for homeowners and real estate investors. Like Chicago and New York City, LA is considered a “gateway” market because of its stability and health.
Southern California’s weather, natural beauty, and job opportunities have attracted people and businesses to the Los Angeles area for years. This, in turn, has created a steady, stable real estate market with limited inventory, high demand, and high appreciation. Unfortunately, it’s also made Los Angeles one of the most expensive markets for individual investors to enter.
Fortunately, we’re here to help real estate investors break into high-performing markets like Los Angeles and earn a great return on investment.
Los Angeles's Attractive Housing Market
Think of Los Angeles; you’ll likely envision Rodeo Drive, movie studios, and celebrity sightings. But there’s more to LA than Hollywood, sprawling Beverly Hills mansions and beachfront condos in Venice Beach.
Real estate investors can find nearly everything from condos to single-family homes and multi-family housing in Los Angeles’s property listings.
Los Angeles is home to many great neighborhoods and suburbs for investors. They include Highland Park, Inglewood, Pasadena, Santa Monica, and Silver Lake.
- Highland Park: Highland Park is in northeast LA, about halfway between Downtown Los Angeles and Pasadena. It’s a highly walkable neighborhood known for its diversity of people, restaurants, and venues. The median listing price in Highland Park is $800/sqft, and the median sales price is $1,050,000. The median rent is $3,200/month.
- Inglewood: Inglewood is in southwest LA. It’s home to SoFi Stadium and The Forum and is considered one of LA’s more affordable neighborhoods. The median listing price in Inglewood is $552/sqft, and the median sales price is $717,450. The median rent is $3,680/month.
- Pasadena: Pasadena is a suburb of Los Angeles located about 10 miles northwest of Downtown LA along Highway 110. It has a small city feel, many trees, and a diverse demographic. The median listing price in Pasadena is $719/sqft, and the median sales price is $1,115,000. The median rent is $3,750/month.
- Santa Monica: Santa Monica is located along the Pacific Coast about 16 miles east of Downtown LA along I-10. It’s known for its natural beauty and is home to one of California’s most iconic beaches. The median listing price in Santa Monica is $1,140/sqft, and the median sales price is $1,700,000. The median rent is $4,930/month.
- Silver Lake: Silver Lake is a residential and commercial neighborhood in east LA between Echo Park and Los Feliz. It’s known as an artsy, eclectic neighborhood that attracts young professionals. The median listing price in Silver Lake is $892/sqft, and the median sales price is $1,500,00. The median rent is $4,000/month.
A few other areas of note are Ventura, a coastal city known for its beaches and historic Main Street; Wilmington, a historical neighborhood that’s considered the gateway to Los Angeles; West Hollywood, home to the famous Sunset Strip. No matter your taste, Los Angeles has something for everyone.
Rental Home Appreciation in Los Angeles
Los Angeles’s continued and sustained population growth has always generated a high demand for rental properties. As a result, Los Angeles has a robust rental market with 55% renter occupancy, and the vacancy rate is 3.5%.
According to Realtor, the median listing price in Los Angeles is $651 per square foot with a median sale price of $998,000. Zillow’s Home Value Index reports a +17.1% change in property prices since last year. The median rent in Los Angeles is $4,000 per month. Homes for sale typically sell in 46 days.
With numbers like that, the Los Angeles housing market presents many opportunities for real estate investors and property management companies to earn rental income.
Economic Growth in Los Angeles
Los Angeles has one of the most diverse and fastest-growing economies in the U.S. The city’s primary industries include entertainment, technology, fashion, international trade, and education.
LA’s largest employers include The Walt Disney Company, Kaiser Permanente, AECOM Technology Corporation, and the Los Angeles Unified School District. These employers provide stability and jobs that attract new residents.
Add 280 days of sunshine each year to LA’s natural beauty and strong economy, and it’s no wonder people are constantly drawn to the “City of Angels.”
Want to invest in a Los Angeles rental property? Sign up with Arrived to discover how we make real estate investment easy and affordable.