The real estate market in Los Angeles is expected to remain slightly biased towards sellers, due to the dynamics of supply and demand. Los Angeles has more high-income renters than San Jose and San Francisco, and home prices in the city are below the national average. According to HousingWire, Los Angeles is the least affordable city in the country, and many younger residents worry they will never be able to purchase a home. Detached single-family homes, duplexes, townhouses and apartments are all common types of housing in Los Angeles.
Analysts predict that home prices will not drop, but the rate of increase will moderate. CoreLogic's recent report shows that home prices in Los Angeles County have been declining. Investment properties in Los Angeles can be profitable due to good cash flow. The city's Department of Housing and Community Investment reports that there are over 600,000 apartments spread across 118,000 properties in Los Angeles alone.
Retirees who plan to move to Los Angeles and buy a property to rent out are ideal tenants. The Los Angeles housing market is notable for its large military population, but a labor market so diverse that closing a base won't hurt housing prices in the area. Affordability is a major issue in Los Angeles County, with nearly three out of four residents unable to purchase a mid-priced home. It is likely that a total recovery of around 110,000 annual home sales will occur after 2025, when end-user demand in Los Angeles County is reinforced by a large influx of baby boomers and first-time homebuyers who are attracted by the recovery of employment.