Through economies, good and bad, high-value real estate investments provide you the kind of stability rarely found in other asset classes. With inflation on the rise and a weakening economy on the horizon, real estate isn’t just a sensible addition to your portfolio; it’s necessary.
But with so much real estate to choose from, it can be challenging to know where you should start.
Christina has thrived in the Los Angeles real estate market for over four decades. You can’t find a more lucrative opportunity for high-value real estate assets than in California’s largest city.
Why Do People Move to Los Angeles?
Los Angeles has so much to offer—there’s a reason it’s the biggest city in western North America, and not just in terms of square feet (although LA does have plenty of sqft for prospective home buyers).
While there are a million reasons why people move to Los Angeles, here are four primary reasons Los Angeles continues to draw in talented, upwardly mobile people from across the country and around the globe.
- Entertainment Industry
- Tech Boom
- Great Location
- Great Weather
The entertainment industry is one of the most influential factors in L.A.’s hot real estate market—after all, Hollywood is effectively a placeholder name for the movie business.
Since the early 1900s, Los Angeles has been ground zero for the film industry. Titans of production like MGM, Paramount, and Warner Brothers helped make L.A. the cultural nexus for film and entertainment for decades.
How Has The Entertainment Industry Affected L.A. Real Estate?
With new production studios throwing their hats into the ring, like Netflix, Amazon, and Apple, the competition for studio space remains fierce as more and more companies want in on the bustling entertainment industry.
People the world over flood to L.A. to follow their silver-screen dreams. Investors can count on rental properties to perform well here, thanks to the steady stream of fresh, new faces making Los Angeles their home.
Additionally, real estate agents and home sellers count on the massive people behind the scenes in the entertainment industry. Sure, we all count on producers, writers, CGI artists, and the like for our fun entertainment, but these people also help fill the new listings and open houses in the LA area. From townhomes to mansions, the entertainment industry is a massive draw for realty in LA from townhomes to mansions.
Finally, the glitz and glam of Los Angeles have resulted in some of the most high-value luxury homes investors can find. Iconic neighborhoods like Bel Air, the Hollywood Hills, and Malibu are home to Hollywood’s biggest stars—-the high-value luxury homes in these hyper-prime markets reflect the star power only Los Angeles can muster.
The Growing Tech Industry
Tech companies are becoming the most dominant forces in our modern economy. From information tech companies like Oracle and Google to social media giants like Meta and Snap, Inc, a single tech behemoth can transform the real estate market of an entire city.
The massive influx of the world’s name-brand tech companies that’s been happening in the Westside region of Los Angeles has transformed this already hyper-prime real estate market into an economic powerhouse.
How Has Tech Affected Los Angeles Real Estate?
The Westside region of Los Angeles has grown into a new moniker to reflect the high-tech presence in its seaside neighborhoods: Silicon Beach.
With a name referencing the world-famous Silicon Valley up in Northern California’s Bay Area, Los Angeles has been pulling in tech’s heaviest hitters since 2011, when Google opened up a sprawling campus in Santa Monica.
Since then, dozens upon dozens of big names in tech have followed suit, setting up in Westside neighborhoods like Playa Del Rey, Playa Del Vista, Venice, and Westchester.
The explosion of these highly valued tech companies has profoundly affected the commercial and residential real estate markets in the surrounding area—even neighborhoods outside Silicon Beache’s orbit, like Hermosa Beach and Culver City, are seeing similar boosts to their value.
Here are just some of the tech companies that have set up primary offices in Los Angeles’ Silicon Beach:
- Riot Games
- Snap Inc.
- Electronic Arts
- The Honest Company
- Dollar Shave Club
There’s more to Los Angeles than entertainment and tech. Its location on the Pacific seaboard has made it one of the most important commercial hubs in the western hemisphere.
The port of Los Angeles receives tens of millions of shipments every year. Shipping from China and other East Asian nations passes through the massive ports in Los Angeles, where they are later shipped across the country.
How Does L.A.’s Location Affect Its Real Estate?
Los Angeles needs a workforce to handle receiving and outbound shipping to service the massive stream of goods coming in through its ports.
Furthermore, as fundamental supply chain links, commercial and industrial property is essential in Los Angeles.
Los Angeles has five different airports within its city limits. LAX is the busiest airport on the Pacific seaboard. Its location as the first port of call for inbound shipping and flights from overseas means that the Los Angeles real estate market will always be abuzz.
The allure of its world-renowned weather is at the heart of Los Angeles real estate. Los Angeles living gives residents blue skies and golden sunshine almost every day of the year.
It’s why the film industry is so strong in the city of Angels; it’s why the world’s most affluent people compete for every inch of sq/ft in Los Angeles real estate; it’s why people continue to flock to Los Angeles’ real estate.
Learn More About What Makes Los Angeles Great From Christina
As longtime residents of Los Angeles, our team could say a lot about how much the city means to us. If you want to learn more about the city, including real estate trends that continue to shape real estate performance, check out our education material.
What Are L.A.’s Hottest Neighborhoods?
- Santa Monica
- Bel Air
- Holmby Hills
- Culver City
- Century City
- Studio City
- Beverly Hills
A lot is going on in Los Angeles. With such a high population, going on four million, and an ever-increasing number of people moving, many high-performing neighborhoods provide investors with high potential investments.
Here are a few of Los Angeles’ best-performing neighborhoods:
Let’s give a few of these high-performing neighborhoods, Santa Monica, Venice, and Malibu, a closer examination so you can see how their properties will transform your portfolio.
Real Estate Trends in Santa Monica
Located right on the coast, Santa Monica is one of the Westside’s larger neighborhoods. It’s also one of the prime real estate markets for enterprising investors.
The average home value for Santa Monica property is almost $2,000,000.
Compared to last year, home values have increased by 8.3%. Real estate is on the up and up in Santa Monica. As the epicenter of the Silicon Beach phenomenon and its prime location on the beach, there’s a reason Santa Monica is so highly valued.
With more tech companies moving into the area, property value can rise. The earlier investors enter this prime market, the bigger the potential return.
Average Listings and Total Housing Units
At the moment, there are about 260 homes on the market in Santa Monica, with 346 rentals listed.
Santa Monica has almost 51,500 units of housing. Nearly three-quarters of those occupied are rented out to the tenants, and just over a quarter are owned by the homeowner.
The number of new housing units built in Santa Monica has decreased each successive decade, indicating that the increasingly limited supply will only increase demand and drive up value.
The market in Santa Monica is quite competitive. There’s a strong market for rental properties with many people renting here.
Average Days On Market
Santa Monica homes stay on the market for an average of 49 days.
That’s a precipitous decrease from a little over six months ago when houses averaged up to 82 days on the market.
Property is going faster in Santa Monica. These high-value properties are expected to go quickly, encouraging prospective buyers to jump in on available assets as soon as possible.
Real Estate Market Trends in Venice
Venice has a rich cultural history as a bohemian haven for artists, rock stars, and surfers.
It was already a highly sought-after neighborhood in Los Angeles. With more tech companies moving into the area, this small, seaside neighborhood has become even more valuable.
Property Value in Venice
The median listing price for homes in Venice is $2,500,000—this quaint surfer neighborhood punches far above its size compared to other Los Angeles neighborhoods.
Listing prices for Venice properties are on the rise. As recently as February, the median list price for homes was about $250,000 less.
Given its smaller size, proximity to the shore, and reputation as a chic cultural hub, properties in Venice tend to boast a high value per sq/ft.
Average Listings and Total Housing Units
Venice has 166 homes for sale and 161 properties available for rent.
There are about 17,500 units of housing in Venice. Most units are rented; 64% of them. Homeowners occupy the rest.
Development has slowed down over the past ten years in Venice. From 2000 to 2009, 1,400 new units were built in Venice. In the following decade, barely 750 were built.
With fewer units being developed and a more modest number of rents, rental properties can be hard to come by and generate significant amounts of rental income.
Average Days on Market
Venice homes stay on the market for about 46 days.
Back in January, homes stayed on the market for up to 98 days—property is selling twice as fast in Venice.
With the ever-increasing interest in all the amenities Venice offers, getting in as early as possible here can make all the difference in your portfolio.
The Future of Los Angeles Real Estate
Santa Monica and Venice may well be bellwethers for the future of Los Angeles real estate. They are at the heart of the Silicon Beach neighborhoods. The increasing tech presence in the Westside affects real estate across the city.
Los Angeles real estate is already highly lucrative.
Its location and great weather set a baseline appeal that will always draw in new residents with the increased capital of L.A. On top of the already vibrant entertainment industry, the tech boom could be the beginning of an explosive time in the Los Angeles real estate market.
Invest With The Best
In all our years in the Los Angeles real estate market, we’ve never been so excited for the future.
We’ve delivered high yield returns for our investors through all the ups and downs the economy has been through for the past forty years.
Get started with Christina and invest in L.A.’s bright tomorrow.