Real estate is one of the most effective financial asset classes you can invest in to stave off the effects of inflation. The higher the value of the assets, the better protected you’ll be against rising prices. After four decades in real estate, you trust Christina’s assessment of the best markets for your investments.
Investors interested in securing assets in these markets should consider investing in Malibu, California, real estate.
Choose Malibu Real Estate
Inflation continues to rise globally in the United States, with no indication that it will slow down soon.
With increased economic uncertainty quickly approaching the horizon, now is the ideal time to make financial investments that protect your assets for the future.
Malibu should be at the top of your list if you need square feet in high-value CA real estate to bolster your portfolio.
Where Is Malibu?
Malibu is a southern California city that follows the state’s most scenic highway: the legendary Route 1.
Just 30 miles from downtown Los Angeles and bordering Santa Monica to the west, Malibu is one of the country’s most sought-after real estate markets. It’s tucked between the Santa Monica mountains to the north and the Pacific Ocean to the south, making the city of Malibu almost exclusively a coastline locale.
Its closest eastern neighbors include some of Los Angeles’ hottest neighborhoods. Santa Monica, Beverly Hills, the Pacific Palisades, and Venice are short drives down Route 1 into the city.
California boasts many coastline locations, but the morning views in Malibu are in a class of their own, offering some of the best real estate the Golden State has.
Why Are People Moving to Malibu?
- Great location
- World-class cultural amenities
- Great schools
What Makes Malibu Such a Great Location?
While the thousands of people moving to California yearly do so for a wide range of reasons. While it’s impossible to pinpoint the singular reason people flock from New York, Chicago, or Boston, most everybody puts the sunny weather, the beaches, and the beautiful scenery at the top of their list.
Malibu is rich in natural beauty.
Its location right on the Pacific Coast offers world-class beaches and incomparable vistas. The Santa Monica mountains loom large to the north, offering residents a vast expanse to go hiking, explore, and drink in the California landscape.
Malibu’s Location Strikes a Perfect Balance
Malibu is far away enough from the bustle of the Los Angeles metropolitan area to feel like a secluded, coastal haven but close enough that residents can casually take a trip into the city at a moment’s notice.
Its relative proximity to Los Angeles’ airports like LAX means that Malibu residents have a wide range of travel options just a short distance away.
Residents can enjoy all the benefits of living in Malibu in an urban and suburban environment. This prime location is one of the main reasons that real estate agents and brokerage services alike love finding new listings in Malibu.
What Is There To Do in Malibu?
Its proximity to the Los Angeles metropolitan area means Malibu residents can take advantage of all the cultural offerings available in Los Angeles. But more importantly, Malibu presents residents with plenty of activities, cultural amenities, and things to do right in their backyard.
Malibu has a rich history in the surfing scene, going as far back as the 1920s. Residents can head to the beaches to relax, catch some waves, or investigate cultural landmarks contributing to the strong surf culture nurtured on the Malibu shoreline.
The dining scene in Malibu is top-notch. There is a diverse range of options available in Malibu—seafood places are trendy in the area, given its coastal location.
Malibu is a shopper’s paradise. Some of the most iconic brands in fashion have exclusive boutiques throughout the city.
The Santa Monica mountains to the north and the surrounding state parks offer locals some of California’s best hikes. Climbing the nearby hillsides rewards intrepid hikers with breathtaking views of the Pacific Ocean and the city of Los Angeles.
Malibu Is a Fulfilling Place To Live
Malibu draws in eager crowds between the rich cultural history, gorgeous vistas, outdoor activities, and dining scene.
The beaches alone are enough to sell people on Malibu property.
Businesses and residents alike thrive in Malibu, contributing to the premium status of the city’s real estate market.
How Family Friendly Is Malibu?
The strength of its family-friendly amenities often drives real estate.
For one, it has a top-quality school system. Malibu operates in the Santa Monica-Malibu Unified School District, one of the top school districts in the entire state. Malibu is densely packed with high-performance schools for an area its size.
These are a few of the schools in Malibu:
- Webster Elementary School
- Our Lady of Malibu School
- The Sycamore School
- Point Dume Elementary School
- Malibu High School
- Cabrillo Elementary School
- MUSE Global School
- Malibu Methodist School
In addition to the robust school system, Malibu is also home to a prestigious college. Pepperdine University is one of the most elite schools in the country. Founded in 1938, Pepperdine has remained one of California’s most attractive universities for almost a century.
A Great School System Makes Malibu Real Estate More Valuable
High-performing school systems make a location more attractive to families looking to put down roots. This, in turn, translates into a more competitive real estate market; families want to rear their children in a stable educational environment.
The schools in Malibu make it a lovely place to live. The school district here boosts an already hot real estate market.
Want to learn more about the forces driving property values? Check out our educational materials.
What Are the Population Demographics of Malibu?
To truly understand the forces driving the real estate market in a given area, investors must know about the people living there. Real estate is more than just the buildings, the people, and the businesses in them.
Let’s dive into the key demographics of Malibu’s population to understand why this real estate market is so valuable.
Malibu is home to 12,280 people — a relatively small population compared to even the more modestly sized neighborhoods of the nearby Los Angeles metropolitan area. However, the population density is low, meaning that Malibu homes benefit from relative seclusion with plenty of personal space.
The median age of Malibu residents is 51 years old, though the median age appears to be decreasing.
Most residents live in a family household, about 62% compared to the 38% of non-family households in the city. Just under a quarter of Malibu households have children, 22%.
The majority of Malibu residents are married, 52%. The next largest demographic of Malibu residents based on marital status are folks who haven’t married: 30%.
Malibu is a highly affluent area.
The median household is $162,716. The average household income is considerably higher at $270,291.
Income is relatively equal across age groups. 22 to 44-year-olds have a median yearly income of about $170,000. 45 to 64-year-olds have a median income of about $184,000. Folks over 65 have a median income of $139,000.
Property can be expected to remain generally stable with such high-income levels in the resident population. With more capital in the area, the more secure the baseline value of the local real estate market.
Of course, Malibu, like other places, offers a variety of home types, from equal housing opportunitytownhomes and townhouses with less square footage to the massive properties near Malibu Rd.
The majority of the Malibu workforce is employed in white-collar fields, 92%. The remaining 8% do blue-collar work.
Of that white-collar workforce, the majority work in the private sector at 47%. The next largest demographic in the white-collar workforce are self-employed entrepreneurs or business owners at 39%.
Nonprofit workers make up 11%, and government employees make up 3%.
The robust, white-collar workforce adds high stability to the Malibu real estate market. High-income earners in these fields allow for more capital circulation throughout the local economy, which seeps into Malibu’s real estate.
What Are The Real Estate Trends in Malibu?
- Property Value
- Number of Housing Units
- Average Listing and DOM
The median listing price for Malibu homes is $4,900,000; that’s about $1,500 per sqft of real estate—some of the most highly valued in the entire state.
The listing price for Malibu homes is trending upwards from last year. Homes were listed 5.9% higher than they were in 2021.
The median sales price is slightly below the listing price, at $4,400,000. However, the sales price is increasingly approaching the list price. Investors can take advantage of the current buyer’s market for Malibu real estate by getting in now.
Housing Units in Malibu
There are currently 7,381 total housing units in Malibu. The homeowners occupy the majority at 78%. The remaining 22% of housing units are rented out to tenants.
Most of the housing in Malibu was built in the 1970s, with 1,953 units built in those ten years. Since then, development has decreased precipitously. Only 964 new units were built in the 80s, 746 units in the 90s, 494 in the 2000s, and 191 in the last decade.
The lack of new housing in Malibu increases the scarcity of the already existing pool of units, driving up their prices. This decreased level of development keeps property values stable. Demand is rarely exceeded by supply enough to tank property values in Malibu.
Average Listings and DOM
There are currently 318 homes for sale in Malibu and 265 homes for rent—that’s about average for the city.
The number of homes for sale ranges from 40,000 to 225,000,000, one of the most extreme divides in all of southern California.
The median days of the market for Malibu property are 68 days. A year and a half ago, it was almost twice that, indicating Malibu property is going fast in this buyer’s market.
The Future of Malibu
Malibu has blue chip real estate assets that can reliably be expected to increase in value over time. The current buyers market in this highly exclusive area may not last. Sales prices are increasingly approaching the listing price.
With prices on the rise, the value of Malibu property is likely to rise with it.
As the economy becomes increasingly weak, you can count on the real estate assets in Malibu to protect your portfolio.
Invest With The Best
Malibu is a challenging market to invest in as an individual.
The real estate team at Christina has the skill set, the knowledge, and the network to help you access the most lucrative real estate assets on the market.
Get started today and protect your portfolio for tomorrow.