The Southern California housing market is hot. Home prices are having been climbing steadily and are at the highest prices since before the 2008 recession. Los Angeles and most West Coast large cities have recovered to near their pre-recession highs. Orange County home prices are now higher than pre-recession peak. It’s a supply/demand story and a story of jobs. People come to LA from all over the world. The place is a world class bonanza for investment opportunity and for jobs. A shortage of properties on the market is lifting prices. The demand for housing is larger than the supply. Available land in the city is scarce. Developers have difficulty finding new projects. They built up rather than out and density increases. Neighborhoods resist more density. Prices and rents have risen faster than incomes. This trend continues. Many people can’t afford to buy so they rent. The question which no one can answer is how long will the current growth cycle last? Nevertheless the LA economic juggernaut continues in full force. People and their money continue to come here in droves.
It has been said by many investors, “Commercial real estate is the number one wealth builder of all time.”